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Food Value Chain Coordination in Practice: European and Australian case studies of the creation of chain good innovations

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  • Griffith, G.
  • Fleming, E.
  • Mounter, S.
  • Hartmann, M.
  • Simons, J.

Abstract

Food value chain businesses form alliances with horizontal and/or vertical partners to take collective action to either overcome or ameliorate chain failure, or to take advantage of new opportunities available due to innovations in products or processes. The desired outcomes from the collective action would not be possible to achieve if these businesses acted independently. While such alliances may take many forms, depending on degree of commitment and infrastructure linkages, they can often be considered to be clubs. Four mini-case studies are presented which demonstrate the breadth of past collective actions that have been undertaken by a substantial proportion of businesses in food value chains, two in Europe and two in Australia. These are (1) the Euro Pool System, (2) Global Standards certification in Europe and globally, (3) Meat Standards Australia, and (4) the East Gippsland Food Cluster in Australia. Each case study yields insights into the rationale of how businesses in different food value chains in different countries have acted as a club to use their joint resources to internalise positive innovation and coordination externalities that would not have been possible to achieve were these businesses to act independently. Acknowledgement : This study was made possible by a travel grant funded by Universities Australia and the German Academic Exchange Service (DAAD) through the Australia-Germany Joint Research Cooperation Scheme

Suggested Citation

  • Griffith, G. & Fleming, E. & Mounter, S. & Hartmann, M. & Simons, J., 2018. "Food Value Chain Coordination in Practice: European and Australian case studies of the creation of chain good innovations," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277339, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277339
    DOI: 10.22004/ag.econ.277339
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    References listed on IDEAS

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    1. Todd Sandler & John Tschirhart, 1997. "Club theory: Thirty years later," Public Choice, Springer, vol. 93(3), pages 335-355, December.
    2. Griffith, Garry & Baker, Derek & Fleming, Euan & Mounter, Stuart & Malcolm, Bill & Umberger, Wendy, . "146 Chain Failure and Chain Goods: Re-thinking Value Chain Upgrading and Promotion in Developing Countries," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(2).
    3. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
    4. David Pannell & Anna Roberts, 2015. "Public goods and externalities: Agri-environmental Policy Measures in Australia," OECD Food, Agriculture and Fisheries Papers 80, OECD Publishing.
    5. Malcolm, Bill & Griffith, Garry & Mounter, Stuart & Fleming, Euan, 2017. "Chain Failure Theory as a Framework for Evaluating Horizontal and Vertical Strategic Alliances among Food Value Chain Participants: A Red Meat Industry Perspective," AFBM Journal, Australasian Farm Business Management Network, vol. 14, December.
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