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Marketing of farmer professional cooperatives in the wave of transformed agrofood market in China

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  • JIA, Xiangping
  • HUANG, Jikun
  • XU, Zhigang

Abstract

The upstream agrofood market in China is dominated by a vast number of small farmers and traders, which challenges food safety compliance. To promote small farmers' access to the commercialized agrofood market, membership in farmer professional economic cooperatives (FPCs) is considered to be an important strategy by the Chinese leaders. The goals of this study are to investigate the marketing of FPCs in China and to determine their record of food safety compliance. Based on 157 FPCs from a nearly national representative survey, this paper shows that marketing FPCs in China relies primarily on the wholesale market, but there is a notable penetration of the modern supply chain via FPCs. Government-driven agribusiness facilitates farmers' access to markets via FPCs. However, food safety standards are not well-specified in the current FPCs' marketing.

Suggested Citation

  • JIA, Xiangping & HUANG, Jikun & XU, Zhigang, 2012. "Marketing of farmer professional cooperatives in the wave of transformed agrofood market in China," China Economic Review, Elsevier, vol. 23(3), pages 665-674.
  • Handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:665-674
    DOI: 10.1016/j.chieco.2010.07.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Hisatoshi Hoken & Qun Su, 2018. "Measuring the effect of agricultural cooperatives on household income: Case study of a rice‐producing cooperative in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 831-846, October.
    2. Shyhrete Muriqi & Maria Fekete-Farkas & Zsolt Baranyai, 2019. "Drivers of Cooperation Activity in Kosovo’s Agriculture," Agriculture, MDPI, Open Access Journal, vol. 9(5), pages 1-12, May.
    3. Liu, H. & Deng, H. & Xu, Z. & Lu, W., 2018. "Emerging Agricultural Cooperatives and The Structural Change of Crop Production in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277324, International Association of Agricultural Economists.
    4. Brooke Wilmsen, 2018. "Is Land†based Resettlement Still Appropriate for Rural People in China? A Longitudinal Study of Displacement at the Three Gorges Dam," Development and Change, International Institute of Social Studies, vol. 49(1), pages 170-198, January.
    5. Xiangyu Wu & Yunlong Ding, 2018. "The Service Supply Effect of Cooperatives under Economic Transformation: A Demand-Supply Perspective," Sustainability, MDPI, Open Access Journal, vol. 10(9), pages 1-18, August.
    6. Kumar, Anjani & Saroj, Sunil & Joshi, P.K. & Takeshima, Hiroyuki, 2018. "Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India," Food Policy, Elsevier, vol. 75(C), pages 24-36.
    7. Hao, Jinghui & Bijman, Jos & Gardebroek, Cornelis & Heerink, Nico & Heijman, Wim & Huo, Xuexi, 2018. "Cooperative membership and farmers’ choice of marketing channels – Evidence from apple farmers in Shaanxi and Shandong Provinces, China," Food Policy, Elsevier, vol. 74(C), pages 53-64.
    8. Luo, Jianli & Guo, Hongdong & Jia, Fu, 2017. "Technological innovation in agricultural co-operatives in China: Implications for agro-food innovation policies," Food Policy, Elsevier, vol. 73(C), pages 19-33.
    9. Unnevehr, Laurian J. & Ronchi, Loraine, 2014. "Food safety and developing markets: Research findings and research gaps:," IFPRI discussion papers 1376, International Food Policy Research Institute (IFPRI).
    10. Lin Li & Hongdong Guo, 2019. "The impact of business relationships on safe production behavior by farmers: Evidence from China," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 84-96, January.
    11. Ma, Wanglin & Abdulai, Awudu, 2016. "Does cooperative membership improve household welfare? Evidence from apple farmers in China," Food Policy, Elsevier, vol. 58(C), pages 94-102.
    12. 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.
    13. Moustier, P., 2018. "Are dragon-head companies heading agricultural development in China? The case of apple chains," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276037, International Association of Agricultural Economists.
    14. Li, Kai & Zhou, Jie-hong & Liang, Qiao & Huang, Zuhui, 2015. "Food safety controls and governance structure varieties in China's vegetable and fruit sector," 2015 Conference, August 9-14, 2015, Milan, Italy 212046, International Association of Agricultural Economists.
    15. Watanabe, Mariko, 2016. "Does market upgrading benefit farmers? : market differentiation, contract farming, and professional cooperatives in China's pork processing industry," IDE Discussion Papers 612, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    16. Zhu, Qianyu & Wachenheim, Cheryl J. & Ma, Zhiyao & Zhu, Cong, 2018. "Supply chain re-engineering: a case study of the Tonghui Agricultural Cooperative in Inner Mongolia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(1).

    More about this item

    Keywords

    Farmer; Cooperatives; Food safety; Agribusiness; China;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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