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Cristina Mora, Davide Menozzi (2005) Company costs and benefits of organic processed food

Paper,
92nd seminar on quality management and quality assurance in food chains (EAAE Seminar)

Document:
Mora_et_al.pdf

Abstract
The aim of this paper is to present the results of research in progress to evaluate the trend of organic processed food, focusing on the managerial and economic problems that processing industries have to face in this sector, compared to their potential and perceived benefits.
In order to achieve this purpose, it has been decided to submit questionnaires to important industries involved in organic food processing to have an overview of the market environment and the reasons behind the industries’ choice to produce organic food and on a qualitative and quantitative evaluation of the costs and benefits related to the “organic food choice”.

Keywords: Organic processors – Organic chain – Organic Market

Relevance to our study:
That article regards the analysis of the difficulties inherent the organic processed food market, basically linked to the structure of the market, which is extremely fragmented and where the absence of links between the various phases of the supply chain causes serious problems concerning product and information management.
The study case was done in Italy, where despite of the great potential of the product, in Italy organic market have suffered from a lack of attention from industrial operators and institutions, leaving the companies at the mercy of, first of all, community aid and, later, the large retailer’s power. The result is a market in which high prices go hand in hand with a chronic lack of information. The consumers are the ultimate victims of this lack of coordination. In these unhappy economic times, furthermore, the continuing lack of information and excessively high production costs and prices cannot but cause further problems and crises in this market. The market with the greatest potential seems to be that of fresh organic products (fruit and vegetables, milk, meat and eggs); then at the same level processed organic products and typical organic products are considered.
In this article, emerges the interest of typical organic products. From a first analysis this market may be of interest, although in our opinion there may be a number of technological problems, overlapping of controls and problems linked to cannibalisation between conventional and organic typical products.

Relevancy on a scale from 1 to 5 = 3

Review status: Finished
Review started on 2009–01–21
Reviewed by Samanta Rosi Bellière?

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