Market Access for Local Food through the Conventional Food Supply Chain

The paper examines relationships and linkages between the conventional supply chain actors (wholesalers and retailers) and local food producers based on a study conducted in Southeast Michigan. A case study approach was employed to examine chain actors’ operations and to explore their roles, experiences and perceptions about local foods. Semi-structured interviews were conducted with the owners and managers of eleven retailers and six wholesalers. The study found differences in local food perceptions, buying experiences and perceived benefits and risks associated with local food sourcing activities. The study also identified some competition between local independent food retailers and alternative market outlets. The major implication of the findings is that producers need to provide additional market services and develop trust-based relationships with their buyers to create better market access for local foods.local food, supply chain, buying local, Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis, Financial Economics,

Building producer loyalty in Malaysia's fresh milk supply chain

The paper presents results from a survey of 133 dairy producers in Malaysia, and identifies how Malaysian milk buyers can build a loyal customer base with their suppliers as a means to secure uninterrupted milk supplies. A structural equation model was conducted to test the conceptual model using AMOS 17.0 software. The results show that whereas timely and collaborative communication, price satisfaction and cultural fit influence positively suppliers’ contractual and competence trust in their buyers, power dependency negatively influences competence trust. Furthermore, suppliers’ trust in their buyers will eventually lead to loyalty. The principal implication is that milk processors and other buyers need to engage in collaborative communication with the dairy farmers to ensure continuous and uninterrupted supply.dairy, Malaysia, customer base, competence trust, suppliers trust, collaborative communication, Agribusiness, Agricultural and Food Policy, Farm Management, Industrial Organization, Institutional and Behavioral Economics, Marketing, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Teaching/Communication/Extension/Profession,

PRODUCER SEGMENTATION AND THE ROLE OF LONG-TERM RELATIONSHIP IN MALAYSIA’S MILK SUPPLY CHAINS

Research on buyer-seller relationships in the agricultural sector receives little attention. A growing body of evidence suggests that strong buyer-seller relationships facilitate more efficient supply chains. The long term relationship literature tends to treat suppliers as a homogenous group when attempting to identify motivations, strategies and incentives to enhance the quality of buyer-seller relationships. This article explores the role of long-term relationships between buyers and sellers in Malaysia’s dairy industry, taking into consideration the heterogeneous nature of the producers. Interviews with 133 producers provide the data for this study. Cluster analysis suggests two well-defined groups differing in terms of demographic characteristics and relationship perceptions toward their buyers. Based on the results, the study proposes some policy implication and marketing strategies for both milk buyers and government.buyer-seller relationship, price satisfaction dimensions, cluster analysis, dairy industry, Malaysia, Marketing,

A Community\u27s Collective Courage: A Local Food Cooperative\u27s Impact on Food Insecurity, Community and Economic Development, and Local Food Systems

According to the USDA’s “Food Security Status of U.S. Households” in 2014, 48.1 million people live in food insecure households. In Indiana, more than 1 million people suffer from food insecurity with rates as high as 19.2% of Marion County’s population according to the Map the Meal Gap 2014 report. The Community Controlled Food Initiative (CCFI) is a local food cooperative operated by the Kheprw Institute and neighborhood residents in the Mid-North Indianapolis Community. The cooperative formed to address food insecurity in August 2015 in response to the closing on the local Double 8 Foods grocery stores. CCFI hosts a monthly food share distribution where residents buy into the program and receive a share of locally sourced fruits and vegetables. The cooperative model is a long tradition of people coming together to address a need in their community or society through a communal business structure. The community lived with food insecurity long before the closing of the grocery stores and decided to take action. This research is a case study using participatory observation testing CCFI’s cooperative model to Jessica Nemhard’s research in Collective Courage: An African American Cooperative History and through the three pillars of impact: addressing food insecurity, community and economic development, and climate change. CCFI’s work shows that food is not only a necessity for life, but also a catalyst for social change

Measuring Market Potential for Fresh Organic Fruit and Vegetable in Ghana

This paper examines the market potential for fresh organic lettuce and water melon with a recently collected data on consumers from Kumasi metropolis of Ghana. Using a doublebounded dichotomous choice contingent valuation technique, consumer’s willingness to pay is estimated with a Tobit model to address the zero willingness to pay responses in the sample data. As much as 71% of the consumers are willing to pay over 50% price premiums for organic vegetables and over 82% are willing to pay 1%–50% price premiums for organic fruits. The empirical results indicate that human capital, product attributes and consumer perception influence consumers’ willing to pay for organic food products. The estimated market potential for organic fruit is GH¢32,117,113 (US$26,453,433) per annum and that of organic vegetable is GH¢1,991,224 (US$1,640,083) per annum suggesting a huge market potential for organic fruits in Ghana.Willingness to Pay, Price Premium, Organic Products, Consumer Perception, Market Potential, Africa, Crop Production/Industries,

Determinants of Food Safety Level in Fruit and Vegetable Wholesalers’ Supply Chain: Evidence from Spain and France

Food safety management in short supply chains of fruit and vegetables, controlled by large retailers, has been widely studied in the literature. However, when it comes to traditional long supply chains, which include a greater number of intermediaries and wholesalers who, in some cases, play a dual role as resellers and producers, the mechanisms which promote the use of safety certifications have yet to be clearly defined. The present study intended to fill this gap in the literature and shed light on the food safety level that exists in this channel. In addition, this work attempted to identify the existence of differences between both sales systems. For this purpose, the empirical research studied the most important variables that influence the food safety level of some of the main European fruit and vegetable wholesalers. A survey was thus designed and later applied to Spanish and French intermediaries working in key wholesale markets and in the southeast of Spain, which is the leading commercialization area of these products in Europe. The results revealed the positive influence of specific customers (big retailers) on establishing stricter safety controls within wholesale companies. It was also observed that specific wholesalers also play an important role in the system, namely those dedicated to importing, but which are also responsible for quality and safety inspection of agri-food products exported from third countries into the European Union

Relationship quality as the predictor of long term relationship in the Malaysian dairy industry

Dairy market in Malaysia has been increasing due to high income and population growth in the region. In response to the increasing demand, milk processors need to obtain constant milk supplies from the dairy farmers. One way of doing this is when the buyers and the sellers build and maintain quality relationships in order to enhance long term sustainability of the milk supply. This paper examines the determinants of relationship quality and its role in enhancing long term relationship between the Malaysian milk processors and dairy farmers. The study revealed that where as mutuality and price satisfaction influence the perceived relationship quality of the farmers positively; dependency and price flexibility do not. Furthermore, the perceived relationship quality of the farmers has a positive influence on long term orientation of the relationship.Long term relationships, Relationship Quality, Dairy Industry, Malaysia

Response of Fresh Food Suppliers to Sustainable Supply Chain Management of Large European Retailers

This article analyses new supply chain management (SCM) strategies of the largest retail distribution chains in Europe within the context of differing sustainability concepts and approaches. An analysis is carried out of the strategic plans of such retailers, as well as recent developments in the sector. We begin by identifying the priority actions of retailers and then evaluating, by means of a survey, how small horticultural marketing firms (mainly cooperatives) in southeast Spain respond to the needs of these retailers. Subsequently, an analysis is carried out on these small marketing firm exporters to identify the relative weight which they assign to the variables assessed, while also considering the existing relationships between said weighted variables and business profits. Our results show that retailers tend to establish more simplified supply chains (that is, shorter and more vertical), essentially demonstrating their interpretation of a sustainable supply chain. In contrast, horticultural marketing firms have concentrated more on tactical and operational issues, thereby neglecting environmental, social and logistics management. Thus, their success rate in meeting the sustainability demands of their customers can be considered medium-low, requiring a more proactive attitude. Improved and collaborative relations, and the integration of sustainability concepts between suppliers (marketing firms) and their clients could contribute to successfully meeting sustainability demands. From the point of view of the consumer, close supplier–retail relationships have solved food safety issues, but the implementation of sustainability in other supply chain activities and processes is a pending issue. We propose strategic approximation and collaboration to bridge the gap between the varying sustainability demands in the supplier–retail relationship within perishable supply chains. Although this article specifically addresses fresh vegetable supply chains, the results may be extrapolated to other agri-food chains with a similar structure