Factors limiting the potential impacts of organic agriculture on rural development in China

The purpose of this paper is to analyse the factors and challenges that limit the success and competitiveness of the Chinese organic value chain. Qualitative data have been collected through a range of stakeholder interviews. The findings were assessed and grouped through sequenced verification and validation. The competitiveness of the organic value chain is analysed according to Porter’s theory of competitive advantage. The findings reveal limiting factors, which are affecting the competitiveness of the Chinese organic food value chain. These factors include the lack of knowledge and production capacity of producers, unequal benefit sharing and insufficient extension services. Consumers’ lack of awareness and low domestic demand have resulted in an immature national organic market. Efforts to regulate the sector through strict organic standards and support policies have created unequal competition. Fierce competition is creating an unpleasant business environment with reduced trust between value chain actors. Internationally, Chinese producers are often financially disadvantaged because of the need for multi-certification. Through an inclusive and comprehensive approach, this paper identifies factors limiting the competitiveness and potential impacts of organic agriculture on rural development. The findings allow other researchers and policymakers to further develop solutions and policies to address these challenges. © 2016, Springer Science+Business Media Dordrecht.