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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 667-677.
  • Handle: RePEc:eee:jfpoli:v:36:y:2011:i:5:p:667-677 DOI: 10.1016/j.foodpol.2011.07.004
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    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. Vanden Broeck, Goedele & Vanhoyweghen, Kaat & Maertens, Miet, 2015. "Employment Conditions in the Senegalese Horticultural Export Industry: A Worker Perspective," Working Papers 208756, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    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. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. Rao, Elizaphan J.O. & Qaim, Matin, 2013. "Supermarkets and agricultural labor demand in Kenya: A gendered perspective," Food Policy, Elsevier, vol. 38(C), pages 165-176.
    14. 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.
    15. 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.

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