Integrating Long-Term and Short-Term Contracting in Beef Supply Chains

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Technical Appendix to "Integrating Long-term and Short-term Contracting in Beef Supply Chains"

Article DOI: https://doi.org/10.1287/mnsc.1110.1362</p

Can supply chain's coordination mechanisms include small holders? Insight from an empirical work in Costa Rica.

Small holders' agriculture is currently facing new stakes due to State's withdrawal from agricultural support and to higher market requests for producing agricultural products. Different coordination mechanisms can be observed inside the supply chains involving farmers, farmers' organizations, and others stakeholders. They depend on the nature of the product, the characteristics of the stakeholders involved, the technical specifications related to the transactions, and the institutional environment. Relying on a comparative case study methodology, the paper analyzes the consequences of different coordination mechanisms on inclusion or exclusion of small farmers in the northern region of Costa Rica. Market coordination could be an efficient way to integrate farmers in supply chains in the case of low technical specifications and of existence of adequate selling mechanisms. Hybrid coordination is the main mechanism and facilitates the inclusion of small farmers, depending on the farmers' organizations capacities to negotiate adequate rules. In some situations hybrid coordination with captive relationships could occur but leads to a more or less rapid exclusion process.supply chain, small holders, farmers, contracting, coordination, Costa Rica, Agribusiness,

Exclusivity of Agrifood Supply Chains: Seven Fundamental Economic Characteristics

The IFAMR is published by the International Food and Agribusiness Management Association. IFAMA. www.ifama.orgagrifood supply chains, exclusive economic characteristics, risk, market power, globalization, Agribusiness, Demand and Price Analysis, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, Q130,

SUPPLY CHAIN COMPETENCY: RECIPE FOR CEREAL AND LIVESTOCK MARKETING IN ALBERTA?

This study examines the nature of Supply Chain Management (SCM) in the Canadian barley industry, economic theories related to SCM, identifies SCM drivers and reviews the Canadian barley marketing system. Two surveys were conducted; one on the feed barley segment of the market; another on the malt barley segment of the market. These surveys provide an outline of the attributes sought by buyers of feed barley in Alberta and by buyers of malt barley in Canada and the United States. A further goal of these surveys was to assess the extent of motivations for SCM in the barley supply chain. Study methods include scaling, factor analysis and stated preference techniques to analyze purchasers' preferences for specific product attributes, business relationships and product source. The major attributes of feed barley sought by Alberta feed manufacturers appear to be physical characteristics such as moisture level, absence of foreign material, high bushel weight and uniform appearance of kernels. Features identified as of moderate importance included levels of certain key amino acids, starch level in the barley sample, as well as such seller characteristics as whether the seller was personally known to the buyer, and willingness of the seller to enter into a long-term supply contract. At the level of the Alberta feed mill industry, results therefore indicate that physical, readily identifiable attributes dominate in the selection of feed barley. As a result, the study identified that SCM is not yet a part of the awareness of barley buyers at feed mills. Among buyers of malt barley, physical or easily assessed attributes such as size of kernel, germination percentage, variety and location where produced ranked highly in a factor analysis as important to malt barley buyers. While results from the sample of Canadian and US buyers did not indicate strong potential for SCM in the malt barley sector, the study found there to be differences in attributes desired by US versus Canadian malt purchasers. Main differences were the concern of US buyers with the region where the barley was grown, and the apparently much higher willingness of US buyers to obtain their malt barley from more than one source. These differences may suggest a potential for SCM in malt barley focused on procuring supplies from regions identified as preferred locations for barley used in malt production.Industrial Organization,

Sugar Supply Chains and Regional Development

The coastal Queensland regions are heavily dependent upon the sugar industry and are likely to remain so. The interplay between sugar industry and regional development is little understood beyond the historical record. Yet current reform proposals place great store on regional initiatives to rejuvenate both sugar and its host communities. Such proposals are at best naïve as will be seen in this paper. A key feature of sugar and like industries is a high degree of supply chain interdependence which is embedded in place and time. Reflecting this, sugar regions have a more diverse skills mix and a more advanced manufacturing and services capability than many other agriculturally-oriented regions, notably broadacre grain and beef. Central to the emergence of such a regional industrial structure are inter-industry transactions. These will be considered in both an input-output framework and from a transactions cost basis. Associated insights point to the inadequacy and likely failure of initiatives based on current “efficiency/productivity‿ thinking. Alternative ways to view the industry are discussed along with a recommendation that those involved with sugar regionally revisit current plans

Analysis of the Meat Processing Industry in the United States

Livestock Production/Industries,

Inter-firm Relationships and Performance Factors in the Australian Beef Supply Chain: Implications for the Stakeholders

Recent study by Meat & Livestock Australia revealed that cost competitiveness and market development issues in supply chain are the major factors for a long term decline of the Australian Beef industry. This study, based on the explanation of transaction cost theory argues that competitive performance of an industry depends on improving cost efficiency across the whole of supply chain, the underlying value chain, and the relationship among the stakeholders in the industry. With a main objective to investigate the underlying factors of developing competent inter-firm relationship that influence the supply chain performance and competitiveness, this study presents details of a survey carried out and tests the hypothesis that inter-organizational relationships in supply chain and its antecedents have impact on the performance of Australian beef industry and thus have impact on the competitiveness of the industry. Data were collected through a telephone survey of 315 firms in the beef industry from the states of Western Australia and Queensland. The sample respondents were categorized as input suppliers, beef-cattle producers, processors, retailers/exporters, and wholesalers. The data were analysed using the partial least square based structural equation modelling. PLS analysis reveals that ‘Transaction Climate’ is the strongest determinants of developing a competent relationship, while negotiation power, presence of industry competitors, and the degree of vertical coordination significantly influence the relationship strength. Findings also demonstrate that relationship strength is the most prevalent source of performance and competitiveness, while SC performance highly positively influences the Competitiveness of beef industry. Thus this study identifies significant antecedents and consequences of Supply Chain Performance in Australian beef industry, which are strategic and extremely important information for beef producers, processors, retailers, and other stakeholders for appropriate planning and benchmarking.Beef Supply Chain, Agribusiness Management, Supply Chain Management, Agribusiness,

Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products

Recent changes in structure of the U.S. pork industry reflect, in many ways, past changes in the broiler industry. Production contracts and vertical integration in the broiler industry facilitated rapid adoption of new technology, improved quality control, assured market outlets for broilers, and provided a steady flow of broilers for processing. Affordable, high-quality chicken products have contributed to continual increases in U.S. chicken consumption, which has surpassed pork and beef on a per capita basis. Incentives for contracting and vertical integration in the pork industry may yield comparable results. If so, these arrangements might be expected to result in larger supplies of higher quality pork products at economical prices.vertical coordination, vertical integration, contracts, transaction costs, technology, chicken, pork, Livestock Production/Industries,

Supply chain performance of the Australian beef industry: Comparing the industry structure, Inter-firm relationships and knowledge systems of Western Australia and Queensland

The meat and livestock industry in Australia accounts for more than 45 per cent of Australia’s total value of agricultural production, within which beef is the largest industry in value terms (Nossal, Sheng and Zhao 2008). But the industry is experiencing a long-term decline in terms of trade, and has lagged behind other industries in rates of productivity improvement (MLA 2008). As it is critical for the economy that the beef industry maintains profitability and sustainability, it is believed that the performance, competitiveness and success of the industry depends on improving cost efficiency and productivity of the whole supply chain in the industry. The main objective of this study was to investigate how the synergies of developing and utilizing ‘supply chain knowledge’, use of ‘inter-organizational systems (IOS)’, and competent ‘inter-firm relationship’ influence ‘supply chain performance’ and ‘competitiveness’ of the Australian Beef industry.https://researchlibrary.agric.wa.gov.au/books/1007/thumbnail.jp