# Benefit Optimization of Short Food Supply Chains for Organic Products: A Simulation-Based Approach
## 3 Problem Description
### Organic Production of Food: Descriptive Analysis  
Foods to be labelled organic shall contain at least 95% organic ingredients in their composition in both the U.S. and the EU. These products must be produced and supervised in accordance with accepted guidelines. Products are usually accompanied by a certificate of their organic nature. Organic agricultural production, to a large extent, uses renewable resources, and the objectives of agricultural activity are to protect the environment, including water, soil, and air resources. Organic food is produced without the use of most conventional pesticides, fertilizers, sewage sludge, or bioengineering or ionizing radiation [43]. Organic farming is designed to have a lower environmental impact than large-scale and high-efficiency conventional systems due to the substitution of the pesticides used [44]. Sustainable food production and its effects from the point of view of organizations focus, among others, on energy efficiency to help increase resource efficiency and reduce emissions of harmful substances into the environment [45]. Fertilizers may be used in this type of production, but they must be natural (e.g., green manure, compost, and minerals available in nature). In the production of animals, organic fodder with conventional admixture is used, or feed from the farm. This type of food, due to restrictive requirements set out in legal acts and controls by authorized certification bodies, must not contain artificial additives, dyes, or preservatives. The control includes that of the products and their components, and of the entire infrastructure and objects of the agricultural holding, from pastures, open-air runs, stables, and equipment, to machinery, warehouses, and production documentation, such as accounting records, proof of purchase of means of production and raw materials, accounting labels (or records, and advertising materials), balance sheets (including the origin of purchased raw materials), and sale of organic products. Organic producers implement a wide range of instruments and strategies to develop and maintain biodiversity and restore soil fertility. This type of production in relation to sales can appropriately and sustainably support SFSCs. Its main objective is to create a sustainable management system in agriculture, minimizing the use of non-renewable resources. This type of agriculture is developing systematically. A report entitled \"Organic Agriculture Worldwide\" [15] stated that, in 2017, organic products were sold all over the world with a total value of USD $97 billion. The area of organic production is growing, covering almost 70 million hectares and 2.9 million producers. Most organic agriculture is located in Australia and Oceania (35.9 million hectares), Europe (14.6 million hectares), South America (8 million hectares), Asia (6.1 million hectares), North America (3.2 million hectares), and Africa (2.1 million hectares). Organic production occurs in 181 countries around the world, 93 of which are regulated by law. However, this represents only a 1.4% share of total agricultural land. Europe is the second largest organic area with 14.6 million hectares, of which 12.8 million hectares are located in the European Union (7.2% of agricultural land). Spain (2.1 million ha), Italy (1.9 million ha), and France (1.7 million ha) have the largest shares of organic land. In terms of the percentage of organic farming, in total, Liechtenstein (37.9%), Austria (24%), and Estonia (20.9%) rank at the top. Organic product sales in 2017 amounted to 37.3 billion Euros (EU = 34.3 billion Euros); the largest market is Germany, with sales of over 10 billion Euros, followed by France (7.9 billion Euros) and Italy (3.1 billion Euros). In May 2018, the EU issued new legislation on both organic production and labelling. Ten countries (Table 3) with the largest organic agricultural areas represent 79% of the world's organic agricultural land and 14 countries have 10% or more of their agricultural land under organic management.