IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/211357.html
   My bibliography  Save this paper

Agrifood sector transformation and its implications on development of small farmers in Kazakhstan

Author

Listed:
  • Bobojonov, Ihtiyor
  • Teuber, Ramona
  • Oshakbayev, Dauren
  • Glauben, Thomas

Abstract

We investigate the process of agrifood sector transformation in Kazakhstan. Based on regional panel data, the implications of this transformation process on small producers’ welfare are investigated. To the best of our knowledge this is the first study addressing this research topic for Central Asia. The results of the study show a significant impact of urbanization, information and marketing services on modernization of the retail and processing sectors. The analysis shows further that individual farms have benefited from the transformation process. However, the link between processors and household producers seems to be less developed due to high transaction costs associated with linking household producers to markets. Therefore, only a limited impact of agrifood sector development on household producers is found which is mainly explained by spillover effects from larger farms. Improving rural infrastructure seems to be one important aspect in order to increase the market access of small producers

Suggested Citation

  • Bobojonov, Ihtiyor & Teuber, Ramona & Oshakbayev, Dauren & Glauben, Thomas, 2015. "Agrifood sector transformation and its implications on development of small farmers in Kazakhstan," 2015 Conference, August 9-14, 2015, Milan, Italy 211357, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211357
    DOI: 10.22004/ag.econ.211357
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/211357/files/Bobojonov-Agrifood%20sector%20transformation%20and%20its%20implications-616.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.211357?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. William M. Liefert & Eugenia Serova & Olga Liefert, 2010. "The growing importance of the former USSR countries in world agricultural markets," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 65-71, November.
    2. Hope C. Michelson, 2013. "Small Farmers, NGOs, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 628-649.
    3. 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).
    4. Miet Maertens & Bart Minten & Johan Swinnen, 2012. "Modern Food Supply Chains and Development: Evidence from Horticulture Export Sectors in Sub-Saharan Africa," Development Policy Review, Overseas Development Institute, vol. 30(4), pages 473-497, July.
    5. Petrick, Martin & Wandel, Jürgen & Karsten, Katharina, 2013. "Rediscovering the Virgin Lands: Agricultural investment and rural livelihoods in a Eurasian frontier area," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 43, pages 164-179.
    6. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    7. Neven, David & Reardon, Thomas, 2005. "The Rise Of Kenyan Supermarkets And The Evolution Of Their Fresh Fruits And Vegetables Procurement Systems," Staff Paper Series 11502, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Yessengali Oskenbayev & Aziz Karimov, 2013. "Is Kazakhstan Vulnerable to Natural Resource Curse?," WIDER Working Paper Series wp-2013-130, World Institute for Development Economic Research (UNU-WIDER).
    9. Meng, Erika & Longmire, Jim & Moldashev, Altynbeck, 2000. "Kazakhstan's wheat system: priorities, constraints, and future prospects," Food Policy, Elsevier, vol. 25(6), pages 701-717, December.
    10. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    11. W. Bruce Traill, 2006. "The Rapid Rise of Supermarkets?," Development Policy Review, Overseas Development Institute, vol. 24(2), pages 163-174, March.
    12. Nodir Djanibekov & Kristof van Assche & Ihtiyor Bobojonov & John Lamers, 2012. "Farm Restructuring and Land Consolidation in Uzbekistan: New Farms with Old Barriers," Europe-Asia Studies, Taylor & Francis Journals, vol. 64(6), pages 1101-1126.
    13. David Neven & Thomas Reardon, 2004. "The Rise of Kenyan Supermarkets and the Evolution of their Horticulture Product Procurement Systems," Development Policy Review, Overseas Development Institute, vol. 22(6), pages 669-699, November.
    14. Thomas Reardon & Johan F. M. Swinnen, 2004. "Agrifood Sector Liberalisation and the Rise of Supermarkets in Former State-controlled Economies: A Comparative Overview," Development Policy Review, Overseas Development Institute, vol. 22, pages 515-523, September.
    15. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
    16. 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.
    17. Kristine Van Herck & Nivelin Noev & Johan F.M. Swinnen, 2012. "Institutions, exchange and firm growth: evidence from Bulgarian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(1), pages 29-50, February.
    18. Goletti, Francesco & Chabot, Philippe, 2000. "Food policy research for improving the reform of agricultural input and output markets in Central Asia," Food Policy, Elsevier, vol. 25(6), pages 661-679, December.
    19. 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.
    20. 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.
    21. Azeta Cungu & Hamish Gow & Johan F. M. Swinnen & Liesbet Vranken, 2008. "Investment with weak contract enforcement: evidence from Hungary during transition," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(1), pages 75-91, March.
    22. Dinghuan Hu & Thomas Reardon & Scott Rozelle & Peter Timmer & Honglin Wang, 2004. "The Emergence of Supermarkets with Chinese Characteristics: Challenges and Opportunities for China's Agricultural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 557-586, September.
    23. Gorton, Matthew & Dumitrashko, Mikhail & White, John, 2006. "Overcoming supply chain failure in the agri-food sector: A case study from Moldova," Food Policy, Elsevier, vol. 31(1), pages 90-103, February.
    24. Karimov, Aziz & Oskenbayev, Yessengali, 2013. "Is Kazakhstan Vulnerable to Natural Resource Curse?," WIDER Working Paper Series 130, World Institute for Development Economic Research (UNU-WIDER).
    25. Stephan J. Goetz, 1992. "A Selectivity Model of Household Food Marketing Behavior in Sub-Saharan Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 444-452.
    26. Bill Pritchard & C. P. Gracy & Michelle Godwin, 2010. "The Impacts of Supermarket Procurement on Farming Communities in India: Evidence from Rural Karnataka," Development Policy Review, Overseas Development Institute, vol. 28(4), pages 435-456, July.
    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. 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.
    2. Thomas Reardon & David Zilberman, 2022. "Symbiotic, Resilient, and Rapidly Transforming Food Supply Chains in LMICs: Supermarket and E-commerce Revolutions Helped by Wholesale and Logistics Co-pivoting," NBER Chapters, in: Risks in Agricultural Supply Chains, National Bureau of Economic Research, Inc.
    3. 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.
    4. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Andersson, Camilla I.M. & Kiria, Christine G. & Qaim, Matin & Rao, Elizaphan J.O., 2013. "Following up on smallholder farmers and supermarkets," GlobalFood Discussion Papers 158142, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    6. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    7. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    8. Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2012. "Food Standards and Welfare: General Equilibrium Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 223-244, June.
    9. 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.
    10. Nuthalapati, Chandra S.R. & Sutradhar, Rajib & Reardon, Thomas & Qaim, Matin, 2020. "Supermarket procurement and farmgate prices in India," World Development, Elsevier, vol. 134(C).
    11. Hildegunn E. Stokke, 2009. "Multinational supermarket chains in developing countries: does local agriculture benefit?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 645-656, November.
    12. 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.
    13. Stamoulis, Kostas G. & Pingali, Prabhu L. & Reardon, Thomas, 2006. "Impacts of Agrifood Market Transformation during Globalization on the Poor's Rural Nonfarm Employment: Lessons for Rural Business Development Programs," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25556, International Association of Agricultural Economists.
    14. Tschirley, David L. & Ayieko, Miltone W. & Hichaambwa, Munguzwe & Goeb, Joey & Loescher, Wayne, 2010. "Modernizing Africa’s Fresh Produce Supply Chains without Rapid Supermarket Takeover: Towards a Definition of Research and Investment Priorities," Food Security International Development Working Papers 93030, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Neda Trifković, 2014. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 949-961, July.
    16. Schwarz, Jana & Mathijs, Erik & Maertens, Miet, 2015. "Changing patterns of global agri-food trade and virtual water flows," Working Papers 200308, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    17. Seng, Kimty, 2016. "The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach," MPRA Paper 69669, University Library of Munich, Germany.
    18. Tschirley, David L. & Hichaambwa, Munguzwe, 2010. "The Structure and Behavior of Vegetable Markets Serving Lusaka: Main Report," Food Security Collaborative Working Papers 93006, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    19. Arouna, Aminou & Michler, Jeffrey D. & Lokossou, Jourdain C., 2021. "Contract farming and rural transformation: Evidence from a field experiment in Benin," Journal of Development Economics, Elsevier, vol. 151(C).
    20. 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.

    More about this item

    Keywords

    Agribusiness;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:iaae15:211357. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.