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Globalization, Privatization, and Vertical Coordination in Food Value Chains in Developing and Transition Countries

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  • Swinnen, Johan F.M.
  • Maertens, Miet

Abstract

Food and agricultural commodity value chains in developing and transition countries have undergone tremendous changes in the past decades. Companies and property rights have been privatized, markets liberalized, and economies integrated into global food systems. The liberalization and privatization initially caused the collapse of state controlled vertical integration. More recently, private vertical coordination systems have emerged and are growing rapidly as a response to consumer demand for food quality and safety on the one hand and the farms' production constraints caused by factor market imperfections. In this paper we (a) demonstrate the importance of these changes, (b) discuss the implications for efficiency and equity and (c) provide empirical evidence on the effects in several developing and transition countries.

Suggested Citation

  • Swinnen, Johan F.M. & Maertens, Miet, 2006. "Globalization, Privatization, and Vertical Coordination in Food Value Chains in Developing and Transition Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25626, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25626
    DOI: 10.22004/ag.econ.25626
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    References listed on IDEAS

    as
    1. M. Ataman Aksoy & John C. Beghin, 2005. "Global Agricultural Trade and Developing Countries," World Bank Publications - Books, The World Bank Group, number 7464, December.
    2. Birthal, Pratap S. & Joshi, P. K. & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities," MTID discussion papers 85, International Food Policy Research Institute (IFPRI).
    3. Maertens, Miet, 2006. "Trade, Food Standards and Poverty: The Case of High-Value Vegetable Exports from Senegal," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25614, International Association of Agricultural Economists.
    4. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
    5. Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
    6. Gow, Hamish R. & Streeter, Deborah H. & Swinnen, Johan F. M., 2000. "How private contract enforcement mechanisms can succeed where public institutions fail: the case of Juhocukor a.s," Agricultural Economics, Blackwell, vol. 23(3), pages 253-265, September.
    7. Swinnen, Johan F.M. & Rozelle, Scott, 2006. "From Marx and Mao to the Market: The Economics and Politics of Agricultural Transition," OUP Catalogue, Oxford University Press, number 9780199288915, Decembrie.
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    10. 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.
    11. Swinnen, Johan F.M. & Vandeplas, Anneleen, 2007. "Contracting, Competition, and Rent Distribution Theory and Empirical Evidence from Developing and Transition Countries," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9413, European Association of Agricultural Economists.
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    14. Maertens, Miet, 2006. "High-value supply chains, food standards and poor farmers in developing countries: the case of vegetable exports from Senegal," 2006 Annual meeting, July 23-26, Long Beach, CA 21317, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. 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.
    16. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
    Full references (including those not matched with items on IDEAS)

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