Nested Markets

This paper applies the frameworks of nested markets and alternative food networks to two empirical cases in the state of Rio Grande do Sul, Brazil, aiming to analyse the construction and dynamics of these markets in order to demonstrate how their dimensions of quality, location, and nature are built and sustained, especially with regard to their interface with broader markets and their contributions to rural development practices, policies, and processes. The paper focuses on the study of rural tourism in Caminhos de Pedra Route, in the municipality of Bento Gonçalves, and the Farmers' Market, in the municipality of Passo Fundo. Both cases represent alternative practices and processes of rural development and bear features that associate them to the nested markets. It is noteworthy that the influence of conventional food markets in these cases shows that nested markets do not operate in isolation but coexist and are continuously in connection with broader agri-food markets. In this sense, despite being subject to criticism and showing limitations, nested markets constitute increasingly robust strategies for rural development practices, processes, and policies, being able to create opportunities for families' livelihood in rural areas.

Over the past two decades, the emergence of new forms of food production and distribution distinct from the conventional system has led to a change of perspective in rural studies, which started to discuss how market access can be considered an important strategy to increase autonomy and allow social reproduction of family farming. Different approaches have been developed since the 1990s in order to explain the emergence of these new markets, their dynamics and role in rural development practices. The nested markets, which we propose to study in this thesis, although not operating in isolation and being part of a wider global market, are distinguished not only by the quality and differential of their products, but by the way these products are distributed, by their governance mechanisms, their dynamics and interrelationships and their impacts as a whole. Therefore, this thesis is based on the theme of the social construction of markets and the importance of institutional arrangements in the management of common use resources for its construction, development and reproduction, in a scenario of direct influences of the highly competitive and regulatory agri-food market. The research problem lies in the fact that, despite the continued advancement of conventional markets and their institutional and regulatory standards, these new nested markets are still emerging and reproducing. In this sense, we mobilize the analytical framework of nested markets and the contributions of the New Economic Sociology, more specifically from the concept of embeddedness, and Elinor Ostrom's institutionalist theory, to analyze family farming markets, seeking to understand how they are created, how they operate and how they relate to global food production and marketing standards. This study has an exploratory character, as it aimed to clarify the concepts and ideas about nested markets and to develop and test a methodological tool for data collection and analysis. To fulfill the objectives and answer the general question of the thesis, we use a combination of qualitative and quantitative research methods: the in-depth analysis of a nested market case and the discussion of the characteristics of these markets from a set of variables and indicators instrumentalized in a research tool. Therefore, we performed an analysis of the socially constructed markets of family farming, in three distinct cases: agrotourism in Venda Nova do Imigrante (ES), the strawberry market in Agudo (RS) and the organic fairs in Porto Alegre. The results have shown that these new nested markets survive and reproduce, in the context of strong influences from the broader institutional and regulatory standards with which they interact, from the strategies adopted by the actors seeking greater maneuverability and their shared capacity to produce joint benefits to those involved through a set of rules, norms and conventions. The dimensions of analysis of these distinct markets have shown that these characteristics that differentiate them from conventional markets constitute a commonly pool resource that, while being appropriated, contributes to the generation of synergies and their maintenance and reproduction over time.

Over the past two decades, the emergence of new forms of food production and distribution distinct from the conventional system has led to a change of perspective in rural studies, which started to discuss how market access can be considered an important strategy to increase autonomy and allow social reproduction of family farming. Different approaches have been developed since the 1990s in order to explain the emergence of these new markets, their dynamics and role in rural development practices. The nested markets, which we propose to study in this thesis, although not operating in isolation and being part of a wider global market, are distinguished not only by the quality and differential of their products, but by the way these products are distributed, by their governance mechanisms, their dynamics and interrelationships and their impacts as a whole. Therefore, this thesis is based on the theme of the social construction of markets and the importance of institutional arrangements in the management of common use resources for its construction, development and reproduction, in a scenario of direct influences of the highly competitive and regulatory agri-food market. The research problem lies in the fact that, despite the continued advancement of conventional markets and their institutional and regulatory standards, these new nested markets are still emerging and reproducing. In this sense, we mobilize the analytical framework of nested markets and the contributions of the New Economic Sociology, more specifically from the concept of embeddedness, and Elinor Ostrom's institutionalist theory, to analyze family farming markets, seeking to understand how they are created, how they operate and how they relate to global food production and marketing standards. This study has an exploratory character, as it aimed to clarify the concepts and ideas about nested markets and to develop and test a methodological tool for data collection and analysis. To fulfill the objectives and answer the general question of the thesis, we use a combination of qualitative and quantitative research methods: the in-depth analysis of a nested market case and the discussion of the characteristics of these markets from a set of variables and indicators instrumentalized in a research tool. Therefore, we performed an analysis of the socially constructed markets of family farming, in three distinct cases: agrotourism in Venda Nova do Imigrante (ES), the strawberry market in Agudo (RS) and the organic fairs in Porto Alegre. The results have shown that these new nested markets survive and reproduce, in the context of strong influences from the broader institutional and regulatory standards with which they interact, from the strategies adopted by the actors seeking greater maneuverability and their shared capacity to produce joint benefits to those involved through a set of rules, norms and conventions. The dimensions of analysis of these distinct markets have shown that these characteristics that differentiate them from conventional markets constitute a commonly pool resource that, while being appropriated, contributes to the generation of synergies and their maintenance and reproduction over time.

A twofold framework based on nested markets and the multi-level perspective on sustainable transitions is presented. We argue that there are promising intersections between these interrelated concepts, which are useful to understand the emerging dynamics of new markets, their relations with the broader food system and their potential to sustain more sustainable food practices, as illustrated from a case study in the French overseas territory of La Reunion.

A twofold framework based on nested markets and the multi-level perspective on sustainable transitions is presented. We argue that there are promising intersections between these interrelated concepts, which are useful to understand the emerging dynamics of new markets, their relations with the broader food system and their potential to sustain more sustainable food practices, as illustrated from a case study in the French overseas territory of La Reunion.

A twofold framework based on nested markets and the multi-level perspective on sustainable transitions is presented. We argue that there are promising intersections between these interrelated concepts, which are useful to understand the emerging dynamics of new markets, their relations with the broader food system and their potential to sustain more sustainable food practices, as illustrated from a case study in the French overseas territory of La Reunion.

A twofold framework based on nested markets and the multi-level perspective on sustainable transitions is presented. We argue that there are promising intersections between these interrelated concepts , which are useful to understand the emerging dynamics of new markets, their relations with the broader food system and their potential to sustain more sustainable food practices, as illustrated from a case study in the french overseas territory of La Réunion.

ABSTRACT The multi-level perspective (MLP) has been applied to agri-food studies in the past, however, they have tended to focus either on large-scale ( national) and often historical transitions (e.g. Grin, 2010), or on very specific system innovations initiated by technical innovations (e.g. Elzen et al., 2012). The former focus on long-term processes and, thus, allow an assessment of whether or not a broader transition has occurred, or at least is well under way. The latter focus on processes that started recently, and whose future development is still uncertain so that it may be too early to speak of a ‘transition in the making’. The ambition of the case studies presented in this book was to provide novel insights on the ‘middle-ground’: niches that have matured and that have started engaging with the regime to initiate the start-off phase of a transition. The coverage of very diverse cases, from different regions of Europe and relating to different combinations of regimes, was designed to acquire a broad understanding of emerging transitions occurring in relation to farming and rural areas in Europe. In this chapter, we will briefly review the specificity of farming and associated implications for understanding transitions. We will then review the lessons learned, especially regarding the definitions of niche and regime in the context of transitions, and in relation to niche-regime interactions. We will also briefly reflect on the role of research – as part of the regime – in emerging transitions. We conclude by assessing the challenges of studying transitions in farming, and the challenges posed by the need to take into account the diversity within farming.

Luca PICCIN, La Ruche Qui Dit Oui - The Food Assembly, dans : F.Galli, G. Brunori (eds.) (2013) Short Food Supply Chains as drivers of sustainable development. Evidence Document. Document developed in the framework of the FP7 project FOODLINKS (GA No.265287). Laboratorio di studi rurali Sismondi, ISBN 978-88-90896-01-9.