IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

A novel agribusiness model for backward linkages with farmers: a case of food retail chain

Author Info

Listed author(s):
  • Mangala, K.P.
  • Chengappa, P.G.
Registered author(s):

    Abstract

    One of the leading food retail chains, ‘Spencers’ have established backward linkages with farmers for procuring fresh fruits and vegetables. The main strategy of this system ensures a steady and continuous supply of fresh vegetables to the food retail chain and flow of income to farmers. This linkage has been able to change the method of farming and the marketing arrangement followed by the food retail chains. The marketing arrangement by Spencers food retail chain has reduced the market risks and transaction cost of farmers and has helped them in breaking away from the clutches of traditional brokers/wholesalers/commission agents. Direct supply by farmers has allowed the retail chain to simultaneously increase control over quality, supply reliability and price stability. An added advantage of this model is that it provides flexibility to the farmers to exit from this system, if they are not satisfied with its functioning, since there are no written contracts. This model of linkage is specially suited to small and marginal farmers and improves their economic conditions by providing an opportunity to grow and supply high-value vegetables round the year at a fairly decent price. The study has analyzed the impact of food retail chain linkage on farmers.

    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://purl.umn.edu/47886
    Download Restriction: no

    Article provided by Agricultural Economics Research Association (India) in its journal Agricultural Economics Research Review.

    Volume (Year): 21 (2008)
    Issue (Month): 2008 ()
    Pages:

    as
    in new window

    Handle: RePEc:ags:aerrae:47886
    Contact details of provider: Web page: http://www.geocities.com/aeraindia/
    Email:


    More information through EDIRC

    Keywords: Agribusiness;

    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. David Neven & Thomas Reardon, 2004. "The Rise of Kenyan Supermarkets and the Evolution of their Horticulture Product Procurement Systems," Development Policy Review, Overseas Development Institute, vol. 22(6), pages 669-699, November.
    2. Dave D. Weatherspoon & Thomas Reardon, 2003. "The Rise of Supermarkets in Africa: Implications for Agrifood Systems and the Rural Poor," Development Policy Review, Overseas Development Institute, vol. 21, pages 333-355, 05.
    Full references (including those not matched with items on IDEAS)

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    as
    in new window


    Cited by:

    1. Sandhyarani Patlolla & Rachael E. Goodhue & Richard J. Sexton, 2015. "Managing Quantity, Quality, and Timing in Indian Cane Sugar Production: Ex Post Marketing Permits or Ex Ante Production Contracts?," World Bank Economic Review, World Bank Group, vol. 29(3), pages 606-630.
    2. Singla, Naresh & Singh, Sukhpal & Dhindsa, P.K., 2011. "Linking Small Farmers to Emerging Agricultural Marketing Systems in India—The Case Study of a Fresh Food Retail Chain in Punjab," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(1).
    3. Wanglin Ma & Awudu Abdulai, 2016. "Linking apple farmers to markets: Determinants and impacts of marketing contracts in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 8(1), pages 2-21, February.
    4. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    5. Vamsidhar Reddy, T.S. & Hall, Andy & Sulaiman V., Rasheed, 2010. "New Organisational and Institutional Vehicles for Managing Innovation in South Asia: Opportunities for Using Research for Technical Change and Social Gain," MERIT Working Papers 054, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    7. Singh, Sukhpal, 2009. "Rapporteur’s Report on Implications of Corporate Entry into Agricultural Input and Output Markets and Its Impact on Small Producers and Consumers," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(3).
    8. Aparna, B. & Hanumanthaiah, C.V., 2012. "Are Supermarket Supply Channels More Efficient than Traditional Market Channels?," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(2).

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

    Access and download statistics

    When requesting a correction, please mention this item's handle: RePEc:ags:aerrae:47886. 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: (AgEcon Search)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.