Advanced Search
MyIDEAS: Login

The Structure of Agricultural Trade Industry in Developing Countries

Contents:

Author Info

  • Roehlano M. Briones

    (Philippine Institute for Development Studies (PIDS))

Abstract

Expansion of global trade has been heralded as a great boon for agriculture. However, benefits of such expansion has been seen by some quarters as inequitable due to the role of large agribusiness firms and conglomerates. This study synthesizes existing research on the market structure of agro-industry trade Its key findings are as follows : • The dominance of large-scale operations is more pronounced in the downstream stages. Moreover, distribution for foreign markets is the most concentrated part of the global chain. • Increasing horizontal concentration, and vertical coordination, arises from a set of supply drivers (e.g. technological change), demand drivers (e.g. rising purchasing power), policies, and institutional factors. • There is some evidence for significant market power being exercised in among the more concentrated value chains. Furthermore indications that market concentration can also be leveraged to widen the exercise of market power via coordination along a supply chain. However the association is not absolute. • At the farm level the evidence is more solid : size of land asset or scale of production, by itself, does not seem to disqualify smallholders from supplying to consolidated value chains, as there are a enabling schemes such as supervised contract growing, cooperatives, farmer associations and the like. More critical however are human capital, farm management practices, and other assets such as equipment and irrigation facilities. Despite the great volume of relevant literature, the tentative nature of the findings stated above indicate wide scope for further research in this area. Better information and analysis could perhaps pave way towards design of policies towards more equitable and yet productive and efficient global value chains.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://saber.eaber.org/node/23420
Download Restriction: no

Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 23420.

as in new window
Length:
Date of creation: May 2013
Date of revision:
Handle: RePEc:eab:tradew:23420

Contact details of provider:
Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
More information through EDIRC

Related research

Keywords: Agricultural Trade; global value chain; market structure; distribution;

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Görg, Holger & Greenaway, David, 2003. "Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," IZA Discussion Papers 944, Institute for the Study of Labor (IZA).
  2. Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
  3. Roberto Alvarez & Ricardo Lopez, 2006. "Is Exporting a Source of Productivity Spillovers?," Caepr Working Papers 2006-012, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
  4. Richard J. Sexton & Ian Sheldon & Steve McCorriston & Humei Wang, 2007. "Agricultural trade liberalization and economic development: the role of downstream market power," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 253-270, 03.
  5. Morisset, Jacques, 1998. "Unfair Trade? The Increasing Gap between World and Domestic Prices in Commodity Markets during the Past 25 Years," World Bank Economic Review, World Bank Group, vol. 12(3), pages 503-26, September.
  6. Maman Setiawan & Grigorios Emvalomatis & Alfons Oude Lansink, 2012. "Industrial concentration and price-cost margin of the Indonesian food and beverages sector," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3805-3814, October.
  7. Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
  8. Wilcox, Michael D. & Abbott, Philip C., 2004. "Market Power and Structural Adjustment: The Case of West African Cocoa Market Liberalization," 2004 Annual meeting, August 1-4, Denver, CO 20084, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
  10. Markelova, Helen & Meinzen-Dick, Ruth & Hellin, Jon & Dohrn, Stephan, 2009. "Collective action for smallholder market access," Food Policy, Elsevier, vol. 34(1), pages 1-7, February.
  11. Watanabe, Michio & Jinji, Naoto & Kurihara, Mitsuyo, 2009. "Is the development of the agro-processing industry pro-poor?: The case of Thailand," Journal of Asian Economics, Elsevier, vol. 20(4), pages 443-455, September.
  12. Hamid R. Alavi & Aira Htenas & Ron Kopicki & Andrew W. Shepherd & Ramon Clarete, 2012. "Trusting Trade and the Private Sector for Food Security in Southeast Asia," World Bank Publications, The World Bank, number 2384, October.
  13. Setiawan, Maman & Emvalomatis, Grigorios & Oude Lansink, Alfons, 2012. "The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry," Journal of Asian Economics, Elsevier, vol. 23(4), pages 466-475.
  14. Fuglie, Keith O. & Heisey, Paul W. & King, John L. & Day-Rubenstein, Kelly A. & Schimmelpfennig, David E. & Wang, Sun Ling, 2011. "Research Investments and Market Structure in the Food Processing, Agricultural Input, and Biofuel Industries Worldwide," Economic Research Report 120324, United States Department of Agriculture, Economic Research Service.
  15. 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.
  16. Karp, Larry S & Perloff, Jeffrey M, 1989. "Dynamic Oligopoly in the Rice Export Market," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 462-70, August.
  17. Jongwanich, Juthathip, 2009. "Impact of Food Safety Standards on Processed Food Exports from Developing Countries," ADB Economics Working Paper Series 154, Asian Development Bank.
  18. Dyck, John H. & Nelson, Kenneth E., 2003. "Structure Of The Global Markets For Meat," Agricultural Information Bulletins 33701, United States Department of Agriculture, Economic Research Service.
  19. Ian Sheldon & Richard Sperling, 2003. "Estimating the Extent of Imperfect Competition in the Food Industry: What Have We Learned?," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 89-109.
  20. Rashid, Shahidur & Cummings, Ralph Jr. & Gulati, Ashok, 2005. "Grain marketing parastatals in Asia," MTID discussion papers 80, International Food Policy Research Institute (IFPRI).
  21. Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics, Blackwell, vol. 23(3), pages 219-229, September.
  22. Margherita Scoppola, 2007. "Economies of scale and market structure in international grain trade," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 277-291, 09.
  23. Escobal, Javier A. & Cavero, Denice, 2012. "Transaction Costs, Institutional Arrangements and Inequality Outcomes: Potato Marketing by Small Producers in Rural Peru," World Development, Elsevier, vol. 40(2), pages 329-341.
  24. Cook, Michael L. & Chaddad, Fabio R., 2000. "Agroindustrialization of the global agrifood economy: bridging development economics and agribusiness research," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
  25. Karantininis, Kostas & Sauer, Johannes & Furtan, William Hartley, 2010. "Innovation and integration in the agri-food industry," Food Policy, Elsevier, vol. 35(2), pages 112-120, April.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eab:tradew:23420. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.