IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v13y2023i10p1915-d1250847.html
   My bibliography  Save this article

Factors Influencing Farmers’ Vertical Collaboration in the Agri-Chain Guided by Leading Enterprises: A Study of the Table Grape Industry in China

Author

Listed:
  • Wen Li

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Chenying Liu

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Qizhi Yang

    (School of Agricultural Equipment Engineering, Jiangsu University, Zhenjiang 212013, China)

  • Yulan You

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Zhihang Zhuo

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Xiaolin Zuo

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

Abstract

Leading agricultural enterprises attracting farmers to participate in vertical collaboration within the industry chain can expedite the process of agricultural industrialization and help achieve rural revitalization. This study focuses on table grape growers in the Yangtze River Delta region of China as the research subjects. Instead of examining the impact of specific elements individually on farmers’ involvement in vertical collaboration within the industry chain, this study emphasizes the combination of multiple factors influencing farmers’ engagement. Employing a fuzzy-set qualitative comparative analysis and adopting a configurational perspective, this research investigates how six factors—growers’ age, ratio of sales income to household income, production scale, market distance, financial support, and technical support—combine to influence farmers’ participation in vertical collaboration within the industry chain. This study reveals that leading enterprises can indeed promote farmers’ participation in vertical cooperation within the agricultural chain, and four pathways are identified. Based on these findings, three configurations are summarized: risk-averse, resource-constrained, and burden-alleviating. Specific strategies and recommendations for targeting each of these configurations are proposed based on the findings, along with policy suggestions for regulating the six factors, both by the enterprises themselves and by the government.

Suggested Citation

  • Wen Li & Chenying Liu & Qizhi Yang & Yulan You & Zhihang Zhuo & Xiaolin Zuo, 2023. "Factors Influencing Farmers’ Vertical Collaboration in the Agri-Chain Guided by Leading Enterprises: A Study of the Table Grape Industry in China," Agriculture, MDPI, vol. 13(10), pages 1-14, September.
  • Handle: RePEc:gam:jagris:v:13:y:2023:i:10:p:1915-:d:1250847
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/13/10/1915/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2077-0472/13/10/1915/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mingze Wu & Yueji Zhu, 2023. "Does Farmers’ Lottery Participation Affect Technical Efficiency of Banana Production in Rural China?," Agriculture, MDPI, vol. 13(4), pages 1-17, March.
    2. German, Laura A. & Bonanno, Anya M. & Foster, Laura Catherine & Cotula, Lorenzo, 2020. "“Inclusive business” in agriculture: Evidence from the evolution of agricultural value chains," World Development, Elsevier, vol. 134(C).
    3. Yaping He & Dandan Fu & Hua Zhang & Xiudong Wang, 2023. "Can Agricultural Production Services Influence Smallholders’ Willingness to Adjust Their Agriculture Production Modes? Evidence from Rural China," Agriculture, MDPI, vol. 13(3), pages 1-19, February.
    4. Minten, Bart & Goeb, Joseph & Zin Win, Khin & Pye Zone, Phoo, 2023. "Agricultural value chains in a fragile state: The case of rice in Myanmar," World Development, Elsevier, vol. 167(C).
    5. Adegbite, Olayinka O. & Machethe, Charles L., 2020. "Bridging the financial inclusion gender gap in smallholder agriculture in Nigeria: An untapped potential for sustainable development," World Development, Elsevier, vol. 127(C).
    6. Ba, Hélène A. & de Mey, Yann & Thoron, Sylvie & Demont, Matty, 2019. "Inclusiveness of contract farming along the vertical coordination continuum: Evidence from the Vietnamese rice sector," Land Use Policy, Elsevier, vol. 87(C).
    7. Awal Abdul‐Rahaman & Awudu Abdulai, 2020. "Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 259-280, April.
    8. Martinez, Stephen W., 2002. "Vertical Coordination Of Marketing Systems: Lessons From The Poultry, Egg, And Pork Industries," Agricultural Economic Reports 34051, United States Department of Agriculture, Economic Research Service.
    9. Sun, Yixian & van der Ven, Hamish, 2020. "Swimming in their own direction: Explaining domestic variation in homegrown sustainability governance for aquaculture in Asia," Ecological Economics, Elsevier, vol. 167(C).
    10. Hongyu Wang & Xiaolei Wang & Apurbo Sarkar & Lu Qian, 2021. "Evaluating the Impacts of Smallholder Farmer’s Participation in Modern Agricultural Value Chain Tactics for Facilitating Poverty Alleviation—A Case Study of Kiwifruit Industry in Shaanxi, China," Agriculture, MDPI, vol. 11(5), pages 1-19, May.
    11. Daqing Wu & Jiyu Li & Jiye Cui & Dong Hu, 2023. "Research on the Time-Dependent Vehicle Routing Problem for Fresh Agricultural Products Based on Customer Value," Agriculture, MDPI, vol. 13(3), pages 1-23, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rong Ran & Lei Hua & Tingrou Li & Yejing Chen & Junfu Xiao, 2023. "Why Have China’s Poverty Eradication Policy Resulted in the Decline of Arable Land in Poverty-Stricken Areas?," Land, MDPI, vol. 12(10), pages 1-18, September.
    2. Yehia Zahran & Hazem S. Kassem & Shimaa M. Naba & Bader Alhafi Alotaibi, 2020. "Shifting from Fragmentation to Integration: A Proposed Framework for Strengthening Agricultural Knowledge and Innovation System in Egypt," Sustainability, MDPI, vol. 12(12), pages 1-25, June.
    3. Kumse, Kaittisak & Suzuki, Nobuhiro & Sato, Takeshi & Demont, Matty, 2021. "The spillover effect of direct competition between marketing cooperatives and private intermediaries: Evidence from the Thai rice value chain," Food Policy, Elsevier, vol. 101(C).
    4. Jamil, Abd Rahim Md. & Law, Siong Hook & Mohamad Khair-Afham, M.S. & Trinugroho, Irwan, 2023. "Financial inclusion and economic uncertainty in developing countries: The role of digitalisation," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 786-806.
    5. Neema Ciza Angélique & Vwima Stany & Philippe Lebailly & Hossein Azadi, 2022. "Agricultural Development in the Fight against Poverty: The Case of South Kivu, DR Congo," Land, MDPI, vol. 11(4), pages 1-24, March.
    6. Granoszewski, Karol & Spiller, Achim, 2013. "Langfristige Rohstoffsicherung in der Supply Chain Biogas: Status Quo und Potenziale vertraglicher Zusammenarbeit," Department of Agricultural and Rural Development (DARE) Discussion Papers 260820, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    7. Laura Enthoven & Goedele Van den Broeck, 2021. "Promoting Food Safety in Local Value Chains: The Case of Vegetables in Vietnam," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    8. Tessmann, Jannes, 2021. "Strategic responses to food safety standards – The case of the Indian cashew industry," World Development Perspectives, Elsevier, vol. 23(C).
    9. Xiuling Ding & Qian Lu & Lipeng Li & Apurbo Sarkar & Hua Li, 2023. "Does Labor Transfer Improve Farmers’ Willingness to Withdraw from Farming?—A Bivariate Probit Modeling Approach," Land, MDPI, vol. 12(8), pages 1-27, August.
    10. Hua Zhang & Qiwang Zhang & Man An & Zixuan Zhang & Nanqiao He, 2023. "Unveiling the Impact of Digital Financial Inclusion on Low-Carbon Green Utilization of Farmland: The Roles of Farmland Transfer and Management Scale," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    11. Mai Chiem Tuyen & Prapinwadee Sirisupluxana & Isriya Bunyasiri & Pham Xuan Hung, 2022. "Perceptions, Problems and Prospects of Contract Farming: Insights from Rice Production in Vietnam," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    12. Li, Xiaokang & Guo, Hongdong & Li, Lin, 2016. "Contract Farming in China: Perspectives of Smallholders in Vegetable Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235573, Agricultural and Applied Economics Association.
    13. Alan Munodei & Athenia Bongani Sibindi, 2023. "Fintech Innovation in Social Service Provision: A Bibliometric Review," Social Sciences, MDPI, vol. 12(1), pages 1-22, January.
    14. Mungandi, Sepiso & Conforte, Daniel & Shadbolt, Nicola M., 2012. "Integration of Smallholders in Modern Agri-food Chains: Lessons from the KASCOL Model in Zambia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-22, September.
    15. van der Ven, Hamish & Sun, Yixian & Cashore, Benjamin, 2021. "Sustainable commodity governance and the global south," Ecological Economics, Elsevier, vol. 186(C).
    16. Adi Haryono & Mohamad Syamsul Maarif & Arif Imam Suroso & Siti Jahroh, 2023. "The Design of a Contract Farming Model for Coffee Tree Replanting," Economies, MDPI, vol. 11(7), pages 1-18, July.
    17. Maples, Joshua G. & Lusk, Jayson L. & Peel, Derrell S., 2019. "Technology and evolving supply chains in the beef and pork industries," Food Policy, Elsevier, vol. 83(C), pages 346-354.
    18. MacDonald, James M. & Perry, Janet E. & Ahearn, Mary Clare & Banker, David E. & Chambers, William & Dimitri, Carolyn & Key, Nigel D. & Nelson, Kenneth E. & Southard, Leland W., 2004. "Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities," Agricultural Economic Reports 34013, United States Department of Agriculture, Economic Research Service.
    19. Hayes Dermot & Jacobs Keri & Schulz Lee & Crespi John, 2023. "Resilience of U.S. Cattle and Beef Sectors: Lessons from COVID-19," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 21(1), pages 53-67, May.
    20. Franken, Jason R.V. & Pennings, Joost M.E. & Garcia, Philip, 2009. "Do Transaction Costs and Risk Preferences Influence Marketing Arrangements in the Illinois Hog Industry?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), pages 1-19, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:13:y:2023:i:10:p:1915-:d:1250847. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.