23.12.2024

The Business Strategies Towards Climate-Smart Agriculture in Europe: A Literature Review

The Business Strategies Towards Climate-Smart Agriculture in Europe: A Literature Review provides an in-depth analysis of business strategies that can enhance climate-smart agriculture (CSA) across Europe. The research outlines six key business strategies aimed at enhancing competitiveness while minimizing environmental impact.

1.           Collective business strategy (Co-governance)

This strategy involves the formation of collaborative networks among stakeholders, such as farmers, consumers, and supply chain participants. Collective governance helps stakeholders align their business models with fairness and sustainability goals. Multi-stakeholder networks, especially in smart farming, play a critical role in advancing CSA by expanding the focus from individual farms to broader agri-food systems level, helping farmers face the CSA-challenges jointly.

2.           Incorporating environmental and social goals

This strategy encourages businesses to integrate environmental and social objectives, such as human health and sustainability, into their business models. Traditionally, agricultural businesses focus on short-term economic gains. By collaborating with experts in various fields—such as marketing, agronomy, and engineering—businesses can raise awareness of the long-term competitive advantages and financial gains tied to CSA.

3.           Resource pooling

The adoption of CSA often requires significant financial investment, which can be unaffordable for many farmers. Resource pooling involves multiple stakeholders sharing the costs of CSA practices and technologies through collective investment mechanisms. This strategy reduces the financial burden on individual farmers by distributing costs among a broader group of contributors. It also mitigates the risks of being early adopters of CSA technologies, encouraging more farmers to participate without bearing all the financial risks themselves.

4.           Innovation networks

Innovation networks facilitate collaboration between farmers, producers, and technology developers, creating an environment for shared knowledge, skills, and technologies. These networks are essential for advancing CSA practices, particularly in smart farming, by promoting trust and collaboration. Innovation networks help farmers adopt new technologies and improve their digital skills. They also support the development of solutions that benefit the entire agricultural system, not just individual farms.

5.           Platforms and associations

Formal platforms and associations help reduce barriers to CSA adoption by providing structured support and facilitating collaboration. These organizations often include educational institutions, research centres, and experimental farms, which offer resources and guidance to the CSA users. Members of such platforms are more likely to adopt CSA practices due to the access they gain to professional services, shared knowledge, and collaborative projects.

6.           Community-building networks and partnerships

This strategy focuses on informal networks and partnerships that connect farmers through shared interests and goals. Community-building initiatives, such as farmer events and joint market efforts, promote collaboration. 

In conclusion, transitioning to CSA requires a coordinated, multi-stakeholder approach. The six strategies identified facilitate collaboration and resource sharing, making it easier for farmers to adopt CSA. Effective governance and shared responsibility are essential to ensure these strategies succeed and drive sustainable agricultural practices.

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