Barriers and Levers in the Development of the Value Chain of Organic Vegetables in Romania

Abstract

As people become more and more aware of health issues, environmental protection, and climate change, there is a major shift to organic food consumption in our society. Among the main organic products consumed, we highlight vegetables because they are a major source of vitamins and minerals. The paper aims to carry out an analysis of the value chain of organic vegetables in Romania. This study presents the results of the analysis of the value chain of organic vegetables regarding aspects such as chain mapping, governance structure, and chain modernization. Data were collected through semi-structured interviews with key chain actors. The research shows that the value chain of organic vegetables in Romania is simple and short; in 45.5% of cases, there is only a distributor between the producer and the final customer. The processing function being poorly developed, 90% of the vegetables get to be marketed fresh. The study identified the main barriers to the development of this system, namely low demand for organic products and high legislative volatility. Key actors also suggested some levers to overcome barriers, such as campaigns to inform and educate consumers about organic products and their benefits and better targeted public policies.

1. Introduction

Climate change, food safety, the pandemic, and food needs for the growing population are some of the main problems that humanity has to deal with and represent topics of debate both at political and research levels [1]. The food needs of the growing world population and food security are the major challenges that have led to the consideration of the sustainability of food production [2]. One possible sustainable way to produce food is organic farming [3,4], which produces healthy products but also protects the environment [5].

1.1. Organic Agriculture

The Codex Alimentarius Commission [6] defined organic agriculture as “a holistic production management system that avoids the use of synthetic fertilizers, pesticides and genetically modified organisms, minimizing air, soil and water pollution and optimizing the health and productivity of interdependent plant communities, animals and people”. Organic agriculture is based on a series of principles that lead to the maintenance of and an increase in biodiversity [7], protecting the environment [3], and producing healthy food for humans [8]. This was developed to respond to the problems of conventional agriculture, namely the decrease in soil fertility, environmental rainfall, and low food quality [9]. Organic agriculture is a production system that has developed since the end of the 20th century [3] and represents an increasing trend around the world, especially in the European Union (EU) countries [10]. In 1999, the agricultural area in the organic system worldwide was 11 million hectares, reaching around 74.5 million hectares in 2020. Globally, in 2020, 1.6% of the agricultural area was organic [11]. In the European Union, organic agriculture also shows an upward trend, reaching around 14.9 million hectares in 2020 [11].

Organic farming is currently on an upward trend as a direct result of increasing consumer interest in organic products [11]. Awareness of health issues, environmental protection, and climate change makes people switch to organic food [12]. The COVID-19 pandemic had a positive impact on organic food sales, as consumer demand continues to grow [13]. Income increases, an improved level of education, changes in the demographic structure, and urbanization are some of the main factors recognized to determine the expansion of the internal market of organic food [14]. In 2020, the organic food revenue in European Union was EUR 44.8 billion [11] and in 2004 was EUR 11 billion [15], which shows an increasing willingness to purchase organic products.

The European Commission has established a comprehensive organic action plan that aims to reach the European Green Deal target of 25% of agricultural land under organic farming by 2030 [16]. The organic action plan is divided into three interconnected axes that reflect the structure of the food supply chain and the sustainability objectives of the Green Deal [17]:

• Axis 1: Stimulating demand and ensuring consumer confidence;
• Axis 2: Stimulating conversion and strengthening the entire value chain;
• Axis 3: Ecological leads by example: improving the contribution of ecological agriculture to environmental sustainability.

An image of the evolution of organic agriculture is presented in

Table 1. Key indicators of organic farming in the European Union.

Indicator	Unit of Measure	2010	2020	% Growth
Organic farmland	Million ha	8.4	14.9	77.4
Organic share of total farmland	%	5.1	9.2	80.4
Producers	Number	191,893	349,499	82.1
Processors	Number	25,910	78,262	202.1
Importers	Number	1141	5820	410.1
Retail sales	Billion euros	18	44.8	148.9
Organic share of the total market	%	N/A	4.7	N/A
Per capita consumption	Euros/person	38.5	101.8	164.4

Source: The World of Organic Agriculture: Statistics and Emerging Trends [11].

, in which the main indicators are presented, such as the area in the organic system, the number of operators in this system, and economic indicators regarding the sale of organic products in the European Union [11].

Out of all the organic food products, vegetables occupy the first place in consumer preferences because they are a major source of vitamins and minerals, which are beneficial to human health. Benbrook [18] showed that organic vegetables have a higher nitrite value than conventional ones.

In Romania, the consumption of organic products is mainly based on weekly consumption [19]. Although the organic products with the most important consumption shares are vegetables and fruits, they represent a rather small share in the overall organic area. In 2020, only 847.79 ha were certified as organically grown vegetable plots, as can be seen in Figure 1.

The production of organic vegetables in Romania is relatively low. Figure 2 shows the trend is not increasing over time.

In this context, it is essential to understand the value chain of organic vegetables in Romania to identify the potential problems and obstacles the market faces in order to be competitive and remain economically stable.

1.2. Value Chain Analysis

Value chain analysis is a tool for evaluation, evidence of competitiveness of the markets, and diagnosis in various fields that involve the production of a good/service, such as the energy industry [22], metallurgical industry [23], marketing [24], tourism [25], and agriculture [26]. A value chain analysis captures the economic, social, and environmental processes in the value chain, highlighting the organization of the value chain, the relations between the actors, and the opportunities for improving the value chain [27]. A value chain analysis is a tool for seeing each step as well as looking at actors along the value chain and identifying weaknesses so that they can be resolved and provide an opportunity for income generation for all actors involved in the chain [28].

The analysis of value chains is a complex process [29] and includes qualitative and quantitative approaches [30]. Hellin and Meijer (2006) [31] suggested that the qualitative approach can be firstly used, followed by the quantitative one. Since value chains are different, each with specific characteristics and elements, there are no hard and fast rules on how a value chain analysis should be conducted. There are certain aspects that can be considered as the path of a value chain analysis [32]:

1.3. Mapping the Value Chain

An important step in value chain analysis is value chain mapping. With the help of mapping, networks are visualized to gain a better understanding of the connections between actors and processes, observe the interdependence between actors, and raise the awareness of stakeholders to look beyond their involvement in the chain [33]. Kaplinsky and Morris [29] listed several objectives of the mapping process: to identify bottlenecks at different levels, identify the position and dependencies between actors, and highlight opportunities that can lead to development.

1.4. Governance Structure

Governance has an essential role in value chain development. Through this type of analysis, the intensity and the mode of the relationship between the key actors can be identified [29]. Relations can be formal (contracts and regulations) and informal (based on trust and respect) [34]. In addition to the relationship analysis between the actors, governance addresses rules and regulations [29]. They are used to create infrastructure and support services to develop the chain [35] but also to provide trust [12] among the actors in the chain and beyond. Compliance with official standards and certification are essential elements in the organic field.

1.5. Value Chain Upgradation

Modernization refers to innovation. It leads to the development of the enterprise and/or the value chain [36]. Several forms of modernization can be considered, depending on those identified in the mapping process of the chain and its governance: process improvements (increasing efficiency), product improvements (new product, better quality), functional upgrading (new level in the value chain), interdepartmental upgrading (new market channel within the same value chain), and moving toward a new value chain [29]. Knowledge (creation, transfer, and appropriation) is the base of the upgrading process [36].

Value chain analysis is widely used as a diagnostic approach to identify and address complex problems in value chains in an agricultural development context [37]. In agriculture, the scientific literature shows that there are various studies that present an analysis of the value chain for different sectors such as: the vegetable sector [38], the livestock sector [39], and the agricultural sector in general [37]. Since each value chain is different, the analysis method must be adapted to it. The value chain analysis in agriculture aims to establish how and where value addition can be improved or increased [26] so that it becomes beneficial to all actors in the chain. Most studies established that there is an inequitable distribution of profits, with farmers/producers having the lowest shares of the profits [40,41]. Some authors identified that value-adding activities like processing, packaging, and labeling are sometimes missing from the chain. For example, in the organic pumpkin value chain in India, the lack of major value-adding functions such as packaging, labeling, and processing leads to reduced benefits for farmers [12].

Value chain analysis is used almost everywhere in the world in studies on specific sectors of agriculture. There are few such studies for the Romanian agricultural sector in general and for the organic chains in particular. Such studies on organic agriculture are also limited in number, covering mostly regions in Africa and Asia [40,42,43]. Unfortunately, there are only few articles dealing with the European organic sector [26,44].

Such studies show that value chains are influenced by the actor who initiates them. The value chains initiated to satisfy the demand of the organic market have the downstream farmers as the main actors. While the approach of value chains toward the development of organic agriculture has as main actors those located upstream from the farmers [45], regarding the distribution of economic benefits, farmers often have the smallest margins compared to intermediaries [26]. Value chain research in organic agriculture in Europe is limited. This justifies the need for research in the field. Some of the most consumed organic products in Europe are vegetables [46]. Thus, it is essential to analyze this value chain to observe the chain’s strengths and weaknesses.

The main objective of this research was to study the value chains of organic vegetables in Romania to identify the main barriers and leverage points for the sector’s development in Romania. To fulfill this main objective, four secondary objectives were established in the form of research questions, namely:

• (RQ1) Who are the actors involved in the value chain of organic vegetables in Romania and how are they structured?
• (RQ2) How do the actors interact with each other?
• (RQ3) What are the problems faced by the actors of the chain?
• (RQ4) What are the needs of actors to develop and improve the value chain?

The first question was necessary for carrying out the mapping of the value chain and understanding its structure. The second question focused on the governance of the chain through the relationships, trust, rules, and regulations that exist between actors in the chain [29], which are important to support the construction of infrastructure and services necessary for the development of the chain [35]. The last two questions considered the problems and needs of actors to identify barriers and levers for chain development.

2. Materials and Methods

This research was based on a qualitative study of representative stakeholders in the value chain of organic vegetables in Romania. The semi-structured interview was used for the data collection process because it was considered in another similar study as an appropriate tool [31]. Semi-structured interviews are the most used data collection method [47] in a multitude of fields [48]. They are a flexible and versatile data collection method [47] with the help of which the participants’ experiences related to the research topic can be identified [48]. In this type of interview, the questions are pre-planned, but the interviewer gives the interviewee a chance to elaborate and explain certain issues by using open-ended questions [49]. Since the interaction between the interviewer and interviewee is an essential part of the qualitative research process, a semi-structured interview allows for flexibly adapting the sequence of questions and specific question formulation. Thus, open questions can elicit supplementary and valuable information, which represents an advantage of the method [50]. Its main disadvantage is that interviewees’ responses may be based on the emotional impact or perceived purpose of the interviewers [51]. Other disadvantages are related to inadequate response to the subject and the limitation of the number of interviews conducted due to time and financial resources [52].

The semi-structured interviews were conducted according to an interview guide. The interview guide was established as a list of questions that directed the conversation to the research topic during the interview [47]. It was created to capture the entire value chain. Three different semi-structured interview guidelines were developed that depended on the type of stakeholder addressed: the production farm, stakeholders involved in other parts of the value chain (e.g., supply, distribution, sale, etc.), and other stakeholders (e.g., for policy, umbrella organizations, experts, etc.). The interview guide included the following categories: evolution of the production system, key farm characteristics, value chain stages (agricultural production, inputs and supply, processing and packaging, distribution channels, marketing, and sale), linkages with other stakeholders (incl. relationships), challenges, and future needs.

The interview guide for production farms consisted of 15 questions. The first two questions referred to the business history and key elements in terms of size, farming practices, and organizational structure. The following 8 questions focused on agricultural production, inputs and supply, processing and packaging, distribution channels, marketing, and sale. The next 2 questions focused on the relationship with the other actors in the chain, and the last 3 questions investigated the challenges in the chain, the problems faced, and the future needs in order to develop it. The interview guidelines for other value chain stakeholders had 10 questions, including 2 questions about key operations of businesses and 5 questions about the connections with the actors in the chain and the nature of the collaboration. The last three questions focus on the barriers encountered, needs, and future plans. The interview guidelines for other stakeholders contained 8 questions, thus divided into 2 questions about their characteristics regarding the activity carried out, 3 about their relations with the other actors in the chain, and 3 about the barriers in the chain and future needs.

2.1. Sampling and Data Collection Process

Interviews were conducted with the main actors, i.e., organic vegetable farmers; the upstream actors (suppliers of agricultural inputs); and the downstream actors, i.e., distributors, retailers, and other actors involved in the value chain. The sampling strategy consisted of the snowball technique. The method was defined by Biernacki and Waldorf [53] as a way of sampling through recommendations made among people who share or know others who share some interests in the field of research. The main advantage of the method is the easy accessibility of the sample [54]. The disadvantage is represented by the impossibility of determining the possible sampling error since the population is not randomly selected [54]. The technique is mainly used in qualitative research and even more in value chain analysis [28,55,56] since it is centered on network and referral characteristics [57]. Due to the fact that in Romania there is no public access to a database of producers of organic vegetables, their identification was achieved through a search on the Google website. They were contacted by phone or email depending on the available data. After identifying them, the snowball technique was used to identify the actors in the chain.

The number of interviewed actors was established according to the saturation criterion. Saturation is reached when the interviewer starts hearing the same information reported [58]. Some researchers claim that saturation is reached at 25 interviews, depending on the topic [59,60]. In this research, saturation was reached at around 25 interviews. Also, similar sample sizes have been analyzed in the literature regarding the analysis of the value chain of organic vegetables [1,61]. The interviews were conducted in two forms: in person and on the phone. According to the type of actor interviewed, the duration of the interviews was different. The duration of the interview with the farmers was between 60 and 90 min; the interviews with the stakeholders involved in other parts of the value chain were between 45 and 60 min; and the ones with other stakeholders lasted between 30 and 45 min. The interviews were audio-recorded with the consent of the participants. In total, 25 interviews were conducted: 11 farmers, 5 input suppliers, 5 distributors, and 4 other actors in the chain (1 local action group, 2 certification bodies, and 1 cooperative).

2.2. Data Analysis

Content analysis was used to analyze the collected data. Krippendorff [62] defined content analysis as “a research technique for making replicable and valid inferences from texts (or other meaningful matter) in the contexts of their use”. It is a method used to give meaning to the content of texts [63] and to analyze a large volume of data in a systemic way [64]. The main disadvantages of the method are the incorrect definition of the categories and non-mutually exclusive and exhaustive categories [64].

The first stage of data analysis consisted of transcribing the interview recordings. Then we followed the mapping of the value chain and the description of the actors involved in the chain. The last stage consisted of the content analysis of the thematic categories: barriers and future needs. Thematic categories were identified for each type of actor. For each thematic category, the aspects specified by the interviewees were identified. This was followed by a prioritization according to the frequency of occurrence. Thus, the barriers and future needs were prioritized according to the number of mentions by the actors in the chain. These aspects will help identify the leverage points that will lead to the development of the organic system.

The limitations of the chosen methodology are related to: limited access to data (given the reluctance of actors in the chain to grant us an interview), time constraints (given the duration of the interviews), and the misinterpretation of the results through the use of content analysis.

3. Results

In the following chapter, the main findings of the study will be presented and divided into four themes: mapping the value chain, characterizing the actors in the chain, the governance structure, and the value chain upgrade.

3.1. Mapping the Value Chain

The value chain for the organic vegetable sector in Romania is presented in Figure 3. The organic vegetable chain starts with the input suppliers (seed suppliers, fertilizer and plant protection substance suppliers, fuel and energy suppliers, etc.), and then it continues with the farmer. This is the main actor in the chain because it is its initiator. From the point of production, namely farmers, the value chain presents three variants. The first option includes direct sales to the final consumer. There are no other intermediaries between the farmers and the consumer; there is a beneficial collaboration in both directions. For farmers, it is beneficial because the economic benefits are not shared with others; for consumers, it is beneficial because they know not only the exact source of the products they consume but also their production method. The second type of value chain puts the retailer between farmers and consumers. The retailer takes the form of specialized stores (organic stores and grocers) or supermarkets. In this case, the farmer begins to lose the economic benefits, and the consumer no longer has a direct connection with the place of production of the vegetables. In the third variant, there are two actors: farmers and final consumers. There has been an emergence of agricultural cooperatives that collect vegetables from several farmers and direct them to consumers through retailers. In addition to the main actors in the chain, there are certification and control bodies that certify the economic activity of all the actors involved in the chain. In addition to them, there are also associations and local activities that support the smooth development of the chain’s activities and the support of this sector. Another category of interested parties in the value chain is formed by the state institutions that supervise and monitor the activity of the main actors.

The marketing of organic vegetables in Romania is divided into three marketing channels. The first channel is that of direct sales (farmers–consumers); 27.3% of the interviewed farmers use this channel. Direct sales take the following forms: as a weekly basket (28%), sales through online orders that are delivered to certain pick-up points (36%), direct sales from the farm (27%), and sales via trailer (9%).

The second marketing channel used by farmers is the one in which a distributor (the retailer) intervenes between the farmers and the consumers (farmers–retailers–consumers). This channel is used by 45.5% of farmers. The most common retailers in this case are supermarkets and ecological stores. The third channel consists of two intermediaries between farmers and consumers, namely the wholesaler and the retailer. This channel is used by 9.1% of farmers. The wholesaler is represented by agricultural cooperatives, which mediate between farmers and retailers. The remaining 18.1% of farmers use more than one marketing channel.

The value chain of organic vegetables in Romania is a simple one with a limited number of actors and with a low added value. The processing function is missing because most of the interviewed farmers sell fresh vegetables. Only surplus vegetables and those with defects are processed into different products. But due to the small quantities processed and the high costs of certification, their processing is not certified as organic. Only two of the interviewed farmers maintained that they outsource the processing function to processors certified in the processing of vegetables and fruits and in the organic system.

3.2. Characterizing the Actors in the Chain

• Input suppliers

The input suppliers in the value chain of organic vegetables in Romania are commercial companies that operate at the national level, and the vast majority belong to international companies. According to the Ministry of Agriculture and Rural Development, in 2023, 132 distributors of plant protection products for organic farming and four suppliers of plant breeding material were active on the market [65]. The input suppliers are not only specialized in organic agriculture, but they also target conventional farming, and they are not only specialized in vegetable growing. In addition to the sales part of the products, 80% of them also provide consulting services regarding nutrition and crop protection plans.

• Farmers

Most of the Romanian farmers (

Table 2. Characteristics of an organic vegetable farm in Romania.

Characteristic of Farm	Value
Form of organization	Commercial company with limited liability
Average farm size	4.3 ha
Land ownership	In property
Protects spaces	Yes (greenhouses and solariums)
Average number of permanent employees	6
Average number of day workers	4
Knowledge level	Low
Production type	Large range of vegetables, depending on the season
Storage capacity	Yes
Processing	No

Source: author’s own projection.

) are organized as commercial companies with limited liability (63%), followed by individual companies and authorized physical persons. Most farms are small-scale, with an average size of around 4.3 ha. In addition, 90% of farmers also have protected spaces (greenhouses and solariums) for growing vegetables; these spaces have an average size of 6000 square meters. Regarding land ownership, approximately 64% of the area is owned, and around 36% is leased. The workforce is represented by permanent and daily employees. The average number of permanent employees on the farm is six, and the average number of day workers is four, especially during the harvest period.

Regarding knowledge in the field of growing vegetables in an organic system, 55% of the sample of farmers did not know about this field; they accumulate information with the development of the activity. Most farmers choose to produce vegetables in an organic system due to the desire to produce healthy products for consumers that are sustainable for the environment. Several reasons to begin activity in the organic vegetable sector are presented in

Table 3. Reasons for using the organic production system.

Motivation	% of Farmers (11 Farmers Interviewed)
Making sustainable products (tasty and healthy)	45.5%
Existence of non-refundable European funds	19%
Land ownership with low pesticide use	18%
Way of supporting society	17.5%

Source: author’s own projection.

.

In terms of agricultural production, farmers cultivate a large number of vegetables both to have diversity and to have sales as long as possible throughout the year while taking into account the seasonality of vegetables and the crop rotation system. Farmers divide their production by season, so in spring they focus on greens and early crops (radishes and green onions); in summer, the dominant products are tomatoes, cucumbers, and peppers; and in autumn, root vegetables occupy the largest share. Farmers own the agricultural machinery necessary for vegetable production and the storage spaces necessary for proper storage of vegetables.

The main products sold are fresh and seasonal. Surpluses and vegetables with defects are processed into various products such as mixed vegetables, juices, and dehydrated vegetables. Due to the small quantities of vegetables that are processed and the high costs of certification for each processed product, the processed products are not certified as organic.

To emphasize the quality of the products, 27% of the farmers voluntarily hold other certifications regarding the quality of the products (e.g., Global G.A.P. or Mountain Product Certification). In addition to the basic activity regarding the cultivation of vegetables, 36% of the farms in the sample carry out educational activities for children regarding cultivation in an ecological system and workshops on organic topics for adults. A limited number of farmers also hold product tastings for tourists or offer consulting on organic vegetable cultivation.

• Retailers

In the case of the value chain of organic vegetables in Romania, retailers are represented by supermarkets and organic stores. Organic stores present a varied range of products; they do not focus only on organic vegetables. These are seen by farmers as a target market because they promote the same principles for products. Organic stores operate locally and serve consumers in the area, but with the development of technology, most of them also focus on online sales to serve consumers nationally. Supermarkets comprise a product sales channel that prefers suppliers who deliver products regularly; however, some of them are open to the possibility that farmers can only deliver products seasonally and in small quantities. Farmers have to bear the shelf and transport costs.

• Wholesalers

In the value chain of organic vegetables in Romania, wholesalers are organized in the form of agricultural cooperatives. Their goal is to bring together more farmers to help them market more easily to supermarkets. The number of cooperatives specializing in organic products is very limited in Romania.

• Consumers

According to the statistics, Romanians consume few organic products; this can be underlined by the per capita expenditure on organic products, which in Romania is EUR 2 compared to the European Union average of EUR 101.8 per capita [11]. Farmers characterize consumers as people who are aware of the importance of food for health, families with children, and people suffering from certain medical conditions.

• Other stakeholders

Stakeholders in this type of value chain are the certification and control bodies that have the purpose of certifying farmers who want to produce in an ecological system. They certify every actor in the chain that produces and/or sells organic products. In Romania, there are 14 such accredited bodies. State institutions play an important role in the value chain of organic vegetables in Romania by establishing the legal operating framework and verifying and controlling the activity of actors in the chain. Local action groups are organizations that support community development. They encourage organic farmers by awarding extra points for accessing development funds through the LEADER program.

The primary and most valued actor in the organic vegetable value chain is the farmer. Very few actors in the chain are focused only on the organic system. Only farmers, organic shops, and organic farming associations are focused on promoting and developing this system. The other actors have a small part of the activity interrupted by the organic system.

3.3. The Governance Structure

All actors in the value chain of organic vegetables in Romania respect the formal rules established by national legislation (and European legislation for the organic sector. Since they are the main actors in the chain, farmers establish relationships with all the actors in the chain. They are formal and based on a contract, but they are also based on mutual trust (

Table 4. Relations in the organic vegetable value chain in Romania.

Value Chain Actor	Farmers
Characteristics of the relationship	Number of years	Pre-finance	Exchange of information	Trust
Suppliers	No specific period. In many cases, they are established from the beginning and are maintained.	Commercial credit	The suppliers provide consultancy regarding the plant nutrition and protection plan.	Very high
Wholesaler	No specific period	At the delivery of the products/at the terms	Quantity and quality	Very high
Retailer	Long-term in many cases	At the delivery of the products/at the terms	Quantity and quality	Very high
Certification bodies	1 year	Cash payment	On a contract basis. Farmers provide the documents required by the body, allowing its control. The contract must be renewed annually.	High
State institutions	Operating period	Pay taxes	Looking at the new regulations	Medium
LAG/Associations	No specific period	No	Based on trust and support	High
Peers	No specific period	No	Exchange of knowledge related to cultivation	Very high

Source: author’s own projection.

). A total of 73% of the farmers in the sample consider it very important to have a relationship based on trust with the other actors in the chain in order to survive on the market.

In terms of governance in the chain, the actors who exercise power over the chain are the farmers because they are the ones who initiate the development of the chain. Another type of important actor is the consumer, because without them, the chain is not complete. The certification and control body is one of the actors that exercises power over all the actors in the chain, giving them the opportunity to carry out their activity within a legal framework. Trust, respect, and seriousness are characteristics of the actors in the chain, and through them, a good collaboration is achieved between them. An identified problem related to governance was the fact that 85% of farmers do not feel supported by the state. They consider that the legislation is not clear and does not help them. Frequent legislative changes and the fact that the legislation is not uniform in all European Union member countries discourage farmers from continuing to work in the organic system.

3.4. The Value Chain Upgradation

In order to modernize and develop the value chain of organic vegetables in Romania, it is essential to highlight the challenges and barriers faced by the actors in the chain.

Table 5. Barriers at the level of the organic vegetable value chain in Romania.

Value Chain Actor	Barriers
Input suppliers	1. High costs and a long time to approve some organic phyto-protection products 2. Ambiguities in legislative acts and delays in their implementation 3.Non-compliance by the farmer with the provided treatment plan
Farmers	1. Lack of organic markets 2. Buyers do not trust the product as organic 3. Lack of policy support to promote organic markets 4. High bureaucracy 5. Lack of synchronization of the types of documents required by the 2 state bodies to which the activity must be reported (the County Directorate for Agriculture and the Agency for Payments and Interventions in Agriculture) 6. Lack of labor force 7. Lack of farmers’ organizations in the organic field 8. Lack of consultancy in the field of organic agriculture
Retailers	1. Lack of organic markets 2. Buyers do not trust the product as organic
Other actors	1. Lack of organic markets 2. Lack of education regarding the consumption of organic products 3. Lack of information and promotion of organic systems 4. Lack of synchronization of the types of documents required by the 2 state bodies to which the activity must be reported (the County Directorate for Agriculture and the Agency for Payments and Interventions in Agriculture)

Source: author’s own projection.

shows the main barriers identified at the levels of input suppliers, farmers, retailers, and other actors. Identified constraints were prioritized based on the content analysis according to their frequency in the answers.

The main barrier identified in the value chain of organic vegetables in Romania was the lack of a market due to the low consumption of organic products. This is reinforced not only by the low level of education regarding the consumption of organic products but also by the fact that the population does not trust that the products are what they claim to be.

As a modernization strategy, all farmers pursue product modernization. This is implemented through the high quality of the products via compliance with ecological standards and even other standards (Global G.A.P. or Mountain Product Certification), but also through the great diversification of types of vegetables.

The actors in the chain highlighted certain levers to overcome the barriers in the chain and also to develop new ways of upgrading; these are highlighted in

Table 6. Specific levers for value chain upgrading.

Value Chain Actor	Levers
Input suppliers	1. Stable and clear legislation 2. Campaigns to educate the final consumer on organic products
Farmers	1. Consumer information campaigns about organic products 2. Stable and clear legislation 3. Support measures with criteria that are easier to achieve (e.g., smaller minimum areas for the organic sector) 4. Purchases of organic products guaranteed by the state (for hospitals, kindergartens, and centers) 5. Development of cooperation for small farmers in cooperatives and groups of producers specialized in organic agriculture
Retailers	1. Campaigns to educate the final consumer on organic products 2. Increasing the standard of living
Other actors	1. Educating the final consumer on the benefits of organic products, but also the producer being aware of the benefits of the organic product (not only the economic benefits) 2. Stable and clear legislation 3. Development of a common program for the state institutions, the certification body, and farmers to make it possible to identify the indicators regarding ecological agriculture

Source: author’s own projection.

. Each category of actor in the chain mentioned that the education and awareness of the final consumer must be a measure of the development of this sector due to the fact that the main barrier identified was the low consumption of organic vegetables. The second way to develop the value chain was through the stability of legislation and support from the state through measures to support producers but also to promote this organic system.

4. Discussion

The study showed that the value chain of organic vegetables in Romania is simple (Figure 3) but with gaps in processing facilities. Such gaps were also identified in other studies [12]. An advantage of this existing chain is the fact that it uses an important marketing channel, namely direct sales. This marketing channel has a significant percentage (27.3%) and is a favorable one that considers the perishability of vegetables and the economic benefits to farmers. A new approach to direct sales is the subscription to a vegetable basket, following the model of agriculture supported by the community. This model shares risks and benefits between producers and consumers by establishing a long-term commitment [66].

The categories of actors involved in the chain are few. Producers, certification and control bodies, and organic stores are the only actors specializing in the organic side. The rest of the actors are carrying out activities for the conventional system. The main actors in the chain are the farmers who produce organic vegetables. The average size of an organic vegetable farm (Table 2—4.3 ha) is similar to the average size of a farm in Romania (4.42 ha) [67]. Other similar characteristics between organic vegetable farms and the general holding in Romania refer to the ownership of the land and the level of knowledge. Due to the lack of data on the characteristics of conventional vegetable farms, it was impossible for us to form a rough picture of the advantages or disadvantages of organic farms compared to conventional ones in this sector. Another important actor in the chain that relates to all the actors in the chain are the certification and control bodies. In Romania, 14 certification and control bodies are active. Of these, only five are Romanian; the rest belong to other countries in the European Union (Germany, Italy, and Austria). Only three of them offer only ecological certification services; the rest also provide other certifications or other services. The actors upstream from the farmers are the suppliers, who in this case are not specialized only in the organic sector. Input suppliers are the important actors in terms of production. In addition to providing physical inputs, they also offer consulting regarding the proper management of vegetable production. Most of them have a limited number of organic products in their portfolio. Most of them are international companies that produce organic products outside of Romania. The fact that there are a limited number of Romanian certification bodies and that the majority of producers of organic inputs are not located in Romania underlines the poor development of the organic system and the dependence on the import of organic inputs. The actors who determine the development of the chain according to the other actors in the chain are the consumers. They deserve to be analyzed in separate research to identify their reasons and rationale for purchasing organic vegetables or not.

In the governance structure, all actors respect the official legal standards regarding the production and marketing of organic products. Most actors in the chain consider that trust is the main element in establishing relationships. The relationships between farmers and suppliers are established according to the needs of the farmers. Most of the farmers claim that once the relationship is established, they maintain it due to the trust offered to each other. The problems related to the relationship between the actors were identified only between the state bodies and the rest of the actors. The relationship between farmers and retailers is the most intense and has a constant exchange of information. The farmer informs the customer about the possibility of delivery as well as what kinds of products they have and their related quantities; the retailer informs the customer about the market’s need for diversification of the assortment. The legislative changes and the lack of information make the actors in the chain feel unsupported by the state institutions. The lack of standardization of the documents required for the certification required by the various state institutions creates obstacles for the actors and wastes time.

A main problem identified by most actors in the chain was the low organic market demand. This aspect was also confirmed by the per capita consumption of organic products, which in Romania amounts to EUR 2 per person, compared to the average level of the European Union, which is EUR 101.8 euros per person [11]. The main problem is amplified by a second identified problem, namely consumers’ lack of trust in organic products. This problem has also been identified in studies from other countries [12]. Most of the farmers mentioned the problem of consumers’ lack of trust in organic products. They argued that this problem arises due to a lack of consumer education regarding the differences between different concepts such as “organic product”, “natural product”, and “traditional product” but is also due to the deceptive marketing practices of some merchants. Another problem encountered is the frequent legislative changes, bureaucracy, and inconsistency between the state institutions active in the field. The fact that the state does not promote organic agriculture more carefully and that there are no more support measures for this sector makes farmers in particular feel discouraged to continue using this system. Another identified problem was the lack of consulting in the field of organic agriculture, regarding both the technical part and also the management of such an activity. This problem was encountered by the majority of farmers because they started the activity in the organic field without having specific knowledge.

The key actors in the chain specified some ways to overcome the identified barriers. The majority of actors stated that the principle way for development of the sector is the education of consumers. They suggested that different campaigns should be carried out at the state level to promote the consumption of organic vegetables by raising awareness of the benefits produced both for the consumer and for the environment. Another way is through legislative stability and the development of measures to encourage the practice of organic agriculture. A useful measure can be linked to state-guaranteed procurement, which is a tool used in another EU state (France) through additional points in public procurement. Other optimal solutions for the development of the sector can be the financial support measures provided by the National Rural Development Program, which should have a proper specialization in organically agriculture with accessible criteria (especially regarding standard output (SO)).

Another solution for overcoming barriers is the development of agricultural cooperatives specialized in the organic field. Through these, small producers can be supported regarding the sale of products. The cooperatives also can offer consultancy in the organic field for both the technical and management parts.

5. Conclusions

This study analyzed the value chain of organic vegetables in Romania and identified the fact that it has a simple structure with a limited number of actors involved. The findings showed that the main actor in the chain is the producer of organic vegetables, which is characterized by its small size and organized to the greatest extent as a limited liability company. They establish relationships with the other actors based on trust and respect. The function of adding value to organic vegetables is mostly missing, and organic vegetables are sold through three types of channels: directly to the final consumer, through retailers, and with the help of agricultural cooperatives that mediate between farmers and retailers. The main barriers identified in the development of the value chain are the low consumption of organic products in Romania, the frequent changes in legislation, the high amount of bureaucracy, and the insufficiency of the sector’s support measures from the state institutions. This paper provides a better understanding of the value chain of organic vegetables in Romania. The findings can be used by decision makers and actors in the chain to improve and develop this value chain. The actors in the chain also identified certain ways to overcome the barriers through information campaigns and consumer education regarding the consumption of organic products to create a stable environment from a legislative point of view and support measures for farmers by the state (purchases guaranteed by the state and reasonable criteria for accessing support measures).

The originality of this work lies in its theoretical and practical approach. As far as we know, it is the first study that analyzed the value chain of organic vegetables in Romania. Furthermore, we identified value chain barriers that impede development. Also, we highlighted the possible ways to overcome the barriers.

The research carried out is of practical importance in several aspects. The first aspect is related to the presentation of the value chain and its shortcomings. With the help of this, new directions for the development of existing actors or the entry of new actors into the chain can be established. Another practical aspect is given by the fact that the research indicated the main barriers and problems in the development of the sector. This is vital information for decision makers. These aspects are important for establishing the tools that will encourage the development and maintenance of activity in the organic sector.

The limitations of the study are the following: there is no complete database of farmers by location and agricultural product, so the total number of farmers in the vegetable sector in Romania could not be established; there was reluctance of the participants in the value chain to provide information about their activity; and the generalization of the findings should be approached with caution because the research was conducted with a small sample size. Due to the findings, future research can focus on identifying the perception of Romanian consumers regarding organic vegetables and comparing the barriers identified in Romania with other countries that have a low level of consumption of organic vegetables. Another research perspective can be shaped around the analysis of countries that have a developed organic agriculture in order to identify good practices and to discover what can be used in the case of Romania.