Gisele Hidalgo, J. Monticelli, Juliana Pedroso, J. Verschoore, Celso Augusto de Matos
Abstract Recent academic research presents a large volume of studies on the organic market from the perspective of consumers’ motivation and purchasing preferences. However, these studies adopt a competitive or cooperative approach, but overlook the institutional complexity of emerging markets. This study aims to investigate the organic food production chain of emerging countries from the perspective of coopetition, taking into account the influence of formal institution agents. We focused our analysis on the chain of the organic food products, with the organic ice-cream producer as the key node of the chain. It is a single-case study conducted through in loco interviews with participants in the organic food products’ chain, along with secondary data. The results show the influence of formal institution agents and non-financial incentives as primary drivers of entrepreneurial strategic decisions. We contributed to the coopetition literature by demonstrating the influence of formal institution agents on value creation and value capture in the organic chain.
{"title":"The Influence of Formal Institution Agents on Coopetition in the Organic Food Industry","authors":"Gisele Hidalgo, J. Monticelli, Juliana Pedroso, J. Verschoore, Celso Augusto de Matos","doi":"10.1515/jafio-2019-0009","DOIUrl":"https://doi.org/10.1515/jafio-2019-0009","url":null,"abstract":"Abstract Recent academic research presents a large volume of studies on the organic market from the perspective of consumers’ motivation and purchasing preferences. However, these studies adopt a competitive or cooperative approach, but overlook the institutional complexity of emerging markets. This study aims to investigate the organic food production chain of emerging countries from the perspective of coopetition, taking into account the influence of formal institution agents. We focused our analysis on the chain of the organic food products, with the organic ice-cream producer as the key node of the chain. It is a single-case study conducted through in loco interviews with participants in the organic food products’ chain, along with secondary data. The results show the influence of formal institution agents and non-financial incentives as primary drivers of entrepreneurial strategic decisions. We contributed to the coopetition literature by demonstrating the influence of formal institution agents on value creation and value capture in the organic chain.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":"20 1","pages":"61 - 74"},"PeriodicalIF":0.0,"publicationDate":"2020-07-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0009","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49053565","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This introductory article frames the special issue on “The sustainability performance of food quality schemes” by reflecting on the normative, systemic and procedure aspects and challenges of sustainability assessment frameworks in agriculture and the food system.
{"title":"Introduction and Overview of the Special Issue: Challenges to Assessing the Sustainability Performance of Food Quality Schemes","authors":"E. Mathijs","doi":"10.1515/jafio-2019-0036","DOIUrl":"https://doi.org/10.1515/jafio-2019-0036","url":null,"abstract":"Abstract This introductory article frames the special issue on “The sustainability performance of food quality schemes” by reflecting on the normative, systemic and procedure aspects and challenges of sustainability assessment frameworks in agriculture and the food system.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":"19 1","pages":"75 - 77"},"PeriodicalIF":0.0,"publicationDate":"2020-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0036","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44012444","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
D. Bougherara, Carole Ropars-Collet, Jude Saint-Gilles
Abstract We use two Almost Ideal Demand Systems models on scanner data to analyze the demand for two food products (milk and coffee). Each demand system is composed of four products varying in the presence of an ecolabel (with or without) and the brand (national brand vs. private label). First, we aim to compare the demand for PL and NB ecolabeled products. While PLs are brands owned and controlled by retailers and specific to each retailer, NBs are owned and controlled by manufacturers and can be offered by several retailers. Second, we aim to assess the impact of information campaigns designed to raise awareness and knowledge of ecolabels. We find that demand is more elastic for ecolabeled goods as in the literature but we find this result only for NB goods (milk and coffee) and not for PL goods. We also find substitutability between ecolabeled and conventional goods as in the literature but only within the NB goods (milk only) and within the PL goods (milk and coffee). We also find complementarity between NB conventional and PL ecolabeled goods (milk and coffee). Finally, we find that information campaigns increase the predicted expenditure shares of PL organic milk by 33% and of NB fair trade coffee by 50%. But these effects are non-lasting.
{"title":"Impact of Private Labels and Information Campaigns on Organic and Fair Trade Food Demand","authors":"D. Bougherara, Carole Ropars-Collet, Jude Saint-Gilles","doi":"10.1515/JAFIO-2019-0018","DOIUrl":"https://doi.org/10.1515/JAFIO-2019-0018","url":null,"abstract":"Abstract We use two Almost Ideal Demand Systems models on scanner data to analyze the demand for two food products (milk and coffee). Each demand system is composed of four products varying in the presence of an ecolabel (with or without) and the brand (national brand vs. private label). First, we aim to compare the demand for PL and NB ecolabeled products. While PLs are brands owned and controlled by retailers and specific to each retailer, NBs are owned and controlled by manufacturers and can be offered by several retailers. Second, we aim to assess the impact of information campaigns designed to raise awareness and knowledge of ecolabels. We find that demand is more elastic for ecolabeled goods as in the literature but we find this result only for NB goods (milk and coffee) and not for PL goods. We also find substitutability between ecolabeled and conventional goods as in the literature but only within the NB goods (milk only) and within the PL goods (milk and coffee). We also find complementarity between NB conventional and PL ecolabeled goods (milk and coffee). Finally, we find that information campaigns increase the predicted expenditure shares of PL organic milk by 33% and of NB fair trade coffee by 50%. But these effects are non-lasting.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":"20 1","pages":"39 - 59"},"PeriodicalIF":0.0,"publicationDate":"2020-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/JAFIO-2019-0018","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44795997","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract We pair IRI household purchase records with Nielsen TDLinx data on the retail food environment to investigate the associations between retail market structure and Americans’ adherence to the Dietary Guidelines. We focus specifically on fruit and vegetable consumption, as proxied by purchases. Controlling for various household characteristics, we find that increased market concentration is associated with lower produce consumption and weaker adherence to recommendations. We also find a number of small but significant associations with respect to the presence of nontraditional retail formats.
{"title":"Adherence to Dietary Recommendations and Food Retail Market Structure: Is There a Connection?","authors":"R. Volpe, Xiaowei Cai, C. Schroeter, Lisa Mancino","doi":"10.1515/jafio-2019-0035","DOIUrl":"https://doi.org/10.1515/jafio-2019-0035","url":null,"abstract":"Abstract We pair IRI household purchase records with Nielsen TDLinx data on the retail food environment to investigate the associations between retail market structure and Americans’ adherence to the Dietary Guidelines. We focus specifically on fruit and vegetable consumption, as proxied by purchases. Controlling for various household characteristics, we find that increased market concentration is associated with lower produce consumption and weaker adherence to recommendations. We also find a number of small but significant associations with respect to the presence of nontraditional retail formats.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":"20 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0035","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41612641","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This article develops a theoretical model to analyze how policies such as regional labeling, geographic indications, and quality standards affect welfare when firms have a collective reputation corresponding to a region. The tradeoff is between consumer information and protection of the regional names against the effect of supply restriction, which is often considered to be collusive behavior. Regional labeling is found to increase quality for all firms and increases profits for firms in the high-quality producing region, although the effect on profits for firms in the low-quality producing region is ambiguous. Quality standards may also increase quality and profits in all regions, but can also be used as a way to restrict imports if standards are too high. Quotas can also alleviate the collective information problem and increase profits, but does so at the expense of consumers. We argue that clear labeling and achievable standards are preferable to import quotas due to consumer surplus.
{"title":"Economic Implications of Protecting Regional Reputations","authors":"Jason A. Winfree, J. McCluskey","doi":"10.1515/jafio-2019-0051","DOIUrl":"https://doi.org/10.1515/jafio-2019-0051","url":null,"abstract":"Abstract This article develops a theoretical model to analyze how policies such as regional labeling, geographic indications, and quality standards affect welfare when firms have a collective reputation corresponding to a region. The tradeoff is between consumer information and protection of the regional names against the effect of supply restriction, which is often considered to be collusive behavior. Regional labeling is found to increase quality for all firms and increases profits for firms in the high-quality producing region, although the effect on profits for firms in the low-quality producing region is ambiguous. Quality standards may also increase quality and profits in all regions, but can also be used as a way to restrict imports if standards are too high. Quotas can also alleviate the collective information problem and increase profits, but does so at the expense of consumers. We argue that clear labeling and achievable standards are preferable to import quotas due to consumer surplus.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0051","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47968976","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Imperfect competition in the agricultural input procurement market is prevalent, especially at the local and regional scale. While there is much theoretical work on the positive effect of cooperatives on spatial competition, applied research is relatively scarce. We address the gap in the literature with an empirical study of cash prices in the Iowa corn market. With 589 observations from the 2018 harvest season, we construct a spatial model of price competition among grain handlers within a 20-mile radius. Among other findings, we conclude the ownership structure of Iowa grain handlers is important to explain the spatial dependence in corn cash prices. On average, cooperative grain handlers offer a lower corn cash price as compared to corporate grain handlers (¢1.20–1.72 per bushel), which is likely offset by refunds and dividends at the end of the fiscal year. At the same time, cooperative grain handlers force an adjustment in the behaviour and pricing strategy of nearby competitors. Cooperative grain handlers on average facilitate a significant increase of ¢0.65–2.08 per bushel in the corn cash price of competitors within a 5–17 mile radius. Our novel findings inform recommendations in terms of spatial entry and location decisions by cooperative grain handlers.
{"title":"The Competitive Impact of Cooperatives on the Spot Market: A Spatial Analysis of Iowa Corn Prices","authors":"J. Grashuis","doi":"10.1515/jafio-2019-0063","DOIUrl":"https://doi.org/10.1515/jafio-2019-0063","url":null,"abstract":"Abstract Imperfect competition in the agricultural input procurement market is prevalent, especially at the local and regional scale. While there is much theoretical work on the positive effect of cooperatives on spatial competition, applied research is relatively scarce. We address the gap in the literature with an empirical study of cash prices in the Iowa corn market. With 589 observations from the 2018 harvest season, we construct a spatial model of price competition among grain handlers within a 20-mile radius. Among other findings, we conclude the ownership structure of Iowa grain handlers is important to explain the spatial dependence in corn cash prices. On average, cooperative grain handlers offer a lower corn cash price as compared to corporate grain handlers (¢1.20–1.72 per bushel), which is likely offset by refunds and dividends at the end of the fiscal year. At the same time, cooperative grain handlers force an adjustment in the behaviour and pricing strategy of nearby competitors. Cooperative grain handlers on average facilitate a significant increase of ¢0.65–2.08 per bushel in the corn cash price of competitors within a 5–17 mile radius. Our novel findings inform recommendations in terms of spatial entry and location decisions by cooperative grain handlers.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":"18 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0063","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66825565","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract An empirical specification of the conjectural variations model, which conforms to microeconomic theory, is estimated for the US catfish industry. We find the existence of market power exerted by US catfish processors. Processors force the price paid to catfish growers down by 52.88 cent per pound of live catfish, which costs US catfish growers about $300 million a year. US catfish growers can deter the negative effects of processors’ market power by increasing their farm supply flexibility. Further studies are needed to address the dynamics and competitive game strategies in the US catfish industry.
{"title":"Testing Market Power and Welfare Effects in the US Catfish Industry","authors":"G. Nguyen, C. Jolly, T. Nguyen","doi":"10.1515/jafio-2019-0025","DOIUrl":"https://doi.org/10.1515/jafio-2019-0025","url":null,"abstract":"Abstract An empirical specification of the conjectural variations model, which conforms to microeconomic theory, is estimated for the US catfish industry. We find the existence of market power exerted by US catfish processors. Processors force the price paid to catfish growers down by 52.88 cent per pound of live catfish, which costs US catfish growers about $300 million a year. US catfish growers can deter the negative effects of processors’ market power by increasing their farm supply flexibility. Further studies are needed to address the dynamics and competitive game strategies in the US catfish industry.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0025","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42971154","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract In this work, we analyse EU soybean and maize imports using a demand system borrowed from the differential approach to firm theory. Alongside providing own-price and cross-price (i. e. cross-country) elasticities for these two products, we test whether source-specific characteristics exert any influence on complementarity and substitution patterns between international exporters. Specifically, we look at country differences stemming from supply chain efficiency and the asynchronous approval of Genetically Modified (GM) varieties. We do so by introducing two measurements for such features into a linear demand model specified by Laitinen and Theil (1978). Estimation results suggest that the EU import structure is not affected by differences in supply chain efficiency between overseas suppliers while, depending on the product, asynchronous approval does seem to have an influence. We find that imports of maize are more sensitive than those of soybeans to differences in approval statuses between international exporters and the EU. Since soybean availability is a limiting factor for the EU feed industry, avoiding stock shortages may be a priority for European importers, hence the weaker effect of asynchronous approval. On the other hand, the substantial EU self-sufficiency for maize places more emphasis on product characteristics and prices.
{"title":"The Determinants of the EU Import Demand for Soybean and Maize: What Role for GMOs?","authors":"A. Varacca, P. Sckokai","doi":"10.1515/jafio-2019-0013","DOIUrl":"https://doi.org/10.1515/jafio-2019-0013","url":null,"abstract":"Abstract In this work, we analyse EU soybean and maize imports using a demand system borrowed from the differential approach to firm theory. Alongside providing own-price and cross-price (i. e. cross-country) elasticities for these two products, we test whether source-specific characteristics exert any influence on complementarity and substitution patterns between international exporters. Specifically, we look at country differences stemming from supply chain efficiency and the asynchronous approval of Genetically Modified (GM) varieties. We do so by introducing two measurements for such features into a linear demand model specified by Laitinen and Theil (1978). Estimation results suggest that the EU import structure is not affected by differences in supply chain efficiency between overseas suppliers while, depending on the product, asynchronous approval does seem to have an influence. We find that imports of maize are more sensitive than those of soybeans to differences in approval statuses between international exporters and the EU. Since soybean availability is a limiting factor for the EU feed industry, avoiding stock shortages may be a priority for European importers, hence the weaker effect of asynchronous approval. On the other hand, the substantial EU self-sufficiency for maize places more emphasis on product characteristics and prices.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":"18 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0013","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42393335","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The objective of this paper is to present a descriptive review of all the studies published on wine price determinants. The selection process has been carefully designed to assure that we cover the complete literature of hedonic price functions and wine price determinants. Because of the heterogeneity among these studies, the objective was to classify all the determinants in clusters related to geographical and agricultural factors, time horizon, public information and, supply factors (production costs and volume of production). For this review, we have identified a list of 117 papers published on price determinants over the period 1993 to 2018.
{"title":"Hedonic Price Functions and Wine Price Determinants: A Review of Empirical Research","authors":"J. Outreville, É. Le Fur","doi":"10.1515/jafio-2019-0028","DOIUrl":"https://doi.org/10.1515/jafio-2019-0028","url":null,"abstract":"Abstract The objective of this paper is to present a descriptive review of all the studies published on wine price determinants. The selection process has been carefully designed to assure that we cover the complete literature of hedonic price functions and wine price determinants. Because of the heterogeneity among these studies, the objective was to classify all the determinants in clusters related to geographical and agricultural factors, time horizon, public information and, supply factors (production costs and volume of production). For this review, we have identified a list of 117 papers published on price determinants over the period 1993 to 2018.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2019-0028","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47655801","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract We build upon existing theories of merger and acquisition (M&A) to examine the differences in environmental performance between targets and acquirers in the Food and Beverage processing (F&B) industry. In a cream-skimming strategy, acquiring a firm with better environmental performance may add to the acquirer’s existing green efforts and improve their environmental capabilities. In a turnaround strategy, an acquirer may buy businesses from a dirtier firm and later bring them up to the buyer’s environmental standard. Among a set of 13 M&A deals in the F&B industry, we identify deals where targets have poorer or better environmental performance (toxic chemical management) than their acquirers. Our finding suggests that, among the given set of firms, there is some evidence of improvements in the toxic chemical management rate of targets and acquirers.
{"title":"Environmental Performance of Food and Beverage Firms in Merger and Acquisition Deals","authors":"L. Eng, Mahelet G. Fikru","doi":"10.1515/jafio-2017-0037","DOIUrl":"https://doi.org/10.1515/jafio-2017-0037","url":null,"abstract":"Abstract We build upon existing theories of merger and acquisition (M&A) to examine the differences in environmental performance between targets and acquirers in the Food and Beverage processing (F&B) industry. In a cream-skimming strategy, acquiring a firm with better environmental performance may add to the acquirer’s existing green efforts and improve their environmental capabilities. In a turnaround strategy, an acquirer may buy businesses from a dirtier firm and later bring them up to the buyer’s environmental standard. Among a set of 13 M&A deals in the F&B industry, we identify deals where targets have poorer or better environmental performance (toxic chemical management) than their acquirers. Our finding suggests that, among the given set of firms, there is some evidence of improvements in the toxic chemical management rate of targets and acquirers.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2017-0037","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46221711","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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