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Short supply chain participation and market performance for vegetable farmers in China

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  • Xiaoheng Zhang
  • Ping Qing
  • Xiaohua Yu

Abstract

The fresh food supply chain in China has begun to reduce the number of intermediaries that connect producers and consumers. Using farm‐level data, this paper investigates the impacts of short supply chain participation on vegetable farmers’ market performance, including profits, productivity, production cost, price and price risk. The results show that the participation in a short supply chain is a profit‐maximising strategy and risk management tool for farmers. The increase in profit is attributed to productivity advantages, farm size expansion, and risk reduction rather than because of price premiums or cost savings. A policy implication is that short supply chain promotion has many benefits, but the government should be more concerned about the sustainability of short supply chains.

Suggested Citation

  • Xiaoheng Zhang & Ping Qing & Xiaohua Yu, 2019. "Short supply chain participation and market performance for vegetable farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(2), pages 282-306, April.
    • Handle: RePEc:bla:ajarec:v:63:y:2019:i:2:p:282-306
    DOI: 10.1111/1467-8489.12299
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    Cited by:

    1. André Luís de Castro Moura Duarte & Vinicius Picanço Rodrigues & Luana Bonome Message Costa, 2025. "The sustainability challenges of fresh food supply chains: an integrative framework," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(11), pages 27505-27529, November.
    2. Yan, Bo & Liu, Gaodi & Zhenyu, Zhang & Chang, Yan, . "Optimal financing and operation strategy of fresh agricultural supply chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3).
    3. Solano-Gaviño, Juan Carlos & Siche, Raúl, 2024. "Smallholder Conflicts in Agribusiness Systems," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 15(01), January.
    4. Tibebu Legesse & Aneteneh Ashebir & Zerhun Ganewo & Abera Alemu & Andachew Samuel, 2024. "Determinants of market outlet choices by smallholder mango farmers in Aleta Chuko District, Sidama Region, Ethiopia: a multivariate probit approach," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-21, December.
    5. Mengshuai Zhu & Chen Shen & Yajun Tian & Jianzhai Wu & Yueying Mu, 2022. "Factors Affecting Smallholder Farmers’ Marketing Channel Choice in China with Multivariate Logit Model," Agriculture, MDPI, vol. 12(9), pages 1-11, September.
    6. Kharaishvili, Eter & Aduashvili, Lela, . "Competition in the vegetable market and challenges for the industry: a bibliometric analysis of dominant publications," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 10(3).
    7. Abdelrahman Ali & Chunping Xia & Moustafa Ismaiel & N’Banan Ouattara & Irfan Mahmood & Dessalegn Anshiso, 2021. "Analysis of determinants to mitigate food losses and waste in the developing countries: empirical evidence from Egypt," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 26(6), pages 1-26, August.
    8. Zhang, Xiaoheng & Hu, Lingxiao & Yu, Xiaohua, 2023. "Farmland Leasing, misallocation Reduction, and agricultural total factor Productivity: Insights from rice production in China," Food Policy, Elsevier, vol. 119(C).
    9. Mahuwi, Leticia & Israel, Baraka, . "Supply Chain Issues Affecting Market Access Among Smallholder Maize Farmers in Mbozi District, Tanzania," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(2).
    10. Xiaoheng Zhang & Wanglin Ma & Puneet Vatsa & Shijie Jiang, 2023. "Short supply chain, technical efficiency, and technological change: Insights from cucumber production," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 371-386, March.
    11. Qing Zhang & Juan Li & Tiaojun Xiao, 2022. "Contract design for technology sharing between two farmers," Annals of Operations Research, Springer, vol. 314(2), pages 677-707, July.
    12. Meng Wang & Vikas Kumar & Ximing Ruan & Mohammed Saad & Jose Arturo Garza-Reyes & Anil Kumar, 2022. "Sustainability concerns on consumers’ attitude towards short food supply chains: an empirical investigation," Operations Management Research, Springer, vol. 15(1), pages 76-92, June.
    13. Grace O’Connor & Kimberley Reis & Cheryl Desha & Ingrid Burkett, 2025. "Valuing farmers in transitions to more sustainable food systems: A systematic literature review of local food producers’ experiences and contributions in short food supply chains," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 42(1), pages 565-592, March.
    14. Wenbin Du & You Wu & Yunliang Zhang & Ya Gao, 2022. "The Impact Effect of Coal Price Fluctuations on China’s Agricultural Product Price," Sustainability, MDPI, vol. 14(15), pages 1-15, July.
    15. Youzhu Li & Jinsi Liu & Hongyu Yang & Jianxin Chen & Jason Xiong, 2021. "A Bibliometric Analysis of Literature on Vegetable Prices at Domestic and International Markets—A Knowledge Graph Approach," Agriculture, MDPI, vol. 11(10), pages 1-17, September.
    16. Chiaverina, Pierre & Drogué, Sophie & Jacquet, Florence, 2024. "Do Farmers Participating in Short Food Supply Chains Use Less Pesticides? Evidence from France," Ecological Economics, Elsevier, vol. 216(C).
    17. Awal Abdul‐Rahaman & Gazali Issahaku & Wanglin Ma, 2023. "Agrifood system participation and production efficiency among smallholder vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 812-835, July.
    18. Hasnain Abbas & Lindu Zhao & Xi Gong & Mengyin Jiang & Tahira Faiz, 2024. "Environmental and economic influences of postharvest losses across the fish-food products supply chain in the developing regions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28335-28366, November.
    19. Konrád Kiss & Csaba Ruszkai & Katalin Takács-György, 2019. "Examination of Short Supply Chains Based on Circular Economy and Sustainability Aspects," Resources, MDPI, vol. 8(4), pages 1-21, September.
    20. Eduardo Letelier Araya & Luis Moraga Gálvez & Matías Urbina Morales, 2025. "Short food supply chain adoption in Chilean organic and agroecological organizations: a qualitative comparative analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 13(1), pages 1-18, December.
    21. Huashu Wang & Zhiyi Ma & Jiqin Han, 2025. "Pains and gains: opportunities and challenges for grain farmers to participate in short supply chain in China," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 13(1), pages 1-25, December.
    22. Zhou Xue & Jieqiong Li & Guangqiao Cao, 2022. "Training and Self-Learning: How to Improve Farmers’ Willingness to Adopt Farmland Conservation Technology? Evidence from Jiangsu Province of China," Land, MDPI, vol. 11(12), pages 1-15, December.
    23. Bo Yan & Gaodi Liu & Zhenyu Zhang & Chang Yan, 2020. "Optimal financing and operation strategy of fresh agricultural supply chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 776-794, July.
    24. Wanglin Ma & Awal Abdul‐Rahaman & Gazali Issahaku, 2023. "Welfare implications of participating in agri‐value chains among vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 793-811, July.

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