Value formation in the organic supply chains: results from case studies for apples and pasta in Italy

In this paper, we consider the distribution of added value along two relevant supply chains for the Italian organic market: pasta and fresh apples. We measure price component and gross added value for each stage of the supply chain, distinguishing between supermarket and specialised food shop. Since official data on added value in the organic supply chains are almost not existing, the analysis is based on case studies where detailed data on intermediate costs for specific types of supply chains could be collected. The evaluation of value creation along the supply chains also includes a qualitative evaluation of the main factors affecting added value in the two supply chains. Results show that added value at farmers’ level can be increased in more integrated supply chains, and that added value at retail level, though relevant, does not necessarily represent the highest component in the supply chains.