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Globalization, Privatization, and Vertical Coordination in Food Value Chains in Developing and Transition Countries

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  • Swinnen, Johan F.M.
  • Maertens, Miet

Abstract

Food and agricultural commodity value chains in developing and transition countries have undergone tremendous changes in the past decades. Companies and property rights have been privatized, markets liberalized, and economies integrated into global food systems. The liberalization and privatization initially caused the collapse of state controlled vertical integration. More recently, private vertical coordination systems have emerged and are growing rapidly as a response to consumer demand for food quality and safety on the one hand and the farms' production constraints caused by factor market imperfections. In this paper we (a) demonstrate the importance of these changes, (b) discuss the implications for efficiency and equity and (c) provide empirical evidence on the effects in several developing and transition countries.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25626.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25626

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Keywords: Industrial Organization;

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  1. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September.
  2. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
  3. Aksoy, M. Ataman & Beghin, John C., 2005. "Global Agricultural Trade and Developing Countries," Staff General Research Papers 12228, Iowa State University, Department of Economics.
  4. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
  5. Thomas Reardon & Johan F. M. Swinnen, 2004. "Agrifood Sector Liberalisation and the Rise of Supermarkets in Former State-controlled Economies: A Comparative Overview," Development Policy Review, Overseas Development Institute, vol. 22, pages 515-523, 09.
  6. Birthal, Pratap S. & Joshi, P. K. & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities," MTID discussion papers 85, International Food Policy Research Institute (IFPRI).
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Cited by:
  1. Achterbosch, Thom J. & Allbritton, Amanda & Quang, Dang Viet & Eaton, Derek J.F. & de Jager, Andre & Meijerink, Gerdien W. & Njue, Evelyn & Ssonko, Robinah & Stallen, Marcel & Wertheim-Heck, Sigrid & , 2007. "Poverty Alleviation in the Horticulture Sector: Insights from Uganda and Vietnam," 106th Seminar, October 25-27, 2007, Montpellier, France 7908, European Association of Agricultural Economists.
  2. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
  3. Michelson, Hope & Reardon, Thomas & Perez, Francisco Jose, 2010. "Small Farmers and Big Retail: trade-offs of supplying supermarkets in Nicaragua," Staff Papers 62124, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  4. Anne Ulrich, 2014. "Export-Oriented Horticultural Production in Laikipia, Kenya: Assessing the Implications for Rural Livelihoods," Sustainability, MDPI, Open Access Journal, vol. 6(1), pages 336-347, January.
  5. Chemnitz, Christine & Grethe, Harald & Kleinwechter, Ulrich, 2007. "Quality Standards for Food Products - A Particular Burden for Small Producers in Developing Countries?," 106th Seminar, October 25-27, 2007, Montpellier, France 7926, European Association of Agricultural Economists.
  6. Johannes Sauer & Matthew Gorton & John White, 2012. "Marketing, cooperatives and price heterogeneity: evidence from the CIS dairy sector," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 165-177, 03.
  7. Balogh, Peter & Ertsey, Imre & Szucs, Istvan, 2009. "Answer to the challenges of the 21st century in the Hungarian pig sector," 2009 Conference, August 16-22, 2009, Beijing, China 51027, International Association of Agricultural Economists.
  8. Ehlert, Christoph R. & Mithöfer, Dagmar & Waibel, Hermann, 2014. "Worker welfare on Kenyan export vegetable farms," Food Policy, Elsevier, vol. 46(C), pages 66-73.
  9. Handschuch, Christina & Wollni, Meike & Villalobos, Pablo, 2013. "Adoption of food safety and quality standards among Chilean raspberry producers – Do smallholders benefit?," Food Policy, Elsevier, vol. 40(C), pages 64-73.
  10. David Dyker & Michael Emerson & Michael Gasiorek & Peter Holmes & Malgorzata Jakubiak & Andre Jungmittag & Vicki Korchagin & Alina Kudina & Evgeny Polyakov & Andrei Roudoi & Gevorg Torosyan, 2008. "Economic Feasibility, General Economic Impact and Implications of a Free Trade Agreement Between the European Union and Armenia," CASE Network Reports 0080, CASE-Center for Social and Economic Research.
  11. Egziabher, Kidanemariam G. & Mathijs, Erik & Deckers, Jozef A. & Gebrehiwot, Kindeya & Bauer, Hans & Maertens, Miet, 2013. "The Economic Impact of a New Rural Extension Approach in Northern Ethiopia," Working Papers 146558, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
  12. Neda Trifković, 2013. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," IFRO Working Paper 2013/20, University of Copenhagen, Department of Food and Resource Economics.
  13. Swinnen, Johan F.M. & Vandeplas, Anneleen & Maertens, Miet, 2007. "Governance and Surplus Distribution in Commodity Value Chains in Africa," 106th Seminar, October 25-27, 2007, Montpellier, France 7950, European Association of Agricultural Economists.
  14. Ito, Junichi & Bao, Zongshun & Su, Qun, 2012. "Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation," Food Policy, Elsevier, vol. 37(6), pages 700-709.
  15. Mujawamariya, Gaudiose & Burger, Kees & D’Haese, Marijke, 0. "Quality of Gum Arabic in Senegal: Linking the Laboratory Research to the Field Assessment," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 51.

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