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Producers, Processors, and Procurement Decisions: The Case of Vegetable Supply Chains in China

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  • Stringer, Randy
  • Sang, Naiquan
  • Croppenstedt, André

Abstract

Summary This study examines how different supply chain characteristics impose different coordination costs on vegetable processors. The results provide a basis for understanding the relative importance of four alternative supply chain characteristics to vegetable processors: (1) the size of the producers' production base; (2) the distance between the producer and the processing plant; (3) the level of detail specified in the contract between processors and grower; and (4) whether the producer has food safety certification. Vegetable processors from Laiyang County, Shandong province, China's largest horticultural production and export region, provide the data underlying the following analysis. Conjoint analysis suggests that the vegetable processors consider the size of the production units as the most important supply chain characteristic influencing their choice of producers, followed by distance to producer, type of contract and food safety certification.

Suggested Citation

  • Stringer, Randy & Sang, Naiquan & Croppenstedt, André, 2009. "Producers, Processors, and Procurement Decisions: The Case of Vegetable Supply Chains in China," World Development, Elsevier, vol. 37(11), pages 1773-1780, November.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:11:p:1773-1780
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    References listed on IDEAS

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    Cited by:

    1. Schipmann, Christin & Qaim, Matin, 2011. "Modern food retailers and traditional markets in developing countries: Comparing quality, prices, and competition strategies in Thailand," GlobalFood Discussion Papers 108348, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. repec:gam:jsusta:v:10:y:2018:i:5:p:1573-:d:146394 is not listed on IDEAS
    3. Briones, Roehlano & Felipe, Jesus, 2013. "Agriculture and Structural Transformation in Developing Asia: Review and Outlook," ADB Economics Working Paper Series 363, Asian Development Bank.
    4. Marisol Velazquez, 2014. "Commercialization and consumption of coffee in Mexico," ERSA conference papers ersa14p1681, European Regional Science Association.
    5. Herforth, Nico & Theuvsen, Ludwig & Vásquez, Wilson & Wollni, Meike, 2015. "Understanding participation in modern supply chains under a social network perspective – evidence from blackberry farmers in the Ecuadorian Andes," GlobalFood Discussion Papers 197709, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    6. Heath Henderson, 2014. "Structural transformation and smallholder agriculture: an information-theoretic analysis of the Nicaraguan case," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 443-458, July.
    7. Silvia Amato, 2016. "East Asia Industrial Conversion Activity: Outlook at Post-Disaster Crisis Assessments with Technology Integration and Competitive Assimilation Modes," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-44, June.

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