Although agricultural value chain resilience is a crucial component to food security and sustainable food systems in developing countries, it has received little attention. This paper synthesizes knowledge from the social-ecological systems (SES), supply chain management, and value chain development literature to make three contributions to this research gap. First, we conceptualize agricultural value chain resilience and relate it to overall food system resilience. Second, we identify seven principles that are hypothesized to contribute to SES resilience, relate them to supply chain management theory, and discuss their application in agricultural value chains. A key insight is that the appropriateness of these principles are important to assess on a case-by-case basis, and depend in part on trade-offs between resilience and other dimensions of value chain performance. Third, we integrate two common tools, the Resilience Alliance's assessment framework and value chain analysis techniques, to outline an adaptable participatory approach for assessing the resilience of agricultural value chains in developing countries. The objectives of the approach are to cultivate a chain-wide awareness for past and potential disturbances that could affect food security and other essential services provided by the value chain, and to identify upgrades that can build resilience against these key disturbances.
Purpose The purpose of this paper is to examine how various transaction-cost characteristics influence the choice of vertical coordination (VC) structures (e.g. different contract types) and horizontal coordination (HC) structures (e.g. different farmer organization types) to link smallholder farmers efficiently with buyers. It analyzes the relationship between vertical and horizontal structures, and the economic sustainability of different structure combinations. Design/methodology/approach The paper develops a conceptual framework to predict coordination structures as a function of transaction-cost characteristics, compares predictions for the Malian cereals market to empirical evidence using 15 case studies, and then analyzes structure combinations. Findings Asymmetric scale between farmers and buyers; uncertainty in production, prices, policy, and contract enforcement; and quality and quantity debasement lead to selections of structures with high levels of control. Vertical and horizontal structures demonstrate a complementary relationship in certain core coordination roles, while exhibiting substitutability in the provision of other coordination activities. The marketing cooperative and marketing contract pairing is the most prevalent combination. Research limitations/implications The conceptual framework is useful for explaining the selection of coordination structures, and can be applied in other contexts to strengthen external validity. Originality/value The framework facilitates predictions and explanation of both VC and HC structures, with empirical application on a country and value chains receiving little attention in the literature.
Abstract:As in many sub-Saharan African countries, Mali is experiencing an unprecedented rate of urbanization and, with it, changes to its agri-food system. As more people live in urban areas, the demand for processed foods has been increasing rapidly. These changes have important implications for food and nutrition security. Yet, little is known about the scale and scope of the retailing of processed foods. To better understand this segment, we conducted a city retail outlet inventory of processed dairy and cereal foods in 2016. The main findings are that: (1) food availability is greater in the capital, high-income neighborhoods, and supermarkets; (2) there is a high prevalence of imported foods; (3) added sugar and vegetable fats are listed as a top-three ingredient in a quarter of processed products, highlighting issues related to healthfulness; (4) price premiums are paid for products that are imported from Europe, use improved packaging, and are retailed in supermarkets. Taken together, our findings indicate that the transformation in the Malian agri-food system is still at an early stage. The growing demand for processed foods presents economic opportunities for Malian farmers and processors, especially if they can improve product quality, packaging, and distribution.
Mali’s population is experiencing lifestyle and dietary changes that are driven in part by urbanisation and income growth. Utilising two large-scale datasets, we bring new empirical evidence regarding whether Malians are shifting toward highly processed foods, meals purchased away from home, and sugary foods. We find that on-farm production represents only 25% of the food consumed by rural households during the hungry season, and 36% after harvest. Processed food shares are greater in urban (60%) than in rural areas (48%), and considerably higher overall than those reported for Eastern and Southern Africa, but with a lower portion of highly processed foods and negligible shares of meals consumed outside the home. Average household dietary diversity scores are higher in urban than in rural areas. Women’s and household diet diversity varies by season in both locations. About half of farm women interviewed did not meet minimum adequate dietary diversity during the lean season.
PurposeIn Mali, dairy processors mostly use imported powdered milk rather than local fresh milk, constraining the development of a domestic milk sector. We investigate factors motivating a firm's choice of milk input, to identify measures that can encourage demand for fresh milk.Design/methodology/approachWe utilize case study data from nine firms that use fresh and powdered milk to varying degrees, and which are representative of dairy processing in Bamako. To model firm motivations, we assess how each input contributes to or detracts from firm competitive advantage, through its influence on cost and differentiation.FindingsFirms using fresh milk pay a higher input price, incur higher transaction costs and face additional challenges in production and distribution. Firms distinguish themselves from competitors through four potential sources of differentiation: novel product types, quality enhancements, quality-signaling and unique packaging. However, fresh milk firms are less likely to exploit each source of differentiation.Research limitations/implicationsCompetitive advantage is a useful framework for understanding firm behavior in developing markets and can be applied in other contexts to strengthen external validity.Originality/valueThe extant economics literature on African dairy development has been surprisingly silent on the threat of import competition. This research is one of the first to investigate this issue in the under-studied middle segment of food value chains.
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