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Technology Adoption and Value Chains in Developing Countries: Panel Evidence from Dairy in Punjab

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  • Saule Burkitbayeva
  • Emma Janssen
  • Jo Swinnen

Abstract

The adoption of modern technologies in agriculture is crucial for improving the productivity and welfare of poor farmers in developing countries. Not much is known about how value chains do (not) affect technology transfer and/or adoption in domestic food chains in developing countries. Our paper analyzes farm-level technology adoption in the dairy chain in Punjab, India, combining quantitative panel data from representative surveys in 2008 and 2015 with data from targeted interviews with emerging modern dairy farms. Between 2008 and 2015 there were important increases in technology adoption in the form of better hygienic practices, better feed and improved livestock among traditional dairy farms. Especially those farms which lagged behind in 2008 improved their technology. However, the role of vertical coordination in value chains in stimulating technology adoption among these traditional dairy farmers seems to be minor. In contrast, we document the emergence of a group of dynamic modern dairy farms which are much larger, only use modern technology, and are fully integrated in vertically coordinated value chains which support these modern farms' management and investments.

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  • Saule Burkitbayeva & Emma Janssen & Jo Swinnen, 2019. "Technology Adoption and Value Chains in Developing Countries: Panel Evidence from Dairy in Punjab," Working Papers of LICOS - Centre for Institutions and Economic Performance 634342, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    • Handle: RePEc:ete:licosp:634342
    Note: paper number 410/2019
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    3. Mac Clay, Pablo & Sellare, Jorge, 2022. "Value chain transformations in the transition to a sustainable bioeconomy," Discussion Papers 323957, University of Bonn, Center for Development Research (ZEF).
    4. Liz Ignowski & Bart Minten & Jo Swinnen & Bjorn Van Campenhout & Senne Vandevelde, 2021. "Trade, value chain technology and prices: evidence from dairy in East Africa," Working Papers of Department of Economics, Leuven 671298, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    5. Bjorn Van Campenhout & Bart Minten & Johan F. M. Swinnen, 2021. "Leading the way – foreign direct investment and dairy value chain upgrading in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 607-631, July.
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    7. Bart Minten & Yetimwork Habte & Kaleab Baye & Seneshaw Tamru, 2023. "Food Safety and Incipient Modern Value Chains: Evidence from Milk in Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(5), pages 1197-1223, October.
    8. Hongyu Wang & Apurbo Sarkar & Lu Qian, 2021. "Evaluations of the Roles of Organizational Support, Organizational Norms and Organizational Learning for Adopting Environmentally Friendly Technologies: A Case of Kiwifruit Farmers’ Cooperatives of Me," Land, MDPI, vol. 10(3), pages 1-23, March.
    9. Mona A. Abdel-Fatah, 2023. "Integrated Management of Industrial Wastewater in the Food Sector," Sustainability, MDPI, vol. 15(23), pages 1-48, November.
    10. Abate, Gashaw T. & Bernard, Tanguy & de Janvry, Alain & Sadoulet, Elisabeth & Trachtman, Carly, 2021. "Introducing quality certification in staple food markets in Sub-Saharan Africa: Four conditions for successful implementation," Food Policy, Elsevier, vol. 105(C).
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