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Specialty products, rural livelihoods and agricultural marketing reforms in China

Author

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  • Colin Brown
  • Scott Waldron
  • John Longworth

Abstract

Purpose - The purpose of this paper is to apply a market efficiency theoretical framework to analyse and postulate solutions to the challenges confronting China in engaging smallholders in higher value, specialty, agricultural product markets. A marketing experiment/trial to test these ideas is evaluated. Design/methodology/approach - The case of fine‐wool marketing is used to illustrate issues associated with specialty product marketing. The market efficiency approach highlights the difficulties involved in relaying accurate product prices and values (exchange efficiency) while aligning the logistical requirements of higher value market segments with the small, dispersed and locationally remote smallholders (operational efficiency). The marketing experiment/trial was conducted in three fine‐wool‐growing counties in Western China in 2008. Findings - The fine‐wool case study highlights that modernization of the marketing system is required not only so that smallholders can access the premium prices potentially available but also to improve international competitiveness. Originality/value - Engaging smallholders in specialty agricultural product markets poses significant challenges for China. The market efficiency approach (exchange efficiency versus operational efficiency) provides a new perspective on these challenges and offers new insights about appropriate policy settings both at a macro‐ and micro‐level.

Suggested Citation

  • Colin Brown & Scott Waldron & John Longworth, 2011. "Specialty products, rural livelihoods and agricultural marketing reforms in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 3(2), pages 224-244, May.
    • Handle: RePEc:eme:caerpp:v:3:y:2011:i:2:p:224-244
    DOI: 10.1108/17561371111131335
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    References listed on IDEAS

    as
    1. Huang, Jikun & Rozelle, Scott, 2006. "The emergence of agricultural commodity markets in China," China Economic Review, Elsevier, vol. 17(3), pages 266-280.
    2. Brown, Colin G., 1997. "Chinese wool auctions: Failed agribusiness reform or future marketing channel?," China Economic Review, Elsevier, vol. 8(2), pages 175-189.
    3. Colin G. Brown, 2008. "Sustainable Development in Western China," Books, Edward Elgar Publishing, number 4119.
    4. Colin G. Brown & John W. Longworth, 1992. "Reconciling National Economic Reforms and Local Investment Decisions in China: Fiscal Decentralization and First‐Stage Wool Processing," Development Policy Review, Overseas Development Institute, vol. 10(4), pages 389-402, December.
    5. Wang, Honglin & Dong, Xiaoxia & Rozelle, Scott & Huang, Jikun & Reardon, Thomas, 2009. "Producing and Procuring Horticultural Crops with Chinese Characteristics: The Case of Northern China," World Development, Elsevier, vol. 37(11), pages 1791-1801, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Brown, Colin & Waldron, Scott, 2013. "Agrarian change, agricultural modernization and the modelling of agricultural households in Tibet," Agricultural Systems, Elsevier, vol. 115(C), pages 83-94.
    2. Qu, Lulu & Li, Yurui & Chen, Zongfeng & Huang, Yunxin, 2022. "Exploring the spatiotemporal variation characteristics and influencing factors of gully agricultural production transformation in the Chinese Loess Plateau: A case study of loess hilly and gully regio," Land Use Policy, Elsevier, vol. 123(C).
    3. Colin Brown & Jing Zhang & Deqing Zhuoga & Weisi Baiyang & Lava Yadav, 2021. "Market integration and agricultural development: The case of Tibet's ruminant livestock industries," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 818-837, October.
    4. Lulu Qu & Yurui Li & Yunxin Huang & Xuanchang Zhang & Jilai Liu, 2021. "Analysis of the Spatial Variations of Determinants of Gully Agricultural Production Transformation in the Chinese Loess Plateau and Its Policy Implications," Land, MDPI, vol. 10(9), pages 1-21, August.

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