Advanced Search
MyIDEAS: Login

The Rise of Supermarkets and Vertical Relationships in the Indonesian Food Value Chain: Causes and Consequences

Contents:

Author Info

  • Shyamal K. Chowdhury
  • Ashok Gulati
  • E. Gumbira-Sa'id

    ()
    (International Food Policy Research Institute
    International Food Policy Research Institute
    Bogor Agricultural University, Indonesia)

Abstract

This paper reviews the causes of the emergence of modern retailing and the vertical relationships in the Indonesian food value chain, and the consequences of these changes on market organization and value distribution. The findings of this paper suggest that there are both demand- and supply-side factors that contribute to the emergence of modern retailing. The evolution of vertical relationships between farmers and modern retailers observed in Indonesia is a direct response to risks and quality uncertainty. In the vertical relation, large-scale retailers may earn a monopsonistic rent, and there are risks of exclusion of small-scale farmers from the emerging food value chain. However, there are alternative channels through which farmers may sell their products, albeit at a lower price compared to the modern channels, and measures can be instituted to protect them against monopsonistic rents. The findings have important policy implications for developing countries.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.searca.org/ajad/archives/v-02/01-02/ajad_v2_n1_n2_chowdhury_etal.pdf
Download Restriction: no

Bibliographic Info

Article provided by Southeast Asian Regional Center for Graduate Study and Research in Agriculture in its journal Asian Journal of Agriculture and Development.

Volume (Year): 2 (2005)
Issue (Month): 1&2 (June & December)
Pages: 39-48

as in new window
Handle: RePEc:sag:seajad:v:2:y:2005:i:1&2:p:39-48

Note: ORDER INFORMATION. Dr. Lorna C. Malicsi, SEARCA, Los Banos, Laguna, Philippines. E-mail:
Contact details of provider:
Postal: College 4031, Laguna, Philippines
Phone: (63-49) 536-2365
Fax: (63-49) 536-7097
Email:
Web page: http://www.searca.org/
More information through EDIRC

Related research

Keywords: supermarkets; retailing; Indonesia; food value chain;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Neeliah, Shalini A. & Neeliah, Harris & Goburdhun, Daya, 2013. "Assessing the relevance of EU SPS measures to the food export sector: Evidence from a developing agro-food exporting country," Food Policy, Elsevier, vol. 41(C), pages 53-62.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sag:seajad:v:2:y:2005:i:1&2:p:39-48. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudia Svetlana Z. Cabrera).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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