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Small Farmers and Big Retail: trade-offs of supplying supermarkets in Nicaragua AgEcon
Michelson, Hope; Reardon, Thomas; Perez, Francisco Jose.
In Nicaragua and elsewhere in Central America, small-scale farmers are weighing the risks of entering into contracts with supermarket chains. We use unique data on negotiated prices from Nicaraguan farm cooperatives supplying supermarkets to study the impact of supply agreements on producers’ mean output prices and price stability. We find that prices paid by the domestic retail chain approximate the traditional market in mean and variance. In contrast, we find that mean prices paid by Wal-mart are significantly lower than the traditional market but that Wal-Mart systematically reduces price volatility compared with the traditional market. We find some evidence, however, that farmers may be paying too much for this contractual insurance against price...
Tipo: Working or Discussion Paper Palavras-chave: Nicaragua; Supermarkets; Wal-Mart; Modern Retail; Market Risk; Contracts; Supply Chains; Agribusiness; International Development.
Ano: 2010 URL: http://purl.umn.edu/62124
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Milk Farmers' Risk Attitudes: Influence of the Dairy Processing Company AgEcon
Belhenniche, Geoffroy; Duvaleix-Treguer, Sabine; Cordier, Jean.
European market deregulation is destabilizing the economic environment of French farmers leading to an increase in market risks. In the dairy sector, the 2003 CAP reform has lead to major changes (removal of export subsidies and increase in the European milk quota). The dairy supply chain is now coping with higher production and price risks. The dairy supply chain is thinking of new management tools in order to both maintain stability in dairy farm income and secure supply to industrial facilities. One solution may be to strengthen marketing contracts. In this perspective, the knowledge of dairy farmers' risk attitudes is necessary. The goal of this paper is to provide empirical insight into: dairy farmers‘ perceptions of risk and risk management, and the...
Tipo: Book Palavras-chave: Market Risk; Farmers' risk perceptions; Expected utility framework; Risk preference elicitation; Dairy Sector; Agribusiness; Agricultural and Food Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Risk and Uncertainty.
Ano: 2009 URL: http://purl.umn.edu/58711
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