IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/119969.html
   My bibliography  Save this article

Exclusivity of Agrifood Supply Chains: Seven Fundamental Economic Characteristics

Author

Listed:
  • Sporleder, Thomas L.
  • Boland, Michael A.

Abstract

This analysis focuses on defining and describing the unique economic characteristics of agrifood supply chains. The analysis includes seven specific economic characteristics of agrifood supply chains that distinguish them from other industrial manufacturing and service supply chains. The seven characteristics are: 1) risk emanating from the biological nature of agrifood supply chains, 2) the role of buffer stocks within the supply chain, 3) the scientific foundation of innovation in production agriculture having shifted from chemistry to biology, 4) cyberspace and information technology influences on agrifood supply chains, 5) the prevalent market structure at the farm gate remains oligopsony, 6) relative market power shifts in agrifood supply chains away from food manufacturers downstream to food retailers, and 7) globalization of agriculture and agri-food supply chains.

Suggested Citation

  • Sporleder, Thomas L. & Boland, Michael A., 2011. "Exclusivity of Agrifood Supply Chains: Seven Fundamental Economic Characteristics," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(5), pages 1-15, December.
    • Handle: RePEc:ags:ifaamr:119969
    DOI: 10.22004/ag.econ.119969
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/119969/files/20110087_Formatted.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.119969?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. Michael Sykuta & Harvey S. James, 2004. "Organizational Economics Research in the U.S. Agricultural Sector and the Contracting and Organizations Research Institute," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 756-761.
    2. Michael Sykuta & Joseph Parcell, 2003. "Contract Structure and Design in Identity-Preserved Soybean Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 332-350.
    3. Boland, Michael A. & Golden, Bill B. & Tsoodle, Leah J., 2008. "Agency Theory Issues in the Food Processing Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-12, August.
    4. Richard J. Sexton, 2000. "Industrialization and Consolidation in the U.S. Food Sector: Implications for Competition and Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1087-1104.
    5. Jean Kinsey & R. Wes Harrison & Dennis Degeneffe & Gustavo Ferreira & Sakiko Shiratori, 2009. "Index of Consumer Confidence in the Safety of the United States Food System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1470-1476.
    6. Michael Boehlje & Jay Akridge & Dave Downey, 1995. "Restructuring agribusiness for the 21st century," Agribusiness, John Wiley & Sons, Ltd., vol. 11(6), pages 493-500.
    7. Déborah S. Sánchez & Michael A. Boland & Daniel Sumner, 2008. "Sun-Maid Growers of California," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 360-369.
    8. Seftel, Howard, 1985. "Government Regulation and the Rise of the California Fruit Industry: The Entrepreneurial Attack on Fruit Pests, 1880–1920," Business History Review, Cambridge University Press, vol. 59(3), pages 369-402, October.
    9. George J. Stigler, 1945. "The Cost of Subsistence," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(2), pages 303-314.
    10. Boland, Michael A., 2009. "Leadership Development in Agricultural Economics: Challenges for Academic Units," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-16, December.
    11. MacDonald, James M. & Korb, Penelope J., 2011. "Agricultural Contracting Update: Contracts in 2008," Economic Information Bulletin 101279, United States Department of Agriculture, Economic Research Service.
    12. Palma, Marco A. & Ribera, Luis A. & Bessler, David & Paggi, Mechel & Knutson, Ronald D., 2010. "Potential Impacts of Foodborne Illness Incidences on Market Movements and Prices of Fresh Produce in the U.S," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 42(4), pages 731-741, November.
    13. Richard T. Rogers & Richard J. Sexton, 1994. "Assessing the Importance of Oligopsony Power in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1143-1150.
    14. Martinez, Steve W. & Reed, Al, 1996. "From Farmers to Consumers: Vertical Coordination in the Food Industry," Agricultural Information Bulletins 309735, United States Department of Agriculture, Economic Research Service.
    15. Kevin C. Dhuyvetter, 2004. "Using Formula Prices in the Absence of Publicly Reported Prices: An Application for Segregated Early Weaned Pigs," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(4), pages 539-551.
    16. Beddow, Jason M. & Pardey, Philip G. & Alston, Julian M., 2009. "The Shifting Global Patterns of Agricultural Productivity," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 24(4), pages 1-10.
    17. Michael A. Boland & John M. Crespi, 2010. "From Farm Management to Agricultural and Applied Economics: The Expansion of a Professional Society as Seen Through a Census of its Dissertations From 1951 to 2005," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(3), pages 456-471.
    18. John D. Black, 1947. "Guideposts in the Development of a Marketing Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 616-631.
    19. Sporleder, Thomas L. & Jackson, Constance Cullman & Bolling, Dennis, 2005. "Transitioning from Transaction-Based Markets to Alliance-Based Supply Chains: Implications for Firms," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 20(4), pages 1-6.
    20. Brian Roe & Thomas L. Sporleder & Betsy Belleville, 2004. "Hog Producer Preferences for Marketing Contract Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 115-123.
    21. James Pritchett, 2004. "Negotiating Agricultural Contracts: A Waxy Corn Example ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 280-286.
    22. Rachael E. Goodhue & Sandeep Mohapatra & Gordon C. Rausser, 2010. "Interactions Between Incentive Instruments: Contracts and Quality in Processing Tomatoes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1283-1293.
    23. Boland, Michael A. & Crespi, John M. & Silva, Jena & Xia, Tian, 2012. "Measuring the Benefits to Advertising under Monopolistic Competition," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-12, April.
    24. Thomas L. Sporleder & Peter D. Goldsmith, 2001. "Alternative Firm Strategies for Signaling Quality in the Food System," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(4), pages 591-604, December.
    25. Michael A. Boland, 2005. "The Persistence of Profitability among Firms in the Food Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 103-115.
    26. Bruce W. Marion & Thomas L. Sporleder, 1976. "An Evaluation of the Economic Basis for Antitrust Policy in the Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(5), pages 867-873.
    27. repec:ags:jrapmc:122308 is not listed on IDEAS
    28. Jean D. Kinsey, 2001. "The New Food Economy: Consumers, Farms, Pharms, and Science," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1113-1130.
    29. Boland, Michael A., 2010. "Increasing Coordination In The Plant And Plant Product Processing And Handling Sector," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(4), pages 1-5.
    30. Dee Von Bailey & Eluned Jones & David L. Dickinson, 2002. "Knowledge Management and Comparative International Strategies on Vertical Information Flow in the Global Food System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1337-1344.
    31. James Pritchett, 2004. "Negotiating Agricultural Contracts: A Waxy Corn Example," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 280-286.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Eddi Fontanari & Silvia Sacchetti, 2019. "The Knowledge-based Agricultural Cooperative: A Validation from the Trentino Case," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 8(2), pages 46-70.
    2. Setene, Letlama & Jordaan, Daniel du P.S., 2021. "The trade-off between chain performance and fragility considering coordination strategies of agri-food chains: a South African egg chain's case study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    3. Lu, Jianjun & Bowles, Marcus, 2013. "How Will Nanotechnology Affect Agricultural Supply Chains?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(2), pages 1-21, May.
    4. Gaofeng Wang & Shuai Li & Zihao Zhang & Yanning Hou & Changhoon Shin, 2023. "A Visual Knowledge Map Analysis of Cross-Border Agri-Food Supply Chain Research Based on CiteSpace," Sustainability, MDPI, vol. 15(14), pages 1-28, July.

    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. Sporleder Thomas L. & Boland Michael A., 2013. "Seven fundamental economic characteristics exclusivity of agrifood supply chains (part 1)," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 3 (35), pages 238-246.
    2. Sporleder Thomas L. & Boland Michael A., 2013. "Seven fundamental economic characteristics exclusivity of agrifood supply chains (part 2)," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 4 (36), pages 174-180.
    3. Vassalos, Michael & Li, Yingbo, 2016. "Assessing the Impact of Fresh Vegetable Growers’ Risk Aversion Levels and Risk Preferences on the Probability of Adopting Marketing Contracts: A Bayesian Approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(1), pages 1-18, February.
    4. Jinho Jung & Juan Sesmero & Ralph Siebert, 2020. "Spatial Differentiation and Market Power in Input Procurement: Evidence from a Structural Model of the Corn Market," CESifo Working Paper Series 8088, CESifo.
    5. Stefano Ciliberti & Simone Del Sarto & Angelo Frascarelli & Giulia Pastorelli & Gaetano Martino, 2020. "Contracts to Govern the Transition towards Sustainable Production: Evidence from a Discrete Choice Analysis in the Durum Wheat Sector in Italy," Sustainability, MDPI, vol. 12(22), pages 1-14, November.
    6. Salazar Idana & Galve Górriz Carmen, 2011. "Determinants of the Differences in the Downstream Vertical Integration and Efficiency Implications in Agricultural Cooperatives," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-26, February.
    7. He, Xi, 2018. "Bigger Farms and Bigger Food Firms-The Agricultural Origin of Industrial Concentration in the Food Sector," 2018 Annual Meeting, August 5-7, Washington, D.C. 274206, Agricultural and Applied Economics Association.
    8. Goldsmith, Peter D. & Bender, Karen, 2003. "Ten Conversations about Identity Preservation: Implications for Cooperatives," 2003 Annual Meeting, October 29 31803, NCERA-194 Research on Cooperatives.
    9. Ng, Desmond W. & Salin, Victoria, 2012. "An Institutional Approach to the Examination of Food Safety," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(2), pages 1-26, May.
    10. Paulson Nicholas D & Katchova Ani L & Lence Sergio H, 2010. "An Empirical Analysis of the Determinants of Marketing Contract Structures for Corn and Soybeans," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-25, May.
    11. Jung, Jinho & Sesmero, Juan Pablo & Balagtas, Joseph V., 2017. "Market Power in Feedstock Procurement and Economic Effects of Corn Ethanol," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258544, Agricultural and Applied Economics Association.
    12. Love, Erin & Thilmany, Dawn, 2022. "Price Transmission and Asymmetry in the Colorado Potato Supply Chain," Journal of Food Distribution Research, Food Distribution Research Society, vol. 53(3), November.
    13. Kwabena Krah & Daniel R Petrolia & Angelica Williams & Keith H Coble & Ardian Harri & Roderick M Rejesus, 2018. "Producer Preferences for Contracts on a Risky Bioenergy Crop," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 240-258.
    14. Erkan Rehber, 2000. "Vertical Coordination In The Agro-Food Industry And Contract Farming: A Comparative Study Of Turkey And The Usa," Food Marketing Policy Center Research Reports 052, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    15. Stefan Hirsch & David Lanter & Robert Finger, 2021. "Profitability and profit persistence in EU food retailing: Differences between top competitors and fringe firms," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 235-263, April.
    16. Caroline Roussy & Aude Ridier & Karim Chaib & Marie Boyet, 2018. "Marketing contracts and risk management for cereal producers," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 616-630, June.
    17. Cholez, Celia & Magrini, Marie-Benoit & Galliano, Danielle, 2016. "Technical knowledge and production contracts between a company and its suppliers: lessons from a French case-study," 149th Seminar, October 27-28, 2016, Rennes, France 244775, European Association of Agricultural Economists.
    18. Viergutz, Tim & Zubek, Nana & Schulze-Ehlers, Birgit, 2016. "How Spatial Pricing Affects Cooperative Members’ Switching Decisions," 149th Seminar, October 27-28, 2016, Rennes, France 244772, European Association of Agricultural Economists.
    19. Becca B.R. Jablonski & Allison Bauman & Dawn Thilmany, 2021. "Local Food Market Orientation and Labor Intensity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 916-934, September.
    20. Alessandro Bonanno & Carlo Russo & Luisa Menapace, 2018. "Market power and bargaining in agrifood markets: A review of emerging topics and tools," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 6-23, December.

    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:ifaamr:119969. 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/ifamaea.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.