On Friday 16 June, the European Commission published the results from an external study suggesting that organic supply chains create more added value than their conventional counterparts.
The authors of the study qualify their comments by adding “no evidence was found that the relative share of organic farmers in the total added value differs substantially from that of conventional farmers”.
This can partly be explained by similarities of organic with conventional supply chains. It appears that the distribution of added value strongly depends on the structure and characteristics of the specific supply chain, such as level of chain integration and power relations between market players. Investment in quality aspects, increased consumer interest in organic food, differentiation of products as well as efficiency in supply chain management are all relevant factors that contribute to higher added value.
Over the last decade the organic market in the EU has grown faster than the area under organic cultivation, which raises the question to what extent organic supply chains function effectively. Therefore, this study investigated the creation and distribution of added value in a number of organic supply chains in different EU countries. (Original version in French by Lionel Changeur)