MANAGING “GM-FREE” FOOD SUPPLY CHAINS IN ITALY: INSIGHTS FROM A CASE STUDY

Systems for preserving the identity of non-GM food products in segregated supply chains, as well as retailer-led private standards used as regulation and enforcement mechanisms in vertical relations are hot topics needing further research. In this paper, we provide a picture of the most relevant non-GM poultry meat supply chain. Information was collected from the major players involved at the different levels of the supply chain. The discussion considers several aspects of segregation, in particular: actors involved and governance aspects, certification schemes and traceability, extra costs and benefits. The impact of non-GM schemes on the governance structure of the transaction meat processor-retailer is analyzed using transaction cost economics as theoretical framework. The results indicate that the reputation from the retailer’s non-GM labeling intensifies the mutual dependency between transacting partners, increasing transaction costs and exit barriers, requiring a shift towards more integrated forms of governance at the expense of flexibility.