Abstract
In the context of globalization, the success of a firm to sell its products on international and regional markets depends on the type of governance exercised in a given sector. This article mobilizes a theoretical framework of global value chain governance to analyze the type of governance exercised in the tea sector in Burundi. A qualitative analysis of data from a survey of 120 small tea farmers in the Ijenda and Teza areas reveals that control and coordination in the sector is ensured by captive governance. In addition, a stagnation of the price of the green leaf tea over a decade generates a lack of interest in the tea farming out on small farming areas. Only 25% of small tea farmers in Ijenda and 36% in Teza want an extension.
Highlights
Globalization and the expansion of international markets have offered producers a wide range of opportunities to market their products both domestically and internationally
Which type of governance is developed by actors of those countries in the chain to produce and market their products on international markets? To answer this question, this article mobilizes theoretical underpinnings of the global value chain (GVC) and illustrates the forms of GVC governance through a case study of the production and marketing of tea in Burundi
As Burundi produces a small quantity of dry tea, it is imperative that it sells high quality tea
Summary
Globalization and the expansion of international markets have offered producers a wide range of opportunities to market their products both domestically and internationally. The development and evolution of the means of communication and information technologies requires producers to produce and sell products under the quantity/quality duality (Gómez et al 2011), and producers in developing countries lack the technical capabilities and financial resources to comply with these new requirements (Beck et al, 2005; Beck and DemirgüçKunt, 2006; Nichter and Goldmark, 2009; Bloom et al, 2010; Dinh et al, 2010; Wang, 2016; Fowowe, 2017). Which type of governance is developed by actors of those countries in the chain to produce and market their products on international markets? To answer this question, this article mobilizes theoretical underpinnings of the global value chain (GVC) and illustrates the forms of GVC governance through a case study of the production and marketing of tea in Burundi
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