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Linking small producers to supermarkets? The role of intermediaries on the fresh fruit and vegetable market in Turkey

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  • Bignebat, Celine
  • Koc, A. Ali
  • Lemeilleur, Sylvaine

Abstract

A wide range of the empirical studies shows to what extend the rise of supermarkets in developing countries deeply transform domestic marketing channels. In particular, the exclusion of small producers from the so-called dynamic marketing channels (that is remunerative ones) is at stake. Based on original data collected in Turkey in 2007 at the producer and the wholesale market levels, we show that the intermediaries are decisive in order to understand the impact of downstream restructuring (supermarkets) on upstream decisions (producers). The results show first that producers are not aware of the final buyer of their produce, as intermediaries hinder the visibility of the marketing channel, their choice is restricted to that of the first intermediary. Moreover, the econometric results conclude that producers who are indirectly linked to the supermarkets are more sensitive to their requirements in terms of quality and packaging than to the price premia they set accordingly to the effort made to meet their standards. Therefore, the results question the role of the wholesale market agents who act as a buffer in the chain and protect small producers from negative shocks, but who stop positive shocks as well, and reduce incentives.

Suggested Citation

  • Bignebat, Celine & Koc, A. Ali & Lemeilleur, Sylvaine, 2009. "Linking small producers to supermarkets? The role of intermediaries on the fresh fruit and vegetable market in Turkey," 111th Seminar, June 26-27, 2009, Canterbury, UK 52856, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa111:52856
    DOI: 10.22004/ag.econ.52856
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    Cited by:

    1. 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.
    2. Kedar Vishnu & Parmod Kumar, 2019. "Structure and strategy of supermarkets of fruits and vegetables retailing in Karnataka: Gains for whom?," Working Papers 438, Institute for Social and Economic Change, Bangalore.
    3. Hakan Yilmazkuday, 2018. "Spatial dispersion of retail margins: evidence from Turkish agricultural prices," Agricultural Economics, International Association of Agricultural Economists, vol. 49(4), pages 455-462, July.
    4. A. Bailey & S. Davidova & P. Hazell, 2009. "Introduction to the special issue “small farms: decline or persistence?”," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 715-717, November.
    5. Tuan M. Ha & Ockie J. H. Bosch & Nam C. Nguyen, 2016. "Practical Contributions of the Systems-Based Evolutionary Learning Laboratory to Knowledge and Stakeholder Management," Systemic Practice and Action Research, Springer, vol. 29(3), pages 261-275, June.
    6. Xhoxhi, Orjon & Pedersen, Søren Marcus & Lind, Kim Martin & Yazar, Attila, 2014. "The Determinants of Intermediaries’ Power over Farmers’ Margin-Related Activities: Evidence from Adana, Turkey," World Development, Elsevier, vol. 64(C), pages 815-827.
    7. 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.

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    Keywords

    Agribusiness; Production Economics;

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