Urban agriculture business models and value propositions: Mixed methods approach based on evidence from Polish and Italian case studies

Abstract

Nowadays, trends related to alternative promotion options for small farmers in changing agri-food supply chains stand out. Urban Agriculture (UA) is a multifaceted system ranging from traditional production, processing, distribution, and consumption to a collection of new and less imagined goods and services. UA generally differs from conventional food chains in the origins, the place of production, and the production conditions. This paper focuses on an aspect less addressed by previous research: the analysis of strategic business models adopted by urban farm (UF) practitioners. The work uses a meta-model called Business Model Canvas (BMC), expanding on it with Value Proposition Canvas (VPC) model to explore how they communicate value to target customers and different market segments. Accordingly, in-depth interviews and participant observation were conducted from February 2020 – to February 2021 to gather extensive qualitative information. We selected two European economies in Eastern and Western Europe, Poland and Italy, with different UA relevance and functionality, to better identify potential UF business models. We identified three UF business strategies: service-oriented, product-oriented and land-use-oriented. UFs are gaining traction by impacting beyond financial and economic significance. The new value proposition is a powerful way to create a broader customer base and develop innovative product and service solutions to deliver unique value. It is a development path for UFs and urban agglomerations’ sustainable development. This study led to the conceptualization of the cross-cultural business meta-model of UF. It recognizes UFs as distinct entities with diverse functions and value propositions and informs the emergent UA theory and practical applications in UFs.