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Farm supply and grain elevator businesses in a changing business environment: A mixed methods investigation of past and future strategies

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  • Spahn, Laurin
  • Höhler, Julia

Abstract

Structural change in agriculture and competitive pressure transform the business environment of farm supply and grain elevator businesses. Strategies are an important tool for gaining or maintaining competitive advantages in this situation. Possible strategies include increasing diversification or the realization of economies of scale through growth. However, the analysis of strategies poses challenges as they often develop over time and contain both deliberate and non-deliberate elements. In a mixed methods approach, we combine a media analysis with a manager survey (n=62) to investigate past and future strategies of agricultural traders in Germany. We show that cooperation, diversification and autonomous growth were among the most popular strategic actions in the past 10 years and, according to the surveyed managers, will be in the future. The majority expect to offer more digital and consulting services in the future. This study provides new insights into agricultural traders’ realized and intended strategies.

Suggested Citation

  • Spahn, Laurin & Höhler, Julia, 2021. "Farm supply and grain elevator businesses in a changing business environment: A mixed methods investigation of past and future strategies," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317047, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi21:317047
    DOI: 10.22004/ag.econ.317047
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    References listed on IDEAS

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    1. Gollisch, Simon & Hedderich, Barbara & Theuvsenb, Ludwig, 2018. "Strategic Preferences of Farm Supply and Grain Elevator Businesses: Empirical Evidence from Germany," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(01), January.
    2. Kenneth F. Harling & Thomas F. Funk, 1987. "Competitive Strategy for Farm Supply and Grain Elevator Business," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(5), pages 1047-1055.
    3. Batte, Marvin T. & Ernst, Stan, 2007. "Net Gains from 'Net Purchases? Farmers’ Preferences for Online and Local Input Purchases," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(1), pages 84-94, April.
    4. Fecke, Wilm & Danne, Michael & Mußhoff, Oliver, 2018. "E-commerce in agriculture: The case of crop protection product purchases in a discrete choice experiment," DARE Discussion Papers 1803, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    5. Claver-Cortés, Enrique & Pertusa-Ortega, Eva M. & Molina-Azorín, José F., 2012. "Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance," Journal of Business Research, Elsevier, vol. 65(7), pages 993-1002.
    6. Schulze, Birgit, 2012. "Herausforderungen Des Landhandels Unter Veränderten Marktbedingungen: Theoretische Überlegungen Und Empirische Evidenz," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 133053, German Association of Agricultural Economists (GEWISOLA).
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