Market Value Chain Research Articles

A hedonic price analysis for the Portuguese wine market: Does the distribution channel matter?

ABSTRACTPrice is a core component of both wine firms’ and consumers’ decision-making and so there has been a lot of analysis of the determinants of wine price. Most of the research has used the hedonic price function and assumed that the wine market is homogeneous with respect to both distribution channel and price segments. In this paper, a hedonic price function is estimated using data from a specialist retailer and a large supermarket, i.e., retailers in two different consumer market segments, niche and mass market, respectively. We conclude that the wine market is heterogeneous, and the importance of the various price determinants differs between distribution channels and, in the case of the specialist retailer, throughout the conditional statistical distribution of the price. This result may help the wine companies to place themselves in the market value chain.

Socio-economic factors influencing smallholder farmers’ decision to participate in agro-processing industry in Gauteng province, South Africa

Smallholder farmers in South Africa have not been linked successfully to sustainable agro-processing value chains. This study aimed to identify factors influencing smallholder farmers’ decision to participate in the agro-processing industry, as well as the extent of their participation in the Gauteng Province. Data was collected through a structured questionnaire that was administered face-to-face to respondents in a randomly purposive selected sample of 102 smallholder farmers. A double-hurdle model was used to analyse factors influencing the decision to participate and the level of participation in agro-processing. The results show that very few (19%) smallholder farmers participate in the agro-processing industry of the Gauteng Province. The results also revealed that factors such as educational level, land tenure, agro-processing training and information have a positive influence on the decision to participate. Distance to market and off-farm income negatively influence the decision to participate. The level of participation is influenced by socio-economic factors such as age, household size, level of education, grain and livestock producers, farm size and access to training. The study recommends that smallholder agro-processing policy instruments be adjusted to facilitate effective participation in the agro-processing industry and participation in other high market value chains. There is a need to build up local agro-processing plants as a strategy of lowering the costs of transportation and storage when farmers take their farm produce to distant manufacturers or processors.

Pork Supply, Marketing and Challenges in Ethiopia

AbstractThe study was conducted to characterize pork and pork products marketing and challenges in Ethiopia. Multistage random sampling procedure was applied to select a total of 40 pork retailers from six towns. Structured questionnaire was used to collect information through face to face interview. Pork retailers were clustered into three categories as small scale (sell <5kg pork per day), medium scale (sell 5-10kg pork per day) and large scale (sell >10kg pork per day) based on quantities of pork selling per day. Collected data were analyzed using appropriate statistical procedures of SAS and SPSS software packages. The result showed that the quantity of pork products sold per day was too small. About 61.5, 15.4 and 23.1% of pork retailers were selling <5, 5-10 and >1 kg of pork products per day in small, medium and large scale retailers, respectively. In most cases, pork was sold in the form of mortadella, sausage and salami. In addition to pork selling, almost all of the pork retailers were selling one or more other meat types such as beef, mutton, goat meat, fish and chicken. About 92.3% of the pork retailers were selling both beef and chicken meat, and 79.5, 48.7 and 10.3% of them were selling fish, mutton, and goat meat, respectively. The average price (followed by SE) of a kilo gram of pork was 162(6.3), 164(4.0) and 172(6.0) Ethiopian Birr (ranging 7.5 to 8 USD per kg of pork) in small, medium and large scale pork retailers, respectively. The presence of few pork consumers, lack of formal central markets and public complain against pork consumption were the major challenges observed in pig and pork marketing value chain. In concussion, the findings of this study will improve awareness on existing pork marketing systems in Ethiopia and provide valuable information that can support future interventions aiming to solve key challenges in the market value chain.

Precise marketing of precision marketing value chain process on the H group line based on big data

The frequent trading activities of electronic commerce make the online transaction volume of Chinese enterprises increase year by year, but many enterprises still follow the traditional marketing strategy, which is not conducive to the long-term development of enterprises. Online precision marketin g system model based on big data was built, Hadoop + MapReduce precision marketing model platform was implemented, all the data were stored in a distributed storage system, data mining technology was used to deal with it and provide the basis for enterprise decision making. China’s H group was studied. The “user portrait database” and the corresponding E-R map were constructed. The height subdivision factor with strong correlation was selected for cluster analysis, and the product was subdivided by cluster analysis. This study has certain reference significance for the collection and mining of online data of enterprises in our country and contributes to the long-term healthy development of the enterprise.

Analysis of pearl millet market structure and value chain in India

PurposeThe purpose of this paper is to examine the market structure and value chain of pearl millet grain and fodder in India. There is a decline in demand for human consumption, with an increase in demand for non-food uses like cattle and poultry feed, raw material for starch and breweries industry. This paper explores alternative channels, uses and value chains of pearl millet grain and fodder. The paper examines in what ways small farmers can benefit from the evolving alternative uses for pearl millet grain in cattle and poultry feed industry, breweries and starch industry. The paper also analyses the impact of aggregators in increasing the efficiency of the value chain.Design/methodology/approachThe study collected primary data from farmers, traders, commission agents and exporters and importers with innovative marketing channels with aggregators (Self-Help Groups) and without aggregators to analyze the prospects for improvements in marketing channels and value chain.FindingsGiven that the production of pearl millet is scattered and thin, there is a lot of scope for market aggregators to increase scale economies to reduce market costs to supply in bulk to food and industrial uses. Although there was some demand for human consumption high-quality grain, most of the future demand will come from cattle and poultry feed industry, breweries and starch industry. To tap these larger potentials, farmers need to aggregate their produce and ensure regular supply in bulk quantity at least to compete the cost with alternative grains like maize and broken rice.Research limitations/implicationsThe research is based on the field-level data collection and observations obtained from Western India. This paper provides insights how the value chain of pearl millet is working and what improvements are needed to make value chain more efficient and inclusive. Although the results are applicable to similar neglected crops and area, more caution is needed.Social implicationsThrough the formation of farmer aggregators, farmers can enhance their bargaining power vis-a-vis industry.Originality/valueTill now, there is no study that explored the pearl millet value chain in detail in India, and the paper tries to fill this literature gap.

Assessment of production and marketing constraints and value chain of sweet potato in the municipalities of Dangbo and Bonou

BackgroundSweet potato [Ipomoea batatas (L.) Lam.] plays an important role in ensuring food security and incomes for local communities. It is particularly grown in southern region of Benin, and its production over the last few years has declined due to disease and severe pest infestation. Therefore, it was imperative to carry out this study to identify the main constraints related to the recent decline in sweet production and more specifically analyzing the production and marketing constraints of sweet potato in the townships of Dangbo and Bonou.ResultsThe results of the survey revealed that many varieties of sweet potato were grown, mainly “Vobodouaho” (local name in Goun language), the most preferred variety by producers. Weedicides and insecticides were used to control weeds and insect pests, respectively. There was no efficient control methods against black rot, Alternaria blight, cylas spp., and caterpillar among the pathogens and insects that damaged sweet potato production in the study areas. The main constraints reducing sweet potato production in the townships of Dangbo and Bonou are: lack of adequate methods for controlling pest and diseases, lack of financial resources due to no access to credit, absence of modern equipment, scarcity and high cost of labor and absence of best methods for long-term storage. The average yield of sweet production per hectare ranged from 6.5 to 15.1 tons fresh matter/ha. The market value of sweet potato is still low at farmers’ level when compared to that of other stakeholders along the value chain.ConclusionThis study calls for the attention of public and private sectors and policy makers for more investment in sweet potato research. Avenues for further research on sweet potato have also been suggested.

Plastic recycling in the Nordics: A value chain market analysis

There is low utilisation of plastic waste in the Nordic region and only a fraction of plastic materials go back into production processes through reuse and recycling practices. This paper aims to increase knowledge concerning factors that inhibit demand for recycled plastics, and to identify critical barriers for plastic recycling across the regional plastics value chain. A literature review and targeted interviews with key actors across the plastics value chain enabled the mapping of interactions between the major actors and identified hotspots that act as barriers to the flow of plastic materials. Barriers identified include the lack of both supply and demand of recycled plastic and are mainly attributed to the fragmented market of secondary materials. The main hotspots identified are the low demand due to price considerations, insufficient traceability and transparency in value chain transactions, and general design deficiencies in the recyclability of products. Value chain coordination is considered as the most important intervention by the interviewees, followed by the need for increased investment in innovation and technology development. Complementary measures that could counteract the identified barriers include public procurement for resource efficiency, ban on the incineration of recyclable materials, and specifications on the design of plastic products for reducing the number of different polymers, and the number and usage of additives.

Physicochemical Analysis and Microbial Quality of Cow Butter Obtained from Menz District of Amhara Region, Ethiopia

Menz has long been known for its quality butter production but traditional milk products are reported to be of substandard quality. Therefore, this investigation was conducted to access physiochemical and microbial quality of butter from Menz District along the market value chain. The microbiological count data were transformed to log10 values before statistical analysis. Overall values of 15.05:82.62:2.09%, 14.26:83.44:2.77%, 14.25:83.30:1.03%, 14.58:83.82: 3.58% and 12.52: 83.96: 2.82% moisture, fat and free fatty acid contents were observed in samples from farmers, traders, made by investigators, Tarmaber and Addis Ababa, respectively. Overall mean score of total Aerobic Mesophilic Bacterial count ranging from 3.26 x109 (sample made by invigilator) to 4.20 x 109 (sample from Addis Ababa) were recorded. Similarly, the total coliform count ranges from 1.61 x 106 to 3.03 x106 and the yeast and mold counts vary from 1.31 x106 to 1.83 x106 from samples collected at different butter market value chains. There is unhygienic production and processing of butter in the study area which calls for improvement.

Production and Exports of Kidney Beans in the Kyrgyz Republic: Value Chain Analysis

This report provides results of the study of the kidney bean (Phaseolus vulgaris) production and the marketing value chain in the Kyrgyz Republic. The main tool of this survey is field study of farmers, dealers-wholesalers, and bean exporters with elements of quantitative and qualitative methods, as well as the results of desk analysis using open sources of information. The report analyzes agrotechnical conditions for bean production, including data on bean-related phytosanitary safety and the situation with bean-related food safety standards when exporting it and marketing problems in foreign markets. Findings of the study include the main barriers and constraints to increasing domestic production, improving bean quality and processing, and improving the phytosanitary situation and food safety standards; recommendations on Kyrgyz bean market improvement are also included.

Value chains in renewable and sustainable food systems

AbstractGlobalization of food trade in agricultural commodities is in some senses the antithesis of key concepts of sustainable agriculture. Global trade in food products distances the depletion of resources and environmental impacts of food production from the economic and social processes that drive consumption and increases the global risks from introduction of species that become pests. However, both supply and market value chains have emerged as major sub-systems in the larger global agro-food trade system that exert enormous importance over the potential for change in agricultural production at the farm level. This special issue presents studies of seven value chains that exhibit the breadth of research about value chains and their potential contributions to sustainable agriculture. They address value chains at different scales and dealing in various products. These studies contribute to the body of knowledge with a focus on lesser researched regions and products. Most important, they demonstrate the potential for value chains to enhance agricultural sustainability for rural populations and reduce food insecurity and inequities.

Milk Marketing and Dairy Value Chain Development in Nepal in Relation with Climate Resilience Effort in the Present Context

Nepal is agricultural country with a special focus on dairy sub-sector. Almost 80% of milk in market, which have been produced by small holder farmers with a well- developed dairy value chain. Ministry of Livestock Development (MoLD) has given due importance for milk production providing support on feed and forage programs to the farmers as well as introducing crossbreeding programs to uplift the genetics of local cattle and buffaloes. By 2018, the country shall be self-sufficient in milk production, where the requirement of 91 lit of milk per person per year is expected to be achieved. Foot and Mouth Disease (FMD) emerges as a major health hazard in dairy sector apart from Hemorrhagic Septicemia (HS) and black quarter (BQ). The incidence of clinical and subclinical mastitis is still high in dairy pocket areas. Moreover, the seasonal fluctuation of milk production is hampering the growth of dairy sector. The need of product diversification and powder milk production are of immense important in long run to sustain dairy sub-sector in Nepal. MOLD has given priority for four pillars for livestock development namely animal feed, animal breeds, animal health and livestock marketing. That sector on balanced development program will lead to increase on milk, meat, eggs, nutrition, and food security in the nation.

Price shock transmission: evidence from the wheat‐bread market value chain in Ethiopia

AbstractThis study assesses the degree of vertical price transmission along the wheat‐bread value chain in Ethiopia. This is pursued by applying a vector error correction model and an impulse response analysis using monthly price data for the period 2000–2015. Our analysis considers transmission of price shocks across different market levels, including from the international and domestic wheat grain markets at the upstream to the domestic wheat bread market at the downstream of the value chain. The empirical findings indicate that significant cointegration exists across prices of the different market stages. There is a transmission from international prices to domestic prices at downstream markets, in particular to flour and bread prices. Prices at upstream markets are largely influenced by the domestic wholesale market. In general, the speed of adjustment is quite slow with a half‐life of about one year for restoring the equilibrium price relationship. As price margins between the different market stages in the value chain have substantially decreased in the last 15 years, higher transmission, and thus exposure to international market shocks, can be expected in the future. The results also show that causal relationships exist between prices at different market stages—with the wholesale market identified as the key market level where prices and price expectations are formed.

Contribution of market value chain to the control of African swine fever in Zambia.

African swine fever (ASF) is a worldwide disease of pigs endemic in most sub-Saharan African countries. Zambia has been experiencing outbreaks of ASF for many years because the disease is endemic in the eastern part of the country, with incursion into the central part of Lusaka Province. The latest outbreaks of ASF in Lusaka occurred in 2013 with substantial pig mortalities, loss in trade, and cost of control measures and compensation of affected farmers. The aims of the study were to identify market value chain-related factors that were associated with ASF outbreaks and assess why these outbreaks are becoming frequent despite control measures being put in place. Using a mixed-method design, participants involved in the value chain were purposively sampled. Some pig farmers were included using a respondent-driven technique. Farmers came from Lusaka, Chilanga, Kafue, and Chongwe districts. Other participants included district veterinary officers, veterinary assistants, police officers, and veterinary staff manning veterinary checkpoints, abattoir and processing plant managers, meat inspectors, market chairpersons, and traders. Semi-structured questionnaires, in-depth interviews, and direct observations were used to collect data to come up with narrations, tables, and flow charts. In assessing the contribution of the value chain in ASF, aspects of ASF screening, market availability and procedures, knowledge on ASF transmission, occurrence of ASF outbreak, and regulation of pig movement were investigated. Despite government ASF control measures being applied, the following were noted: (1) low awareness levels of ASF transmission among pig farmers and traders; (2) only 50% of farmers had their animals screened for ASF before sale; (3) all the markets did not have the pork inspected; (4) laxity in enforcing livestock movement control because of inadequate police and veterinary staff manning checkpoints; (5) lack of enforcement of meat inspection and food safety regulations at pig markets; and (6) inadequate and bureaucratic ASF screening. Improving biosecurity; sensitizing farmers, traders, and all stakeholders in the pig value chain on ASF prevention and control; reinforcement of staff at checkpoints; and regulation of pig markets are some of the ways in which future outbreaks can be prevented.

Broiler production in South Africa: Is there space for smallholders in the commercial chicken coup?

ABSTRACTIt is agreed that agriculture provides avenues for impoverished households to produce and trade their way out of poverty. However, this requires market access and value chain integration of small-scale farmers. This paper explores the possibilities for integration of small-scale farmers into the mainstream commercial broiler value chain in South Africa. Production costs of small-scale producers are evaluated within the context of their commercial counterparts, with a case study approach. It revealed that small-scale producers pay more for inputs but also receive a substantial premium for sales of live birds in the informal market. This results in attractive gross margins for small-scale producers. There is, however, a production ceiling, due to demand and production considerations, associated with small-scale broiler production. This ultimately results in a dualistic industry with an informal (live sale) value chain at the one end of the spectrum and a sophisticated large-scale commercial value chain at the other. Given the salient production features and investment requirements associated with large-scale broiler production, organic growth from the small-scale value chain into the commercial value chain seems improbable. The dual nature of this industry should therefore be considered when developing policy geared towards development, poverty alleviation and value chain integration.

Understanding innovation platform effectiveness through experiences from west and central Africa

Innovation platforms (IPs) are a way of organizing multistakeholder interactions, marshalling ideas, people and resources to address challenges and opportunities embedded in complex settings. The approach has its roots in theories of complexity, the concept of innovation systems and practices of participatory action research. IPs have been widely adopted across Africa and beyond in recent years as a “must have” tool in a range of “for development” modes of agricultural research. Our experiences with establishing and facilitating nine IPs in local settings in west and central Africa contribute to understanding factors that impact on their effectiveness.The nine IPs were variously focused on developing dairy, crop and/or meat value chains by strengthening mixed crop-livestock production systems or seed systems. Using case study methods, we identified variables that contribute to explaining the performance of these IPs in relation to six domains of change in the agricultural system and the sustainability of changes. Thematic analysis was guided by a conceptual framework which grouped variables into four categories (context, structure, conduct, and process) that interact to influence IP performance.Stronger market connections and value chains were generated through some of these IPs but the most prevalent changes overall were in farm productivity and technical knowledge of producers. The structures evolved in some IPs, akin to those of producer collectives, suggested they were filling an institutional gap locally. The effect of the IPs on deeper level institutions that influence agricultural systems and food security was modest, constraining prospects for the IPs to generate impact at scale. Impacts from the IPs on research and development organisations were uncommon but had transformative significance.Our conceptual framework did not offer optimal guidance to understanding how the many variables that contributed to performance of these IPs combined and sequenced, but the pattern of interactions was consistent with increased social capital being the prime mediator for change. Achieving greater prospects for transformational change and impact at scale warrants at least equal attention to three other interconnected change pathways: through markets, institutions and innovation capacity. Important factors for increased impact are individuals and organisations with capacity to purposefully build and manage inter-organisational and cross-scale networks, early diagnostic studies of the institutional landscape, and adaptive processes of critical reflection and learning that continue beyond the short term.

Translating consumer’s olive-oil quality-attribute requirements into optimal olive-growing practices

PurposeThe purpose of this paper is to translate consumer requirements regarding olive-oil quality attributes into specific olive-growing practices that most contribute to satisfy these attributes.Design/methodology/approachAfter identifying consumer requirements or needs regarding different attributes of olive-oil quality, through a survey of 439 olive-oil consumers, the authors determine the olive-growing practices that optimally satisfy consumer needs through expert opinions. Finally, the use of expert knowledge to construct the House of Quality or the first matrix of quality function deployment allow the authors to define the relative contribution of the various olive-farming practices to the satisfaction of consumer requirements.FindingsThe findings have shown that the olive-oil quality attributes most requested by consumers incorporate organoleptic (e.g. acidity, flavour, colour), sociocultural (e.g. creating employment in rural areas, maintenance of the rural population) and environmental ones (environmental externalities). The “separation of olives collected from ground and trees” (separation), “timing of harvesting” (according to a fruit-ripeness index), the “method of the ground harvest” (no picking from the ground), and the “method of tree harvest” (handpicking) were some of the most commonly identified olive-farming practices that contribute the most to meeting consumers’ needs with regard to olive-oil quality.Research limitations/implicationsThe study suggests detailed analyses of the relationships between customer requirements and other agents practices involved in the olive sector (processing industries: mills, distribution, and marketing management, etc.) to more fully investigate the impact of all these practices on consumers’ perceived olive-oil quality attributes. This is the most reliable way to guarantee that the most sought-after quality characteristics are taken into account, not only in the farming stage but also in the various different stages of the olive agri-food chain.Practical implicationsFindings represent an opportunity in the market value chain to develop a quality olive oil which is more oriented towards the consumer and able to face future segmentations in the market. This is one of the main innovative features of this study, as it offers “good practice” guidelines to agents of the olive-oil sector from the consumer perspective.Social implicationsThis study provides positive implications to consumers, providing them important tools to make an informed choice, and producers and marketers helping the design of production strategies to optimally satisfy the consumer preference with regard to olive-oil quality, and attain a competitive advantage by adding value to the product.Originality/valueThis paper is regarded as the pioneer in the literature translating the “consumer voice” regarding olive-oil quality into specific olive-growing practices “good-practices guidelines”. Thus, the relevant required quality olive-oil attributes should be clearly described on the label, to enable consumers to identify the quality features and make an informed choice. Furthermore, to meet consumers’ needs, the olive-oil sector should focus on the olive-growing practices that optimally satisfy consumer requirements concerning olive-oil quality attributes. This would help to improve legitimacy and boost public support for the Common Agricultural Policy subsidies for the agricultural sector in general, and the olive sector in particular. The findings are particularly valuable in helping policy makers to design marketing strategies to improve the sustainability and competitiveness of Spanish olive oil.

Contract Engagement in the Small-Scale Tuna-Fishing Economies of East Java

We examine the informal contractual relationships formed by artisanal fishers (AFs) and intermediaries in the small-scale tuna-fishing economies of East Java, Indonesia, using data from a survey of 436 boat captains. Our exploration of the factors motivating AFs to engage in such contracts uses instrumental-variable probit regressions to control for endogeneity in our transaction-cost economics model. This model incorporates the importance of household characteristics, transaction characteristics, transaction costs, risk behaviour, and trust in the choice of contract between AFs and their intermediaries. These intermediaries play an important role in facilitating transactions and contractual relationships between AFs and processors in the marketing value chain. We find that social capital is a statistically significant instrumental variable in our model. We also find that risk behaviour and trust are not statistically significant in influencing the choice of governance structure.

Diversity of governance arrangements for indigenous natural products in communal areas of Namibia

In several countries, it has been observed that development of policies and regulations for non-timber forest products (NTFPs) rarely follows a systematic approach. This paper characterises the diversity of governance arrangements for accessing and marketing indigenous natural products in communal areas of Namibia. Applying concepts from environmental governance, two main types of governance arrangements for accessing NTFPs are distinguished, i.e. community-level self-organised governance and network governance between the state and local communities. Application of the theory of global value chain governance reveals three main types of governance arrangements for accessing NTFP markets. These are: (1) market value chains for coordinating access to informal domestic markets, (2) captive value chains and (3) quasi-hierarchical value chains for accessing global markets. The arrangements for accessing resources and markets are further integrated into three main modes of NTFP governance in Namibia, i.e. network governance with high degree of state involvement; network governance with low degree of state involvement and active involvement of local communities and civil society; and a community-based self-organised governance at local level with dominance of local authorities. Considering this differentiated governance approach, there is scope for the development of an integrated policy framework that recognises NTFPs based on the different governance arrangements.

Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers

Small and medium-sized enterprises (SMEs) are increasingly aware of the benefits of closing loops and improving resource efficiency, such as saving material costs, creating competitive advantages, and accessing new markets. At the same time, however, various barriers pose challenges to small businesses in their transition to a circular economy, namely a lack of financial resources and lack of technical skills. The aim of this paper is to increase knowledge and understanding about the barriers and enablers experienced by SMEs when implementing circular economy business models. Looking first at the barriers that prevent SMEs from realising the benefits of the circular economy, an investigation is carried out in the form of a literature review and an analysis of a sample of SME case studies that are featured on the GreenEcoNet EU-funded web platform. Several enabling factors that help SMEs adopt circular economy practices are then identified. The paper concludes that although various policy instruments are available to help SMEs incorporate circular economy principles into their business models, several barriers remain. The authors recommend that European and national policies strengthen their focus on greening consumer preferences, market value chains and company cultures, and support the recognition of SMEs’ green business models. This can be achieved through the creation of dedicated marketplaces and communities of practice, for example.

Marketing channel and value chain analysis of Bombay duck and ribbon fish in Cox’s Bazar area of Bangladesh

A study was conducted to investigate marketing channel and value chain of two commercially important marine fish species in Cox’s Bazar area, Bangladesh, namely, Bombay duck Harpodon nehereus and Ribbon fish, Trichiurus haumela. Three types of markets were found in the study namely primary, secondary and retail markets. The number of sample fishermen and intermediaries were 120. About 4 to 5 intermediaries were found to be involved in the each marketing chain and this group is believed to make huge profit, thus the prices of fishes were very high in the final consumer market. Marketing margin for fresh Bombay duck and ribbon fish were 29% and 28% and dried Bombay duck and dried ribbon fish were 35% and 19% of consumer purchase price, respectively. Poor transport facilities and huge number of intermediaries in the marketing channels were the main problems of marine fish marketing channel. Government intervention in the marketing channel is necessary for sustainable fish marketing systems.Progressive Agriculture 27 (2): 222-227, 2016