Agricultural Value Chains in Developing Countries A Framework for Analysis

Developing country value chains, research framework, upgrading, Agribusiness, Agricultural and Food Policy, Agricultural Finance, International Development, Land Economics/Use, Political Economy, O13, Q13,

Innovation and Governance in International Food Supply Chains: The Cases of Ghanaian Pineapples and South African Grapes

This paper reports an exploratory case study on innovation in, and governance of, international supply chains originating in developing countries. Two African fruit export chains are analyzed: the table grape chain from South Africa (a highly developed chain) and the pineapple chain from Ghana (a newly emerging chain). The most important market for both chains is the EU. The two cases present complementary perspectives on international supply chain development. The paper shows that Western demands in these cases lead to innovation at the producer end of the international supply chain and changes in governance structures towards chain coordination and vertical integration.international supply chains, innovation, governance, developing countries., Agribusiness, International Development, International Relations/Trade, Production Economics, Productivity Analysis,

Matching Diverse (Quality of) Supply with Market Differentiation Opportunities in the Pork Chain

Currently, in most pork chains there is still a mismatch between delivered quality and expected quality, leading to unsatisfied customers and value losses because products are not sold against the best possible price. Differentiation of quality of pork starts already in the breeding stage, depends on feeding and living conditions of the animals at the farmer stage and is also influenced by the way the animals are transported and slaughtered. At the breeding stage a lot of research is being done that will eventually make it possible to use DNA technology to help guide breeding programs and to better predict the quality of animals and meat. However, because pigs are living creatures with a natural variation, 100% prediction accuracy is not to be expected and slaughterhouses still will have to cope with a large variation in quality characteristics, even within batches that come from the same farmer.This article focuses on what research challenges lay ahead related to the question how (natural) quality variation in the pork chain can better be used to bring the right quality at the right time at the right price to the right customer in the European pork net‐chain. It will thereby focus on the slaughterhouse link. (more....

The Joint Impact of Supply Chain Integration and Quality Management on the Performance of Pork Processing Firms in China

It is widely acknowledged that competition is no longer between individual firms, but between supply chains. A number of studies have indicated that supply chain integration and quality management have become essential to obtain competitive advantage. The present study tests the relationships among supply chain integration, quality management practices and firm performance in 229 Chinese pork slaughterhouses and processors using structural equation modeling. The most important results are that quality management is positively linked with firm performance. As managers put it "Quality is the life of the enterprise". Pork processing managers that wish to improve their performance are therefore advised to invest in quality management. Equally interesting is the indirect link of supply chain integration through quality management with firm performance. To improve quality of their products and reduce uncertainty in hog supply chains, companies are advised to develop more integrated relationships with their suppliers. However, in contrast to earlier studies, the direct link of supply chain integration and firm performance was not significant. This result may indicate that the Chinese pork processing industry is still in an early stage of SC integration.Supply chain management, quality management practices, pork supply chains, firm performance, China, Agribusiness, Livestock Production/Industries,

The role of Guanxi networks in vegetable supply chains: Empirical evidence from Jiangsu Province, P.R. China

This study at tempt s to empirically investigate the effect of guanxi networks on buyer - seller relationships and on firm performance in vegetable industry in P.R. China. We interviewed 167 vegetable producers and 84 companies to test our conceptual relationship mo del. Results demons t rate that guanxi networks significantly improve buyer - seller relationships regarding interpersonal trust and transaction specific investment s. Buyer - seller relationships show significant impacts on chain performance. Results imply that the effects of guanxi networks differ for producers and companies in the chains. Study also revealed that transaction related at tributes (risk, channel requirements and transaction conditions) also influence buyer - seller relationships and chain performance jointly with guanxi networks. Paper ends with several managerial implications regarding the use of guanxi networks in business practices.Guanxi Network, Buyer - Seller Relationship, Performance, Vegetable, China, Agribusiness,

INNOVATION THROUGH (INTERNATIONAL) FOOD SUPPLY CHAIN DEVELOPMENT: A RESEARCH AGENDA

This paper presents a research agenda on innovation through (international) food supply chains and networks in developing countries. It derives major topics from a multi-perspective view on international food chains (economic, technology, social/legal and environment) and from different theoretical streams dealing with chains and networks (Supply Chain Management, Industrial Organization theory and Network Theory). Three agri-supply chain projects in developing countries (Thailand, South-Africa, Ghana) are analyzed to identify focus areas in supply chain development projects and important gaps. These projects were collaborative actions between companies and research institutes to initiate international supply chain development.Industrial Organization,

Governance for quality management in smallholder-based tropical food chains

The paper provides a framework that focuses on the linkages between several key dimensions of supply chain organization and performance of perishable tropical food products. The focus is on the relationship between governance regime and quality management. However, two other but related variables are taken into account because they impact on the relationship between governance and quality management. These variables are channel choice and value added distribution in the supply chain. Governance regime is reflecting how to enhance coordination and trust amongst supply chain partners and how to reduce transaction costs. Quality management is dealing with how to manage food technology processes such that required quality levels can be improved and variability in quality of natural products can be exploited. Governance regimes in relation to quality management practices are discussed to the extent that supply chain partners are able, or are enabled, to invest in required quality improve¬ments. Reduction of transaction costs, creation of trust-based networks and proper trade-offs between direct and future gains may offer substantial contributions to effective quality management and enforcement. This framework has been applied to nine case studies on smallholder-based food supply chains originating from developing countries (Ruben et al., 2007). Three of these case studies are discussed in this paper to illustrate what challenges can be derived from the case studies. The selected case studies concern fish originating from Kenya, mango originating from Costa Rica and vegetables produced in China.Agribusiness, Agricultural and Food Policy,

Improving Food Safety within China’s Dairy Chain: Key Issues of Compliance with QA Standards

This study aims to gain insight in quality assurance (QA) activities along China’s dairy chain, to assess the potential of meeting more demanding domestic and foreign consumers. The study reviewed QA literature and QA standards (HACCP, GlobalGAP, and BRC) to formulate indicators for QA. Based on this framework 31 indicators have been operationalized for a questionnaire. Altogether 33 respondents have filled out the questionnaire, and six in-depth expert-interviews elaborated on the challenges, their causes, and the suited strategies. Following the analysis the study arrived at 12 key challenges, and strategies to cope with them. The findings can be used as a guide for reorganizing current food safety programs, to improve food safety and quality of China’s dairy chain to comply with QA standards

Sustainable Contracts in the Bottled Tawilis Value Chain in Taal, Batangas, Philippines

This research was conceptualized to investigate the potential impact of contracts on the sustainability of the bottled tawilis supply chain, i.e. sustainability in terms of environmental protection, well-being of the people whose livelihood depends on tawilis production, processing and marketing; and enhanced economic gains from the chain. A survey amongst fishermen, middlemen and processors was performed in the lake Taal area. The study concludes that formal contracts, with specific demands to gear used and the handling of fish, may stimulate the catch of minimum and uniform sized fish. Such contracts may also stimulate delivery of higher quality fish by fishermen. These contracts thereby enhance sustainable fishing and increase in fishermen’s income. Direct (win-win) contracts between processors and fishermen seem to be the best way to stimulate delivery of sustainably catched fish. Government should strongly increase enforcement of sustainable fishing practices and stimulate contracting for sustainable fishing in this chain

Business Process Modelling in Demand‐Driven Agri‐Food Supply Chains

Agri ‐food companies increasingly participate in demand‐driven supply chains that are able to adapt flexibly to changes in the marketplace. The objective of this presentation is to discuss a process modelling framework, which enhances the interoperability and agility of information systems as required in such dynamic supply chains. The designed framework consists of two parts: an object system definition and a modelling toolbox. The object system definition provides a conceptual definition of business process in demand‐driven supply chains from a systems perspective. It includes an application of the Viable Systems Model of Stafford Beer to supply chains, and classifications of business processes, control systems and coordination mechanisms. The modelling toolbox builds on the terminology and process definitions of SCOR and identifies three types of process models: i) Product Flow Models: visualize the allocation of basic transformations to supply chain actors and the related product flows from input material into end products (including different traceability units based on the GS1 Global Traceability Standard); ii) Thread Diagrams: visualize how order driven and forecast driven processes are decoupled in specific supply chain configurations (positions Customer Order Decoupling Points), and how interdependences between processes are coordinated; iii) Business Process Diagrams: depict the sequence and interaction of control and coordination activities (as identified in Thread Diagrams) in BPMN notation. The framework is applied to several agrifood sectors, in particular potted plants and fruit supply chains. The main benefits are: i) It helps to map supply chain processes, including its control and coordination, in a timely, punctual and coherent way; ii) It supports a seamless translation of high level supply chain designs to detailed information engineering models; iii) It enables rapid instantiation of various supply chain configurations (instead of dictating a single blueprint); iv) It combines sector specific knowledge with reuse of knowledge provided by generic cross industry standards (SCOR, GS1)