Producer organizations (POs) are considered important for rural development in developing and transition countries. Scientific studies on POs mostly focus on their impact, but do not distinguish among different types. However, POs are a heterogeneous group. This paper explores the organizational characteristics that distinguish POs in the vegetables sector of Uruguay. In comparing organic and conventional vegetables chains, we have identified five types of POs and we have investigated their distinct organizational characteristics. We found, first, that POs in the organic value chain are responding to market incentives, whereas POs in the conventional value chain are responding to public incentives. Second, contrary to POs with a focus on social and political activities, POs with economic activities are small, they have a product focus, they require member investment, and they have a high formalization status. Third, POs with output-driven objectives have higher levels of horizontal and vertical coordination than POs with value-driven objectives. Our study contributes to the increasing body of literature on the internal and external conditions that explain the diversity of POs in developing and transition countries.
Purpose The aim of this paper is to study the influence of quality standards on contract arrangements in food supply chains. Design/methodology/approach A qualitative double case study was conducted on the dairy and citrus sectors in Uruguay. A transaction cost theoretical framework was used. All current public and private quality standards applied by processors were studied in relation to contract arrangements between processors and upstream producers as well as downstream buyers for each sector. Findings Quality standards complement contract arrangements for upstream transactions, leading to hierarchy-type contract arrangements. Quality standards substitute contract arrangements for downstream transactions, leading to market- or hybrid-type contract arrangements. Research limitations/implications Longitudinal studies that measure changes in contract arrangements over time are recommended. Practical implications Supply chain actors can reduce transaction costs by aligning quality standards with appropriate contract arrangements – further supported by public instruments. Originality/value Quality standards have differential influence on underlying transaction characteristics, and therefore on contract arrangements, depending on the location of the transaction in the supply chain.
Increased pressures on agri-food systems have indicated the importance of intermediaries to facilitate sustainability transitions. While producer organizations are acknowledged as intermediaries between individual producers and other food system actors, their role as sustainability transition intermediaries remains understudied. This paper explores the potential of producer organizations as transition intermediaries to support producers in their needs to adopt sustainable production practices. Ten cases of producer organizations in conventional (regime) and organic (niche) vegetable systems in Uruguay were studied qualitatively. Findings show that the classic intermediary roles that producer organizations fulfil in food systems also address the needs of producers in their transition to sustainable food systems. By providing organic inputs, organizing access to output markets, sharing knowledge, and facilitating sustainable production practices, producer organizations support producers within and across regime and niche. Producer organizations mostly function as implicit transition intermediaries, facilitated by their legitimacy among producers, their embeddedness in rural networks, and by refraining from taking a strong normative position. Producer organizations have the potential to be more explicit transition intermediaries, however this position comes with limitations. We provide policy recommendations to optimize the transition intermediary potential of producer organizations in their facilitation towards sustainable food systems.
To operate within the safe and just operating space captured by the doughnut metaphor, sustainability transitions are needed in the food system. Niche food systems with highly distinct practices and organization constitute a treasure chest of alternatives from which society can build new futures. Policy has little awareness of niche food systems and their potential contributions to sustainability transitions. Importantly, this limits society’s ability to adapt. Here, we review findings from an ongoing scientific project into different components of the vegetable food systems in Chile and Uruguay. The aim of the project is to investigate options for transitioning to low- or no-pesticide vegetable food systems. The results show: 1. the presence of promising alternative vegetable food systems in Chile, which are, however, highly marginalized and disempowered; 2. a diversity of vertical and horizontal producer arrangements in Uruguay and the need for value-driven as well as market-driven engagement; and 3. major possibilities for improving production systems to arrive within the doughnut by taking a systems perspective at the farm scale that includes the farm families and their networks. Consequences of these findings for alternative vegetable food systems are discussed.
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