Agribusiness Supply Chain Research Articles

Digital welfare of the value cycle of agribusiness supply chain network: evidence from China's listed agriculture-affiliated companies

ABSTRACT Using the data of listed agriculture-affiliated companies with customer-supplier association information, we examine the diffusion effect of the digitalisation of listed agricultural companies on the digital transformation of agriculture-affiliated enterprises from the perspective of supply chain. We show that the supply chain diffusion effect of digitalisation mainly exists in ‘customer enterprises-suppliers enterprises’ and ‘leading enterprises-other enterprises’. And the digital transformation of agriculture-affiliated customer enterprises forces suppliers to respond to customer innovation demands, thereby improving the digitalisation level of suppliers, while leading agriculture-affiliated enterprises improve the digitisation level of other agriculture-affiliated enterprises in the supply chain network through knowledge flow. Additionally, the supply chain diffusion effect of digital transformation is stronger under the conditions of smaller ‘digital divide’, lower geographic distance, the downstream consumer end and more government support of agriculture-affiliated enterprises. We provide theoretical and practical implications for promoting the digitalisation of the entire agricultural chain and improving the scale effect of digitalisation.

Agribusiness Supply Chain Collaboration: Role of Innovation Capacity and Business Process Agility as Antecedents of Supply Chain Performance

This article examines the role of innovation capacity and business process agility (BPA) in the relationship between supply chain collaboration (SCC) and supply chain performance (SCP) of smallholder agro-based enterprises (SAEs). Based on the relational view and dynamic capability theories and the survey research design, the author used questionnaires to gather data from 226 SAEs who were sampled from agribusiness associations in four regions of Ghana via the quota sampling technique. Smart PLS-SEM 4.0 was used as the statistical method to analyze the data. The results showed that SCC has a significant and positive relationship with SCP, innovation capacity, and BPA. Innovation capacity significantly mediates the relationship between SCC and SCP. Furthermore, BPA fully mediates the relationship between SCC and innovation capacity, with innovation capacity also influencing SCP. This study integrates relational and capability-based views to propose a comprehensive theoretical model showing the inter-relational effect of SCC, BPA, and innovation capacity on SCP. The empirical findings widen the context of SCC literature to include SAEs from emerging economies in sub-Saharan Africa. The empirical findings enrich the understanding of how SAEs can manage their SCCs to develop and use specific capabilities that positively impact SCP. The uniqueness of this article rests in the proposed model and new empirical knowledge, which extends the scope of the relational and capability-based views and SCC literature to include innovation capacity, BPA, and SCP of SAEs in emerging markets.

Towards a unified theory of supply chain value creation and capture

The value provided to market by competing supply chains determines success. Thus, a comprehensive understanding of how supply chains create and distribute this value is paramount. The purpose of this research is to synthesis the value creation and value capture concepts in a supply chain context. A case study of an extended agribusiness supply chain is used to empirically explore how value is created and captured with a specific focus on the interplay of the two concepts. The results identify the core value creation drivers and enablers, and value appropriation mediators that determine the net value capture of a supply chain. Insights from the exploratory case study are synthesised into an overarching model. Identification of the symbiotic relationship of value creation and value capture advances our knowledge beyond current discrete conceptualizations. By drawing upon value theory and the empirical insights, the proposed unified theory provides novel implications for theoreticians and managerial decision makers.

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Purpose: The objective of this study was to analyze the role of different supply chain players in agri-business and their effect on farmers’ output, to arrive at a feasible model of supply network intended for optimizing the surplus in these agri-business supply chains. Theoretical framework: A lot of literature is already published on agricultural supply chains and distribution networks but the intention of this study is to understand and explore the economic impact on output. Design/methodology/approach: According to (Denyer and Tranfield, 2009), a systematic review is a procedure that identifies prior research, chooses and assesses contributions, analyses and synthesizes data, and presents the findings in a way that enables reasonably clear conclusions to be drawn about what is known and what is unknown. Accordingly, a five-step approach proposed by them is adopted for this research review, which is illustrated below. Findings: The review of existing literature helped in forming the following categories of researched material, with different contributions to research: Technological factors affecting supply chain decisions of agricultural produce Optimization techniques applied to distribution networks Farmers’ integration in value-chain and inter-dependencies of players Research, Practical and Social Implications: The study paves way for the identification of an action plan based on the studies on economic impact and also provides future research direction. Originality/Value: No previous work on economic impact analysis of agricultural supply chains is done till now.

Narrative Synthesis of the Economic Impact of Agricultural Supply Chain and Distribution Networks on Output

Purpose: The objective of this study was to analyze the role of different supply chain players in agri-business and their effect on farmers’ output, to arrive at a feasible model of supply network intended for optimizing the surplus in these agri-business supply chains.
 
 Theoretical framework: A lot of literature is already published on agricultural supply chains and distribution networks but the intention of this study is to understand and explore the economic impact on output.
 
 Design/methodology/approach: According to (Denyer and Tranfield, 2009), a systematic review is a procedure that identifies prior research, chooses and assesses contributions, analyses and synthesizes data, and presents the findings in a way that enables reasonably clear conclusions to be drawn about what is known and what is unknown. Accordingly, a five-step approach proposed by them is adopted for this research review, which is illustrated below.
 
 Findings: The review of existing literature helped in forming the following categories of researched material, with different contributions to research:
 
 Technological factors affecting supply chain decisions of agricultural produce
 Optimization techniques applied to distribution networks
 Farmers’ integration in value-chain and inter-dependencies of players
 
 
 Research, Practical and Social Implications: The study paves way for the identification of an action plan based on the studies on economic impact and also provides future research direction.
 
 Originality/Value: No previous work on economic impact analysis of agricultural supply chains is done till now.

Supply chain management analysis of avocado in south Sumatra province through the Food Supply Chain Network (FSCN) method

One of the agricultural sub-sectors that occupy a strategic position in agricultural development is the horticultural sub-sector, with one of its potential commodities being avocado. Avocado is one of the export-based commodities, especially in South OKU Regency, South Sumatra Province. This study aims to obtain an overview of the Avocado Agribusiness Supply Chain management in South OKU Regency. The study was conducted in Warkuk Selatan District, South OKU Regency in February 2022. The research method used was a qualitative descriptive method with a type of data using primary data and secondary data. The data analysis method uses the Food Supply Chain Network (FSCN) method, which illustrates South Oku Regency's avocado supply chain model. The results showed that the Avocado Management Supply Chain Management model with the FSCN framework consisted of four main components: the supply chain structure, the business chain process, supply chain management, and supply chain resources. Avocado supply chain targets are still dominated to meet the domestic market and products in the form of fresh avocados for consumption. Avocado supply chain management comprises election partners, contractual agreements, transaction systems, government support, and supply chain collaboration. The avocado supply chain structure in South OKU Regency consists of farmers, collecting traders, local and non-local traders, retailers, and consumers with respective roles in the supply chain structure. Business processes in avocado supply chain management consist of procurement, replenishment, and customer order cycles. Based on marketing margin analysis, the lowest total marketing margin is found in channel IV, with a margin value of Rp 1,500 per kg. The four avocado marketing channels in South Warkuk Ranau District have Farmer’s Share ≥40%, so it is categorized as an efficient channel.

Opportunities in farming research from an operations management perspective

We review and analyze the farming (upstream agribusiness supply chain) research literature since 1965 to identify farming research opportunities for operations management (OM) researchers. A majority of reviewed papers in our corpus, until the turn of the 21st century, primarily focus on improving operational efficiency and effectiveness of farming using optimization techniques. However, during the last two decades, farmers’ welfare and the interests of other stakeholders have drawn OM researchers’ attention. This expanded focus on farming research has become possible due to the proliferation of mobile communication devices and the Internet as well as advancements in information technology platforms and social media. Our review also shows that there is a paucity of OM literature that leverages increased data availability from the emergence of precision agriculture and blockchain to address major challenges for the farming sector emanating from climate change, natural disasters, food security, and sustainable and equitable agriculture, among others. Big data, in conjunction with opportunities for field‐based experimentation, artificial intelligence and machine learning, and integration of predictive and prescriptive analytics, can be leveraged by OM scholars engaged in farming research. We zero in on specific questions, issues, and opportunities for research in farming.

Corn Supply Chain in Central Java Province: Marketing Channel Efficiency and Chain Institutional Performance Approach

Increasing corn production requires a supply chain to channel production from farmers to consumers. The supply chain of corn as a raw material for animal feed in Central Java Province is not yet well managed, because each farmer or business is still carried out individually. The aim of the study was to analyze the supply chain picture based on the Food Supply Chain Network and the efficiency of the corn agribusiness supply chain in Central Java. Sampling techniques from farmers using proportional random sampling and snowball sampling methods will lead researchers to the next informant or to related institutions to the final consumer. Data analysis uses the FSCN, Marketing Margin, Farmer's Share and DEA methods. There are 5 corn agribusiness marketing channels in Central Java Province. Marketing margin and farmer's share with Farmer-Cooperative-Consumer chain being the most efficient. Farmer-Village Trader-SubDistrict Trader-District Trader-Consumer marketing channel being the least efficient. Technical efficiency at the farmer level was 2%, at the village trader level 40%, at the subdistrict and district trader levels 37.5%, at the cooperative level 66.67%, at the animal feed company level 40% and at the poultry farmer level 25%.

Trust, but what trust? Investigating the influence of trust dimensions on supply chain performance in smallholder agribusinesses in Uganda

PurposeEven though trust is known for improving supply chain performance (SCP), previous studies have overlooked the investigation of its dimensions. Limited studies exist on the variations of the influence of trust dimensions in agribusiness supply chain relationships. This study examined the influence of trust dimensions on SCP in a developing country's context.Design/methodology/approachA cross-sectional study design was used to collect from 204 farmers and 192 traders (396 respondents) using a multistage sampling approach. Structural equation modeling was employed to analyze the hypothesized relationships.FindingsPooled sample results show that integrity and competence were the trust dimensions with significant effects on SCP, whereas competence was significant across different supply chains and markets, integrity and benevolence were only significant along fresh chains and in the contract market.Research limitations/implicationsThe extent of application of this study's findings is limited to situations similar to those of tomato and soybeans value chains in developing countries.Originality/valueThe paper contributes to a better understanding of the influence of trust dimensions on SCP across supply chains in different market typologies in agribusiness relationships in a developing country's context.

Risk propagation and resilience in the agribusiness supply chain: a systematic literature review

PurposeThe purpose of this paper is to investigate risk propagation and resilience in the agribusiness supply chain (ASC).Design/methodology/approachThe paper undertakes a systematic literature review (SLR). Overall, 94 articles from six databases published between 2000 and 2022 underwent descriptive and thematic analysis.FindingsThere is a lack of research on risk propagation and resilience in the ASC for more than two decades. Accordingly, this research fills the gap in the extant literature by advancing the construct of risk propagation and resilience in the ASC and developing a framework proposing directions in risk propagation and resilience in ASC research.Research limitations/implicationsFirstly, only the Web of Science and Scopus databases were mostly used as primary sources while other databases were used as secondary sources to validate search results. Secondly, SLR is based on the peer-reviewed articles, books and conference papers; other non-academic sources relevant to the topic were not included in this paper.Originality/valueThe paper offers a set of constructs for understanding risk propagation and resilience in the ASC, develops a framework proposing directions in risk propagation and resilience in the ASC research and recommends three key themes for future research directions, namely, keep updated with recent constructs of risk propagation and resilience in the ASC, conduct case studies based on empirical studies to determine the current risk dependency and propagation in the ASC and conduct case studies based on empirical studies to determine resilience and sustainability in the ASC.

Sustainability Analysis of Oil Palm Business (Elaeis Guineensis) In District Of Sebatik, Nunukan Regency, North Kalimantan, Indonesia

Palm oil is one of the most strategic commodities because it is exports and has a high selling value so that it can improve the economy regions and reduce poverty. Smallholder oil palm plantations as part of the palm oil agribusiness supply chain which is slowly being required to implement aspects continuity. This study aims to analyze the sustainability status of farming palm oil based on index assessment using the Rapfish method through Multidimensional Scaling (MDS) approach. Multidimensional analysis of MDS used are ecological, economic, social, technological and institutional dimensions as the aspects studied in this research. This research was conducted in Sebatik District, North Kalimantan, Indonesia. The data used are primary and secondary data. Primary data obtained from interviews with farmers while secondary data was obtained from the statistical center, plantation service and supporting literature in this research. Respondents in this study were farmers who were selected through quota sampling have certain criteria totaling 50 respondents. The results of analysis for multidimensional index of oil palm sustainability in Sebatik District is 51.01 including in the moderately sustainable category. While the results of the analysis of the sustainability index for five dimensions are 76.57 (ecological), 50.63 (economic), 24.03 (social), 37.12 (technology), 63.49 (institutional). The entirety of each entry dimension includes in the category of “sufficiently sustainable” except for the social and technological dimensions with category "less sustainable". Sustainability of oil palm farming in each dimension have different sustainability indices so that a different policy is needed to evaluate the sustainability of oil palm farming in Sebatik District, North Kalimantan, Indonesia.

Model Ideal Sistem Manajemen Rantai Pasok Agribisnis Kakao: Pendekatan Soft System Methodology (SSM)

Jambewangi village cocoa farmers market their cocoa beans individually and in small quantities, so they’re in a low bargaining position. In addition to not optimally the role of each institution, they also haven’t coordinated and cooperated to promote cocoa. Researchers need to research to design institutional synergies in the agribusiness supply chain. The research was conducted in Jambewangi villages, the center of cocoa production in Banyuwangi. The supply chain design is based Soft System Methodology (SSM) approach through information from sources, farmers, and experts. Based on the SSM analysis, it can be concluded that: 1. There is a fundamental problem with the cocoa in Jambewangi village that farmers only produce unfermented cocoa beans, and sell them individually, so their bargaining position is low. Several institutions in the village haven’t played an optimal role in joint marketing, 2. There is no synergy between institutions at the farmer level, so they can’t protect farmers in their bargaining position. 3. If supply chain actors synergize and carry out their respective roles in the supply chain, uniform, and SNI-standardized cocoa beans can be produced and are able to produce processed chocolate products such as butter, chocolate bars, and powder.

Brazil’s Agribusiness Economic Miracle: Exploring Food Supply Chain Transformations for Promoting Win–Win Investments

Background: For many developing countries, agribusiness has become one of the main economic sectors, with the capacity to mobilize domestic and foreign investments. Despite the potential for development in countries like Brazil, the results of these investments in supply chains have not yet been systematically assessed. Methods: This study analyses foreign and domestic investments as an explanation for the recent growth of Brazilian agribusiness and evaluates the implications of different investment arrangements for the future development of the sector in the country. The research was based on a literature review of 12 agribusiness supply chains in Brazil. Results: Through a content analysis, the results reveal win–win situations with foreign and domestic investments supporting the streamlining of supply chains, mutually benefiting domestic and international groups and increasing the productivity of the entire sector. However, the results also reveal win–lose cases with chains and segments practically controlled by foreign multinationals in which local groups have practically no share. Finally, there are also cases of lose–win in which groups subsidized by the state are privileged in relation to others, compromising the sector’s growth. Conclusions: The current liberal business environment results in the need for a new vision of development based on win–win opportunities for domestic and foreign investments created by dynamic sectors such as agribusiness.

Can Family Farmers Thrive in Commodity Markets? Quantitative Evidence on the Heterogeneity in Long Agribusiness Supply Chains

Background: Family farmers’ participation in marketing channels has prompted debates on the types of market best suited to this type of farmer. Commodity production by rural communities and the role of agribusiness long marketing channels for family-based farmers are the subjects of numerous qualitative studies. However, quantitative studies capable of assessing the relevance of long channels to family-based farmers are scarce. Therefore, this study intends to assess the relevance of long marketing channels for family farmers. Methods: We compiled the data from the survey responses of family farmers from 155 municipalities in a state in the central region of Brazil. Results: (1) There was an economic concentration of some marketing channels, namely, the sale of commodities occurred in 35% of the municipalities and included 4.15% of the sampled family farmers. The income derived through these channels represented 2.13% of the farmers’ total income included in the study. (2) There is a low diversity of market types. On average, we found 2.95 long marketing channels per municipality. (3) Family farmers’ participation is low in most commodity long channels. Between 0.11% and 4.15% of the family farmers in the sampled municipalities participate in these channels. Long channels linked to the cattle production chain showed more relevant capacity for inclusion. Conclusions: Contrary to the expectations of those behind initiatives to promote the marketing and sale of locally-sourced commodities within rural communities, agribusiness long marketing channels provide limited opportunities for family farmers to market their goods.

Missing the Target: Brazil's Agricultural Policy Indirectly Subsidizes Foreign Investments to the Detriment of Smallholder Farmers and Local Agribusiness

Currently there is controversy about the effect of direct foreign investment in the Brazilian agricultural sector, mainly due to the impact it has on small farmers, land use, the environment, and food security. In this context, Brazil finds itself in an even more delicate situation, since in order to remain a bulwark of the economy, Brazilian agribusiness depends heavily on public policies that directly impact its treasury. This suggests there is an indirect transfer of public resources to transnational companies involved in agribusiness production chains. This paper assesses the allocation of agricultural credits in Brazil and the market share held by Brazilian groups, vis-à-vis multinational corporations in the agribusiness supply chains. The study was carried out analyzing the three largest supply chains established in the country: soybean, corn, and cattle. Results reveal that 75% of the operating credit (crédito de custeio), which represents 60% of the total government credit in Brazil, goes directly to soybean, corn, and cattle farmers. Most of this subsidized credit budget goes to the soybean farmers, which are mostly encompassed by large farmers. Results also reveal that 76.1% of the soybean supply chain in Brazil is controlled by foreign multinational corporations. These findings suggest that resources invested in large farmers that take part in supply chains controlled by multinational foreign groups end up indirectly financing foreign companies to the detriment of local smallholder farmers and domestic agribusiness. This highlights the need for restructuring Brazilian agricultural policy in favor of family farmers and domestic agribusiness.

Resilience and risk management in agribusiness supply chain: a systematic literature review

Resilience and risk management in agribusiness supply chain: a systematic literature review

Resilience and risk management in agribusiness supply chain: a systematic literature review

Resilience and risk management in agribusiness supply chain: a systematic literature review

Stochastic Model of Rural Agribusiness Supply Chain: A Case Study of Gatsibo District

The current economy of most developing countries is based on agriculture and its related operations that serve as the main entrance into the emerging industrial transformation. The lookout focuses on the integration of rural areas as drivers of a meaningful part of the land output. The concern has been to curiously follow the changes in the agricultural production environment from a global perspective of the market economy and its integration in the current economic revolution/transformation. The branches of deepening the understanding of this issue enroot in levelling the optimization of the benefit at all extremes of the processes involved in decentralized agribusiness functions. This study is essentially targeting to explain the current agriculture supply chain formula in rural parts of Rwanda for a more competitive equilibrium of the agricultural production planning and inventory and the distribution as the rural market nodes. The methodological intention was to drive a stochastic view of the operational transactions through the flow of the financial means (income from job for consumers and revenues from sales for rice farmers) and the likelihood to switch (respond to one’s reactions or actions) to one of the nodes, if any. The results show that the financial security on both parties is not a driver to quicken the transactions or sustain any change in the supply chain and it calls for exogenous factors, in short term, to reverse the trends.

Big Data Analytics in the Agribusiness Supply Chain Management

Importance and impact of the systems related to Agribusiness and Agri-food, are increasing around the world and demand a paramount attention. Collaboration in the inventory management is an integral part of the supply chain management, related to proactive integration among the chain actors facilitating production and supply, in especial in the agroindustrial sector of the Departamento de Antioquia, Colombia. This research establishes the main relationships between latent variables as collaboration, technology, models, optimization and inventory management, based on a literature review and applying a Structural Equation Model to a survey data of a sample of agribusiness companies. The results show that Available Technologies associated with Big Data, generates improvement of Collaboration Strategies, improving also Forecasting and Optimization; besides, Inventory Planning and Collaboration are related to Available Technologies associated with Big Data. A Poisson regression model and a Structural Equation Model estimations detect that the increasing strategies of technologies and Big Data are favorable to apply collaboration in the supply chain management, increasing possibilities to the enterprise competitiveness.

The reflection of competition and coordination on organic agribusiness supply chains

Given the social, environmental, and economic advantages of organic products compared to their conventional counterparts, there has been a growing interest in improving agribusiness sustainability through organic farming technology. However, less attention has been paid to developing analytical models to resolve challenges observed in organic supply chains. This study analytically explores competition- and coordination-based scenarios driving conventional and organic markets under contract farming mechanisms. Motivated by real-world practices, we investigate a three-party agricultural supply chain consisting of an agribusiness enterprise, an organic farmer, and a conventional farmer, where the farmers’ products are imperfect substitutes. First, we develop analytical models to derive closed-form optimal solutions under the traditional contract farming, where the agribusiness enterprise as the Stackelberg leader offers the guaranteed wholesale price and the farmers, as the followers, set their production quantity. We examine the problem by incorporating the specific features of organic farming, including organic price premium, crop yield gap, and organic cost factor into the model. We also conduct sensitivity analyses to explore the effects of competition and main characteristics of organic farming on the farmers’ and agribusiness enterprise’s optimal strategies. Meanwhile, we analytically compare and contrast the optimal traditional contract farming strategies with those under the centralized setting as a benchmark. Finally, we propose a coordinated version of contract farming named synergistic trilateral contract farming to convince the members to move towards centralization. The proposed contract not only benefits all the members by resolving both horizontal and vertical channel conflicts but also motivates the consumption of organic produce in the market. The societal measures in the investigated framework, including consumer surplus and social welfare, also improve when the supply chain members move towards coordination. Additionally, our results highlight the impact of organic farming parameters on quantity- and pricing-based decisions across the network.