Vertical coordination in the Chinese agri-food system : a transaction cost approach / Naiquan Sang.

"May 2003"Bibliography: leaves 161-180.x, 180 leaves : ill., map ; 30 cm.This study analyses driving forces, determinants and implications of emerging contractual arrangements in the Chinese agri-food system based on the transaction cost approach.Thesis (Ph.D.)--University of Adelaide, School of Economics, 200

Producers, Processors, and Procurement Decisions: The Case of Vegetable Supply Chains in China

Summary This study examines how different supply chain characteristics impose different coordination costs on vegetable processors. The results provide a basis for understanding the relative importance of four alternative supply chain characteristics to vegetable processors: (1) the size of the producers' production base; (2) the distance between the producer and the processing plant; (3) the level of detail specified in the contract between processors and grower; and (4) whether the producer has food safety certification. Vegetable processors from Laiyang County, Shandong province, China's largest horticultural production and export region, provide the data underlying the following analysis. Conjoint analysis suggests that the vegetable processors consider the size of the production units as the most important supply chain characteristic influencing their choice of producers, followed by distance to producer, type of contract and food safety certification.supply chains vegetable markets supermarkets China