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Supply chain differentiation, contract agriculture, and farmers' marketing preferences: The case of sweet pepper in Thailand

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  • Schipmann, Christin
  • Qaim, Matin

Abstract

There is an emerging body of literature analyzing how smallholder farmers in developing countries can be linked to modern supply chains. However, most of the available studies concentrate on farm and farmer characteristics, failing to capture details of institutional arrangements between farmers and traders. Moreover, farmers' preferences have rarely been considered. Here, we address these gaps by analyzing different market channels for sweet pepper in Thailand. Using data from a survey and choice experiment with farmers, we find that there is a general preference for marketing options that do not involve a contract. Additional provision of inputs and credit can increase the attractiveness of contracts. Yet, the most important factor for farmers is to personally know the buyer they deal with, which may be related to issues of trust. Some policy implications are discussed.

Suggested Citation

  • 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 666-676, October.
  • Handle: RePEc:eee:jfpoli:v:36:y:2011:i:5:p:666-676
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    Cited by:

    1. repec:eee:forpol:v:86:y:2018:i:c:p:76-85 is not listed on IDEAS
    2. Barrowclough, Michael & Boys, Kathryn A. & Carpio, Carlos, 2015. "An Evaluation of Firm and Contract Characteristics Valued by Supply Chain Partners in Specialty Crop Marketing Channels," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205768, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    3. Schreinemachers, Pepijn & Tipraqsa, Prasnee, 2012. "Agricultural pesticides and land use intensification in high, middle and low income countries," Food Policy, Elsevier, vol. 37(6), pages 616-626.
    4. repec:eee:wdevel:v:99:y:2017:i:c:p:285-298 is not listed on IDEAS
    5. Goedele Van den Broeck & Kaat Van Hoyweghen & Miet Maertens, 2016. "Employment Conditions in the Senegalese Horticultural Export Industry: A Worker Perspective," Development Policy Review, Overseas Development Institute, vol. 34(2), pages 301-319, March.
    6. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.
    7. repec:eee:enepol:v:115:y:2018:i:c:p:631-643 is not listed on IDEAS
    8. Girma, Jony & Gardebroek, Cornelis, 2015. "The impact of contracts on organic honey producers' incomes in southwestern Ethiopia," Forest Policy and Economics, Elsevier, vol. 50(C), pages 259-268.
    9. repec:eee:wdevel:v:103:y:2018:i:c:p:162-175 is not listed on IDEAS
    10. Meemken, Eva-Marie & Veettil, Prakashan Chellattan & Qaim, Matin, 2016. "Small farmers’ preferences for the design of certification schemes: Does gender matter?," Discussion Papers 235484, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    11. repec:zbw:espost:176893 is not listed on IDEAS
    12. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    13. Ochieng, Dennis O. & Veettil, Prakashan C. & Qaim, Matin, 2017. "Farmers’ preferences for supermarket contracts in Kenya," Food Policy, Elsevier, vol. 68(C), pages 100-111.
    14. Alim Setiawan Slamet & Akira Nakayasu & Masahiro Ichikawa, 2017. "Small-Scale Vegetable Farmers’ Participation in Modern Retail Market Channels in Indonesia: The Determinants of and Effects on Their Income," Agriculture, MDPI, Open Access Journal, vol. 7(2), pages 1-16, February.
    15. Vlaeminck, Pieter & Vranken, Liesbet & Van Den Broeck, Goedele & Vande Velde, Katrien & Raymaekers, Karen & Maertens, Miet, 2015. "Farmers’ preferences for Fair Trade contracting in Benin," Working Papers 225931, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    16. Xhoxhi, Orjon & Pedersen, Søren Marcus & Lind, Kim Martin & Yazar, Attila, 2014. "The Determinants of Intermediaries’ Power over Farmers’ Margin-Related Activities: Evidence from Adana, Turkey," World Development, Elsevier, vol. 64(C), pages 815-827.
    17. Wainaina, Priscilla W. & Okello, Julius J. & Nzuma, Jonathan M., 0. "Blessing or Evil? Contract Farming, Smallholder Poultry Production and Household Welfare in Kenya," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 53.
    18. Wang LIJIA & Huo XUEXI, 2014. "Transaction Costs Comparison Between Cooperatives And Conventional Apple Producers: A Case Study Of Northwestern China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 233-255, June.
    19. Senakpon F. A. Dedehouanou & Johan Swinnen & Miet Maertens, 2013. "Does Contracting Make Farmers Happy? Evidence from Senegal," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59, pages 138-160, October.

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