Farmers, Vertical Coordination, and the Restructuring of Dairy Supply Chains in Central and Eastern Europe

Dries, Liesbeth; Germenji, Etleva; Noev, Nivelin; Swinnen, Johan

doi:10.1016/j.worlddev.2008.08.029

Cited by 168 publications

(169 citation statements)

References 24 publications

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“…Meanwhile, agro-processing firms find a source of raw material at a cost that can be equivalent or less than that of large farms (Carvalho et al, 2009). This situation is also encountered in Morocco on large-scale irrigated schemes (Le Gal et al, 2007), in Peru where industrial and small processing firms are competing in the same supply areas (Aubron, 2007) and Eastern European countries where the privatization of the dairy sector has not been accompanied by a reduction in the number of small farms (Dries et al, 2009). …”

Section: Discussionmentioning

confidence: 89%

Involvement of small-scale dairy farms in an industrial supply chain: when production standards meet farm diversity

Bernard

Gal

Triomphe

et al. 2011

Animal

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In certain contexts, dairy firms are supplied by small-scale family farms. Firms provide a set of technical and economic recommendations meant to help farmers meet their requirements in terms of the quantity and quality of milk collected. This study analyzes how such recommendations may be adopted by studying six farms in Brazil. All farms are beneficiaries of the country's agrarian reforms, but they differ in terms of how they developed their activities, their resources and their milk collection objectives. First, we built a technical and economic benchmark farm based on recommendations from a dairy firm and farmer advisory institutions. Our analysis of the farms' practices and technical and economic results show that none of the farms in the sample apply all of the benchmark recommendations; however, all farms specialized in dairy production observe the main underlying principles with regard to feeding systems and breeding. The decisive factors in whether the benchmark is adopted and successfully implemented are (i) access to the supply chain when a farmer establishes his activity, (ii) a grasp of reproduction and forage production techniques and (iii) an understanding of dairy cattle feed dietary rationing principles. The technical problems observed in some cases impact the farms' dairy performance and cash position; this can lead to a process of disinvestment. This dynamic of farms facing production standards suggests that the diversity of specialized livestock farmers should be taken into account more effectively through advisory approaches that combine basic zootechnical training with assistance in planning farm activities over the short and medium term.

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Section: Discussionmentioning

confidence: 89%

Involvement of small-scale dairy farms in an industrial supply chain: when production standards meet farm diversity

Bernard

Gal

Triomphe

et al. 2011

Animal

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“…Empirical evidence from Eastern Europe, Africa and Latin-America suggests that contracts offer credit, inputs, better prices and extension services which enable growers to be productive and secure better economic benefits (e.g., Minten et al, 2007;Dries et al, 2009;Maertens et al, 2011). Also cooperatives can facilitate the access of smallholder farmers to farm resources, especially for poor farmers.…”

mentioning

confidence: 99%

“…Contracting also may reduce transaction costs, and leads to more efficient transactions in food supply chains (Miyata et al, 2009). Furthermore, contracts may channel capital/financial support to farmers to ease expansion of firms (Simmons et al, 2005;Dries et al, 2009). Spillover effects may also contribute to the productivity of smallholder farmers in various developing countries (Schipmann and Qaim, 2010).…”

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confidence: 99%

Impact of supply chain coordination on honey farmers’ income in Tigray, Northern Ethiopia

et al. 2016

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Most of the literature on vertical coordination and its impact on farm performance and farmer wellbeing deal with high-value or modern food supply chains, including export chains and chains dominated by large international supermarkets or other forms of foreign direct investment. The impact of vertical coordination mechanisms in local food supply chains in developing countries remains underexplored. This paper analyzes the impact of participation of honey producers in the Northern highlands of Tigray, Ethiopia in contracts and marketing cooperatives on their performance and wellbeing. The paper finds positive production and economic gains honey producers obtain from contract engagement. Honey producers under the contract scheme produce more white honey fulfilling the demand of processors, buyers and consumers. Contracting results in higher production due to the better access it causes to technology and skill transfers. Moreover, better conditions contracts offer motivates honey producers to produce more and supply larger to the market.

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“…Asfaw et al, 2009;Dedehouanou et al, 2013;Kersting and Wollni, 2012;Minten et al, 2009;Dries et al, 2009) or through labor markets and wage employment (e.g. Herrmann and Grote, 2015;Maertens and Swinnen, 2009;Maertens et al, 2011;Mano et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper is the first to present panel data evidence on the longer-term impact of expansion of global value chains and large-scale export-oriented farms in developing countries. Using panel data from two survey rounds covering a seven-year period and fixed effects regression, we estimate the longer-term income effects of wage employment on large-scale farms in the rapidly expanding horticultural export sector in Senegal. In addition to estimating average income effects, we estimate heterogeneous income effects using fixed effects quantile regression. We find that poverty and inequality reduced much faster in the research area than elsewhere in Senegal. Employment in the horticultural export sector significantly increases household income and the income effect is strongest for the poorest households. Expansion of the horticultural export sector in Senegal has been particularly pro-poor through creating employment that is accessible and creates substantial income gains for the poorest half of the rural population. These pro-poor employment effects contrast with insights in the literature on increased inequality from rural wage employment.

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Farmers, Vertical Coordination, and the Restructuring of Dairy Supply Chains in Central and Eastern Europe

Cited by 168 publications

References 24 publications

Involvement of small-scale dairy farms in an industrial supply chain: when production standards meet farm diversity

Involvement of small-scale dairy farms in an industrial supply chain: when production standards meet farm diversity

Impact of supply chain coordination on honey farmers’ income in Tigray, Northern Ethiopia

Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

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