Modern Value Chains Research Articles

Technology Readiness and Emerging Prospects of Coupled Catalytic Reactions for Sustainable Chemical Value Chains.

Transitioning from both the direct and indirect use of fossil fuels to the renewable and sustainable resources of the near future demands a focal shift in catalysis research - from investigating catalytic reactions in isolation to developing coupled reactions for modern chemical value chains. In this Perspective, we discuss the status and emerging prospects of coupled catalytic reactions across various scales and provide key examples. Besides being a sustainable and essential alternative to current fossil-based processes, the coupling of catalytic reactions offers novel and scalable pathways to value-added chemicals. By emphasizing the specific requirements and challenges arising from coupled reactions, we aim to identify and underscore research needs that are critical to expedite their development and to fully unlock their potential for chemical and fuel production.

Changing the paradigm in health and care services: modern value chains using open innovation for the creation of new digital health solutions.

Digital Health is a subject of extensive discourse when considering its current and future significance. This significance arises from a convergence of various factors, including the escalating capabilities and cost-effectiveness of computing and communication technology, coupled with the mounting demands and challenges faced by healthcare systems. The integration of health and technology, when studied collectively with the purpose of addressing tangible real-world issues, holds the potential to generate substantial outcomes that greatly influence the provision of clinical and social care, thereby enhancing the overall well-being of both individuals and populations. In this sense, in this paper we propose a collaborative approach, using Open Innovation, where the most relevant stakeholders-health and care professionals, citizens and companies-work together to develop and validate innovative digital solutions for health and care. We have called this approach of value co-creation the Collaborative Ecosystem, and we focus specifically on the potential development of the Regional Ecosystem for Collaborative Innovation in Digital Health and Care, and the envisioned implications of its implementation in economic and social dimensions.

Smallholder Participation in Modernising Agri-Food Value Chains in Thailand: The Role of Traditional Markets

The strategic focus of food retailers on stringent product requirements and the logistical management of fresh produce from farm to shelf have often been seen as raising barriers for smallholders, thus leading to the exclusion of resource-constrained farmers. Our study contributes to research on the inclusion of smallholders in modern agri-food value chains and on the integration of their perspectives in studies of dynamics in value chains through a combined qualitative and quantitative exploration of vegetable-producing smallholders in northern Thailand. We find that smallholders are not excluded from Thailand’s modern agri-food value chains, regardless of their household assets, but are instead integrated through traditional structures. To some extent, they do have room for manoeuvre in selecting different marketing channels and some bargaining power. Traditional markets can be very important for linking smallholders to modern agri-food value chains, but limited knowledge exchange, structural challenges in gaining access to certification and product differentiation all reduce the possibilities for upgrading. We emphasise the importance of viewing smallholders as active navigators within value chains and of understanding their motivations in making use of different sales channels in order to understand the complexities of their realities while not overlooking the power structures within value chains.

Application of sensor data based predictive maintenance and artificial neural networks to enable Industry 4.0

Possessing an efficient production line relies heavily on the availability of the production equipment. Thus, to ensure that the required function for critical equipment is in compliance, and unplanned downtime is minimized, succeeding with the field of maintenance is essential for industrialists. With the emergence of advanced manufacturing processes, incorporating predictive maintenance capabilities is seen as a necessity. Another field of interest is how modern value chains can support the maintenance function in a company. Accessibility to data from processes, equipment and products have increased significantly with the introduction of sensors and Industry 4.0 technologies. However, how to gather and utilize these data for enabling improved decision making within maintenance and value chain is still a challenge. Thus, the aim of this paper is to investigate on how maintenance and value chain data can collectively be used to improve value chain performance through prediction. The research approach includes both theoretical testing and industrial testing. The paper presents a novel concept for a predictive maintenance platform, and an artificial neural network (ANN) model with sensor data input. Further, a case of a company that has chosen to apply the platform, with the implications and determinants of this decision, is also provided. Results show that the platform can be used as an entry-level solution to enable Industry 4.0 and sensor data based predictive maintenance.

Food Safety and Incipient Modern Value Chains: Evidence from Milk in Ethiopia

Food Safety and Incipient Modern Value Chains: Evidence from Milk in Ethiopia

Rise and fall (and recovery?) of the blueberry business in Argentina: an analysis of private and public–private strategies

PurposeThe purpose of this paper is to understand how Argentina has successfully developed a non-traditional export business such as blueberry, explain the causes of the most recent competitive crisis and analyze the emerging public–private strategies as a response.Design/methodology/approachThe unit of analysis of this study is the blueberry agro-system which is a complex network of backward, forward and lateral linkages with specialized buyers, suppliers, institutions and other economic agents. Considering the qualitative and relational nature of the dimensions studied, a case study methodology was adopted. The data were collected from primary and secondary sources through in-depth interview techniques and documentary analysis. These techniques were complemented by the processing of quantitative information to enrich the analysis and put the case into a broader context.FindingsThe main finding of this study is that Argentina's export-oriented business model based on off-season high prices and scarcity of supply in the Northern Hemisphere markets must be revised and reformulated. This revision, already underway, was triggered by the Peruvian competition and is driven by the firm compromise of companies and chambers and in many cases has the backing of public bodies; this revision is an open-ended process in which the success of efforts to recreate profitability and competitiveness of the sector is not guaranteed.Research limitations/implicationsThe case study methodology implemented in the study implies that the main findings cannot be directly extrapolated to other fruits or crops. In fact, lessons and policy implications for other sectors should be conceived with caution. Another limitation is that the research relies on the perspectives of domestic stakeholders who have to respond and adapt to specific rules established by traders and supermarkets. The views and perspectives of these big companies, which manage a buyer-driven global value chain, could not be incorporated and is an area for further research.Originality/valueThe study uses the concept of temporal window to analyze the business opportunity for off-season fresh fruits exports. This concept is a key to understand both the development of a modern value chain in a South American country to market blueberries in the Northern Hemisphere and the crisis created by the emergence of new more competitive suppliers such as Peru. The main explanatory factors are historical, technological, institutional, firm-related and market.

Reflections on the Customer Decision-Making Process in the Digital Insurance Platforms: An Empirical Study of the Baltic Market

Multifold effects of the COVID-19 global health crisis and economic lockdowns are reflected in the insurance industry, and are predicted to expand to the post-COVID-19 era. It is expected that, within a short period of time, the current worldwide situation, in regards to the coronavirus pandemic, will be reflected in new trends, regarding customer behavior, organizational management, and culture, as well as reveal improved business management models, legacy infrastructure, and service systems in insurance organizations. Here, a focus on end-user preferences, data, and their behavior modeling in digital platforms are major practical drivers within the modern insurance concept, but there is a paucity of researches within the theoretical synthesis of consumer decision-making (CDM) models, information system theories, and behavioral economics concerning modern insurance-specific value chains and digitalized decision-making processes. Therefore, the following research aims to expand upon the existing scientific knowledge of end-user behavioral patterns and process frameworks in the Baltic insurance market, by including and examining a factor group of technological enablers and a digital environment. Research results in digitalization, personalization, and customization levels within the Baltic non-life insurance market are homogenous with a leading position of Estonia and overall evaluations ranging between Satisfied and Rather Good. There are also three major factor groups and process stages identified, which influence insurance purchase decision-making in digital insurance platforms in the Baltic market.

Promoting Food Safety in Local Value Chains: The Case of Vegetables in Vietnam

Background: Food quality and safety concerns in low- and middle-income countries are often addressed using stringent standards and formal contracts between farmers and buyers. Many studies have investigated the welfare implications of these control mechanisms for small-scale farmers in modern value chains, including exports and supermarkets. Conversely, few studies have focused on the potential of certification and contracts to tackle food safety issues within local traditional value chains. Methods: This study uses a discrete choice experiment to explore the preferences of vegetable farmers (n = 301) in northern Vietnam for different types of certification schemes–including third-party certification and participatory guarantee systems–and contracts. Results: Farmers are willing to accept a 49% lower price per kilogram for their vegetables to enter into a contract with a buyer, provided that pesticide use restrictions are feasible and the buyer is fully committed and trustworthy. However, they are strongly averse to organic farming, as they would require a 40% premium per kilogram to produce organically. They would also request a 21% premium to accept selling to an unknown buyer. Farmers highly value contracts that entail large purchase quantities, long duration and pesticide provision. Although the estimated willingness-to-accept values may seem very large, they make sense in the context of highly perishable produce. Conclusion: Our findings urge both policy makers and researchers to not only focus on modern value chains but also on local traditional value chains to tackle food safety issues in low- and middle-income countries, as we show that farmers are willing to produce safe vegetables for the local market when trading with buyers under beneficial conditions.

Leading the way – foreign direct investment and dairy value chain upgrading in Uganda

AbstractDriven by increased demand from both local and export markets and facilitated by far‐reaching liberalization and privatization policies, the dairy sub‐sector in Uganda has undergone significant changes in the last decade. With a comparative advantage in milk production, the southwest of Uganda has started to attract considerable Foreign Direct Investment (FDI) in processing capacity, mainly targeting the export market. As a result, processing capacity increased five‐fold and dairy became Uganda's third most important export product, coming from negligible amounts a decade earlier. In this study, we use data collected at different nodes within the value chain to identify some of the key innovations in these value chains. This is done by comparing the area that received the bulk of FDI to a similar area that did not. Furthermore, we also provide an econometric analysis that focuses on the integration of value chain actors into modern value chains more broadly defined. We find that dairy value chains are transforming rapidly, but innovations are more pronounced in areas that received the bulk of FDI. Our analysis further underscores the importance of milk collection centers, which often take the form of farmer cooperatives, in providing many of the support services that enable other actors in the value chain to produce sufficient milk, and maintain milk sanitation levels necessary for a modern export sector to emerge.

The Potency of Quality Incentives: Evidence from the Indonesian Dairy Value Chain

Misalignment of quality incentives along value chains may limit quality and therefore function as a barrier to smallholder participation in modern value chains. This article uses survey and administrative data to study how individual quality incentives provided by private actors can help smallholders to improve milk quality. By matching farmers on baseline characteristics, I find that individual quality incentives increased the compositional quality of milk quickly after its introduction. Together with physical inputs and training, individual quality incentives also increased the hygienic quality of milk. Decreasing hygienic quality over time by treated farmers suggests that the impact of the intervention decreased over time.

Organizational structures, gender roles and upgrading strategies of smallholders: A qualitative study of the local value chain in the Nigerian fishing sector

AbstractTo achieve the Sustainable Development Goals, research concepts and empirical evidence are needed to upgrade smallholder activities within local value chains (LVCs) of many developing countries. Yet, comprehensive gender‐sensitive investigations of the evolution and multiplicity of governance in whole food systems with parallel functioning of local and modern value chains (MVCs) are greatly underrepresented in the scientific literature. This study aims to uncover LVCs' (a) value systems, (b) governance themes and gender roles for value addition and (c) smallholder upgrading strategies in developing countries' dualistic sectors. The global value chain framework serves as the conceptual basis for the study and is extended towards the gendered value web approach. Empirical data obtained through three focus group discussions, three Net‐maps and 21 interviews from the Nigerian shrimp sub‐sector represent the basis for the qualitative analysis. The results identified two lead actors—traders and women processors—who are crucial for the functioning of the complex value system. Further findings showed that fishermen and women processors are mutually reliant and are organized along their gendered comparative advantage. Based on these results, manifold managerial and policy implications, that are also applicable to other developing countries and cases, are derived to upgrade and develop smallholders' gendered activities and products along the LVC.

Moving health to the heart of agri-food policies; mitigating risk from our food systems

Our food systems are progressively more industrialized and consolidated with many modern food value chains involving multiple countries and continents, and as such being associated with changes in risk profile and impacts of emerging and re-emerging diseases. Disease outbreaks that sweep through a single region can have massive impacts on food supply, while severe outbreaks of human pathogens can disrupt agricultural labor supply or demand for products perceived as ‘unsafe’. Market pressures have generally rewarded production of cash crops for fuel and energy dense, low nutrient processed foods over production of fruits and vegetables for local consumption. Climbing rates of food-related NCDs and pre-existing conditions leave the population increasingly susceptible to infectious diseases that are often driven by or arise from the food system. Therefore disease and diet from our food systems cause impacts on human health, and human health issues can impact on the functioning of the food system. The COVID-19 outbreak is the most recent example of food system driven disease emergence and of massive supply and demand shocks in the food system, experienced as a direct and indirect result of this disease. The effects of the food system on disease spread (and vice versa) must be addressed in future plans to prevent and mitigate large scale outbreaks. Health policies must acknowledge the food system as the base of our health system, as must agri-food policy recognize the pre-eminence of human health (directly and indirectly) in decision making.

A meta-analysis understanding smallholder entry into high-value markets

Abstract Who participates in modern agricultural value chains (henceforth high-value markets [HVMs]) and what determinants inform HVM participation remains a question of interest to researchers and policymakers. This issue is noteworthy because of the positive welfare effects of HVM participation. In this article, we review the empirical literature on determinants influencing HVM participation. We use quantitative descriptive statistics and meta-regression analysis to investigate a related unexplored question. What and to what extent do contextual factors (or moderators) affect the relevance of these determinants? We find that certain determinants are more relevant in specific regions. For example, access to credit, extension services, additional sources of income, and gender have greater relevance in Africa compared to Asia and South America, whereas membership in collective groups and access to irrigation facilities are important in Asia. We show that several moderators, most notably temporal factor, the econometric estimator employed by the primary study, the market coordination instrument and type of HVM channel either enhance or diminish the relevance of the determinants. Our findings show clearly that different regions require different policy interventions to encourage smallholder HVM participation. We discuss and frame this issue around which public and private sector value chain stakeholders are best positioned to minimise the costs and maximise the benefits and sustainability of such interventions.

Revisiting constraints to smallholder participation in high‐value markets: A best‐worst scaling approach

AbstractWe show how policymakers in developing regions can generate richer insights from using the choice experiment method best‐worst scaling (BWS) method when ranking policy priorities on an importance scale. More specifically, we adopt BWS to provide an update on constraints that limit the participation of Kenyan horticultural smallholder farmers in modern agricultural value chains. In addition to traditional constraints posed by input market failures and missing institutions, we considered constraints such as trust and familiarity with buyers shown by recent empirical studies to inform smallholders’ market choices. Ascertaining the relevance of these constraints highlights our contribution to the existing literature. We find that farmers consistently rate access to high‐quality inputs as their main constraint followed by concerns about access to credit, the high cost of meeting food standards, missing cooperatives, and exploitative intermediaries. Respondents considered insufficient labor, small farmlands, and weak tenure rights as the least important constraints. Age, location, gender, household income, and education influence the relative importance various segments of smallholders place on these constraints. For example, constraints are economic rather than personal for low‐income farmers. Counterintuitively, rural smallholders are less likely to perceive poor transportation network as a constraint. Smallholders’ distrust of buyers they interact with is informed by their location and income. In designing intervention initiatives, policies that focus on segments of smallholders are needed for improving smallholder participation in modern agricultural value chains.

LOBBYING IN THE SYSTEM OF SOCIO-ECONOMIC PRIORITIES OF UKRAINE

The article is devoted to the research of lobbying activities as an important component of the process of forming the state policy of socio-economic development. The author emphasizes that the Ukrainian economy has a high dependence on the external environment, as well as high sensitivity to global economic fluctuations. In turn, the openness of the country's economy is a significant factor in its involvement in modern value chains, global and regional integration. It is determined that securing a full-fledged public-private partnership in the modern world requires lobbying as a deliberate influence on the public by the authorities in order to make a number of economic decisions. The study found that the structure of the phenomenon of "lobbying" includes three main components: object, subject, technology. Thus, lobbying in the modern world appears to be a complex process of purposeful influence on the government in order to obtain the desired solution. The purpose of lobbying structures activities is often a series of decisions, in which the adoption of laws concerning economic activity and investment, innovation, and customs policies is of great importance. It is revealed that lobbying requires an extensive network of institutions and organizations - from trade unions and business owners to the media and civil society organizations. Significant influence on the advancement of national socio-economic priorities is exercised by consulting firms, mass media, non-state think tanks, various industry associations. Lobbying in developed countries is a tool for cooperation and communication that leads to progressive decisions that are beneficial to both business and society. This confirms the progressive experience of the USA and the EU. The study draws attention to the fact that Ukraine mainly practices shadow lobbying, since the activities of domestic lobbyists are not regulated by any legislative acts. This is explained by the fact that our business and political leaders benefit from such interaction when large financial and industry groups sponsor, large decision-makers and expensive electoral campaigns.

English

In response to rapid globalization, African countries have dedicated considerable efforts to transform rural producers into businesses and integrate them with global markets. Pastoralists are mostly isolated from the other livestock value chain members. This makes it difficult for them to acquire knowledge regarding how the market functions and what the value chain members’ want. This study explores how much pastoralists know and what knowledge they need to seize market opportunities. Using qualitative evidence from Ethiopian pastoralists, this study finds that pastoralists understand routine and physically existing facts such as selling livestock in a fixed market place during regular market days. However, the pastoralists lack the higher order knowledge that includes a broader understanding of the market phenomena and the abilities to scrutinize and interpolate those phenomena into their livestock raising experiential realm to make informed production decisions. This will hinder their functioning as “businesses” in modern value chains. This study therefore suggests for the development of market knowledge among pastoralists. Policy makers and development workers can consider marketing training to build the market knowledge of pastoralists. Further research could study how to effectively train the pastoralists to acquaint them with market knowledge to focus on market-based livestock production. Key words: Market integration, market knowledge, remoteness, pastoral, Ethiopia.

Quality Improvement in African Food Supply Chains: Determinants of Farmer Performance

The integration of smallholders in modern value chains in sub-Saharan Africa is an important pathway for improving income and farmer livelihoods. Connected to demographic shifts, rapid urbanization, and the emergence of a middle class, there is a demand for higher product quality. In order to access these modern markets, smallholders need to enhance the quality of their products. However, factors that determine smallholders’ decision to invest in quality upgrading are not well understood. Using cross-sectional data from the Ethiopian barley sector, we analyse the factors that explain smallholders’ decision to improve quality. We find that socioeconomic, institutional and market factors affect the decision to improve quality. Our study contributes to the understanding of the determinants of quality upgrading at the micro-level of the economics of quality production, and thus of rural development.

Assessment of the transforming impact of global value chains on international trade

The article discusses the problems of international fragmentation of production and global value chains and how they relate to modern aspects, trends and challenges of international trade development. Methodologically the research rests upon the key principles of classical and alternative theories of international trade, the theory of value chains and the basic theories of foreign investment. In the course of the study, the authors apply both general theoretical (formalization, synthesis, analysis) and particular (measurement, comparison, observation) research methods. The main results of the research are as follows: a conceptual rethink of the nature of today’s international trade in terms of influencing factors of global production decomposition; theoretical justification and criticism of contemporary approaches to the organization of value chains between developed and developing countries; the formulation of measures to modify trade and economic policy in the current system-related and structural challenges of value chains’ transformation. The authors conclude that instability of modern global value chains in the world production and international trade is due to the unsteady dynamics of the global economy, industrial differentiation of global value chains, changes in international strategies of multinational companies, innovation and digitalization of global production networks.

Assessment of farmer’s awareness of agricultural insurance packages: evidence from “Farming is our pride” communities of Zamfara State, Nigeria

Abstract Agricultural insurance has been one of the most crucial instruments in modern agricultural value chain financing. This study assesses farmer’s awareness of agricultural insurance packages available in the farming communities of Zamfara State. The study uses a primary source of data collected through a structured questionnaire. From the ten listed common crops majorly grown in the state, ten farmers were purposively selected from each association to make up 100 farmers for the study. The results showed that the majority of the farmers were males with mean age of 40 years and they were educated. Majority of the farmers were married, most of them having a mean family size of seven persons, average farm size of three hectares, average farm experience of about 16 years and majority (61 %) was combining farming with other occupation. Most of the respondents belonged to a cooperative society with eight years of membership. The binary logistic regression showed that the only factor responsible for farmers' awareness of agricultural insurance packages is membership in a cooperative society. It was concluded that farmers' awareness of agricultural insurance packages is significantly influenced only by membership of cooperative association. It is recommended that policy makers, agricultural insurance firms, and other actors in agricultural activities should put cogent effort in awareness and symposiums on agricultural insurance packages to enable farmers be aware of different agricultural insurance packages that can mitigate the uncertainty they face in their agricultural activities.

Impact of traditional versus modern dairy value chains on food security: Evidence from India’s dairy sector

The Indian government has made significant efforts to promote dairy cooperatives to link the milk producers with consumers. Despite this, milk marketing is still dominated by traditional outlets. This paper examines the impact of modern dairy value chains on food security indicators such as net returns from dairying and consumption expenditures. Using a large, national, farm-level dataset from India and a multinomial endogenous switching regression model, results reveal that Indian dairy farmers’ integration with the modern dairy value chain has a positive and significant impact on their food security (measured by net returns and household consumption expenditures). Participation in modern milk-marketing outlets significantly increases net returns per year, regardless of whether farmers choose one outlet or a combination.