Are short food supply chains a solution for farms facing financial difficulties?

This article focuses on farms facing financial difficulties and on their subsequent evolution, especially considering their marketing channel. The adoption of short food supply chains appears as a way to preserve the business by retrieving more flexibility and a greater share of added value. Using data from FADN-RICA 2005-2012 for different agricultural sectors, we perform a statistical analysis and econometric modeling. A financial score based on 5 financial key parameters measures financial difficulties and determines the contrasting profile of distressed farms. Debt servicing is a severe issue for all farms in difficulty. Farm survival translates into a reduction in their cultivated area, the number of employees but an increase in pesticide expanses to protect yields. Finally, it appears that market gardening and fruit producing farms in difficulty tend to adopt retail selling in order to restore their financial situation.

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JEL Codes:
Q12; Q13; Q14

 Record created 2017-04-01, last modified 2020-10-28

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