IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/276037.html
   My bibliography  Save this paper

Are dragon-head companies heading agricultural development in China? The case of apple chains

Author

Listed:
  • Moustier, P.

Abstract

The purpose of this paper to empirically document the role and impact of agri-business development in the case of apple chains in China, and to investigate the role that the provision of services and marketing plays in this impact. We compare some performance indicators, including yields and profits between farmers belonging to chains with and without dragon-head companies, i.e. companies which invested in various infrastructures, and provide services to farmers including extension services, storage and input provisioning. The data is based on a survey of 355 apple farmers in Shandong and Shaanxi provinces. Dragon-head companies have no significant impact on the yield and profit obtained by farmers, in contrast with belonging to a cooperative. They do not have a significant impact on training relative to cooperatives. They do not propose higher prices for farmers, even though farmers’ practices may be more eco-friendly and reduce the use of chemical pesticides. The conclusion is that the optimal conditions for agri-business development to be conducive to economic development as shown by the literature do not seem to be gathered in the apple sector of China.

Suggested Citation

  • Moustier, P., 2018. "Are dragon-head companies heading agricultural development in China? The case of apple chains," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276037, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:276037
    DOI: 10.22004/ag.econ.276037
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/276037/files/2066.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.276037?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. Thomas Reardon, 2015. "The hidden middle: the quiet revolution in the midstream of agrifood value chains in developing countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 31(1), pages 45-63.
    2. 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.
    3. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    4. Cook, Michael L. & Chaddad, Fabio R., 2000. "Agroindustrialization of the global agrifood economy: bridging development economics and agribusiness research," Agricultural Economics, Blackwell, vol. 23(3), pages 207-218, September.
    5. 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.
    6. 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.
    7. Zhang, Xiaoyong & Qiu, Huanguang & Huang, Zhurong, 2009. "Linking Small Scale Farmers in China with the International Markets: A Case of Apple Export Chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 12(3), pages 1-22, September.
    8. Johan F. M. Swinnen & Miet Maertens, 2007. "Globalization, privatization, and vertical coordination in food value chains in developing and transition countries," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 89-102, December.
    9. Ding, Jiping & Moustier, Paule & Ma, Xindong & Huo, Xuexi & Jia, Xiangping, 2017. "Doing But Not Knowing: How Apple Farmers Comply With Standards In China," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260897, European Association of Agricultural Economists.
    10. Reardon, Thomas & Barrett, Christopher B., 2000. "Agroindustrialization, globalization, and international development: An overview of issues, patterns, and determinants," Agricultural Economics, Blackwell, vol. 23(3), pages 195-205, September.
    11. Hongdong Guo & Robert W Jolly & Jianhua Zhu, 2007. "Contract Farming in China: Perspectives of Farm Households and Agribusiness Firms," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(2), pages 285-312, June.
    12. H. Holly Wang & Yanbing Wang & Michael S. Delgado, 2014. "The Transition to Modern Agriculture: Contract Farming in Developing Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1257-1271.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. 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).
    3. Viet Hoang, 2021. "Impact of Contract Farming on Farmers’ Income in the Food Value Chain: A Theoretical Analysis and Empirical Study in Vietnam," Agriculture, MDPI, vol. 11(8), pages 1-16, August.
    4. Arouna, Aminou & Michler, Jeffrey D. & Lokossou, Jourdain C., 2021. "Contract farming and rural transformation: Evidence from a field experiment in Benin," Journal of Development Economics, Elsevier, vol. 151(C).
    5. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    6. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    7. Adu-Gyamfi Poku & Regina Birner & Saurabh Gupta, 2018. "Making Contract Farming Arrangements Work in Africa’s Bioeconomy: Evidence from Cassava Outgrower Schemes in Ghana," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    8. Benali, Marwan & Brümmer, Bernhard & Afari-Sefa, Victor, 2017. "Small producer participation in export vegetable supply chains and poverty: evidence from different export schemes in Tanzania," GlobalFood Discussion Papers 262583, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    9. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    10. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    11. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    12. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    13. Khan, Muhammad Fawad & Nakano, Yuko & Kurosaki, Takashi, 2019. "Impact of contract farming on land productivity and income of maize and potato growers in Pakistan," Food Policy, Elsevier, vol. 85(C), pages 28-39.
    14. Ranjeet Rajput & Sri Vanamalla Venkataraman, 2022. "A violent market price contract for agribusiness supply chain," Annals of Operations Research, Springer, vol. 315(2), pages 1971-1996, August.
    15. Mengshuai Zhu & Chen Shen & Yajun Tian & Jianzhai Wu & Yueying Mu, 2022. "Factors Affecting Smallholder Farmers’ Marketing Channel Choice in China with Multivariate Logit Model," Agriculture, MDPI, vol. 12(9), pages 1-11, September.
    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. 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.
    18. Marwa, Erick & Manda, Julius, 2021. "Do Youth Farmers Benefit from Participating in Contract Farming: Evidence from French Beans Youth Farmers in Arusha, Tanzania," 2021 Conference, August 17-31, 2021, Virtual 315907, International Association of Agricultural Economists.
    19. Ming-Feng Hsieh & Yir-Hueih Luh, 2022. "Is Contract Farming with Modern Distributors Partnership for Higher Returns? Analysis of Rice Farm Households in Taiwan," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    20. Schoneveld, George C., 2022. "Transforming food systems through inclusive agribusiness," World Development, Elsevier, vol. 158(C).

    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; International Relations/Trade;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:iaae18:276037. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.