Sustainability and strategic advantages using supply chain-based determinants in pork production

Abstract

Purpose – The purpose of this paper is to examine the use of sustainability as strategic cornerstone for a marketing channel in a mature market, particularly in the hog industry in the Canadian Province of Quebec. Due to the growing attention to sustainability, and the international trend toward agricultural trades and stakeholder involvement in food, there is a need for a system-based approach in the field of food systems sustainability. Design/methodology/approach – In total, 12 semi-structured individual interviews were conducted among marketing managers working for different organizations within the Quebec hog marketing channel. The organizations chosen vary depending on the size, level of integration and involvement in the industry, to create a sample that adequately represents the industry. For the purpose of this research, three primary producers, one veterinarian, three licenced abattoirs, one food processor, one distributor, one independent retailer and two types of food service facility, one from a franchise system and the other from a high-end restaurant were questioned regarding the current state of the industry, as well as the impact of sustainable development on their strategic plans. Findings – The Canadian hog and pork industry is currently facing strong competition from several fronts: the USA and South America, a population with increasingly sophisticated demands, a strong Canadian dollar and a significant increase in input costs, particularly in respect to oil and corn. To be able to meet this competition, and in order to prosper in an uncertain marketplace, marketing channel believes that it must reduce its production costs, increase product awareness in the domestic market and promote cooperation among industry members. Research limitations/implications – This research is mainly concerned with the Quebec hog industry. External validity has not been achieved with the current research. In addition, a lack of distributor availability to answer the interview questions limits researchers’ capacity to extrapolate results to all retailers. Meetings with other food distributors would be required to verify the accuracy of results. Although this study is exploratory in nature, several appealing research avenues emerge. First, the research focusses primarily on members of the distribution network, but does not consider the consumers’ point of view. It would be fruitful to study the impact of sustainable development on the perceived product quality by measuring consumers’ intent to purchase. Practical implications – The principal point of interest that makes this case worthy of study and of potential application to future business modeling is how sustainability and sustainable development is perceived throughout various marketing channels. The Quebec hog industry faces strong competition from several countries that are able to offer a similar product at a lower cost. The mature market consists of a limited number of producers interested in offering a product on the market at the lowest possible price. Social implications – When it comes to sustainable development and the hog industry, the economic and environmental aspects seem to be well understood by members of the industry. On the other hand, the social aspect of sustainability is not mentioned frequently and is often not a part of the leaders’ main concerns. Nevertheless, members of the industry agree that sustainable development affects the Quebec hog value chain, and will remain a topic of interest in the coming years. Originality/value – To the knowledge, no study has been conducted to evaluate the use of sustainability as strategic cornerstone for a marketing channel in a mature market, particularly in the hog industry. Many studies have been conducted in a context of emerging markers. However, very few studies addressed the issue in an established economic environment.

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