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Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand

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  • Schipmann, Christin
  • Qaim, Matin
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    Abstract

    There is an emerging body of literature analyzing how smallholder farmers in developing countries can be linked to modern supply chains. However, most of the available studies concentrate on farm and farmer characteristics, failing to capture details of institutional arrangements between farmers and traders. Moreover, farmers’ preferences have rarely been considered. Here, we address these gaps by analyzing different market channels for sweet pepper in Thailand. Using data from a survey and choice experiment with farmers, we find that there is a general preference for marketing options that do not involve a contract. Additional provision of inputs and credit can increase the attractiveness of contracts. Yet, the most important factor for farmers is to personally know the buyer they deal with, which may be related to issues of trust. Some policy implications are discussed.

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    Bibliographic Info

    Paper provided by Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development in its series Discussion Papers with number 108349.

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    Date of creation: Apr 2011
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    Handle: RePEc:ags:gagfdp:108349

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    Postal: Platz der Göttinger Sieben 5, D-37073 Göttingen
    Web page: http://www.uni-goettingen.de/globalfood
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    Related research

    Keywords: Choice experiment; contract design; farmers’ stated preferences; modern agricultural supply chains; Thailand; Community/Rural/Urban Development; Institutional and Behavioral Economics; International Development; L14; O31; Q12; Q13;

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    Cited by:
    1. Schreinemachers, Pepijn & Tipraqsa, Prasnee, 2012. "Agricultural pesticides and land use intensification in high, middle and low income countries," Food Policy, Elsevier, vol. 37(6), pages 616-626.
    2. Rao, Elizaphan J.O. & Qaim, Matin, 2013. "Supermarkets and agricultural labor demand in Kenya: A gendered perspective," Food Policy, Elsevier, vol. 38(C), pages 165-176.
    3. 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.
    4. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.

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