IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v37y2009i11p1773-1780.html
   My bibliography  Save this article

Producers, Processors, and Procurement Decisions: The Case of Vegetable Supply Chains in China

Author

Listed:
  • Stringer, Randy
  • Sang, Naiquan
  • Croppenstedt, André

Abstract

Summary This study examines how different supply chain characteristics impose different coordination costs on vegetable processors. The results provide a basis for understanding the relative importance of four alternative supply chain characteristics to vegetable processors: (1) the size of the producers' production base; (2) the distance between the producer and the processing plant; (3) the level of detail specified in the contract between processors and grower; and (4) whether the producer has food safety certification. Vegetable processors from Laiyang County, Shandong province, China's largest horticultural production and export region, provide the data underlying the following analysis. Conjoint analysis suggests that the vegetable processors consider the size of the production units as the most important supply chain characteristic influencing their choice of producers, followed by distance to producer, type of contract and food safety certification.

Suggested Citation

  • Stringer, Randy & Sang, Naiquan & Croppenstedt, André, 2009. "Producers, Processors, and Procurement Decisions: The Case of Vegetable Supply Chains in China," World Development, Elsevier, vol. 37(11), pages 1773-1780, November.
    • Handle: RePEc:eee:wdevel:v:37:y:2009:i:11:p:1773-1780
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(09)00137-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    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. Liesbeth Dries & Thomas Reardon & Johan F. M. Swinnen, 2004. "The Rapid Rise of Supermarkets in Central and Eastern Europe: Implications for the Agrifood Sector and Rural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 525-556, September.
    2. Berdegue, Julio A. & Balsevich, Fernando & Flores, Luis & Reardon, Thomas, 2005. "Central American supermarkets' private standards of quality and safety in procurement of fresh fruits and vegetables," Food Policy, Elsevier, vol. 30(3), pages 254-269, June.
    3. Fengxia Dong & Helen H. Jensen, 2004. "Challenge of Conforming to Sanitary and Phytosanitary Measures for China's Agricultural Exports.,The," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications (archive only) 04-mwp8, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Henson, Spencer & Reardon, Thomas, 2005. "Private agri-food standards: Implications for food policy and the agri-food system," Food Policy, Elsevier, vol. 30(3), pages 241-253, June.
    5. David Neven & Thomas Reardon, 2004. "The Rise of Kenyan Supermarkets and the Evolution of their Horticulture Product Procurement Systems," Development Policy Review, Overseas Development Institute, vol. 22(6), pages 669-699, November.
    6. Dinghuan Hu & Thomas Reardon & Scott Rozelle & Peter Timmer & Honglin Wang, 2004. "The Emergence of Supermarkets with Chinese Characteristics: Challenges and Opportunities for China's Agricultural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 557-586, September.
    7. Jill E. Hobbs, 1996. "Transaction costs and slaughter cattle procurement: Processors' selection of supply channels," Agribusiness, John Wiley & Sons, Ltd., vol. 12(6), pages 509-523.
    8. David Boselie & Spencer Henson & Dave Weatherspoon, 2003. "Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1155-1161.
    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. Briones, Roehlano & Felipe, Jesus, 2013. "Agriculture and Structural Transformation in Developing Asia: Review and Outlook," ADB Economics Working Paper Series 363, Asian Development Bank.
    2. Marisol Velazquez, 2014. "Commercialization and consumption of coffee in Mexico," ERSA conference papers ersa14p1681, European Regional Science Association.
    3. Lin Li & Hongdong Guo & Jos Bijman & Nico Heerink, 2018. "The influence of uncertainty on the choice of business relationships: The case of vegetable farmers in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 597-615, June.
    4. Celina Schelle & Benno Pokorny, 2021. "How Inclusive Is Inclusive? A Critical Analysis of an Agribusiness Initiative in Kenya," Sustainability, MDPI, vol. 13(19), pages 1-17, October.
    5. Daisy Delsile Dlamini & Jethro Zuwarimwe & Joseph Francis & Godwin R. A. Mchau, 2022. "Risk Factor Assessment of the Smallholder Baby Vegetable Production in Eswatini," Agriculture, MDPI, vol. 12(5), pages 1-11, April.
    6. Heath Henderson, 2014. "Structural transformation and smallholder agriculture: an information-theoretic analysis of the Nicaraguan case," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 443-458, July.
    7. Schipmann, Christin & Qaim, Matin, 2011. "Modern food retailers and traditional markets in developing countries: Comparing quality, prices, and competition strategies in Thailand," GlobalFood Discussion Papers 108348, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Jianli Luo & Chen Ji & Chunxiao Qiu & Fu Jia, 2018. "Agri-Food Supply Chain Management: Bibliometric and Content Analyses," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    9. Vishnu, Kedar & Rai, Ruchika, 2022. "Measuring The Impact of Transaction Costs on Profitability of Farmers: Empirical Evidence from India," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322593, Agricultural and Applied Economics Association.
    10. Q. Forrest Zhang & John A. Donaldson, 2010. "From Peasants to Farmers: Peasant Differentiation, Labor Regimes, and Land-Rights Institutions in China’s Agrarian Transition," Politics & Society, , vol. 38(4), pages 458-489, December.
    11. Lin Li & Hongdong Guo, 2019. "The impact of business relationships on safe production behavior by farmers: Evidence from China," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 84-96, January.
    12. Herforth, Nico & Theuvsen, Ludwig & Vásquez, Wilson & Wollni, Meike, 2015. "Understanding participation in modern supply chains under a social network perspective – evidence from blackberry farmers in the Ecuadorian Andes," GlobalFood Discussion Papers 197709, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    13. Silvia Amato, 2016. "East Asia Industrial Conversion Activity: Outlook at Post-Disaster Crisis Assessments with Technology Integration and Competitive Assimilation Modes," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-44, June.

    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. Jiping Ding & Paule Moustier & Xingdong Ma & Xuexi Huo & Xiangping Jia, 2019. "Doing but not knowing: how apple farmers comply with standards in China," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(1), pages 61-75, March.
    2. Asfaw, Abay, 2007. "Supermarket purchases and the dietary patterns of households in Guatemala:," IFPRI discussion papers 696, International Food Policy Research Institute (IFPRI).
    3. Dries, Liesbeth & Germenji, Etleva & Noev, Nivelin & Swinnen, Johan F.M., 2009. "Farmers, Vertical Coordination, and the Restructuring of Dairy Supply Chains in Central and Eastern Europe," World Development, Elsevier, vol. 37(11), pages 1742-1758, November.
    4. Ding, J. & Jia, X. & Huo, X. & Moustier, P., 2018. "Doing But Not Knowing: How Apple Farmers Comply with Standards in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277444, International Association of Agricultural Economists.
    5. H.H. Chang & C. van Marrewijk & R. Stringer & W. Umberger, 2013. "Investment, awareness, supermarkets, and profits: heterogeneous chili farmers in Indonesia," Working Papers 13-13, Utrecht School of Economics.
    6. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    7. Wang, Honglin & Dong, Xiaoxia & Rozelle, Scott & Huang, Jikun & Reardon, Thomas, 2009. "Producing and Procuring Horticultural Crops with Chinese Characteristics: The Case of Northern China," World Development, Elsevier, vol. 37(11), pages 1791-1801, November.
    8. Russo, Carlo & Perito, Maria Angela & Di Fonzo, Antonella, 2014. "Using Private Food Safety Standards to Manage Complexity: A Moral Hazard Perspective," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-15.
    9. Reardon, Thomas & Echeverria, Ruben & Berdegué, Julio & Minten, Bart & Liverpool-Tasie, Saweda & Tschirley, David & Zilberman, David, 2019. "Rapid transformation of food systems in developing regions: Highlighting the role of agricultural research & innovations," Agricultural Systems, Elsevier, vol. 172(C), pages 47-59.
    10. Russo, Carlo & Perito, Maria Angel & Di Fonzo, Antonella, 2014. "The Strategic Use of Private Food Safety Standards to Manage Complexity: a Moral Hazard Perspective," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182795, European Association of Agricultural Economists.
    11. Maruyama, Masayoshi & Wu, Lihui, 2014. "Quantifying barriers impeding the diffusion of supermarkets in China: The role of shopping habits," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 383-393.
    12. Handschuch, Christina & Wollni, Meike & Villalobos, Pablo, 2013. "Adoption of food safety and quality standards among Chilean raspberry producers – Do smallholders benefit?," Food Policy, Elsevier, vol. 40(C), pages 64-73.
    13. Francesconi, Gian Nicola & Heerink, Nico & D'Haese, Marijke, 2010. "Evolution and challenges of dairy supply chains: Evidence from supermarkets, industries and consumers in Ethiopia," Food Policy, Elsevier, vol. 35(1), pages 60-68, February.
    14. Riungu, Claris Karimi, 2011. "Effects of Supermarkets on Fresh Fruit and Vegetables Small-Scale Farmers in Central Kenya," Research Theses 134484, Collaborative Masters Program in Agricultural and Applied Economics.
    15. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    16. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," GlobalFood Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    17. Adu-Gyamfi Poku & Regina Birner & Saurabh Gupta, 2018. "Making Contract Farming Arrangements Work in Africa’s Bioeconomy: Evidence from Cassava Outgrower Schemes in Ghana," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    18. Muriithi, Beatrice W. & Matz, Julia Anna, 2015. "Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya," Food Policy, Elsevier, vol. 50(C), pages 80-91.
    19. Schuster, Monica & Maertens, Miet, 2013. "Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector," Food Policy, Elsevier, vol. 43(C), pages 291-305.
    20. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..

    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:wdevel:v:37:y:2009:i:11:p:1773-1780. 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/worlddev .

    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.