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Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand

TLDR
In this article, the authors analyzed different market channels for sweet pepper in Thailand and found that there is a general preference for marketing options that do not involve a contract and that additional provision of inputs and credit can increase the attractiveness of contracts.
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This article is published in Food Policy.The article was published on 2011-10-01 and is currently open access. It has received 174 citations till now. The article focuses on the topics: Supply chain.

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Journal ArticleDOI

Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya

TL;DR: In this paper, the authors investigate determinants and impacts of cooperative organization, using the example of smallholder banana farmers in Kenya, and find positive income effects for active group members.
Journal ArticleDOI

Agricultural pesticides and land use intensification in high, middle and low income countries

TL;DR: In this paper, the authors studied levels and trends in agricultural pesticide use for a large cross-section of countries using FAO data for the period 1990-2009, and showed that a 1% increase in crop output per hectare is associated with a 1.8% increase of pesticide use per hectares, but that the growth in intensity of pesticides use levels off as countries reach a higher level of economic development.
Journal ArticleDOI

Shaping the World Economy. Suggestions for an International Economic Policy. By Jan Tinbergen. New York: The Twentieth Century Fund, 1962. pp. xvii, 330. Index. 4.00, cloth.

TL;DR: In Spanish: Hacia Una Economia Mundial: sugerencias para una politica economica internacional, Series Biblioteca de Economia No.7, Orbis, Barcelona, 1985, 242 p. as mentioned in this paper
Journal ArticleDOI

Food value chain transformations in developing countries: Selected hypotheses on nutritional implications

TL;DR: The primary finding is that the transformation of FVCs creates challenges and opportunities for nutrition in developing countries, and a FVC typology is proposed that takes into account the participants, the target market, and the products offered.
Journal ArticleDOI

Contract Farming in Developed and Developing Countries

TL;DR: In this article, the authors review the literature on contract farming and assess how it contributes to improving production efficiency and income of farmers in general and of small-scale farmers in particular, finding that although contract farming contributes to the improvement of farmers' income by introducing new crops and production methods, there is room for strengthening its effects on poverty reduction through policy.
References
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Journal ArticleDOI

A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity

Halbert White
- 01 May 1980 - 
TL;DR: In this article, a parameter covariance matrix estimator which is consistent even when the disturbances of a linear regression model are heteroskedastic is presented, which does not depend on a formal model of the structure of the heteroSkewedness.
Book ChapterDOI

A New Approach to Consumer Theory

TL;DR: In this article, the authors extend activity analysis into consumption theory and assume that goods possess, or give rise to, multiple characteristics in fixed proportions and that it is these characteristics, not goods themselves, on which the consumer's preferences are exercised.
Posted Content

Gravity with Gravitas: A Solution to the Border Puzzle

TL;DR: This article showed that the gravity model usually estimated does not correspond to the theory behind it and showed that national borders reduce trade between the US and Canada by about 44% while reducing trade among other industrialized countries by about 30%.
Journal ArticleDOI

Constructing a Control Group Using Multivariate Matched Sampling Methods That Incorporate the Propensity Score

TL;DR: This article used multivariate matching methods in an observational study of the effects of prenatal exposure to barbiturates on subsequent psychological development, using the propensity score as a distinct matching variable.
Journal ArticleDOI

Some practical guidance for the implementation of propensity score matching

TL;DR: Propensity score matching (PSM) has become a popular approach to estimate causal treatment effects as discussed by the authors, but empirical examples can be found in very diverse fields of study, and each implementation step involves a lot of decisions and different approaches can be thought of.
Related Papers (5)
Frequently Asked Questions (15)
Q1. What are the contributions mentioned in the paper "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in thailand" ?

Some policy implications are discussed. 

This should be considered more explicitly in future research. Hence, not integrating small farms into modern supply chains more successfully can be associated with lost opportunities for rural development. Beyond addressing widespread market imperfections, which is certainly important, their results suggest that improving the relationship between farmers and buyers could also contribute to more widespread smallholder participation in contractual arrangements. 

losing degrees of freedom and the option to negotiate on the spot seem to be important reasons for some farmers not to engage in contracts. 

In terms of farm and farmer characteristics, higher opportunity costs of time and fewer marketing alternatives as a result of bad infrastructure conditions increase the attractiveness of entering into a contractual arrangement. 

the fact that still 11% of the contract suppliers mention independence reflects that contracts with village traders are perceived less confining than those with companies. 

The fact that many farmers nevertheless drop out of the company channel may potentially be due to their inability to produce more red sweet pepper. 

For sweet pepper in Thailand, companies have started to establish own integrated production plants in peri-urban areas, partly because they find it difficult to source sufficient produce from smallholder farmers. 

Each farmer was shown four choice sets, and almost half of al respondents (47%) chose both contract and non-contract alternatives in differen choice sets. 

In a review of different studies, Sartorius and Kirsten (2007) also found that distrust, combined with a perceived loss of autonomy, is a major reason for contract failures between smallholder farmers and agribusiness companies. 

Better prices are stated as the main advantage from supplying village traders with or without contract by those who switched(third and fourth column of Table 10). 

In contracts with village traders, pricing is by far the most important component; usually a minimum procurement price is specified. 

better access to inputs may be one reason for farmers to enter into contractual arrangements, which will be analyzed more explicitly further below. 

WTA measures can be derived for each attribute level by dividing the coefficient of the attribute by the price coefficient and multiplying by 1 (Colombo et al., 2005). 

The first and most obvious potential economic incentive for participating in a particular marketing channel is the expected or actual output price received. 

Where this is not possible logistically, companies and intermediaries could try to improve ties with farmers through other trust-building mechanisms, such as more frequent personal interactions and more transparent pricing and grading procedures.