D3.2 Analysis of the interlinkages among value chain agents
Creators: name: Mulazzani, Luca
name: Rota, Cosimo
name: Malorgio, Giulio
name: Verza, Marta
name: Tisseyre, Cyril
name: Schaer, Burkhard
name: Lamprinakis, Lampros
name: Halland, Hilde
name: Kårstad, Signe
name: Fernandez, Diva
name: Marino, Francesca
name: Miserendino, Gabriele
name: Mattas, Konstadinos
Publisher: name: Zenodo
Year: 2023

description: This deliverable refers to the analysis of interlinkages among value chain agents. Several aspects are  considered including supply chain flows, price transmission and value creation, market and contractual power, transactions’ costs, contract patterns, and attribute requirements and evaluation. The collected information has been explicitly related to direct and indirect effects on agrobiodiversity. Agro-biodiversity has not exactly the same significance in all the value chains. For some species, cultivated in a relatively high quantity (e.g. lentil), the focus is on the diffusion and use of different varieties; on the contrary, in the case of neglected species, the focus is on their introduction in the value chain as an alternative to more widespread crops.

The methodological approach was tailored to the specific characteristics of the analyzed supply chains; experts’ interviews, ad-hoc survey questionnaires and focus groups were performed to key actors in every country and supply chains involved. The analysis was performed in four countries (Italy, Norway, France, Germany), for twelve value chains. The agents involved in the survey include farmers (and related organizations such as cooperatives and Producers’ Organizations - POs), processors and retailers. Consumers were consulted through focus groups.

Large differences in the organization of the value chains can be appreciated across countries and value chains. Even when considering the same product, significant differences can be appreciated in the value chains of the analyzed countries. Finally, even inside the same value chain and the same country, it is normally possible to differentiate specific channels targeting mass or niche consumers targets: e.g. high price value chains dealing with organic and national products; low cost value chains dealing with imported products; short circuits dealing with local varieties, etc. A few common elements can be drafted.

Lentil is the only crop that has been analyzed in the four countries. The European demand of lentil is high. Retailers cannot find all the lentil that is required (organic and conventional) at national level and must look for other sources abroad. In the last years a relevant part of Italian production has been addressed to new pasta facilities that produces lentil pasta, increasing the need for this legume. Thus, at European level, the market for farmers seems to be guaranteed; the problem consists in the high variability of yields linked to climatic unpredictability. All the chain is strictly determined by contracts (sometimes with fixed prices, other times not) and characterized by a large number of specific products that are addressed for specific target groups: basic national production, specific geographic production (without PGI), PGI (in Italy, France, Germany) and/or organic label, imported product, product specifically addressed to pasta production. This diversity entails several varieties that, surprisingly, are normally not communicated to the consumer which recognizes and chooses the product mainly on the base of the color, size and labels/brands. Retailers are strongly interested in differentiating the references available promoting their own private labels (at lower prices compared to branded products), and maintaining the profitability of the shelves; on the contrary, agro-biodiversity is not considered a key element, since local production cannot guarantee sufficiently high and stable supplies.

Buckwheat value chain has been analyzed in Italy, Germany and Norway.  In this case, nobody (in the value chain and among consumers) seems to be interested in the diversity of buckwheat varieties; on the contrary the focus should be put on the re-diffusion of this neglected species. Buckwheat, as well as lentils, has the potential to meet the growing demand for gluten-free products, and can be used for bakery products and pasta. However, it faces, even more than lentils, the challenges of low and unpredictable yields linked to climatic variability. The local production is low and national valuechains are mainly dependent by imports. Intents to develop national chains have been done. In the case of Italy, in particular, this has been done for the production of traditional pasta products (e.g. PGI Pizzoccheri made with a mix of wheat flour and buckwheat flour) or with for modern gluten-free pasta.

The other value chains analyzed are tomato, leafy vegetables and eggplant. In France, tomatoes are a highly diversified product in terms of color and shape, with an emphasis on taste quality and preservation. Retailers offer a wide range of tomatoes and are looking for varieties with interesting taste qualities, sometimes betting on novelty and originality.

Leafy vegetables (Italy and France) that are sold by modern retailers can take different forms: from fresh vegetables (first range), to packaged, cut and washed ready-to-eat products (fourth range). This sector already counts with a high number of species cultivated and sold as single or mixed products. The value chain is normally characterized by important Producers’ Organizations that represent the connection between retailers and farmers, deciding the calendars of production and the distribution of the orders for specific products among their associate partners and (if necessary) external providers. All actors in the value chain face challenges related to production costs and labor supply (which can be not enough). Introducing new crop varieties/species is normally tested by POs with the collaboration of seed providers; however, these trials must face the problem of already crowded shelves and the resistance of retailers to increase the number of references which is already judged too high.

Finally, the eggplant value chain in Germany faces several challenges that make the cultivation and marketing of the crop unattractive to farmers and retailers. One major challenge is the low profitability of the crop due to high fixed costs associated with greenhouse cultivation, especially in comparison to more profitable crops such as tomatoes. The consumption of eggplants in Germany is still limited with an important share of consumers with a Mediterranean migration background. Therefore, there is a need to stimulate eggplant consumption among the wider population by developing novel processed products that require different eggplant cultivars as an ingredient.

As a conclusion, the valorization of agro-biodiversity in value chains is a theme that takes different connotations on the base of the specific product and the country. There are value chains that are already mature, as is the case of tomato, where both value chain actors and consumers appreciate the diversification of varieties, and where a balance of demand and supply for these characteristics does exist. A similar case is that of leafy vegetables, where variability depends on the number of species (and not of varieties), but where the market seems to be close to saturation (even if research for new products continues to be done). There are value chains with a moderate availability of variability, as in the case of lentils, but this variability is not strictly associated (by retailers and consumers) to specific varieties, rather to geographic specialties (with or without origin indication label) or to generic quality characteristics (red lentils, black lentils, small lentils, giant lentils). Finally, there are value chains where intraspecific variability is not an element of interest, as in the case of buckwheat, but where the need is primarily in the promotion of a crop that is neglected and underutilized.