IDEAS home Printed from https://ideas.repec.org/a/spr/agfoec/v10y2022i1d10.1186_s40100-022-00215-w.html
   My bibliography  Save this article

Alignment between vertical and horizontal coordination for food quality and safety in Indonesian vegetable chains

Author

Listed:
  • Fanny Widadie

    (Sebelas Maret University
    Wageningen University and Research)

  • Jos Bijman

    (Wageningen University and Research)

  • Jacques Trienekens

    (Wageningen University and Research)

Abstract

This study explores the alignment between vertical coordination (VC) and horizontal coordination (HC) in Indonesian vegetable value chains. This alignment helps buyers to design efficient coordination mechanisms with regard to the production of safe and high-quality vegetables. We use a qualitative approach and describe five vegetable value chains featuring VC and HC. Within-case and cross-case analyses have been performed to develop propositions. The empirical study finds that there is a diverse combination of VC and HC mechanisms in Indonesian vegetable value chains. Strong VC correlates with high food quality and safety standards that farmers have to meet. The presence of HC through a producer organisation (PO) reduces the need for strict VC mechanisms. When VC is combined with HC through a PO, efficiency of quality and safety control increases and coordination costs decrease, ensuring better compliance with food quality and safety requirements.

Suggested Citation

  • Fanny Widadie & Jos Bijman & Jacques Trienekens, 2022. "Alignment between vertical and horizontal coordination for food quality and safety in Indonesian vegetable chains," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    • Handle: RePEc:spr:agfoec:v:10:y:2022:i:1:d:10.1186_s40100-022-00215-w
    DOI: 10.1186/s40100-022-00215-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40100-022-00215-w
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40100-022-00215-w?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
    ---><---

    References listed on IDEAS

    as
    1. Johann Kirsten & Kurt Sartorius, 2002. "Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?," Development Southern Africa, Taylor & Francis Journals, vol. 19(4), pages 503-529.
    2. Delelegne A. Tefera & Jos Bijman, 2021. "Economics of contracts in African food systems: evidence from the malt barley sector in Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    3. Sartorius, Kurt & Kirsten, Johann, 2007. "A framework to facilitate institutional arrangements for smallholder supply in developing countries: An agribusiness perspective," Food Policy, Elsevier, vol. 32(5-6), pages 640-655.
    4. repec:dau:papers:123456789/2722 is not listed on IDEAS
    5. Jia, Xiangping & Huang, Jikun, 2011. "Contractual arrangements between farmer cooperatives and buyers in China," Food Policy, Elsevier, vol. 36(5), pages 655-665, October.
    6. Christoph Saenger & Matin Qaim & Maximo Torero & Angelino Viceisza, 2013. "Contract farming and smallholder incentives to produce high quality: experimental evidence from the Vietnamese dairy sector," Agricultural Economics, International Association of Agricultural Economists, vol. 44(3), pages 297-308, May.
    7. 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.
    8. Moustier, Paule & Tam, Phan Thi Giac & Anh, Dao The & Binh, Vu Trong & Loc, Nguyen Thi Tan, 2010. "The role of farmer organizations in supplying supermarkets with quality food in Vietnam," Food Policy, Elsevier, vol. 35(1), pages 69-78, February.
    9. Brent Hueth & Ethan Ligon & Steven Wolf & Steven Wu, 1999. "Incentive Instruments in Fruit and Vegetable Contracts: Input Control, Monitoring, Measuring, and Price Risk," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(2), pages 374-389.
    10. Claude Ménard & Peter G. Klein, 2004. "Organizational Issues in the Agrifood Sector: Toward a Comparative Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 750-755.
    11. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
    12. Peterson, H. Christopher & Wysocki, Allen F. & Harsh, Stephen B., 2001. "Strategic Choice Along The Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(2), pages 1-18.
    13. Michelson, Hope & Reardon, Thomas & Perez, Francisco, 2012. "Small Farmers and Big Retail: Trade-offs of Supplying Supermarkets in Nicaragua," World Development, Elsevier, vol. 40(2), pages 342-354.
    14. Nicholas Minot & Randy Stringer & Wendy J. Umberger & Wahida Maghraby, 2015. "Urban Shopping Patterns in Indonesia and Their Implications for Small Farmers," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(3), pages 375-388, December.
    15. 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.
    16. Rehber, Erkan, 2007. "Contract Farming: Theory and Practice," Monographs: Applied Economics, AgEcon Search, number 259070, July.
    17. Andrew Dorward & Shenggen Fan & Jonathan Kydd & Hans Lofgren & Jamie Morrison & Colin Poulton & Neetha Rao & Laurence Smith & Hardwick Tchale & Sukhadeo Thorat & Ian Urey & Peter Wobst, 2004. "Institutions and Policies for Pro-poor Agricultural Growth," Development Policy Review, Overseas Development Institute, vol. 22(6), pages 611-622, November.
    18. Alim Setiawan Slamet & Akira Nakayasu & Masahiro Ichikawa, 2017. "Small-Scale Vegetable Farmers’ Participation in Modern Retail Market Channels in Indonesia: The Determinants of and Effects on Their Income," Agriculture, MDPI, vol. 7(2), pages 1-16, February.
    19. Hueth, Brent & Ligon, Ethan & Wolf, Stephen & Wu, Steven, 1999. "Incentive Instruments in Agricultural Contracts: Input Control, Monitoring, Quality Measurement, and Price Risk," Staff General Research Papers Archive 5237, Iowa State University, Department of Economics.
    20. Kaganzi, Elly & Ferris, Shaun & Barham, James & Abenakyo, Annet & Sanginga, Pascal & Njuki, Jemimah, 2009. "Sustaining linkages to high value markets through collective action in Uganda," Food Policy, Elsevier, vol. 34(1), pages 23-30, February.
    21. 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.
    22. Mugwagwa, Innocent & Bijman, Jos & Trienekens, Jacques, 2018. "Why do agribusiness firms simultaneously source from different contract farming arrangements? Evidence from the soybean industry in Malawi," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 22(1).
    23. Diego Naziri & Magali Aubert & Jean-Marie Codron & Nguyen Thi Tan Loc & Paule Moustier, 2014. "Estimating the Impact of Small-Scale Farmer Collective Action on Food Safety: The Case of Vegetables in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 50(5), pages 715-730, May.
    24. 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.
    25. Loïc Sauvée, 2005. "Alignment between quality enforcement devices and governance structures in the agri-food vertical chains," Post-Print hal-00155424, HAL.
    26. Anna Grandori, 1997. "Governance Structures, Coordination Mechanisms and Cognitive Models," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 1(1), pages 29-47, March.
    27. 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.
    28. Martins, Franco M. & Trienekens, Jacques & Omta, Onno, 2017. "Governance structures and coordination mechanisms in the Brazilian pork chain – Diversity of arrangements to support the supply of piglets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), 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. Nguyen Thi Nha Trang & Thanh-Thuy Nguyen & Hong V. Pham & Thi Thu Anh Cao & Thu Huong Trinh Thi & Javad Shahreki, 2022. "Impacts of Collaborative Partnership on the Performance of Cold Supply Chains of Agriculture and Foods: Literature Review," Sustainability, MDPI, vol. 14(11), pages 1-28, May.

    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. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    2. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    3. Soullier, Guillaume & Moustier, Paule, 2016. "Do contracts increase farmers’ incomes and food security? Evidence from the rice value chain in Senegal," 149th Seminar, October 27-28, 2016, Rennes, France 244790, European Association of Agricultural Economists.
    4. Saenger, Christoph & Torero, Maximo & Qaim, Matin, 2016. "Impact of third-party enforcement of contracts in agricultural markets—A field experiment in Vietnam," IFPRI book chapters, in: Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 11, pages 343-374, International Food Policy Research Institute (IFPRI).
    5. Arouna Dissa & Jos Bijman & Maja Slingerland & Ousmane Mama Sanogo & Ken E Giller & Katrien Descheemaeker, 2022. "Growing cotton to produce food: Unravelling interactions between value chains in southern Mali," Development Policy Review, Overseas Development Institute, vol. 40(5), September.
    6. Shinya Ikeda & Ronnie S. Natawidjaja, 2022. "The Sustainability of Contract Farming with Specialized Suppliers to Modern Retailers: Insights from Vegetable Marketing in Indonesia," Agriculture, MDPI, vol. 12(3), pages 1-11, March.
    7. Ba, Hélène A. & de Mey, Yann & Thoron, Sylvie & Demont, Matty, 2019. "Inclusiveness of contract farming along the vertical coordination continuum: Evidence from the Vietnamese rice sector," Land Use Policy, Elsevier, vol. 87(C).
    8. Nguyen Hung Anh & Wolfgang Bokelmann & Ngo Thi Thuan & Do Thi Nga & Nguyen Van Minh, 2019. "Smallholders’ Preferences for Different Contract Farming Models: Empirical Evidence from Sustainable Certified Coffee Production in Vietnam," Sustainability, MDPI, vol. 11(14), pages 1-26, July.
    9. Kulke, Elmar & Suwala, Lech, 2015. "Internationalization of grocery retailers in emerging markets – general considerations and economic impacts," EconStor Preprints 247642, ZBW - Leibniz Information Centre for Economics.
    10. Trebbin, Anika, 2014. "Linking small farmers to modern retail through producer organizations – Experiences with producer companies in India," Food Policy, Elsevier, vol. 45(C), pages 35-44.
    11. Sebastian Kunte & Meike Wollni & Claudia Keser, 2017. "Making it personal: breach and private ordering in a contract farming experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(1), pages 121-148.
    12. Michelson, Hope & Reardon, Thomas & Perez, Francisco, 2012. "Small Farmers and Big Retail: Trade-offs of Supplying Supermarkets in Nicaragua," World Development, Elsevier, vol. 40(2), pages 342-354.
    13. Andersson, Camilla I.M. & Kiria, Christine G. & Qaim, Matin & Rao, Elizaphan J.O., 2013. "Following up on smallholder farmers and supermarkets," GlobalFood Discussion Papers 158142, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    14. Sharma, Nivedita, 2014. "Contract Farming Practice In Indian Punjab: Farmers’ Perspective," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(1), pages 1-12, January.
    15. Ochieng, Dennis O. & Veettil, Prakashan C. & Qaim, Matin, 2017. "Farmers’ preferences for supermarket contracts in Kenya," Food Policy, Elsevier, vol. 68(C), pages 100-111.
    16. 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.
    17. Sara D. Elder, 2019. "The impact of supermarket supply chain governance on smallholder farmer cooperatives: the case of Walmart in Nicaragua," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(2), pages 213-224, June.
    18. Raoul Herrmann & Ephraim Nkonya & Anja Faße, 2018. "Food value chain linkages and household food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 827-839, August.
    19. Delelegne A. Tefera & Jos Bijman, 2021. "Economics of contracts in African food systems: evidence from the malt barley sector in Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    20. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.

    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:spr:agfoec:v:10:y:2022:i:1:d:10.1186_s40100-022-00215-w. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.