The Structure of Agricultural Trade Industry in Developing Countries
Expansion of global trade has been heralded as a great boon for agriculture. However, benefits of such expansion has been seen by some quarters as inequitable due to the role of large agribusiness firms and conglomerates. This study synthesizes existing research on the market structure of agro-industry trade Its key findings are as follows : â€¢ The dominance of large-scale operations is more pronounced in the downstream stages. Moreover, distribution for foreign markets is the most concentrated part of the global chain. â€¢ Increasing horizontal concentration, and vertical coordination, arises from a set of supply drivers (e.g. technological change), demand drivers (e.g. rising purchasing power), policies, and institutional factors. â€¢ There is some evidence for significant market power being exercised in among the more concentrated value chains. Furthermore indications that market concentration can also be leveraged to widen the exercise of market power via coordination along a supply chain. However the association is not absolute. â€¢ At the farm level the evidence is more solid : size of land asset or scale of production, by itself, does not seem to disqualify smallholders from supplying to consolidated value chains, as there are a enabling schemes such as supervised contract growing, cooperatives, farmer associations and the like. More critical however are human capital, farm management practices, and other assets such as equipment and irrigation facilities. Despite the great volume of relevant literature, the tentative nature of the findings stated above indicate wide scope for further research in this area. Better information and analysis could perhaps pave way towards design of policies towards more equitable and yet productive and efficient global value chains.
|Date of creation:||May 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.eaber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cook, Michael L. & Chaddad, Fabio R., 2000. "Agroindustrialization of the global agrifood economy: bridging development economics and agribusiness research," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
- Görg, Holger & Greenaway, David, 2003.
"Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?,"
IZA Discussion Papers
944, Institute for the Study of Labor (IZA).
- Holger Görg & David Greenaway, 2004. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Bank Research Observer, World Bank Group, vol. 19(2), pages 171-197.
- Roberto Alvarez & Ricardo Lopez, 2006.
"Is Exporting a Source of Productivity Spillovers?,"
Caepr Working Papers
2006-012, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- Roberto Alvarez & Ricardo A. López, 2008. "Is Exporting a Source of Productivity Spillovers?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(4), pages 723-749, December.
- Dyck, John H. & Nelson, Kenneth E., 2003. "Structure Of The Global Markets For Meat," Agricultural Information Bulletins 33701, United States Department of Agriculture, Economic Research Service.
- Watanabe, Michio & Jinji, Naoto & Kurihara, Mitsuyo, 2009. "Is the development of the agro-processing industry pro-poor?: The case of Thailand," Journal of Asian Economics, Elsevier, vol. 20(4), pages 443-455, September.
- Richard J. Sexton & Ian Sheldon & Steve McCorriston & Humei Wang, 2007. "Agricultural trade liberalization and economic development: the role of downstream market power," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 253-270, 03.
- Escobal, Javier A. & Cavero, Denice, 2012. "Transaction Costs, Institutional Arrangements and Inequality Outcomes: Potato Marketing by Small Producers in Rural Peru," World Development, Elsevier, vol. 40(2), pages 329-341.
- Bart Minten & Lalaina Randrianarison & Johan F.M. Swinnen, 2006.
"Global Retail Chains and Poor Farmers: Evidence from Madagascar,"
LICOS Discussion Papers
16406, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
- Karantininis, Kostas & Sauer, Johannes & Furtan, William Hartley, 2010. "Innovation and integration in the agri-food industry," Food Policy, Elsevier, vol. 35(2), pages 112-120, April.
- Ian Sheldon & Richard Sperling, 2003. "Estimating the Extent of Imperfect Competition in the Food Industry: What Have We Learned?," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 89-109.
- Brander, James A. & Spencer, Barbara J., 1985.
"Export subsidies and international market share rivalry,"
Journal of International Economics,
Elsevier, vol. 18(1-2), pages 83-100, February.
- James A. Brander & Barbara J. Spencer, 1984. "Export Subsidies and International Market Share Rivalry," NBER Working Papers 1464, National Bureau of Economic Research, Inc.
- Diaz-Bonilla, Eugenio & Reca, Lucio, 2000.
"Trade and agroindustrialization in developing countries: trends and policy impacts,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 23(3), September.
- Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics, Blackwell, vol. 23(3), pages 219-229, September.
- Cook, Michael L. & Chaddad, Fabio R., 2000. "Agroindustrialization of the global agrifood economy: bridging development economics and agribusiness research," Agricultural Economics, Blackwell, vol. 23(3), pages 207-218, September.
- Maman Setiawan & Grigorios Emvalomatis & Alfons Oude Lansink, 2012. "Industrial concentration and price-cost margin of the Indonesian food and beverages sector," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3805-3814, October.
- Jongwanich, Juthathip, 2009. "Impact of Food Safety Standards on Processed Food Exports from Developing Countries," ADB Economics Working Paper Series 154, Asian Development Bank.
- Margherita Scoppola, 2007. "Economies of scale and market structure in international grain trade," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 277-291, 09.
- Hamid R. Alavi & Aira Htenas & Ron Kopicki & Andrew W. Shepherd & Ramon Clarete, 2012. "Trusting Trade and the Private Sector for Food Security in Southeast Asia," World Bank Publications, The World Bank, number 2384, September.
- Markelova, Helen & Meinzen-Dick, Ruth & Hellin, Jon & Dohrn, Stephan, 2009. "Collective action for smallholder market access," Food Policy, Elsevier, vol. 34(1), pages 1-7, February.
- Fuglie, Keith O. & Heisey, Paul W. & King, John L. & Day-Rubenstein, Kelly A. & Schimmelpfennig, David E. & Wang, Sun Ling, 2011. "Research Investments and Market Structure in the Food Processing, Agricultural Input, and Biofuel Industries Worldwide," Economic Research Report 120324, United States Department of Agriculture, Economic Research Service.
- Morisset, Jacques, 1998. "Unfair Trade? The Increasing Gap between World and Domestic Prices in Commodity Markets during the Past 25 Years," World Bank Economic Review, World Bank Group, vol. 12(3), pages 503-26, September.
- Rashid, Shahidur & Cummings, Ralph Jr. & Gulati, Ashok, 2005. "Grain marketing parastatals in Asia," MTID discussion papers 80, International Food Policy Research Institute (IFPRI).
- Rashid, Shahidur & Gulati, Ashok & Cummings, Jr., Ralph, 2008. "Grain marketing parastatals in Asia: Why do they have to change now?," IFPRI book chapters, in: Rashid, Shahidur & Gulati, Ashok & Cummings, Jr., Ralph (ed.), From parastatals to private trade: Lessons from Asian agriculture, chapter 2, pages 10-47 International Food Policy Research Institute (IFPRI).
- Setiawan, Maman & Emvalomatis, Grigorios & Oude Lansink, Alfons, 2012. "The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry," Journal of Asian Economics, Elsevier, vol. 23(4), pages 466-475.
- Karp, Larry S & Perloff, Jeffrey M, 1989. "Dynamic Oligopoly in the Rice Export Market," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 462-70, August.
- Wilcox, Michael D. & Abbott, Philip C., 2004. "Market Power and Structural Adjustment: The Case of West African Cocoa Market Liberalization," 2004 Annual meeting, August 1-4, Denver, CO 20084, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
When requesting a correction, please mention this item's handle: RePEc:eab:tradew:23420. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.