The Supply Chains of Organic Products: An Empirical Analysis of the Processing Sector in Six EU Mediterranean Regions

The paper analyses the characteristics of the processing sector of organic products and the relationships with agriculture and retailing sector in six EU Nuts II regions: Lombardy and Tuscany for Italy, Rhone-Alpes and Paca for France, Catalunya and Murcia for Spain. The choice of these regions is due to the fact that the analysis is linked to an European project concerning cohesion among Mediterranean countries. The purposes are to analyse the processing sector of organic products in terms of firms capabilities to perform a quality management strategy and to analyse the vertical coordination in the organic supply chains. The data were collected by an ad hoc questionnaire. The survey carried out was based on a sample of 304 firms stratified on the basis of the six regions involved in the study. The analysis revealed that a relevant aspect for the processing firms of organic products concerns the guaranteeing of safety and quality levels for the products, according to the economic framework emerging from the literature. The instruments to implement the quality management are based on the adoption of specific production regulations and quality controls. The premium price most frequently applied by processors ranges from 10% to 40% and similar values are revealed for retailers. The diffusion of supply contracts permits the vertical coordination between agriculture and processing firms in the organic supply chains. The main trade channels for the processing firms are represented by specialized shops in organic products, direct sales and supermarkets.