Dorothee Schulze Schwering, Anna Hollenbeck, Saskia Krone, A. Spiller, D. Lemken
Digital technologies are revolutionizing agricultural trade, enabling farm input suppliers to reach customers through multiple channels. The aim of this study was to segment farmers based on their purchasing behavior for crop protection products and to examine segment-specific characteristics in the digital environment. A cluster analysis of 590 German farm managers was used to identify five distinctive buyer segments based on five characteristics: dealer, brand and service orientation, price affinity and autonomous decision making. The results demonstrate that farmers place high value on personal contacts to stationary suppliers when purchasing crop protection products. Service orientation turned out to be a strong mediator of segment membership, while price and product brand are secondary to farmer segmentation. However, traditional typologies are only suitable for the digitization topic to a limited extent, as digital search and information behavior hardly differs. Even though digital information procurement is becoming increasingly interesting for all segments, an openness to e-commerce applies only to a small group of independent buyers. Concerning e-commerce attitudes, the perception of its advantages and the lack of personal contact differentiates the clusters the most. The results contribute to the scientific understanding of farmers’ information and purchasing behavior and provide initial approaches for the development of customer-centric corporate marketing strategies.
{"title":"Crop protection market segmentation: relationship between buyer segments and the use of digital sales channels","authors":"Dorothee Schulze Schwering, Anna Hollenbeck, Saskia Krone, A. Spiller, D. Lemken","doi":"10.22434/ifamr2021.0095","DOIUrl":"https://doi.org/10.22434/ifamr2021.0095","url":null,"abstract":"Digital technologies are revolutionizing agricultural trade, enabling farm input suppliers to reach customers through multiple channels. The aim of this study was to segment farmers based on their purchasing behavior for crop protection products and to examine segment-specific characteristics in the digital environment. A cluster analysis of 590 German farm managers was used to identify five distinctive buyer segments based on five characteristics: dealer, brand and service orientation, price affinity and autonomous decision making. The results demonstrate that farmers place high value on personal contacts to stationary suppliers when purchasing crop protection products. Service orientation turned out to be a strong mediator of segment membership, while price and product brand are secondary to farmer segmentation. However, traditional typologies are only suitable for the digitization topic to a limited extent, as digital search and information behavior hardly differs. Even though digital information procurement is becoming increasingly interesting for all segments, an openness to e-commerce applies only to a small group of independent buyers. Concerning e-commerce attitudes, the perception of its advantages and the lack of personal contact differentiates the clusters the most. The results contribute to the scientific understanding of farmers’ information and purchasing behavior and provide initial approaches for the development of customer-centric corporate marketing strategies.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"20 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2022-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75279978","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Within the German wine industry, more and more wine estates engage in collaborations to secure grape and wine qualities and quantities to meet the market demands, creating vertically coordinated supply chain networks. The focus of many scholars in this field is mainly set on structural arrangements and less on relational management mechanisms, as studies of structures and their implementation are more readily undertaken and quantified. Both structural and relational mechanisms and their influence on the different levels such as network-, dyad- and firm-level are researched. In the agri-food industry, small- and medium-sized businesses, often family-led, prevail, amplifying the influence of single decision-makers on cooperative decisions. In such a setting, personal relationships and social bonds are stronger than in classical B2B relationships in other industries. Research on chain management does not, generally, take the interpersonal or individual influence of decisions-makers into account. However, recent and emerging literature indicates an influence of managers on chain management. Hence, the questions arise how do managers affect decisions and how can the interpersonal influence be managed? This paper aims to expand the theoretical framework of chain management including the impacts of behavioural and interpersonal aspects in decision-making regarding relationship management.
{"title":"The perfect match: interpersonal relationships and their impact on chain management","authors":"Linda Bitsch, J. Hanf","doi":"10.22434/ifamr2020.0204","DOIUrl":"https://doi.org/10.22434/ifamr2020.0204","url":null,"abstract":"Within the German wine industry, more and more wine estates engage in collaborations to secure grape and wine qualities and quantities to meet the market demands, creating vertically coordinated supply chain networks. The focus of many scholars in this field is mainly set on structural arrangements and less on relational management mechanisms, as studies of structures and their implementation are more readily undertaken and quantified. Both structural and relational mechanisms and their influence on the different levels such as network-, dyad- and firm-level are researched. In the agri-food industry, small- and medium-sized businesses, often family-led, prevail, amplifying the influence of single decision-makers on cooperative decisions. In such a setting, personal relationships and social bonds are stronger than in classical B2B relationships in other industries. Research on chain management does not, generally, take the interpersonal or individual influence of decisions-makers into account. However, recent and emerging literature indicates an influence of managers on chain management. Hence, the questions arise how do managers affect decisions and how can the interpersonal influence be managed? This paper aims to expand the theoretical framework of chain management including the impacts of behavioural and interpersonal aspects in decision-making regarding relationship management.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"15 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2022-03-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82692128","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Priscila Duarte Malanski, S. Schiavi, B. Dedieu, J. C. Damasceno
Addressing labor issues is crucial to agrifood value chain analysis, improvements and sustainability. However, the specific contribution of value chain approaches to discussions on labor in agriculture is still a research gap. To fill this gap, we reviewed the international literature on labor in agrifood value chains. We performed a scientometric analysis of the articles indexed in Scopus, which was composed by a bibliometric, diachronic and synchronic analysis. The main results show that labor in agrifood value chains is a relative new scientific community. Researchers’ interest evolved around three hotspots over the past 20 years, and five consolidated research domains. Our review provides an overview about the main characteristics of a rising scientific community, and a synthesis of knowledge produced to support scientific innovation on labor in agrifood value chains. Regarding chain agents, our results stress the importance of governance for improving employment and working conditions to promote chain sustainability.
{"title":"Labor in agrifood value chains: a scientometric review from Scopus","authors":"Priscila Duarte Malanski, S. Schiavi, B. Dedieu, J. C. Damasceno","doi":"10.22434/ifamr2021.0066","DOIUrl":"https://doi.org/10.22434/ifamr2021.0066","url":null,"abstract":"Addressing labor issues is crucial to agrifood value chain analysis, improvements and sustainability. However, the specific contribution of value chain approaches to discussions on labor in agriculture is still a research gap. To fill this gap, we reviewed the international literature on labor in agrifood value chains. We performed a scientometric analysis of the articles indexed in Scopus, which was composed by a bibliometric, diachronic and synchronic analysis. The main results show that labor in agrifood value chains is a relative new scientific community. Researchers’ interest evolved around three hotspots over the past 20 years, and five consolidated research domains. Our review provides an overview about the main characteristics of a rising scientific community, and a synthesis of knowledge produced to support scientific innovation on labor in agrifood value chains. Regarding chain agents, our results stress the importance of governance for improving employment and working conditions to promote chain sustainability.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"8 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80076472","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
R. Vavrek, I. Vozarova, R. Kotulič, P. Adamišin, M. Dubravská, V. Ivanková
In practice, different methods are used to assess the financial health of a company, and the fact that models use the various indicators complicates the comparison of their results. The aim of this paper was to identify the financial health of agricultural enterprises operating in the Slovak Republic using three selected creditworthy models (the Altman model, Taffler model and Bonity Index). It was concluded that the differences in the evaluations of agricultural enterprises using individual creditworthy models were significant. The analysis was supplemented by the spatial distribution of the enterprises at the level of individual regions of the Slovak Republic. It was confirmed that the spatial differences in the evaluations of agricultural enterprises using individual creditworthy models were not statistically significant and were therefore random. The proposal of own assessment of regions is based on the combination of the obtained results and their spatial distribution. We assume that such comprehensive assessment over a longer period of time may be an appropriate tool for assessing the financial health of agricultural enterprises, thus contribute to the early identification of potential risks and the long-term economic sustainability. This study can be the contribution in helping to design policies or effective solve the important challenges of agricultural enterprises to the path of sustainable development of the regions and to environmental management.
{"title":"Assessing the financial health of agricultural enterprises incorporating the spatial dimension","authors":"R. Vavrek, I. Vozarova, R. Kotulič, P. Adamišin, M. Dubravská, V. Ivanková","doi":"10.22434/ifamr2020.0030","DOIUrl":"https://doi.org/10.22434/ifamr2020.0030","url":null,"abstract":"In practice, different methods are used to assess the financial health of a company, and the fact that models use the various indicators complicates the comparison of their results. The aim of this paper was to identify the financial health of agricultural enterprises operating in the Slovak Republic using three selected creditworthy models (the Altman model, Taffler model and Bonity Index). It was concluded that the differences in the evaluations of agricultural enterprises using individual creditworthy models were significant. The analysis was supplemented by the spatial distribution of the enterprises at the level of individual regions of the Slovak Republic. It was confirmed that the spatial differences in the evaluations of agricultural enterprises using individual creditworthy models were not statistically significant and were therefore random. The proposal of own assessment of regions is based on the combination of the obtained results and their spatial distribution. We assume that such comprehensive assessment over a longer period of time may be an appropriate tool for assessing the financial health of agricultural enterprises, thus contribute to the early identification of potential risks and the long-term economic sustainability. This study can be the contribution in helping to design policies or effective solve the important challenges of agricultural enterprises to the path of sustainable development of the regions and to environmental management.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"33 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81415449","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Norwegian government operates pelagic fishery management systems designed to avoid overfishing and foster sustainable annual landings while at the same time managing an export promotion program designed to increase foreign sales of herring and mackerel. Simultaneously promoting foreign sales of pelagic fish and limiting the availability of those fish for sale are policies in apparent conflict. This research demonstrates, however, that effective limits on the availability of pelagic fish for export tend to complement the profitenhancing export promotion objectives of the Norwegian Seafood Council (NSC) for the Norwegian herring and mackerel industries. Assuming highly (but not perfectly) effective limits on herring and mackerel exports arising from their respective fishery management systems over the 2003 to 2018 period of analysis, NSC herring and mackerel export promotion contributed 5-7% to Norwegian herring export revenue and industry profit, respectively and 11-15% to Norwegian mackerel export revenue and industry profit, respectively. Less effective limitation on Norwegian herring and mackerel export supplies would erode the respective industry revenue and profit gains from NSC export promotion. In essence, the NSC effectively exploits the limits on herring and mackerel export availability imposed by Norwegian fishery management systems for the benefit of Norwegian herring and mackerel industries.
{"title":"The apparent conflict of Norwegian pelagic fisheries management and Norwegian seafood council export promotion","authors":"Gary W. Williams, O. Capps","doi":"10.22434/ifamr2021.0059","DOIUrl":"https://doi.org/10.22434/ifamr2021.0059","url":null,"abstract":"The Norwegian government operates pelagic fishery management systems designed to avoid overfishing and foster sustainable annual landings while at the same time managing an export promotion program designed to increase foreign sales of herring and mackerel. Simultaneously promoting foreign sales of pelagic fish and limiting the availability of those fish for sale are policies in apparent conflict. This research demonstrates, however, that effective limits on the availability of pelagic fish for export tend to complement the profitenhancing export promotion objectives of the Norwegian Seafood Council (NSC) for the Norwegian herring and mackerel industries. Assuming highly (but not perfectly) effective limits on herring and mackerel exports arising from their respective fishery management systems over the 2003 to 2018 period of analysis, NSC herring and mackerel export promotion contributed 5-7% to Norwegian herring export revenue and industry profit, respectively and 11-15% to Norwegian mackerel export revenue and industry profit, respectively. Less effective limitation on Norwegian herring and mackerel export supplies would erode the respective industry revenue and profit gains from NSC export promotion. In essence, the NSC effectively exploits the limits on herring and mackerel export availability imposed by Norwegian fishery management systems for the benefit of Norwegian herring and mackerel industries.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"2016 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2022-02-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86502559","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The aim of this study is to analyse the volatility of agricultural commodity prices and assess the effectiveness of supply chain contracts as possible tools to prevent it. The study refers to the cereal sector, which is of vital importance for the agri-food system of the Mediterranean area. Since Italy is the world’s largest producer of durum wheat semolina, the proper functioning of the Italian durum wheat supply chain is central to this investigation. The study was conducted following two different paths of analysis: (1) the calculation of volatility indices using annual and monthly data of durum wheat prices, both organic and industrial, observed in the Bologna Commodity Exchange (AGER); (2) the analysis of two organic durum wheat supply chain contracts, defined by a cooperative involving hundreds of Italian farms mainly from the Marche region and by an agricultural consortium operating in the Adriatic regions. Despite the limited number of cases examined, the present study shows how supply chain contracts can be valid tools for building stable relationships between the various players, from production to processing and distribution, guaranteeing farms fairer and more remunerative raw material purchase prices and higher quality standards.
{"title":"Finding the right price: supply chain contracts as a tool to guarantee sustainable economic viability of organic farms","authors":"E. Viganò, Martina Maccaroni, Selene Righi","doi":"10.22434/ifamr2021.0103","DOIUrl":"https://doi.org/10.22434/ifamr2021.0103","url":null,"abstract":"The aim of this study is to analyse the volatility of agricultural commodity prices and assess the effectiveness of supply chain contracts as possible tools to prevent it. The study refers to the cereal sector, which is of vital importance for the agri-food system of the Mediterranean area. Since Italy is the world’s largest producer of durum wheat semolina, the proper functioning of the Italian durum wheat supply chain is central to this investigation. The study was conducted following two different paths of analysis: (1) the calculation of volatility indices using annual and monthly data of durum wheat prices, both organic and industrial, observed in the Bologna Commodity Exchange (AGER); (2) the analysis of two organic durum wheat supply chain contracts, defined by a cooperative involving hundreds of Italian farms mainly from the Marche region and by an agricultural consortium operating in the Adriatic regions. Despite the limited number of cases examined, the present study shows how supply chain contracts can be valid tools for building stable relationships between the various players, from production to processing and distribution, guaranteeing farms fairer and more remunerative raw material purchase prices and higher quality standards.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"20 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2022-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90238675","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Caetano Haberli Júnior, Eduardo Eugênio Spers, L. M. de Lima, Débora da Costa Simões, M. F. Neves
The aim of this article is to understand how rural producers in Brazil generate their investment expectations in terms of their costs, productivity, and other macroeconomic variables related to agricultural production. This study contributes to the formulation of more efficient public policies that take into account not only market information, but also the expectations of farmers. Based on data from a survey that calculates the rural producer confidence index in Brazil, non-parametric tests were performed to assess the equality of responses attributed by them in different periods, configured as crop development and harvest start, during 2014 and 2017. The results indicate that the farmer’s behavior is sensitive to changes in the market and his business. Productivity is seen as a long-term expectation. The cost of production and the sale price have generated short and medium-term expectations.
{"title":"Brazilian farmer confidence in business performance","authors":"Caetano Haberli Júnior, Eduardo Eugênio Spers, L. M. de Lima, Débora da Costa Simões, M. F. Neves","doi":"10.22434/ifamr2021.0041","DOIUrl":"https://doi.org/10.22434/ifamr2021.0041","url":null,"abstract":"The aim of this article is to understand how rural producers in Brazil generate their investment expectations in terms of their costs, productivity, and other macroeconomic variables related to agricultural production. This study contributes to the formulation of more efficient public policies that take into account not only market information, but also the expectations of farmers. Based on data from a survey that calculates the rural producer confidence index in Brazil, non-parametric tests were performed to assess the equality of responses attributed by them in different periods, configured as crop development and harvest start, during 2014 and 2017. The results indicate that the farmer’s behavior is sensitive to changes in the market and his business. Productivity is seen as a long-term expectation. The cost of production and the sale price have generated short and medium-term expectations.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"15 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2021-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74381500","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Alam, M. Gómez, Marco Tulio Ospina Patino, Milla Reis de Alcântara, I. A. Begum
The orange juice chain is a representative sector of the Brazilian agribusiness sector and its performance warrants analysis to identify strategies to enhance its competitiveness. Analysis of asymmetry in food value chain is important because it provides valuable information on market structure and performance. We use an asymmetric threshold error correction model to examine threshold, short- and long-run asymmetries on price transmission from international to domestic prices of oranges in Brazil. We use monthly data on international frozen concentrated orange juice prices and domestic prices of oranges in Brazil for the period from January 1996 to December 2020 in the analysis. We find evidence of threshold and asymmetries in short- and long-run price transmission and asymmetric adjustment towards a long-run relationship between international and domestic orange prices in Brazil. Decreases in international prices that lead to reductions in marketing margins are passed on quickly to domestic prices, but this is not the case for increases in international prices. We discuss implications for the Brazilian citrus industry.
{"title":"Price transmission between international and domestic prices in the Brazilian citrus sector","authors":"M. Alam, M. Gómez, Marco Tulio Ospina Patino, Milla Reis de Alcântara, I. A. Begum","doi":"10.22434/ifamr2020.0156","DOIUrl":"https://doi.org/10.22434/ifamr2020.0156","url":null,"abstract":"The orange juice chain is a representative sector of the Brazilian agribusiness sector and its performance warrants analysis to identify strategies to enhance its competitiveness. Analysis of asymmetry in food value chain is important because it provides valuable information on market structure and performance. We use an asymmetric threshold error correction model to examine threshold, short- and long-run asymmetries on price transmission from international to domestic prices of oranges in Brazil. We use monthly data on international frozen concentrated orange juice prices and domestic prices of oranges in Brazil for the period from January 1996 to December 2020 in the analysis. We find evidence of threshold and asymmetries in short- and long-run price transmission and asymmetric adjustment towards a long-run relationship between international and domestic orange prices in Brazil. Decreases in international prices that lead to reductions in marketing margins are passed on quickly to domestic prices, but this is not the case for increases in international prices. We discuss implications for the Brazilian citrus industry.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"8 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2021-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74740546","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study explored inter-organizational relationships (IOR) between farmers and agri-food processors in Ghana and their relative effect on participating farmers’ performance. The IOR were organized into three broad types: governance (formal/informal); orientation (price/quality/quantity); and structure (direct-to-buyer/farmer-based organization (FBO)/agent). The study showed that about 44% of farmers participated in IOR, and 72% of them use direct-to-buyer relationships compared to 25% and 5% who use FBO and agent. The total exceeds 100% because some farmers used multiple IOR structures. Likewise, more than half of farmers involved in IOR use multiple orientations, with 29%, 81% and 54% of them using orientations involving quantity, quality, and price specifications, respectively. Formal governance IOR accounted for 31% of IOR by governance. On performance, the average farm income of farmers involved in IOR was GHS 3,947, which was 3.1 times higher than non-IOR farmers, and those with formal arrangements had 6.4 times higher average farm income than farmers in informal relationships. IOR with formal governance and quality-price orientation presented positive and statistically significant effects on marginal benefits while producer demographic and socio-economic characteristics did not. These results provide instruction for policymakers and practitioners in helping inform farmers’ participation in IOR that produce superior outcomes.
{"title":"Typology and performance of inter-organizational relationships among Ghanaian farmers","authors":"A. A. Adaku, V. Amanor-Boadu","doi":"10.22434/ifamr2020.0170","DOIUrl":"https://doi.org/10.22434/ifamr2020.0170","url":null,"abstract":"This study explored inter-organizational relationships (IOR) between farmers and agri-food processors in Ghana and their relative effect on participating farmers’ performance. The IOR were organized into three broad types: governance (formal/informal); orientation (price/quality/quantity); and structure (direct-to-buyer/farmer-based organization (FBO)/agent). The study showed that about 44% of farmers participated in IOR, and 72% of them use direct-to-buyer relationships compared to 25% and 5% who use FBO and agent. The total exceeds 100% because some farmers used multiple IOR structures. Likewise, more than half of farmers involved in IOR use multiple orientations, with 29%, 81% and 54% of them using orientations involving quantity, quality, and price specifications, respectively. Formal governance IOR accounted for 31% of IOR by governance. On performance, the average farm income of farmers involved in IOR was GHS 3,947, which was 3.1 times higher than non-IOR farmers, and those with formal arrangements had 6.4 times higher average farm income than farmers in informal relationships. IOR with formal governance and quality-price orientation presented positive and statistically significant effects on marginal benefits while producer demographic and socio-economic characteristics did not. These results provide instruction for policymakers and practitioners in helping inform farmers’ participation in IOR that produce superior outcomes.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"9 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2021-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82290850","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yiqin Wang, Jingbin Wang, Dan Han, Shanshan Lv, Mo Chen, Shijiu Yin
China uses a multilevel agricultural certification system; however, its implications are not well understood. In this study, we used tomatoes as an example in a series of Becker-DeGroot-Marschak auction experiments to determine consumers’ willingness to pay (WTP) toward three safety certification labels and two kinds of brands. Then, based on the auction experiment results, we designed a menu-based choice experiment to assess the interaction relationships between the safety certification labels and brands. The results showed that consumers were generally willing to pay a premium for tomatoes with safety-certified labels (especially for organic labels) and brands (especially for the enterprise brand). Providing consumers with additional information regarding the certification remarkably improved their WTP for tomatoes with organic and green labels. The menu-based choice experiment suggested that the organic and green labels were found to be substitutes. In addition, organic and green labels could not substitute the enterprise brand, whereas the converse of this relationship was true. Finally, a mutual substitution relationship was observed between hazard-free label and enterprise brand. Our research enables producers to consider the interaction between certification strategies and brand strategies. Therefore, marketers and policymakers should take steps to promote and expand consumers’ knowledge on certification, as it could benefit the development of certified food.
{"title":"The interaction relationships among agricultural certification labels or brands: evidence from Chinese consumer preference for fresh produce","authors":"Yiqin Wang, Jingbin Wang, Dan Han, Shanshan Lv, Mo Chen, Shijiu Yin","doi":"10.22434/ifamr2021.0048","DOIUrl":"https://doi.org/10.22434/ifamr2021.0048","url":null,"abstract":"China uses a multilevel agricultural certification system; however, its implications are not well understood. In this study, we used tomatoes as an example in a series of Becker-DeGroot-Marschak auction experiments to determine consumers’ willingness to pay (WTP) toward three safety certification labels and two kinds of brands. Then, based on the auction experiment results, we designed a menu-based choice experiment to assess the interaction relationships between the safety certification labels and brands. The results showed that consumers were generally willing to pay a premium for tomatoes with safety-certified labels (especially for organic labels) and brands (especially for the enterprise brand). Providing consumers with additional information regarding the certification remarkably improved their WTP for tomatoes with organic and green labels. The menu-based choice experiment suggested that the organic and green labels were found to be substitutes. In addition, organic and green labels could not substitute the enterprise brand, whereas the converse of this relationship was true. Finally, a mutual substitution relationship was observed between hazard-free label and enterprise brand. Our research enables producers to consider the interaction between certification strategies and brand strategies. Therefore, marketers and policymakers should take steps to promote and expand consumers’ knowledge on certification, as it could benefit the development of certified food.","PeriodicalId":49187,"journal":{"name":"International Food and Agribusiness Management Review","volume":"17 1","pages":""},"PeriodicalIF":1.5,"publicationDate":"2021-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84440854","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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