Impact of supply of Chain Efficiency and Effectiveness on Organic Farms Profitabilty

Abstract

fanning and agriculture, supply chain costs must be evaluated to determine the extent to which processes of production contribute to an effective value proposition and whether elements ofproduction contribute to profitability. The study aimed to examine the impact of supply chain efficiency and effectiveness on organic farms' profitability in Ontario, Canada. The methodology adopted by the researcher to study this phenomenon was a qualitative approach, while the research design was a literature-based review. Thematic and content analysis methods were also utilized, which helped the researcher identify two themes which are Supply Chain and Distribution Channel Impact on Organic Farms and Recent Trends in Organic Farm Profitability. The findings ofthe study indicated that the supply chain of organic farms in Canada has been ineffective and inefficient. Distribution was noted to be a major challenge for these organic farms, which has led to organic foods not attaining the same breadth and depth as conventionally farmed goods. The findings also indicated that even iforganic foods have reached more markets, they are still not the focus in stores. Such scenarios have had a negative impact on the profitability of organic farms. Additionally, the findings also revealed that ineffectiveness in the supply chain has made the organic farms compete with fake products which are sold at low prices, which ultimately contribute to loss of profits to the organic farms. The findings also indicated that even though distribution still remains a challenge for organic farms, there is an emerging solution. The use of cooperative food systems and a network of local organic food co-ops are an emerging answer to the distribution problem contributing to supply chain ineffectiveness and inefficiency.