Raising Rivals’ Costs Strategy and Localised Agro-Food Systems in Europe

Abstract

For some Localised Agro-Food Systems (LAFS) in Europe, the cheese and milk prices are above average whilst others are similar or even below average. The objective of this paper is to shed light on levers, which the agents activate to assure their uniqueness is irrevocable, and uphold the benefits of their LAFS. Raising Rivals' Costs Theory gives interesting point of view about the behaviour of firms, which could make use of the collective rules to raise the costs of their competitors in the particular case of LAFS oriented to the production of traditional cheeses. This will be explored through two cases studies.

Keywords

• PDO
• localised agro-food system
• raising rivals’ costs
• governance of LAFS