Does short food supply chain participation improve farm economic performance? A meta‐analysis

Abstract

Many researchers, policy makers, and food activists view Short Food Supply Chains (SFSC) as attractive levers for improving farm income and the sustainability of farming systems. However, the empirical evidence documenting the association between SFSC participation and farm economic performance has been mixed. In this study, through a meta-analysis using a logistic regression, we identify key factors to explain differences between studies that find better economic performance in SFSC and those that do not. Our meta-analysis consists of 48 studies published in English and French from 2000 to 2022 that examine the economic performance of farms engaged in SFSC. Based on far more empirical evidence than previous reviews, we find that the relationship between SFSC participation and farmer income remains ambiguous. More specifically the findings indicate that the reported effect of SFSC on a farm economic performance varies depending on location and the indicator used to capture the economic performance of farms. Studies conducted in Europe are more likely to report higher farmer income as are studies that use profit satisfaction metrics rather than measures of gross or net income. We also emphasize the need to interpret the reported results cautiously because few are based on causal inference methods. Furthermore, the very few studies that account for selection bias often do so with inadequate corrections.

Economic Impact of Short Food Supply Chains: A Case Study in Parma (Italy)

“…The measure of the economic impact is one of the elements that should be assessed to understand its effective role in innovating the agro-food system [7]. This study wants to contribute to the debate on the economic impact of SFSC [8], providing a tool to measure the complete monetary flow created by farms at the local level considering the input suppliers. To the best of our knowledge, this is the first analysis that applies the local multiplier approach to SFSCs for detecting the economic spillover effects at the local level.…”

“…In the case of the impact on farms' profit, different case studies have yielded contrasted results, also because the studies are not homogenous in the methods applied and type of SFSCs analyzed [8]. Moreover, the study of the effective impact on farmers' profitability of SFSCs is often challenging because not all farms have a comprehensive cost accounting system [7], analyses mostly rely on the perception of farmers about their income [8].…”

“…In the case of the impact on farms' profit, different case studies have yielded contrasted results, also because the studies are not homogenous in the methods applied and type of SFSCs analyzed [8]. Moreover, the study of the effective impact on farmers' profitability of SFSCs is often challenging because not all farms have a comprehensive cost accounting system [7], analyses mostly rely on the perception of farmers about their income [8]. Thus, the literature suggests that the improved economic performance perceived by farmers is primarily driven by personal satisfaction in enhancing their role within the food chain, rather than a substantial improvement in their financial statements [8].…”

“…Moreover, the study of the effective impact on farmers' profitability of SFSCs is often challenging because not all farms have a comprehensive cost accounting system [7], analyses mostly rely on the perception of farmers about their income [8]. Thus, the literature suggests that the improved economic performance perceived by farmers is primarily driven by personal satisfaction in enhancing their role within the food chain, rather than a substantial improvement in their financial statements [8]. Additionally, determining the contribution of public funding to SFSCs is not always straightforward [8].…”

“…Thus, the literature suggests that the improved economic performance perceived by farmers is primarily driven by personal satisfaction in enhancing their role within the food chain, rather than a substantial improvement in their financial statements [8]. Additionally, determining the contribution of public funding to SFSCs is not always straightforward [8]. Lastly, when SFSCs are established, Venn et al [9] argue that their primary objective may not always be to ensure profitability for farmers, particularly when initiated by consumers.…”