Foreign investment, organizational innovation and transformation in food supply chains : evidence from the Ethiopian barley sector

Tefera, Delelegne A.

doi:10.18174/425833

Cited by 1 publication

(2 citation statements)

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“…Nationally, two types of barley are grown: food barley for home consumption and malt barley for brewing. Driven by rising income and increased urbanization, per capita beer consumption in Ethiopia has grown rapidly at an annual rate of 20% (Tefera 2017). This promising beer market has attracted beer multinationals, including Heineken, Diageo, and Bavaria.…”

Section: Multinationals and Cfas In Ethiopian Food Systemsmentioning

confidence: 99%

“…The appearance of international brewers in the malt barley value chain has increased the annual demand for malt barley, on average at a rate of 20% (Tefera 2017). This has affected the malt barley sector by generating new market opportunities for smallholders, reducing price volatility, ensuring reliable supply chains, and cutting the import bill, thus saving foreign currency for the government.…”

Section: Multinationals and Cfas In Ethiopian Food Systemsmentioning

confidence: 99%

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Economics of contracts in African food systems: evidence from the malt barley sector in Ethiopia

Tefera

Bijman

2021

Agric Econ

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Foreign direct investment (FDI) facilitates modernization of domestic agri-food systems in emerging economies through increased use of vertical coordination. This paper sheds lights on how international brewer investments in African food systems affect smallholder market participation and value chain development. In particular, we analyze the impact of contracts among malt barley producers in Ethiopia. Using cross-sectional survey data, we employ inverse probability-weighted regression adjustment (IPWRA) and propensity score matching (PSM) techniques to analyze the economic impact of contracting. We find that contrary to popular belief, contracting has positive and significant impact on malt barley production, intensification, commercialization, quality improvement, and farm gate prices, ultimately resulting in increased net income and spillover into the productivity of other food crops.

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Section: Multinationals and Cfas In Ethiopian Food Systemsmentioning

confidence: 99%

Section: Multinationals and Cfas In Ethiopian Food Systemsmentioning

confidence: 99%