Tag Archives: Distribution

Organic Food Distribution Margin Structure

The organic food distribution system is very complex, and it tends to echo the conventional system in terms of the size and distribution of margin within value chains.   There are effectively three distribution chains of increasing efficiency at work in the organic food system, culminating in three types of retail. As in any distribution structure, every intermediary involved in the organic value chain must be able to add sufficient margin to cover its operating costs and generate enough profit to justify continued operation.  The final price paid by the consumer reflects a share paid to each participant.  This price must … Continue reading »