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Short supply chain participation and market performance for vegetable farmers in China

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  • Xiaoheng Zhang
  • Ping Qing
  • Xiaohua Yu

Abstract

The fresh food supply chain in China has begun to reduce the number of intermediaries that connect producers and consumers. Using farm‐level data, this paper investigates the impacts of short supply chain participation on vegetable farmers’ market performance, including profits, productivity, production cost, price and price risk. The results show that the participation in a short supply chain is a profit‐maximising strategy and risk management tool for farmers. The increase in profit is attributed to productivity advantages, farm size expansion, and risk reduction rather than because of price premiums or cost savings. A policy implication is that short supply chain promotion has many benefits, but the government should be more concerned about the sustainability of short supply chains.

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  • Xiaoheng Zhang & Ping Qing & Xiaohua Yu, 2019. "Short supply chain participation and market performance for vegetable farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(2), pages 282-306, April.
    • Handle: RePEc:bla:ajarec:v:63:y:2019:i:2:p:282-306
    DOI: 10.1111/1467-8489.12299
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    3. Youzhu Li & Jinsi Liu & Hongyu Yang & Jianxin Chen & Jason Xiong, 2021. "A Bibliometric Analysis of Literature on Vegetable Prices at Domestic and International Markets—A Knowledge Graph Approach," Agriculture, MDPI, vol. 11(10), pages 1-17, September.
    4. Bo Yan & Gaodi Liu & Zhenyu Zhang & Chang Yan, 2020. "Optimal financing and operation strategy of fresh agricultural supply chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 776-794, July.
    5. Yan, Bo & Liu, Gaodi & Zhenyu, Zhang & Chang, Yan, 2020. "Optimal financing and operation strategy of fresh agricultural supply chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    6. Wanglin Ma & Awal Abdul‐Rahaman & Gazali Issahaku, 2023. "Welfare implications of participating in agri‐value chains among vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 793-811, July.
    7. Mengshuai Zhu & Chen Shen & Yajun Tian & Jianzhai Wu & Yueying Mu, 2022. "Factors Affecting Smallholder Farmers’ Marketing Channel Choice in China with Multivariate Logit Model," Agriculture, MDPI, vol. 12(9), pages 1-11, September.
    8. Mahuwi, Leticia & Israel, Baraka, 2023. "Supply Chain Issues Affecting Market Access Among Smallholder Maize Farmers in Mbozi District, Tanzania," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(2), April.
    9. Awal Abdul‐Rahaman & Gazali Issahaku & Wanglin Ma, 2023. "Agrifood system participation and production efficiency among smallholder vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 812-835, July.
    10. Konrád Kiss & Csaba Ruszkai & Katalin Takács-György, 2019. "Examination of Short Supply Chains Based on Circular Economy and Sustainability Aspects," Resources, MDPI, vol. 8(4), pages 1-21, September.
    11. Abdelrahman Ali & Chunping Xia & Moustafa Ismaiel & N’Banan Ouattara & Irfan Mahmood & Dessalegn Anshiso, 2021. "Analysis of determinants to mitigate food losses and waste in the developing countries: empirical evidence from Egypt," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 26(6), pages 1-26, August.
    12. Meng Wang & Vikas Kumar & Ximing Ruan & Mohammed Saad & Jose Arturo Garza-Reyes & Anil Kumar, 2022. "Sustainability concerns on consumers’ attitude towards short food supply chains: an empirical investigation," Operations Management Research, Springer, vol. 15(1), pages 76-92, June.
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