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Achieving Coordination in Agricultural Value Chains: The Role of Lead Agents and Multi-stakeholder Platforms

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  • Alain de Janvry

    (UC Berkeley - University of California [Berkeley] - UC - University of California, ARE - Department of Agricultural and Resource Economics [Berkeley] - UC Berkeley - University of California [Berkeley] - UC - University of California, FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Elisabeth Sadoulet

    (ARE - Department of Agricultural and Resource Economics [Berkeley] - UC Berkeley - University of California [Berkeley] - UC - University of California, UC Berkeley - University of California [Berkeley] - UC - University of California, FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Carly Trachtman

    (ARE - Department of Agricultural and Resource Economics [Berkeley] - UC Berkeley - University of California [Berkeley] - UC - University of California)

Abstract

Value chains (VC) have become increasingly prevalent instruments through which smallholder farmers link to markets and potentially overcome market failures and government deficiencies that constrain their competitiveness. With multiple agents involved in the VC, coordination is important to invest in club goods and complementary private investments, engage in resource providing contracts, acquire shared competencies, and achieve high quality standards. Coordination can be facilitated by development agents and enhanced by increased payoffs from coordination and increased beliefs in coordination behavior. Coordination can be achieved through lead agents in the VC, either top-down by large commercial firms or bottom-up by producer organizations. It can also be achieved by multi-stakeholder platforms, either self-sustaining or prodded by public agencies and NGOs. We show through case studies that these multiple paths to coordination are indeed feasible. Abstract Value chains (VC) have become increasingly prevalent instruments through which smallholder farmers link to markets and potentially overcome market failures and government deficiencies that constrain their competitiveness. With multiple agents involved in the VC, coordination is important to invest in club goods and complementary private investments, engage in resource providing contracts, acquire shared competencies, and achieve high quality standards. Coordination can be facilitated by development agents and enhanced by increased payoffs from coordination and increased beliefs in coordination behavior. Coordination can be achieved through lead agents in the VC, either top-down by large commercial firms or bottom-up by producer organizations. It can also be achieved by multi-stakeholder platforms, either self-sustaining or prodded by public agencies and NGOs. We show through case studies that these multiple paths to coordination are indeed feasible.

Suggested Citation

  • Alain de Janvry & Elisabeth Sadoulet & Carly Trachtman, 2019. "Achieving Coordination in Agricultural Value Chains: The Role of Lead Agents and Multi-stakeholder Platforms," Working Papers hal-02287771, HAL.
    • Handle: RePEc:hal:wpaper:hal-02287771
    Note: View the original document on HAL open archive server: https://hal.science/hal-02287771
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    1. Alain de Janvry & Elisabeth Sadoulet, 2019. "Transforming developing country agriculture: Removing adoption constraints and promoting inclusive value chain development," Working Papers hal-02287668, HAL.
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    Cited by:

    1. Wibowo, Wahyudi & Widyarini, Lydia Ari & Pradana, Dominicus Wahyu, 2021. "Exploring Sustainable Netchains of Smallholder Cocoa Farmers in Indonesia," Western Balkan Journal of Agricultural Economics and Rural Development (WBJAERD), Institute of Agricultural Economics, vol. 3(2), July.

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