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Transformation of Markets for Agricultural Output in Developing Countries Since 1950: How Has Thinking Changed?

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  • Reardon, Thomas
  • Timmer, C. Peter

Abstract

This chapter traces the evolution of the agricultural economics literature on agrifood output markets over the past 50 years, emphasizing research approaches and policy issues. The analysis of agrifood systems encompasses the demand and supply side of output markets. The analysis in this chapter is set within the conceptual framework of how the agrifood economy develops during the agricultural and structural transformation. The related paths of development of policy and policy issues, and research themes and methods, are analyzed in parallel. The chapter examines the shift from broad and atomistic "commodity" markets to differentiated and more concentrated "product" markets over the half century. Spurred by massive retail sector foreign direct investment (FDI) to which was added competitive investments from domestic capital, a profound retail transformation has occurred in the past decade - the "supermarket revolution". This revolution has been the leading edge of globalization of domestic agrifood systems, not, as the literature currently emphasizes, opening to international trade. The chapter ends with a focus on the challenge for researchers in the next several decades, especially the need for new research methodologies that are suitable for understanding the role and influence of a small number of large-scale, multi-national firms, and for analyzing the impacts of the consolidation of the downstream segments of the agrifood system - the food industry - on upstream segments of the domestic agrifood systems, on rural development, and on trade.

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Bibliographic Info

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This chapter was published in:

  • Robert Evenson & Prabhu Pingali (ed.), 2007. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 3, number 1, 00.
    This item is provided by Elsevier in its series Handbook of Agricultural Economics with number 5-55.

    Handle: RePEc:eee:hagchp:5-55

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    Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description

    Related research

    Keywords: Farmers; Farm Production and Farm Markets;

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    Citations

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    Cited by:
    1. 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.
    2. Anderson, Kym & Strutt, Anna, 2012. "Asia’s Growth, the Changing Geography of World Trade, and Food Security: Projections to 2030," CEPR Discussion Papers 8950, C.E.P.R. Discussion Papers.
    3. Tschirley, David L. & Ayieko, Miltone W., 2008. "Assessment of Kenya's Domestic Horticultural Production and Marketing Systems and Lessons for the Future," Food Security Collaborative Working Papers 55431, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Andreas Madestam, 2009. "Informal Finance: A Theory of Moneylenders," Working Papers 2009.69, Fondazione Eni Enrico Mattei.
    5. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    6. Minten, Bart, 2007. "The food retail revolution in poor countries: Is it coming or is it over? Evidence from Madagascar," IFPRI discussion papers 719, International Food Policy Research Institute (IFPRI).
    7. Gómez, Miguel I. & Barrett, Christopher B. & Raney, Terri & Pinstrup-Andersen, Per & Meerman, Janice & Croppenstedt, André & Carisma, Brian & Thompson, Brian, 2013. "Post-green revolution food systems and the triple burden of malnutrition," Food Policy, Elsevier, vol. 42(C), pages 129-138.
    8. Sinha, Piyush Kumar & Gokhale, Srikant & Thomas, Sujo, . "Development of Modern Retailing in India: It’s Impacts on Distribution and Procurement Networks and Changing Consumption Pattern," IIMA Working Papers WP2012-12-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    9. Reardon, Thomas & Pingali, Prabhu L. & Stamoulis, Kostas G., 2006. "Impacts of Agrifood Market Transformation during Globalization on the Poor's Rural Nonfarm Employment: Lessons for Rural Business Development Programs," Staff Papers 11572, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Erenstein, Olaf & Thorpe, William, 2011. "Livelihoods and agro-ecological gradients: A meso-level analysis in the Indo-Gangetic Plains, India," Agricultural Systems, Elsevier, vol. 104(1), pages 42-53, January.
    11. 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.
    12. Reardon, Thomas & Gulati, Ashok, 2008. "The rise of supermarkets and their development implications: International experience relevant for India," IFPRI discussion papers 752, International Food Policy Research Institute (IFPRI).
    13. Timmer, C. Peter, 2009. "Do Supermarkets Change the Food Policy Agenda?," World Development, Elsevier, vol. 37(11), pages 1812-1819, November.
    14. Trienekens, Jacques H. & Willems, Sabine, 2007. "Innovation and Governance in International Food Supply Chains: The Cases of Ghanaian Pineapples and South African Grapes," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 10(4).
    15. Chitundu, Maureen & Droppelmann, Klaus & Haggblade, Steven, 2006. "A Value Chain Task Force Approach for Managing Private-Public Partnerships: Zamiba’s Task Force on Acceleration of Cassava Utilization," Food Security Collaborative Working Papers 54480, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    16. Gebremedhin, Berhanu & Hoekstra, Dirk, 2008. "Cereal Marketing and Household Market Participation in Ethiopia: The Case of Teff, Wheat and Rice," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52102, African Association of Agricultural Economists (AAAE).
    17. Minten, Bart & Reardon, Thomas & Sutradhar, Rajib, 2010. "Food Prices and Modern Retail: The Case of Delhi," World Development, Elsevier, vol. 38(12), pages 1775-1787, December.
    18. Berdegue, Julio A. & Reardon, Thomas & Balsevich, Fernando & Martinez, Anabel & Medina, Ruben & Aguirre, Marx & Echanove, Flavia, 2006. "Supermarkets and Michoacan Guava Farmers in Mexico," Staff Papers 11474, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    19. Anderson, Kym & Kurzweil, Marianne & Martin, William J. & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Methodology for Measuring Distortions to Agricultural Incentives," Agricultural Distortions Working Paper 48326, World Bank.
    20. Sigei, Geoffrey & Bett, Hillary & Kibet, Lawrence, 2014. "Determinants of Market Participation among Small-scale Pineapple Farmers in Kericho County, Kenya," MPRA Paper 56149, University Library of Munich, Germany.
    21. JIA, Xiangping & HUANG, Jikun & XU, Zhigang, 2012. "Marketing of farmer professional cooperatives in the wave of transformed agrofood market in China," China Economic Review, Elsevier, vol. 23(3), pages 665-674.

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