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Collaborative supply chain initiatives as devices to cope with income variability in the Scottish red meat sector

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  • Revoredo-Giha, Cesar
  • Leat, Philip M.K.

Abstract

The purpose of this paper is to discuss whether collaborative supply chain initiatives may help to provide income stability for farmers, focussing the analysis on the red meat supply chain in Scotland. Collaborative supply chains may contribute with two elements to attain higher income instability: first, greater demand stability and market access, and second, less variability in the price received for carcasses, as the produced output fits better the required specifications (i.e., no lost premia). The analysis of a survey applied to Scottish red meat producers showed that farmers that are part of a producers’ club do not differ from other farmers in their perception of marketing problems (e.g., price stability, etc.). However, in terms of their marketing aims, at least for beef producers, they seem to be more satisfied than farmers selling through auctions. An in-depth case study of a producers’ club in Scotland showed that farmers within the club are heterogeneous, not all of them taking advantage of the possibilities offered by the club in terms of improving the quality of their output and targeting better the required specifications, which creates potential to attain more stable income

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Bibliographic Info

Paper provided by Scottish Agricultural College, Land Economy Research Group in its series Working Papers with number 61105.

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Date of creation: 2008
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Handle: RePEc:ags:saclwp:61105

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Web page: http://www.sac.ac.uk/research/lee/
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Keywords: Agricultural and Food Policy; Farm Management; Food Security and Poverty; Livestock Production/Industries; Income instability; producers’ clubs; red meat sector; Scotland;

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  1. Schroeder, Ted C. & Parcell, Joseph L. & Kastens, Terry L. & Dhuyvetter, Kevin C., 1998. "Perceptions Of Marketing Strategies: Producers Versus Extension Economists," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
  2. Simmons, Phil, 2002. "Why do farmers have so little interest in futures markets?," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 27(1), May.
  3. Simmons, Phil, 2002. "Why do farmers have so little interest in futures markets?," Agricultural Economics, Blackwell, vol. 27(1), pages 1-6, May.
  4. STEVEN C. BLANK & COLIN A. CARTER & JEFFREY McDONALD, 1997. "Is The Market Failing Agricultural Producers Who Wish To Manage Risks?," Contemporary Economic Policy, Western Economic Association International, vol. 15(3), pages 103-112, 07.
  5. Joost M.E. Pennings & Raymond M. Leuthold, 2000. "The Role of Farmers' Behavioral Attitudes and Heterogeneity in Futures Contracts Usage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 908-919.
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