The development of and prospects for organic farming in the UK

The organic sector in the UK is booming with the largest ever wave of farm conversions underway. Consumer demand is currently growing faster than supply. The evidence regarding the factors that have been critical, now and in the past, in causing producers to establish organic systems is reviewed. This review draws on the authors’ own work as well as that of other researchers in Europe and the USA. In the second part of the paper we report on a recent study of the factors that prompt organic producers to abandon registered organic production. This analysis is based on a survey of producers, formerly registered with the Soil Association, who have left the scheme since 1990. Finally, the paper considers the current policy regime with respect to organic farming, the scope for the continued growth of the sector and the debate regarding the design of future policy.     

Introduction to the special section on organic certification systems: Policy issues and research topics

This article introduces a special section in Food Policy that discusses organic certification systems. Among the various issues in this field, the three articles in this special section address (i) the determinants of farmers’ decisions regarding whether to utilise organic production practices and whether to apply for organic certification; (ii) consumer preferences for different organic labels; and (iii) how to organise effective risk-based inspections. Key policy recommendations derived from this special section include continuously striving to reduce the transaction costs of all actors in the organic certification process, implementing a risk-based inspection system based on the collection of adequate farm data by certification bodies and harmonising the supervision of the certification system within the EU.     

Organic farming policy networks in Europe: Context,actors and variation

Despite most having developed under the umbrella of the Common Agricultural Policy (CAP), national-level organic farming policy networks in Europe vary. The aim of this paper is to explore the reasons for this variation. Quantitative network analyses were carried out in five ‘old’ and five ‘new’ EU member states and in Switzerland. To examine the patterns of influence on these 11 policy networks, the cases are compared in two stages. First, we examine the factors co-varying with the size and density of the networks and then we apply a most similar system – most different outcome research design. We identify the political environment as the main factor affecting size and density of organic farming policy networks in Europe. The distribution of power between organic farming organizations and agricultural ministries is influenced by state involvement and by the resources available to organic farming policy actors.     

Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection

A steep decline in coffee prices at the producer level led to considerable pressure for farmers in Costa Rica and producer countries all over the world. One possible reaction was moving to specialty markets, where price pressure was perceived to be lower. We use original survey data from 2002/2003 and 2003/2004 to analyze the factors influencing participation in specialty markets and to estimate separate production functions for specialty and conventional coffee farmers allowing for farm-specific inefficiencies. Applying a sample selection framework, we find significant selection bias in the sub-sample of specialty farmers and evidence for the overestimation of efficiency, if this bias is not adequately controlled for. Among the most important factors that influence farm-specific efficiency levels in the two sub-samples are the availability of additional income activities, experience in coffee cultivation, and membership in cooperatives. Based on the results, we derive policy recommendations to improve farmers’ production performance and ability to cope with the effects of the coffee crisis. These policy measures include the provision of extension services with respect to farm management skills, the creation of income opportunities in rural areas, and the support of farmer-owned cooperatives.     

The influence of policy networks on policy output. A comparison of organic farming policy in the Czech Republic and Poland

Although, at the time of accession to the EU, organic farming policies formally were equally developed in the Czech Republic and Poland, a closer investigation reveals some variation. This paper takes a policy network perspective to explore the policy differences between these two countries. Common network themes are used to link networks with policy output. It is argued that the capacity of the organic sector and its structural organization, its cohesion, and the relationship between organic interest groups and the government affect the political discourse, and, in consequence, how organic farming policy is elaborated.     

Economy size and performance: An efficiency analysis in the telecommunications sector

The existing empirical evidence on the relationship between economy size and performance has been inconclusive. This paper employs stochastic frontier analysis to estimate economic measures of efficiency for the telecommunications sectors of 139 economies and examine their relationship with economy size. Simultaneously, it controls for the effects of competition in telecommunications, privatization of state-owned providers, independent regulators, and the quality of political institutions on sector performance. The findings suggest that economy size has a positive but decreasing impact on sector performance. Small economies have an incentive to grow to improve sector performance, though larger size is not a sufficient condition for efficiency. Sector policy and the quality of polity may contribute significantly to sector performance.     

Non-compliance in organic farming: A cross-country comparison of Italy and Germany

This paper describes the Italian and German organic certification systems, including the institutions involved and the definitions of non-compliance and sanctions. Although they are both implementations of the same EU regulatory framework, these systems differ in many respects. Case study data from control bodies on non-compliance and sanctions are presented and analysed using binary choice models. This analysis shows that the occurrence of slight non-compliance and greater farm acreage are significant risk factors that explain severe non-compliance in both countries. However, to implement an efficient risk-based inspection system in the future, the data collection process must be improved and extended to examine personal attributes of farmers and operators.     

The implementation of organic principles and values in the European Regulation for organic food

The paper is based on selected findings of the research project EEC 2092/91 (Organic) revision. It contributes to an improved understanding of the core ethical values associated with and principles of organic farming, analyses reference to such values in the European Regulation (EEC) 2092/91 and its ongoing revision, and contrasts them with current practice of organic agriculture. An analysis of differences in the implementation of the Regulation by national governments and private standards is presented. Ethical values are per se in need of interpretation, so the final section sets out procedural issues arguing for a deliberative model of decision-making, when aiming to achieve a coherent integration in the structure of a regulation.     

Dependency of organic farms on direct payments in selected EU member states: Today and tomorrow

This paper examines the development of the role of government support in the financial situation of organic farms in selected Western and Eastern European countries, contrasting dependency on direct payments with that of conventional farms and assessing the impact of foreseeable changes in the political and economic environment. The results show that direct payments play an important role in the financial viability of organic farms in both Western and Eastern European countries. The level of specific support for organic farming is put into perspective, as other support payments and market returns contribute larger shares to total farm revenue in all the countries analysed. Modelling analyses show that support payments will continue to play an important role in the profitability of organic farms in Western Europe after implementation of the 2003 reform of Common Agricultural Policy in the EU. For organic farmers in Eastern European countries, the importance of support payments increases strongly with EU accession, as first pillar payments are introduced and environmental payments are expanded significantly.     

Evaluating the impact of individual fishing quotas (IFQs) on the technical efficiency and composition of the US Gulf of Mexico red snapper commercial fishing fleet

This study examines the impact of individual fishing quotas (IFQs) on the technical efficiency (TE) and composition of the Gulf of Mexico red snapper commercial fishing fleet. Employing a parametric stochastic distance frontier framework we find that IFQs improved the TE of the vertical line and bottom longline fleets. Our results suggest that the observed TE gains were mainly driven by the retirement of less efficient vessels and, to a lesser extent, by efficiency gains of the remaining vessels. We also document changes in output and input distance elasticities and in returns to scale following the introduction of IFQs. The paper also investigates the impact of regulations and weather on productivity and the effect of crowding on TE. Policy implications stemming from these results are also discussed.     

Technical,quality and environmental efficiency of the olive oil industry

This paper studies the level of technical efficiency in the olive oil industry from a multi-output perspective, and examines olive oil production in quantitative and qualitative terms. The study also covers the environmental impact of the production process. These are key issues due to the current environmental, organoleptic and food traceability requirements of the EU Common Agricultural Policy (CAP). Furthermore, product differentiation is sought after in today’s ever more demanding markets. The production of olive oil in Andalusia (Spain) is the most important agricultural food industry in the whole region and it represents 30% of world olive oil production. Three data sources have been used: a comprehensive survey to a sample of olive oil producers, their financial reports, and the opinion of a group of experts in olive oil production techniques interviewed by means of the Delphi survey. With this data and after the construction of indicators, a production frontier is elaborated by applying an extension of the Data Envelopment Analysis (DEA) technique. This will allow for the measuring of the relative technical efficiency indices and set specific efficiency indices for both the quality of the oil produced and the environmental impact of the production process. Those factors impacting on efficiency are determined by a truncated regression model with bootstrap. The results show a medium–high level of relative technical efficiency and highlight the importance of efficiency factors involving production and marketing associations.     

Valorisation of a local asset: The case of olive oil on Lesvos Island,Greece

Agri-food products are more and more considered and treated as valuable local assets. The valorisation of such local assets is an issue of great importance, especially in disadvantaged areas. In this paper, the case of the olive oil of Lesvos Island in Greece is presented. We seek to analyse the supply chain and examine the benefits that are distributed to its various actors by comparing three different olive oil products: PGI, organic and conventional olive oil with the use of two dimensions: size of production and success of the producers. The data come from quantitative and qualitative research to different actors across the supply chain and from published and unpublished local and national sources. The findings indicate that olive farmers are “cut-off” from the benefits of the products to a great extent. Small bottlers are the ones that receive the most benefits, as they can ignore big retailers. Overall, the absence of consensus and common management between the different actors, along with a complex and very competitive international market create uneven impacts.     

Willingness-to-pay for natural,organic, and conventional foods: The effects of information and meaningful labels

Vague food labels and distorted product claims have persisted in the “natural” food industry, while organic claims can be certified by the U.S. Department of Agriculture (USDA). Using experimental methods and a sample of randomly selected subjects, we test food label and information treatment effects on subjects' willingness-to-pay (WTP) for organic, “natural,” and conventional foods. Random nth-price auctions are used to elicit WTP after subjects received one of five randomly assigned information treatments. We find large information effects, including asymmetric cross-market effects for natural and organic foods. Perhaps surprising is that organic premiums increase in response to subjects seeing the “natural” foods industry's perspective on its products. Demographics effects are also important. The results have practical implications for natural and organic food marketing and valuing products where there are vague claims about their attributes.     

The influence of regulations on the efficiency of telecommunications operators: A meta-frontier analysis

The telecommunications industry has a great ripple effect on the overall national economy. However, there is no consensus about what is the optimal regulation policy for the telecommunications industry. Regulations on the telecommunications industry are different by region (i.e. United States, European Union and Asia). A number of studies have been conducted on comparative efficiency analysis for different policies that apply stochastic frontier analysis or data envelope analysis. However, these comparative studies are inappropriate because the production functions for each region are not identical. Thus, this paper addresses meta-frontier methodology, which can reflect differences in production functions. The results indicate that the United States has the highest meta-frontier efficiency in contrast to previous research findings.     

Modeling the factors affecting rural consumers’ purchase of organic and free-range produce: A case study of consumers’ from the Island of Arran in Scotland,UK

This paper investigates the roles of personal, product related and economic factors in predicting rural consumers’ attitudes and purchase intentions towards organic and free-range produce. A conceptual model is derived and tested via structural equation modeling on a sample of 222 rural consumers. The results show that attitude is explained by consumers’ food safety concern, ethical lifestyle and price perceptions. Attitude partially mediates the effects of ethical lifestyle and price on intention to purchase organic produce as well as the effect of ethical lifestyle on intention to purchase free-range produce. Attitude assumes a more central role in fully mediating the effect of food safety concern on intention to purchase organic produce, as well as the effect of price on intention to purchase free-range produce. Overall the conceptual model of consumer decision making performs well in both organic and free-range contexts yielding similar results.     

Consumer preferences and the international harmonization of organic standards

Harmonization of technical standards is often advocated as a means to remove technical barriers that reduce the welfare gains available from international trade. Organic standards are not currently harmonized internationally. If domestic organic standards reflect consumer tastes, and consumers have strong preferences for those standards, then harmonization to a common standard may reduce the benefits consumers receive from organic products. Through a consumer survey, conjoint analysis was used to explore the preferences of consumers in the US, the UK and Canada for organic food. The results suggest that consumers in the three countries do not have a strong attachment to the current national organic standards and that international harmonization may be a legitimate food policy goal.     

Role of formal standards in transition to the technology frontier: Korean ICT systems

According to traditional wisdom, latecomer countries improve their technological capabilities in reverse of the product cycle, that is from mature towards new technologies. However, improvement of standards capabilities in this process has not been revealed clearly. This paper confirms similar patterns for improving formal standards capabilities as for the technological capabilities, but records some possible differences in the rate of catch-up when latecomers approach the technology frontier; a forward moving position where technology leaders (typically advanced countries) develop or conceptualize new technologies before being turned into products or systems. A number of case studies of South Korean ICT systems reveal that transition to the technological frontier is increasingly related to how they target and carry out formal standardization. The common elements driving differences in rates of successful catch-up for ICT systems standards are not only limited to generic standards capabilities, but also rely on characteristics of technology trajectories, national strategic focus, and organizing for standardization.³ This implies that a nation should not be discouraged by slow progress in standards-setting during earlier stages. Once a minimum level of capabilities is achieved, a nation pro-active in standards from the beginning may attain higher rates of catch-up near the technology frontier.     

出口和FDI对钢铁行业技术效率的影响--基于随机前沿面板数据模型的分析

为缓解我国钢铁行业面临的困境,提升我国钢铁行业的竞争力,我们运用基于对数型柯布—道格拉斯生产函数的随机前沿面板数据模型,测算了我国各省市钢铁行业2004～2012年技术效率,进一步分析了出口和FDI对技术效率的影响。实证结果表明：出口和FDI对我国钢铁行业的技术效率产生了积极作用,均存在正向的技术溢出效应。为促进钢铁行业的持续健康发展,应该制定钢铁行业发展规划、规范钢铁企业生产;积极开拓海外市场,扩大钢材产品出口;积极利用外商直接投资,注重对先进技术的引进。     

Examining sustainability performance in the supply chain: The case of the Greek dairy sector

This paper evaluates the sustainability performance of the Greek dairy chain and the performance of its individual members by using key indicators in relation to efficiency, flexibility, responsiveness and product quality. We assessed the importance of these indicators based on the relevant perceptions of key members of this chain. A structured questionnaire was developed where nineteen sustainability-related issues were examined. Two hundred and fifty three members of the Greek dairy supply chain responded including breeders, manufacturers, wholesalers, retailers and catering companies. Our findings illustrate the immediate need for improvement in many key sustainability performance indicators. They also show the critical role of large dairy manufacturers who are the “sustainability performance champions” in this chain and are the driving force for the implementation of many sustainability initiatives.