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The Economics of the Food System Revolution

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Author Info

  • Thomas Reardon

    ()
    (School of Agricultural Economics and Rural Development, Renmin University of China, Beijing, 100872 China
    Department of Agricultural, Food, and Resource Economics, Michigan State University, East Lansing, Michigan 48824, International Food Policy Research Institute, Beijing 10081, China)

  • C. Peter Timmer

    (Professor Emeritus, Harvard University, Cambridge, Massachusetts 02138)

Abstract

A revolution in food systems—food supply chains upstream from farms, to the food industry in the midstream segments of processing and wholesale and in the downstream segment of retail, then on to consumers—has been under way in the United States for more than a century and in developing countries for more than three decades. The transformation includes extensive consolidation, very rapid institutional and organizational change, and progressive modernization of the procurement system. In this article we examine the economics of these system-wide changes. We argue that the steps of conceptualizing and empirically researching this transformation—its patterns and trends, determinants, and impacts on farms and processing small and micro enterprises—are still in their infancy because of (a) remaining limitations on data suitable for formal modeling and hypothesis testing and (b) the sheer complexity of food system–related decisions that need to be modeled and understood. With the rapid accumulation of high-quality data now under way, conceptual and theoretical progress is also likely to be rapid.

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Bibliographic Info

Article provided by Annual Reviews in its journal Annual Review of Resource Economics.

Volume (Year): 4 (2012)
Issue (Month): 1 (August)
Pages: 225-264

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Handle: RePEc:anr:reseco:v:4:y:2012:p:225-264

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Related research

Keywords: food industry; supermarkets; wholesalers; vertical coordination; consolidation; farm technology; developing countries; supply chains;

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Cited by:
  1. Rao, Elizaphan J.O. & Qaim, Matin, 2013. "Supermarkets and agricultural labor demand in Kenya: A gendered perspective," Food Policy, Elsevier, vol. 38(C), pages 165-176.
  2. Gómez, Miguel I. & Barrett, Christopher B. & Raney, Terri & Pinstrup-Andersen, Per & Meerman, Janice & Croppenstedt, André & Carisma, Brian & Thompson, Brian, 2013. "Post-green revolution food systems and the triple burden of malnutrition," Food Policy, Elsevier, vol. 42(C), pages 129-138.
  3. Spielman, David J. & Kolady, Deepthi & Cavalieri, Anthony & Chandrasekhara Rao, N., 2011. "The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy options," IFPRI discussion papers 1103, International Food Policy Research Institute (IFPRI).
  4. Timmer, C. Peter, 2013. "Coping with Climate Change: A Food Policy Approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152188, Australian Agricultural and Resource Economics Society.

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