IDEAS home Printed from https://ideas.repec.org/a/gam/jscscx/v8y2019i2p63-d207057.html
   My bibliography  Save this article

Farmers’ Bargaining Power and Input Prices: What Can We Learn from Self-Reported Assessments? 1

Author

Listed:
  • Agata Malak-Rawlikowska

    (Faculty of Economic Sciences, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

  • Dominika Milczarek-Andrzejewska

    (Institute of Rural and Agricultural Development, Polish Academy of Sciences, 00-330 Warsaw, Poland)

  • Jan Fałkowski

    (Faculty of Economic Sciences, University of Warsaw, 00-241 Warsaw, Poland)

Abstract

One of the key challenges in improving our understanding of farmers’ relations with input suppliers is that we do not have direct information about farmers’ bargaining power vis-à-vis their input providers. To overcome this problem, this study used farmers’ self-reported assessments of their position in the supply chain. Using unique micro-survey data from the dairy sector in Poland, we constructed a proxy of farmers’ bargaining power and showed that it helps to explain discounts at which farmers buy feed from input suppliers, in addition to what is explained by the standard variables.

Suggested Citation

  • Agata Malak-Rawlikowska & Dominika Milczarek-Andrzejewska & Jan Fałkowski, 2019. "Farmers’ Bargaining Power and Input Prices: What Can We Learn from Self-Reported Assessments? 1," Social Sciences, MDPI, vol. 8(2), pages 1-13, February.
    • Handle: RePEc:gam:jscscx:v:8:y:2019:i:2:p:63-:d:207057
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-0760/8/2/63/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-0760/8/2/63/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Johannes Sauer & Matthew Gorton & John White, 2012. "Marketing, cooperatives and price heterogeneity: evidence from the CIS dairy sector," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 165-177, March.
    2. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    3. Peter Österberg & Jerker Nilsson, 2009. "Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 181-197.
    4. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September.
    5. Trebbin, Anika, 2014. "Linking small farmers to modern retail through producer organizations – Experiences with producer companies in India," Food Policy, Elsevier, vol. 45(C), pages 35-44.
    6. Marette, Stéphan & Roe, Brian E. & Teisl, Mario, 2012. "The welfare impact of food pathogen vaccines," Food Policy, Elsevier, vol. 37(1), pages 86-93.
    7. Malak-Rawlikowska, Agata & Milczarek-Andrzejewska, Dominika & Fałkowski, Jan, 2017. "Quantitative assessment of impact of the farmers' self-reported bargaining power on price relations with input suppliers," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261425, European Association of Agricultural Economists.
    8. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    9. James H. Tiessen & Thomas F. Funk, 1993. "Farmer bargaining when purchasing machinery and fertilizer: A study in commercial negotiation," Agribusiness, John Wiley & Sons, Ltd., vol. 9(2), pages 129-142.
    10. Dries, Liesbeth & Germenji, Etleva & Noev, Nivelin & Swinnen, Johan F.M., 2009. "Farmers, Vertical Coordination, and the Restructuring of Dairy Supply Chains in Central and Eastern Europe," World Development, Elsevier, vol. 37(11), pages 1742-1758, November.
    11. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    12. Alessandro Bonanno & Carlo Russo & Luisa Menapace, 2018. "Market power and bargaining in agrifood markets: A review of emerging topics and tools," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 6-23, December.
    13. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
    14. Jayson L. Lusk & Ted C. Schroeder & Glynn T. Tonsor, 2014. "Editor's choice Distinguishing beliefs from preferences in food choice," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(4), pages 627-655.
    15. Francesconi, Gian Nicola & Heerink, Nico & D'Haese, Marijke, 2010. "Evolution and challenges of dairy supply chains: Evidence from supermarkets, industries and consumers in Ethiopia," Food Policy, Elsevier, vol. 35(1), pages 60-68, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giuseppe Di Vita & Daniela Spina & Rachele De Cianni & Roberto Carbone & Mario D’Amico & Raffaele Zanchini, 2023. "Enhancing the extended value chain of the aromatic plant sector in Italy: a multiple correspondence analysis based on stakeholders’ opinions," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-24, December.
    2. Agata Malak-Rawlikowska & Monika Gębska & Robert Hoste & Christine Leeb & Claudio Montanari & Michael Wallace & Kees de Roest, 2021. "Developing a Methodology for Aggregated Assessment of the Economic Sustainability of Pig Farms," Energies, MDPI, vol. 14(6), pages 1-25, March.
    3. Lushi Isuf & Çera Gentjan & Murrja Arif & Ujkani Sead, 2023. "Linking Farmers’ Bargaining Power in Trade to their Plans for Future Economic Activities," South East European Journal of Economics and Business, Sciendo, vol. 18(2), pages 173-185, December.
    4. Srinivasa, Aditya Korekallu & Praveen, K.V. & Subash, S.P. & Nithyashree, ML & Jha, Girish Kumar, 2021. "Does a Farmer’s Knowledge of Minimum Support Price (MSP) Affect the Farm-Gate Price? Evidence from India," 2021 Conference, August 17-31, 2021, Virtual 315205, International Association of Agricultural Economists.

    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. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2019. "Technology Adoption and Value Chains in Developing Countries: Panel Evidence from Dairy in Punjab," LICOS Discussion Papers 41019, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2020. "Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 433-479, September.
    3. Swinnen, Johan & Kuijpers, Rob, 2019. "Value chain innovations for technology transfer in developing and emerging economies: Conceptual issues, typology, and policy implications," Food Policy, Elsevier, vol. 83(C), pages 298-309.
    4. Janssen, Emma & Swinnen, Johan, 2019. "Technology adoption and value chains in developing countries: Evidence from dairy in India," Food Policy, Elsevier, vol. 83(C), pages 327-336.
    5. Bjorn Van Campenhout & Bart Minten & Johan F. M. Swinnen, 2021. "Leading the way – foreign direct investment and dairy value chain upgrading in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 607-631, July.
    6. Rob Kuijpers, 2019. "Value Chain Development as Public Policy: Conceptualization and Evidence from the Agri-Food Sector in Bangladesh," LICOS Discussion Papers 41419, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    7. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    8. Swinnen Johan & Vandeplas Anneleen, 2012. "Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-30, January.
    9. Johannes Sauer & Matthew Gorton & John White, 2012. "Marketing, cooperatives and price heterogeneity: evidence from the CIS dairy sector," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 165-177, March.
    10. Fuentes Navarro, E. & Faure, G. & Cortijo, E. & De Nys, E. & Bogue, J. & Gómez, C. & Mercado, W. & Gamboa, C. & Le Gal, P.-Y., 2015. "The impacts of differentiated markets on the relationship between dairy processors and smallholder farmers in the Peruvian Andes," Agricultural Systems, Elsevier, vol. 132(C), pages 145-156.
    11. Dries, Liesbeth & Swinnen, Johan F.M., 2010. "The impact of interfirm relationships on investment: Evidence from the Polish dairy sector," Food Policy, Elsevier, vol. 35(2), pages 121-129, April.
    12. Bart Minten & Anneleen Vandeplas & Johan Swinnen, 2011. "Regulations, Brokers, and Interlinkages: The Institutional Organization of Wholesale Markets in India," Journal of Development Studies, Taylor & Francis Journals, vol. 48(7), pages 864-886, May.
    13. Federica Di Marcantonio & Pavel Ciaian & Vicente Castellanos, 2018. "Unfair trading practices in the dairy farm sector: Evidence from selected EU regions," JRC Research Reports JRC112770, Joint Research Centre.
    14. Johan Swinnen, 2016. "Value Chain Innovations for Technology Transfer in Developing and Emerging Economies: Concept, Typology and Policy Implications," Working Papers id:10694, eSocialSciences.
    15. Jin, Shaosheng & Guo, Haiyue & Delgado, Michael S. & Wang, H. Holly, 2017. "Benefit or damage? The productivity effects of FDI in the Chinese food industry," Food Policy, Elsevier, vol. 68(C), pages 1-9.
    16. Hao, Jinghui & Heerink, Nico & Heijman, Wim & Bijman, Jos, 2017. "Cooperatives Membership And Smallholder Farmers’ Welfare - Evidence From Shaanxi And Shandong Provinces, China," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260914, European Association of Agricultural Economists.
    17. Van den Broeck, Goedele & Swinnen, Johan & Maertens, Miet, 2017. "Global value chains, large-scale farming, and poverty: Long-term effects in Senegal," Food Policy, Elsevier, vol. 66(C), pages 97-107.
    18. Lin, Benxi & Du, Ruiying & Dong, Zekuan & Jin, Shaosheng & Liu, Weipin, 2020. "The impact of foreign direct investment on the productivity of the Chinese forest products industry," Forest Policy and Economics, Elsevier, vol. 111(C).
    19. Shanoyan, Aleksan & Brent Ross, R. & Gow, Hamish R. & Christopher Peterson, H., 2014. "Long-term sustainability of third-party facilitated market linkages: Evidence from the USDA marketing assistance program in the Armenian dairy industry," Food Policy, Elsevier, vol. 46(C), pages 157-164.
    20. Johan F. M. Swinnen & Miet Maertens, 2007. "Globalization, privatization, and vertical coordination in food value chains in developing and transition countries," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 89-102, December.

    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:jscscx:v:8:y:2019:i:2:p:63-:d:207057. 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.