Connecting New England farmers to large retailers via values-based supply chains

Abstract

U.S. consumer demand for differentiated, place-identified food is strong, yet current market struc­tures are ill-equipped to meet the demand. Mid­sized farms are suited to produce such food at volumes large enough to fulfill retail demand, but their number has been declining because of their lack of scale-appropriate market access. Values-based supply chains (VBSCs) are a market-based approach capable of supporting access for small to midsized farms, or Agriculture of the Middle (AoTM), through leveraging the pre-existing market infrastructure of large retail chains using intentional partnerships to achieve shared values. We present findings from 22 interviews with pro­ducers, intermediaries, retailers, and key informants engaged in VBSCs across the New England region. We present an analysis of the value-sharing strategies used by actors across these supply chains and identify the mechanisms by which these values are enacted. We find that adjusting the retail market structure to handle differentiated food products from relatively smaller-scale producers introduces several complexities. However, the actors involved in these VBSCs have developed strategies for cooperation to overcome some of these challenges, including: (1) risk sharing, (2) improvements in physical infrastructure, and (3) improvements in informational infrastructure. These strategies create opportunities for small and midsized producers to successfully participate in retail markets.