IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v97y2020ics0306919220301202.html
   My bibliography  Save this article

Integrated Value Chain Development: Evidence from Bangladesh

Author

Listed:
  • Kuijpers, Rob

Abstract

Agricultural productivity and farmer welfare in developing countries is constrained by a multitude of market imperfections. Value chain development (VCD) is receiving much attention as a market-based policy instrument that can potentially address multiple of these constraints simultaneously. This paper provides a conceptualization of VCD and discusses how VCD can be used as a policy instrument. As an illustration, the paper describes the VCD project “SAFAL,” which uses an integrated approach to directly intervene in aquaculture, horticulture, and dairy value chains in South-West Bangladesh. The strategy is to first identify a demand downstream in the value chain and then to identify and reduce the constraints experienced by value chain actors upstream to meet this demand. Using a matched difference-in-difference methodology, this paper estimates farm household participation in SAFAL increases farm income and shortens the hungry season.

Suggested Citation

  • Kuijpers, Rob, 2020. "Integrated Value Chain Development: Evidence from Bangladesh," Food Policy, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:jfpoli:v:97:y:2020:i:c:s0306919220301202
    DOI: 10.1016/j.foodpol.2020.101916
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919220301202
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2020.101916?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    2. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    3. Carter, Michael R. & Tjernström, Emilia & Toledo, Patricia, 2019. "Heterogeneous impact dynamics of a rural business development program in Nicaragua," Journal of Development Economics, Elsevier, vol. 138(C), pages 77-98.
    4. Headey, Derek D. & Hoddinott, John, 2016. "Agriculture, nutrition and the green revolution in Bangladesh," Agricultural Systems, Elsevier, vol. 149(C), pages 122-131.
    5. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    6. Bekele Shiferaw & Tewodros Kebede & Menale Kassie & Monica Fisher, 2015. "Market imperfections, access to information and technology adoption in Uganda: challenges of overcoming multiple constraints," Agricultural Economics, International Association of Agricultural Economists, vol. 46(4), pages 475-488, July.
    7. Devaux, André & Horton, Douglas & Velasco, Claudio & Thiele, Graham & López, Gastón & Bernet, Thomas & Reinoso, Iván & Ordinola, Miguel, 2009. "Collective action for market chain innovation in the Andes," Food Policy, Elsevier, vol. 34(1), pages 31-38, February.
    8. de Janvry, Alain & Sadoulet, Elisabeth, 2020. "Using agriculture for development: Supply- and demand-side approaches," World Development, Elsevier, vol. 133(C).
    9. Biggeri, Mario & Burchi, Francesco & Ciani, Federico & Herrmann, Raoul, 2018. "Linking small-scale farmers to the durum wheat value chain in Ethiopia: Assessing the effects on production and wellbeing," Food Policy, Elsevier, vol. 79(C), pages 77-91.
    10. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    11. Rao, Elizaphan J.O. & Qaim, Matin, 2011. "Supermarkets, Farm Household Income, and Poverty: Insights from Kenya," World Development, Elsevier, vol. 39(5), pages 784-796, May.
    12. Jill E. Hobbs, 1997. "Measuring the Importance of Transaction Costs in Cattle Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1083-1095.
    13. Hope C. Michelson, 2013. "Small Farmers, NGOs, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 628-649.
    14. Kersting, Sarah & Wollni, Meike, 2012. "New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand," Food Policy, Elsevier, vol. 37(4), pages 452-462.
    15. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    16. Miet Maertens & Bart Minten & Johan Swinnen, 2012. "Modern Food Supply Chains and Development: Evidence from Horticulture Export Sectors in Sub-Saharan Africa," Development Policy Review, Overseas Development Institute, vol. 30(4), pages 473-497, July.
    17. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    18. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    19. World Bank, 2005. "The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations," World Bank Publications - Reports 8806, The World Bank Group.
    20. Shanoyan, Aleksan & Brent Ross, R. & Gow, Hamish R. & Christopher Peterson, H., 2014. "Long-term sustainability of third-party facilitated market linkages: Evidence from the USDA marketing assistance program in the Armenian dairy industry," Food Policy, Elsevier, vol. 46(C), pages 157-164.
    21. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    22. Swinnen, Johan & Kuijpers, Rob, 2020. "Inclusive Value Chains to Accelerate Poverty Reduction in Africa," Jobs Group Papers, Notes, and Guides 31809214, The World Bank.
    23. Andre Croppenstedt & Mulat Demeke & Meloria M. Meschi, 2003. "Technology Adoption in the Presence of Constraints: the Case of Fertilizer Demand in Ethiopia," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 58-70, February.
    24. Camilla I.M. Andersson & Christine G.K. Chege & Elizaphan J.O. Rao & Matin Qaim, 2015. "Following Up on Smallholder Farmers and Supermarkets in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(4), pages 1247-1266.
    25. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    26. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    27. Negi, Digvijay S. & Birthal, Pratap S. & Roy, Devesh & Khan, Md. Tajuddin, 2018. "Farmers’ choice of market channels and producer prices in India: Role of transportation and communication networks," Food Policy, Elsevier, vol. 81(C), pages 106-121.
    28. Jakob Svensson & David Yanagizawa, 2009. "Getting Prices Right: The Impact of the Market Information Service in Uganda," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 435-445, 04-05.
    29. Jasper GRASHUIS & Ye SU, 2019. "A Review Of The Empirical Literature On Farmer Cooperatives: Performance, Ownership And Governance, Finance, And Member Attitude," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 77-102, March.
    30. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    31. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    32. Prabhu Pingali & Yasmeen Khwaja & Madelon Meijer, 2005. "Commercializing Small Farms: Reducing Transaction Costs," Working Papers 05-08, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    33. Tessa Bold & Kayuki C. Kaizzi & Jakob Svensson & David Yanagizawa-Drott, 2017. "Lemon Technologies and Adoption: Measurement, Theory and Evidence from Agricultural Markets in Uganda," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(3), pages 1055-1100.
    34. Kabunga, Nassul S. & Dubois, Thomas & Qaim, Matin, 2014. "Impact of tissue culture banana technology on farm household income and food security in Kenya," Food Policy, Elsevier, vol. 45(C), pages 25-34.
    35. Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E., 2016. "Innovation for inclusive value-chain development: Successes and challenges," IFPRI synopses 978-0-89629-977-1, International Food Policy Research Institute (IFPRI).
    36. Romina Cavatassi & Mario González-flores & Paul Winters & Jorge Andrade-Piedra & Patricio Espinosa & Graham Thiele, 2011. "Linking Smallholders to the New Agricultural Economy: The Case of the in Ecuador," Journal of Development Studies, Taylor & Francis Journals, vol. 47(10), pages 1545-1573.
    37. Kolavalli, Shashidhara & Mensah-Bonsu, Akwasi & Zaman, Saima, 2015. "Agricultural value chain development in practice: Private sector-led smallholder development:," IFPRI discussion papers 1460, International Food Policy Research Institute (IFPRI).
    38. Alex Winter‐Nelson & Anna Temu, 2005. "Impacts of prices and transactions costs on input usage in a liberalizing economy: evidence from Tanzanian coffee growers," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 243-253, November.
    39. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    40. Arega, D.A. & Manyong, Victor M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, George D., 2008. "Smallholder marketed surplus and input use under transactions costs: maize supply and fertilizer demand in Kenya," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52074, African Association of Agricultural Economists (AAAE).
    41. Swinnen, Johan & Kuijpers, Rob, 2019. "Value chain innovations for technology transfer in developing and emerging economies: Conceptual issues, typology, and policy implications," Food Policy, Elsevier, vol. 83(C), pages 298-309.
    42. de Janvry, Alain & Fafchamps, M. & Sadoulet, Elisabeth, 1991. "Peasant Household Behavior with Missing Markets: Some Paradoxes Explain," CUDARE Working Papers 198579, University of California, Berkeley, Department of Agricultural and Resource Economics.
    43. Pingali, Prabhu & Khwaja, Yasmeen & Meijer, Madelon, 2005. "Commercializing small farms: reducing transaction cost," ESA Working Papers 289070, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    44. Ton, Giel & Vellema, Wytse & Desiere, Sam & Weituschat, Sophia & D'Haese, Marijke, 2018. "Contract farming for improving smallholder incomes: What can we learn from effectiveness studies?," World Development, Elsevier, vol. 104(C), pages 46-64.
    45. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    46. Kathleen Beegle & Luc Christiaensen, 2019. "Accelerating Poverty Reduction in Africa [Accélérer la réduction de la pauvreté en Afrique]," World Bank Publications - Books, The World Bank Group, number 32354, December.
    47. Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
    48. Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), 2016. "Innovation for inclusive value-chain development: Successes and challenges," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-213-0.
    49. Juan M. Villa, 2016. "diff: Simplifying the estimation of difference-in-differences treatment effects," Stata Journal, StataCorp LP, vol. 16(1), pages 52-71, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kafle, Kashi & Songsermsawas, Tisorn & Winters, Paul, 2021. "IFAD Research Series Issue 65 - Impacts of agricultural value chain development in a mountainous region: Evidence from Nepal," IFAD Research Series 311008, International Fund for Agricultural Development (IFAD).
    2. Panchali Guha, 2022. "The effects of school‐based management on Indian government schools," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2090-2108, November.
    3. Kafle, Kashi & Songsermsawas, T. & Winters, P., 2021. "Impacts of agricultural value chain development in a mountainous region: evidence from Nepal," IWMI Books, Reports H050432, International Water Management Institute.
    4. Ruerd Ruben & Rob Kuijpers & Youri Dijkxhoorn, 2022. "Mobilizing the Midstream for Supporting Smallholder Intensification," Land, MDPI, vol. 11(12), pages 1-18, December.
    5. Dalia Fadly & Francisco Fontes & Miet Maertens, 2023. "Fuel for food: Access to clean cooking fuel and food security in India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(2), pages 301-321, April.
    6. Kashi Kafle & Tisorn Songsermsawas & Paul Winters, 2022. "Agricultural value chain development in Nepal: Understanding mechanisms for poverty reduction," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 356-373, May.
    7. Naylor, Rosamond & Fang, Safari & Fanzo, Jessica, 2023. "A global view of aquaculture policy," Food Policy, Elsevier, vol. 116(C).
    8. Constanza Gonzalez Parrao & Shannon Shisler & Marta Moratti & Cem Yavuz & Arnab Acharya & John Eyers & Birte Snilstveit, 2021. "Aquaculture for improving productivity, income, nutrition and women's empowerment in low‐ and middle‐income countries: A systematic review and meta‐analysis," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rob Kuijpers, 2019. "Value Chain Development as Public Policy: Conceptualization and Evidence from the Agri-Food Sector in Bangladesh," LICOS Discussion Papers 41419, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. 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.
    3. Kashi Kafle & Tisorn Songsermsawas & Paul Winters, 2022. "Agricultural value chain development in Nepal: Understanding mechanisms for poverty reduction," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 356-373, May.
    4. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    5. Nuthalapati, Chandra S.R. & Sutradhar, Rajib & Reardon, Thomas & Qaim, Matin, 2020. "Supermarket procurement and farmgate prices in India," World Development, Elsevier, vol. 134(C).
    6. Songsermsawas, Tisorn & Kafle, Kashi & Winters, Paul, 2021. "Decomposing the Impacts of an Agricultural Value Chain Investment by Gender and Ethnicity: The case of Nepal," 2021 Conference, August 17-31, 2021, Virtual 315047, International Association of Agricultural Economists.
    7. Awal Abdul‐Rahaman & Awudu Abdulai, 2020. "Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 259-280, April.
    8. Otsuka, Keijiro & Ali, Mubarik, 2020. "Strategy for the development of agro-based clusters," World Development Perspectives, Elsevier, vol. 20(C).
    9. Biggeri, Mario & Carraro, Alessandro & Ciani, Federico & Romano, Donato, 2022. "Disentangling the impact of a multiple-component project on SDG dimensions: The case of durum wheat value chain development in Oromia (Ethiopia)," World Development, Elsevier, vol. 153(C).
    10. Arouna, Aminou & Michler, Jeffrey D. & Lokossou, Jourdain C., 2021. "Contract farming and rural transformation: Evidence from a field experiment in Benin," Journal of Development Economics, Elsevier, vol. 151(C).
    11. Alain de Janvry & Elisabeth Sadoulet, 2019. "Transforming developing country agriculture: Removing adoption constraints and promoting inclusive value chain development," Working Papers hal-02287668, HAL.
    12. de Janvry, Alain & Sadoulet, Elisabeth, 2020. "Using agriculture for development: Supply- and demand-side approaches," World Development, Elsevier, vol. 133(C).
    13. Songsermsawas, Tisorn & Kafle, Kashi & Winters, Paul, 2023. "Decomposing the impacts of an agricultural value chain development project by ethnicity and gender in Nepal," World Development, Elsevier, vol. 168(C).
    14. Cuevas, Agham C., 2014. "Transaction Costs of Exchange in Agriculture: A Survey," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 11(1), pages 1-18, June.
    15. Paul Fenton Villar & Tomasz Kozakiewicz & Vinitha Bachina & Sarah Young & Shannon Shisler, 2023. "PROTOCOL: The effects of agricultural output market access interventions on agricultural, socio‐economic and food and nutrition security outcomes in low‐ and middle‐income countries: A systematic revi," Campbell Systematic Reviews, John Wiley & Sons, vol. 19(3), September.
    16. Liverpool-Tasie, Lenis Saweda, 2012. "Targeted Subsidies and Private Market Participation: An Assessment of Fertilizer Demand in Nigeria:," IFPRI discussion papers 1194, International Food Policy Research Institute (IFPRI).
    17. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    18. Van den Broeck, Goedele & Swinnen, Johan & Maertens, Miet, 2017. "Global value chains, large-scale farming, and poverty: Long-term effects in Senegal," Food Policy, Elsevier, vol. 66(C), pages 97-107.
    19. Yao, B. & Shanoyan, A., 2018. "The Use of Mobile Money Application and Smallholder Farmer Market Participation: Evidence form Cote d Ivoire and Tanzania," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277259, International Association of Agricultural Economists.
    20. Montalbano, P. & Pietrelli, R. & Salvatici, L., 2018. "Participation in the market chain and food security: The case of the Ugandan maize farmers," Food Policy, Elsevier, vol. 76(C), pages 81-98.

    More about this item

    Keywords

    Value chain development; Market access; Impact evaluation; Aquaculture; Smallholder; Food security;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:97:y:2020:i:c:s0306919220301202. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.