How is triple bottom line thinking included in small-firm decision making? – A study of potato farmers in Östergötland, Sweden : hur påverkas potatisproduktionen av kvalitetskrav?

University essay from SLU/Dept. of Economics

Abstract: Earlier research has shown a lack of studies on waste in agriculture production. Therefore, there is a need for improved screening for the cause of wastage in primary production. In addition, more research is required on how quality requirements and norms affect wastage and how waste can be prevented. Food is lost or wasted through the supply chain; the waste appears from the primary production to the end consumer. The waste in the food chain creates financial losses and unnecessary environmental impacts on how the food chain is structured today. The waste in primary production creates also negative outcomes for producers' finances, cultivatable land, and the climate. This thesis aims to develop an understanding of how triple bottom line thinking is included in management decisions in small businesses. The thesis should explain why wastage occur in the primary production at potato farmers and how the quality norms affect the primary sector of the losses and waste. Decision-theory and Triple bottom line theories should review a potato producer's decisions because of the quality requirement from an economic, social, and environmental value perspective. Two farmers have been interviewed and contributed their perspectives on the prevailing requirements by researching the quality norms in the primary production of the potato sector. The respondents have provided perspective on how they connect economic, social, and environmental values in their decisions. This research has answered the research questions with the help of a qualitative research strategy. Qualitative research enables in-depth contextual understanding and closeness to the respondents who are involved. Therefore, in order to answer the research questions and to provide a deeper understanding of the farmer's connection to TBL, a case study method was selected. Food potatoes that do not meet the quality requirements get out-sorted. Where the potatoes get out-sorted, it is up to the farmer to find alternative ways to sell the potatoes. The farmer needs actively find new solutions and make decisions. It is from planting to when the farmer will sell the potatoes and the timing for selling it. From a farmer's perspective, economic value is essential. According to the farmers, they can produce food potatoes more sustainable if they get the right profitability. It makes the economic value in TBL the key to increasing social and environmental value toward sustainability within the primary production. According to the farmers this means that the Triple bottom line theory is more one bottom line in the context of potato producers. According to the farmers, with an understanding from stakeholders, the market and an increase in economic value, the social and environmental value would increase. In this way, the farmers could provide a more sustainable production. The understanding is needed to see how factors affect production and, by questioning norms, creates a development towards more sustainable food production.

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