In Albania development gaps in the area of food safety are calling for stronger vertical coordination within the agrifood value chains. The paper explores the possibility of vertical coordination being strengthened through the development of agricultural cooperatives and informal farmer groups. In two reported case studies, these organizations have been shown to be called into life by the need to advance vertical coordination. Moreover, the case studies reveal that downstream agribusiness agents, who normally oppose farmers' countervailing power, promote, support, and even initiate cooperatives and farmer groups, in order to implement food safety standards. The emerging cooperation among farmers not only enhances their participation in the value chain but also generates mutual trust.
Albania has potential for developing the organic agriculture sector; however, it is a new industry and constraints abound including lack of consumer preferences information for organic food. Knowledge on consumer preferences and behaviour toward organic (bio) products is crucial for market development benefiting potential entrepreneurs and government policies. They need to know the preference for preferred product attributes and willingness to pay. Tomato, which is the most important vegetable in terms of consumption and production in Albania, is the subject of this study. A conjoint choice experiment with the most important product attributes: production type (bio vs. conventional), production system (open field vs. greenhouse), origin and price were used to design the choice surveys. Four distinct classes have been identified as significant using latent class analysis. The classes are summarized as: bio-ready consumers, price sensitive consumers, variety seeking consumers and quality seeking consumers. Origin played a small influence on preference. Education and income did show some influence on preference for organic tomatoes. Although the organic food market in Albania is in its infancy stage, organic tomatoes are clearly preferred and many consumers are willing to pay a premium price.
PurposeIn the debate on rural development, contract farming (CF) is pointed out as a mechanism that reduces constraints on farmers' access to resources and improves farmers' welfare. However, the role of intermediaries' power in farmers' contracting decisions has not been investigated thoroughly. Considering that intermediaries' power affects farmers' businesses, livelihoods, risk and profit sharing, it becomes imperative to understand its effects on contracting decisions. Thus, the purpose of this paper is to investigate the dimensions over which intermediaries exercise the power they hold over farmers and how these power dimensions influence farmers' participation in CF.Design/methodology/approachA survey was conducted in the leading Albanian MAP production region, Malësi e Madhe, with 168 sage producers interviewed using a structured questionnaire. Exploratory factor analysis (EFA) is employed to develop measures for the latent variables of the study (e.g. intermediaries' power), and a logit regression is used to assess CF determinants.FindingsThe study finds that intermediaries exercise their power over different dimensions of farmers' activities, namely profit margin and activities related to product quality. The results point out that intermediaries' exercised power over farmers' margins and product quality-related activities decreased farmers' likelihood to engage in CF. On the other hand, a farmer's commitment to the intermediary and investment in specific assets increased the likelihood of participation. Furthermore, the analysis shows that CF does not leave small farmers out of high-value agricultural commodity chains (HVAC) for highly labour-intensive crops.Research limitations/implicationsThe analysis focuses only on one sector with export orientation. Generalisation to other sectors is limited due to the specific features of the MAPs value chain.Originality/valueThe paper expands the debate on CF by adding the concept of intermediaries' power and its different dimensions of influence on farmers' participation in CF.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.