Globalization, Privatization, and Vertical Coordination in Food Value Chains in Developing and Transition Countries

Food and agricultural commodity value chains in developing and transition countries have undergone tremendous changes in the past decades. Companies and property rights have been privatized, markets liberalized, and economies integrated into global food systems. The liberalization and privatization initially caused the collapse of state controlled vertical integration. More recently, private vertical coordination systems have emerged and are growing rapidly as a response to consumer demand for food quality and safety on the one hand and the farms' production constraints caused by factor market imperfections. In this paper we (a) demonstrate the importance of these changes, (b) discuss the implications for efficiency and equity and (c) provide empirical evidence on the effects in several developing and transition countries.Industrial Organization,

Trade, Standards and Poverty. Evidence from Senegal

The debate on trade and poverty is reinforced by recent studies on the role of standards. It is argued that increasing standards act as trade barriers for developing countries and cause further marginalization of the poor. This paper is the first to quantify income and poverty effects of such high-standards trade and to integrate labor market effects, by using company and household survey data from the vegetable export chain in Senegal. We find that exports have grown sharply despite increasing standards, resulting in important income gains and poverty reduction. Our estimates indicate that poverty is 14 % points lower due to vegetable exports. Tightening food standards induced a shift from smallholder contract-based farming to large-scale integrated estate production, altering the mechanism through which poor households benefit: through labor markets instead of product markets. The impact on poverty reduction is stronger as the poorest benefit relatively more from working on large-scale farms than from contract farming.trade, poverty, standards, vertical coordination, contract farming, Food Security and Poverty, International Relations/Trade, F14, F16, I3, Q12, Q13, Q17,

Standards as Barriers and Catalysts for Trade and Poverty Reduction

The importance of food standards in global agricultural trade has increased strongly, but the effects are uncertain. Several studies argue that these standards imposed by high-income countries diminish the export opportunities for developing countries and concentrate the benefits of trade with processing and retailing companies and large farms, thereby casting doubt on the development impact of international agricultural trade. Other argue that the standards can be catalysts for growth. In this paper we critically review the arguments and empirical evidence on the link between increasing food standards, developing country exports and welfare in those countries. We conclude that the evidence is often weaker as claimed. We also provide new insights from two recent survey-based empirical studies. We conclude that standards can be a catalyst for trade, growth and poverty reduction in developing countries.Food Security and Poverty, International Relations/Trade,

Agricultural trade and development: A value chain perspective

The system of global agricultural and food trade is undergoing rapid processes of change, with important implications for economic development. In this paper we document and discuss these changes; including the rapid growth and structural change in agri-food trade, the increased consolidation in food supply chains, the proliferation of public and private food standards, high and volatile food prices, and increased vertical coordination in the chains. We investigate what the implications are of these changes for developing countries, for their participation in international agricultural trade as well as for economic development, income mobility and poverty reduction in rural areas

From Public to Private Governance in the Food Supply Chains of Emerging Economies

Food and agricultural commodity value chains in developing and transition countries have undergone tremendous changes in the past decades. Companies and property rights have been privatized, markets liberalized, and economies integrated into global food systems. The liberalization and privatization initially caused the collapse of state-controlled vertical integration. More recently, private vertical coordination systems have emerged and are growing rapidly as a response to consumer demand for food quality and safety on the one hand and the farms' production constraints caused by factor market imperfections. In this paper we (a) demonstrate the importance of these changes, (b) discuss the implications for efficiency and equity and (c) provide empirical evidence on the effects in several developing and transition countries.Agricultural and Food Policy, Industrial Organization,

Governance and Surplus Distribution in Commodity Value Chains in Africa

The governance of food markets is a crucial element for efficiency and distributional effects. In this paper, we use a conceptual model to show that this governance itself is endogenous in an environment of weak contract enforcement and imperfect markets, and importantly depends on the value in the chain. We relate the predictions of the theory to empirical evidence on differences in supply chain governance in Africa across different commodity types. In doing so we offer an explanation as why private sector governance systems with interlinked market transactions have emerged for higher value crops but not for staple food crops. We discuss the efficiency and equity effects and the implications for policy.Agribusiness,

Liberalization with Endogenous Institutions: A Comparative Analysis of Agricultural Reform in Africa, Asia, and Europe

Thirty years ago, a vast share of the poor and middle income countries were heavily state-controlled. The effects of the liberalizations in the 1980s and 1990s differed strongly between regions in Africa, Asia and Europe. This paper first documents these differences in refirm effects in a comparative framework and then develops a model to firmally analyze how liberalization affects production and income distribution when institutions that govern production and exchange are also affected. We derive hypotheses on how the endogenous institutional adjustments affect the supply response to the liberalizations. We use these insights to forward a series of explanations on the differences in perfirmance across countries following liberalization

Gender and Modern Supply Chains in Developing Countries

The rapid spread of modern supply chains in developing countries is profoundly changing the way food is produced and traded. In this paper we examine the gender implications in modern supply chains. We conceptualize the various mechanisms through which women are directly affected, we review existing empirical evidence and add new survey-based evidence. Empirical findings from our own survey suggest that modern supply chains may be associated with reduced gender inequalities in rural areas. We find that women benefit more and more directly from large-scale estate production and agro-industrial processing, and the creation of employment in these modern agro-industries than from smallholder contract-firming

Treatment and timing in invasive mould disease

Invasive mould disease is a growing threat for immunocompromised patients. The optimum time to use mould-active antifungal agents is much debated. Current approaches to antifungal prophylaxis, early treatment (empirical and pre-emptive therapy) and treatment of documented mould infections in onco-haematology patients are discusse

Application of the 2008 Definitions for Invasive Fungal Diseases to the Trial Comparing Voriconazole Versus Amphotericin B for Therapy of Invasive Aspergillosis: A Collaborative Study of the Mycoses Study Group (MSG 05) and the European Organization for Research and Treatment of Cancer Infectious Diseases Group

Episodes of invasive aspergillosis (IA) recruited to the voriconazole trial were reclassified according to the revised EORTC/MSG definitions. The efficacy of voriconazole was confirmed for possible, probable, and proven IA and was still better than found for the comparator ar