RESEARCH PROJECT PROPOSAL FORM Shortened Version
Provisional Topic Title: The adoption of different supply chain models by traditional family farms in the Shropshire Hills. What is their impact and is there scope for developing innovative supply chain models?
Proposal structurally approved by workshop tutor: Yes/No
(Your workshop tutor needs to check that you had done sufficient work on the proposal and that it is of “fit state” to be forwarded to your supervisor)
1. Aims/objectives/Research Questions:
The purpose of this research is to investigate the supply chain models that traditional family farms in the Shropshire Hills currently use, to investigate which models work best and why, and to determine if there is scope in the future to develop innovative models. The starting point for this research is the uncertainty over the future of farm subsidies under the Common Agricultural Policy, and therefore the financial instability of many traditional family farms in the Shropshire Hills area, which currently rely on farm subsidies significantly. The idea for the research topic was developed from a piece of research that was conducted into family farms in the Shropshire Hills in 2012, in which achieving a fair product price at market was seen by many farmers as the only option for long term farm viability if subsidies were to be drastically reduced or stopped.
The research questions to be addressed are as follows: what supply chain models do farm businesses currently use? For example, do such businesses sell direct to local markets, livestock markets, retailers such as Waitrose? Do they have contracts in place for particular buyers? Do farm businesses sell independently or as part of a producer’s group or co-operative? Do they sell to single or multiple buyers? What is the farmer’s motivation for adopting certain models? Are all models operationally efficient? Do certain models allow for greater financial returns, increased financial security and long term farm business management? Are there barriers to implementing more profitable models? What are these barriers?
2. Methodology:
In order to address the research questions, the following methodology will be employed: A qualitative investigation into six farm businesses in the Shropshire Hills will be used as a pilot to refine the questions for the quantitative study. This will take the form of semi-structured interviews with the farmers/farm managers. The six businesses will be selected by approaching a range of farmers from the Shropshire Hills Farming Project database and asking if they would be willing to participate. Farmers will be selected who are known to be candid in their answers and will be willing to discuss the research topic in depth.
Following the semi-structured interviews, a quantitative study will be implemented. This will take the form of a survey containing questions based on the research questions that have been refined into specifics through the semi-structured interviews. The surveys will be sent out via email where applicable, or via post, to approximately 200 farm businesses in the Shropshire Hills. Approximately 150 of these businesses are on the current Shropshire Hills Farming Project database, and approximately another 50 will be identified through the Yell website. The Shropshire Hills database consists of approximately 25% of the total farm businesses in the area and is made up of businesses that have been involved with the Farming Project in some way in the past, through open meetings, workshops, training sessions, advisory services. Figures are approximate as sample selection will be the entire database and the entire Yell listings in the defined Shropshire Hills area. It is thought that this will number approximately 200. Where postal surveys are used, an SAE will be enclosed to encourage participation and an incentive such as a prize draw for vouchers will be also be used for all participants. It is hoped that results will be analysed using SPSS.
3. Brief Literature Review:
The Common Agricultural Policy (CAP) reforms of 2003 sought to reform the CAP to enable EU farmers and their businesses to become more market orientated, competitive and sustainable, both economically and environmentally. However, marginal upland farmers in the UK are struggle to make a reasonable income for production and rely heavily on subsidies for survival (Leat and Revoredo-Giha, 2008). The future of the CAP and the impacts it will have on UK farmers are now uncertain as it is due to be reformed once again in 2014. It is likely with the new reforms that many upland farmers will lose out financially as payments will not take account of existing good practice in terms of environmental management (Defra, 2011).
It has long been suggested that agri-food supply chain management needs to be addressed in order to increase profitability for farm businesses. Initiatives to shorten the supply chain are positive for the farm business in terms of value added but there may difficulties in sustaining and developing such initiatives over time and space. For example, the Llyn Beef Producer Co-operative was established in 1997 by a group of Welsh beef farmers in the belief that a premium price could be secured by marketing beef produced from the area on the basis of its quality. The cooperative was also designed to enable local farmers to achieve a closer relationship with retailers and other markets (Marsden et al., 2000). Other areas of Europe have a strong reputation for establishing successful models. Localised agri-food networks involving selling direct to the customer are one method of increasing power and profitability for the farmer (Aguglia and Salvioni, 2010). The wisdom of developing collaborative supply chains is widely acknowledged throughout the European Union (EU), but such moves need an understanding of the attitudes and circumstances of the various supply chain participants. Research suggests that significant opportunities exist to improve supply chain performance, profitability and relationships within the supply chain (Taylor, 2005) and if the supply chain is to be improved, it is vital to form effective working relationships based on trust with all partners in the chain (Fischer et al., 2007). Increasingly, farm businesses cannot rely on one model but must be managed in a manner that spreads risk and creates buffers in order to maintain resilience (Darnhofer et al., 2008).
In the Shropshire Hills area, the majority of farms are traditional family-run upland farms that are vulnerable to any potential changes in the subsidy system. Average farm incomes for this area are low and farm businesses are simply not profitable without subsidies (Wood and Gibbon, 2012). The importance of the area’s land based economy makes it particularly sensitive to current changes and challenges in farming, such as competing in a global market with rising input costs (Harper Adams, 2010). Previous research in this area has shown that farmers are deeply concerned about the economic viability of their businesses and the survival of the family farm (Greenall and Whithouse, 2007). There is limited evidence to suggest that direct selling does not necessarily increase profitability (Wood and Gibbon, 2012). It is known that there is a multitude of routes to market being employed but there is no precise data on how many different models each individual farmer is using, why they are using them, how profitable or efficient the chosen models are and whether there are options for innovative models in the future.
4. Resources you need/Access to primary and secondary data:
In order to conduct this research, access to the University database system is required, along with access to other online sources of journal articles and conference proceedings. It may also be useful to be access specialist land-based journals, electronically or as hard copies and Harper Adams University College will be approached with this request.
In order to collect the primary data, access to the Shropshire Hills Farming Project database of farmers in the Shropshire Hills area is required, and has been secured already. In addition, access to the Yell online listing of farmers in the Shropshire Hills area is required; this data is available publically and access has therefore been secured.
5. Project Schedule
Steps Description Due date
1 Week -1-2: Area of interest identified April 12
2 Weeks 3-4: Topic selected/form submitted May 12
3 Weeks 4-5: Topic refined to develop dissertation proposal May 31
4 Weeks 5-8: Proposal written and submitted June 17
5 Stage 1: Chapters 1-3 completed Aug 31
6 Stage 2: Collection of data and information Oct 15
7 Stage 3: Chap 4 (Results, Analysis and Discussion and Chapter 5 (Conclusions, Implications and recommendations) Nov 15
8 Stage 4: Writing up Dec 1
9 Stage 5: Final project draft prepared Dec 15
10 Submission of Project Jan 1
References
Aguglia, L. and Salvioni, C. (2010) Direct selling in Italy: a marketing strategy to promote localized agrofood systems. Proceedings of the 9th European IFSA Symposium, pp. 1701-1711 [online]. [Accessed on 15 June 2013]. Available at: .
Darnhofer, I., S., Bellon, Dedieu, B. and Milestad, R. (2008) Adaptive farming systems – A position paper. Proceedings of the 8th European IFSA Symposium, pp. 339 -351 [online]. [Accessed on 15 June 2013]. Available at: .
Defra (2011) CAP Reform post 2013. Defra discussion paper on the impact in England of EU Commission regulatory proposals for Common Agricultural Policy reform, post 2013 [online]. 411 [Accessed on 15 June 2013]. Available at:<www.defra.gov.uk/food-farm/farm-manage/cap-reform>.
Kent University (2013) Centre for value chain research [online]. 411 [Accessed on 15 June 2013]. Available at: <http://www.kent.ac.uk/>.
Leat. P. and Revoredo-Giha, C. (2008) Building collaborative agri-food supply chains: The challenge of relationship development in the Scottish red meat chain. British Food Journal [online] 110(4/5), pp. 395-411 [Accessed on 15 June 2013]. Available at: <http://www.ebscohost.com>.
Fischer, C., Gonzalez, M., Henchion, M. and Leat, P. (2007), “Trust and economic relationships in selected European agrifood chains”, Food Economics – Acta Agricult 4(1), pp. 40-8 [online]. [Accessed on 15 June 2013]. Available at: <http://www.ebscohost.com>.
Greenall, J., and Whithouse, M. (2007). Farmer consultation in the Shropshire Hills AONB. A Research Study for Natural England and the Shropshire Hills AONB carried out by Land, life and Livelihoods. AONB, Shropshire.
Harper Adams (2010) Land Based Sector assessment 2010 Project. Project Report prepared for Shropshire Council April 2010. Harper Adams University College [online]. [Accessed on 15 June 2013]. Available at: .
Marsden, T., Banks, J. and Bristow, G. (2000) Food supply chain approaches: exploring their role in rural development. Sociologia Ruralis [online] 40(4) [Accessed on 15 June 2013].
Taylor, D.H. (2005) Value chain analysis: an approach to supply chain improvement in agri-food chains. International Journal of physical distribution and logistics management [online] 35(9/10), pp. 744-761 [Accessed on 15 June 2013]. Available at: <http://www.ebscohost.com>.
Wood, V. and Gibbon, D. (2012) How family farms in the Shropshire Hills AONB are adapting to agricultural change. Proceedings of the 10th European IFSA Symposium [online]. [Accessed on 15 June 2013]. Available at: .
Last Completed Projects
| topic title | academic level | Writer | delivered |
|---|