Agency Problem and Hedging in Agri-Food Chains: Model and Application

Kuwornu, John K.M.; Kuiper, W.E.; Pennings, J.M.E.

doi:10.1080/10466690902934557

Cited by 23 publications

(16 citation statements)

References 23 publications

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“…From the conceptual point of view, it differs from previous studies that have examined contract arrangements by assessing the interactions between actors (Chambers & King, 2002;Kuwornu et al, 2009). This study has been modeled and proves that implementing contract farming affects the coordination of farmer cultivation decisions, and shows that different levels of farmer commitment affect farmer performance when contract farming is implemented.…”

Section: Discussioncontrasting

confidence: 41%

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A simulation of contract farming using agent based modeling

Handayati¹,

Simatupang²,

Perdana³

et al. 2016

JOSCM

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This study aims to simulate the effects of contract farming and farmer commitment to contract farming on supply chain performance by using agent based modeling as a methodology. Supply chain performance is represented by profits and service levels. The simulation results indicate that farmers should pay attention to customer requirements and plan their agricultural activities in order to fulfill these requirements. Contract farming helps farmers deal with demand and price uncertainties. We also find that farmer commitment is crucial to fulfilling contract requirements. This study contributes to this field from a conceptual as well as a practical point of view. From the conceptual point of view, our simulation results show that different levels of farmer commitment have an impact on farmer performance when implementing contract farming. From a practical point of view, the uncertainty faced by farmers and the market can be managed by implementing cultivation and harvesting scheduling, information sharing, and collective learning as ways of committing to contract farming.

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Section: Discussioncontrasting

confidence: 41%

“…With this increased commitment, supply chain performance also increases. This situation has been illustrated by Kuwornu, Kuiper, andPennings (2009), andZylbersztajn andMiele (2005).…”

Section: Simulation Discussion For Contract Farming With Commitment (mentioning

confidence: 99%

A simulation of contract farming using agent based modeling

Handayati¹,

Simatupang²,

Perdana³

et al. 2016

JOSCM

View full text Add to dashboard Cite

show abstract

“…In particular, products derived from crops serve various customer demands, e.g., food and biofuel. Furthermore, the supply chain of agricultural products has become a hot issue because the public is increasingly aware of and concerned about the availability and safety of the foods being consumed [21]. At present, the consumers of agricultural products demand to have more information not only on the availability of a product in supermarkets but also on its farming, marketing, distribution, transportation, and processing activities [1].…”

Section: Introductionmentioning

confidence: 99%

Agri-food supply chain coordination: the state-of-the-art and recent developments

2015

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Researches on agri-food supply chain coordination have been gaining public attention due to their critical relevance to food availability, security, and safety. Still, the research focus is considerably in its early stage of development. This study was aimed at reviewing a holistic understanding on agri-food supply chain, particularly on issues related to coordination. This review was conducted by analyzing selected articles from peer-reviewed journals and proceedings. The articles are classified based on three important categories for researches on agri-food supply chain coordination, i.e., interdependencies, coordination mechanism, and methodology. Based on an analysis on the current state of research, a future research on agri-food supply chain coordination should be encouraged. Besides, the spectrum of coordination mechanism taken to deal with different levels of interdependencies and quality requirements is presented. The spectrum is useful for any member in an agriculture supply chain who is willing to coordinate its actions with other members for improving supply chain performance. Then, the results of analysis suggest that a further research on the adoption of value co-creation in the coordination process is required to deliver benefits not only for participating actors but also for end consumers.

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“…In Ghana, farming in general and horticultural production in particular is confronted with constraints which make it a risky venture. Risks generally increase with the increase in expected income (Kuwornu et al, 2009). The farmer can be conceptualize as having utility or satisfaction for income or wealth and depending on the risk attitude of the farmer he/she can be described either as risk-averse, risk neutral or risk lover.…”

Section: Methodsmentioning

confidence: 99%

Global GAP Standard Compliance and Smallholder Pineapple Farmersâ€™ Access to Export Markets: Implications for Incomes

John¹

2013

JEBS

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This study seeks to determine the effect of compliance with GlobalGAP standards and it implications for access to export market and incomes for smallholder pineapple farmers in the Central region of Ghana. The study was conducted in two pineapple growing districts; Mfantsiman Municipality and Gomoa East district. Primary data were collected through interviews using structured questionnaires. Simple random sampling was used to select 63 pineapple farmers (i.e., 30 Global GAP certified and 33 non-certified farmers from pineapple producer groups in the two districts. Analysis of the marketing channels reveal that market women were the major buyers of pineapple commanding 69.7% of noncertified farmers produce and 30% of the produce of the certified (i.e., compliant) farmers. Although 20% of the certified farmers sold their produce to exporters against 12.1% for non-certified farmers, it cannot be concluded that farmers' access to the export market has been enhanced by complying with the Global GAP standard. However, all buyers preferred produce from certified farmers to non-certified farmers. On the economic performance of GlobalGAP certified and non-certified pineapple farmers, the empirical results reveal that the Global GAP certified pineapple farmers obtained GHS 15,027.57 for growing one hectare of pineapple while non-certified pineapple farmers made a net average income of GHS 6,256.36. These results imply that the Global GAP certified pineapple farmers obtained 2.4 times more net average income than non-certified pineapple growers. The results of this study have implications for pineapple farmers and policy makers in developing countries.

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Agency Problem and Hedging in Agri-Food Chains: Model and Application

Cited by 23 publications

References 23 publications

A simulation of contract farming using agent based modeling

A simulation of contract farming using agent based modeling

Agri-food supply chain coordination: the state-of-the-art and recent developments

Global GAP Standard Compliance and Smallholder Pineapple Farmersâ€™ Access to Export Markets: Implications for Incomes

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