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Agricultural Contracting Update: Contracts in 2003 AgEcon
MacDonald, James M.; Korb, Penelope J..
Marketing and production contracts covered 39 percent of the value of U.S. agricultural production in 2003, up from 36 percent in 2001 and a substantial increase over estimated values of 28 percent for 1991 and 11 percent in 1969. Large farms are far more likely to contract than small farms; in fact, contracts cover over half of the value of production from farms with at least $1 million in sales. Although use of both production and marketing contracts has grown over time, growth is more rapid for production contracts, which are largely used for livestock.
Tipo: Report Palavras-chave: Contracts; Contracting; Marketing contracts; Production contracts; Vertical integration; Vertical coordination; Market structure; Risk analysis; Price signals; Industrial Organization; Marketing.
Ano: 2006 URL: http://purl.umn.edu/33903
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ANALYSIS OF CHANGING METHODS OF VERTICAL COORDINATION IN THE PORK INDUSTRY AgEcon
Martinez, Stephen W.; Smith, Kevin E.; Zering, Kelly D..
This study examines the motivation behind contracts and vertical integration in the pork industry, and simulates the effects of potential improvements in coordination. Incentives related to lowering costs of measuring and sorting hogs, and protecting against opportunistic behavior associated with specific assets, can result in hog quality improvements. A framework for simulating the effects of increased coordination through contracts and vertical integration was developed and used to evaluate potential improvements in leanness. Although simulations suggest only modest changes in pork prices and supplies, gains in consumers' surplus could be substantial for larger demand shifts due to quality improvements.
Tipo: Journal Article Palavras-chave: Contracts; Hogs; Lean pork; Simulation model; Vertical coordination; Vertical integration; Industrial Organization; Livestock Production/Industries.
Ano: 1998 URL: http://purl.umn.edu/15561
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Challenges for chain based finance in the Romanian dairy chain AgEcon
Pieniadz, Agata; Hanf, Jon Henrich; Voicilas, Dan Marius; Goetz, Linde.
This paper investigates the different types of vertical coordination mechanism and the spread institutional arrangements (i.e. contracting) as well as identifies opportunities to expand innovative solutions that help to create and maintain the linkages among the famers and downstream businesses for dairy in Romania. In particular, we address the various modes of access to production factors, such as capital, specific inputs and know-how, as reasons for the varied development of Romanian dairy supply chains and its respective actors (farmers, processors). The paper draws on results from a recent study supported by the World Bank. The findings are based on semi-structured telephone and face-to-face interviews conducted in January-March 2009. The interviews...
Tipo: Conference Paper or Presentation Palavras-chave: Vertical coordination; Structural change; Farm assistance; Romania; Dairy.; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety.
Ano: 2009 URL: http://purl.umn.edu/58112
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Coordenação vertical e contratos informais na agricultura irrigada: um estudo de caso com aplicação do modelo Tobit AgEcon
Lima, Ricardo Chaves; Irmao, Jose Ferreira.
The theory of contracts assumes that human nature is essentially opportunistic, and economic agents protect themselves against adverse selection and moral hazard by elaborating contracts. In the case of irrigated areas in the Brazilian northeast, such contracts are not necessarily formal. That is, arrangements based on economic agent’s word are common. The data used are from acerola producers in the Petrolina-Juazeiro irrigation project. The empirical model was tobit, given that the dependent variable was characterized by a truncated distribution. The results showed that the decision to engage on contractual relations is fundamentally defined by the degree of dependence of the farmer in respect to the processing industry. Furthermore, past experience of...
Tipo: Journal Article Palavras-chave: Vertical coordination; Contracts; Irrigation; Tobit model; Industrial Organization.
Ano: 2004 URL: http://purl.umn.edu/56813
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Creole Coffee AgEcon
Kennedy, P. Lynn; Roule, Elizabeth D..
Creolé Coffee had just started to achieve regional and national success. However,recent volatility in the world coffee market resulted not only in price instabilities, but also created difficulty in procuring the high-quality product customers had grown to expect from Creolé. In examining this situation, Jim Brewer determined that the company must adapt their relationships with producers to ensure the availability of the quality and quantity of coffee needed to produce the premium blends consumers now associate with Creolé. In turn this would allow the company to provide consumers with a high quality product at a stable price.
Tipo: Journal Article Palavras-chave: Vertical coordination; Strategic alliances; Risk management; International trade; Commodity procurement.; Agribusiness; International Relations/Trade.
Ano: 2004 URL: http://purl.umn.edu/8119
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Does traceability play a role in retailer’s strategies for private labels? AgEcon
Banterle, Alessandro; Souza Monteiro, Diogo M.; Stranieri, Stefanella.
Traceability is helping retailers manage food safety risks and support product differentiation. This paper aims to investigate how traceability may be used to screen supplier for private labels dedicated provider pools. Retailers in the UK and Italy have several private label product lines and increasingly select dedicated suppliers. The choice of providers is a typical agency problem as retailers contract the production for their private labels, having incomplete information on types and effort of their suppliers. Different contracts must be designed for suppliers of private labels depending on position of the product line and its food safety risk. A case study, based on the second largest Italian retailer reveals that traceability and quality assurance...
Tipo: Conference Paper or Presentation Palavras-chave: Traceability; Dedicated providers; Food products; Retailing; Vertical coordination; Marketing; Q13; Q18; L81; L66; L15.
Ano: 2009 URL: http://purl.umn.edu/50933
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ESTIMATED IMPACT OF NON-PRICE COORDINATION OF FED CATTLE PURCHASES ON MEAT PACKER PROCESSING COSTS AgEcon
Anderson, John D.; Trapp, James N.; Fleming, Ronald A..
Stochastic simulation of daily slaughter level was used in conjunction with an estimated packing plant cost curve to assess potential reductions in processing costs due to improved vertical coordination between feedlots and packing plants. Results indicate that processing cost reductions of $1 to $5 per head may be possible. Savings result from ensuring a more stable processing volume that is near the plant's cost-minimizing level of production.
Tipo: Journal Article Palavras-chave: Cattle; Cost curve; Meat packing; Vertical coordination; Industrial Organization; Livestock Production/Industries.
Ano: 2003 URL: http://purl.umn.edu/14668
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ESTIMATED IMPACT OF NON-PRICE COORDINATION OF FED CATTLE PURCHASES ON MEAT PACKER PROCESSING COSTS AgEcon
Anderson, John D.; Trapp, James N..
Stochastic simulation of daily slaughter level was used in conjunction with estimated packing plant cost curves to assess potential reductions in processing costs due to improved vertical coordination between feedlots and packing plants. Results indicate that processing cost reductions of $1 to $5 per head are possible.
Tipo: Conference Paper or Presentation Palavras-chave: Fed cattle; Processing cost; Stochastic simulation; Vertical coordination; Agribusiness; Livestock Production/Industries.
Ano: 1999 URL: http://purl.umn.edu/21703
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Euro-Mediterranean Supply Chain Developments and Trends in Trade Structures, in the Fresh Fruit and Vegetable Sector AgEcon
Kalaitzis, Prodromos; van Dijk, Gert; Baourakis, George.
Supply chains for fresh fruit and vegetables, are going through considerable re-shaping phase worldwide. This study analyses the trends which impose those changes and focuses mainly at the wholesale and export trading of the Euro-Mediterranean supply chain (namely, on how fruit and vegetable producer, wholesale and export firms react to the market forces that direct them). Producer organizations and wholesale firms one the one hand of The Netherlands, Germany and other EU member countries, and of Non- EU Member Mediterranean countries, on the other hand, are the subject of this study. Two graphical representation of the Dutch and the German supply chains respectively are presented here as the main instrument to demonstrate the dynamics of the sectors...
Tipo: Conference Paper or Presentation Palavras-chave: Euro-Med Free Trade analysis; Supply chain restructure; Supply chain efficiency; Fresh fruit and vegetables trade; Vertical coordination; Industrial Organization; International Relations/Trade.
Ano: 2007 URL: http://purl.umn.edu/9428
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Globalization and Poverty in Senegal: A Worst Case Scenario? AgEcon
Maertens, Miet; Colen, Liesbeth; Swinnen, Johan F.M..
There is no consensus about how globalization –trade and foreign investments – affects poverty reduction. Using household survey data, this study contributes to the empirical literature on globalization and poverty by analyzing the household-level implications of increased foreign investments and trade in the horticulture sector in Senegal. In many aspects this represents what many would consider a “worst-case scenario”. Stringent rich country standards are imposed on exports and the supply chain is controlled by a single multinational company with extreme levels of supply base consolidation, full vertical integration and complete exclusion of smallholder suppliers. We analyze and quantify income and poverty effects under these “worst-case conditions” and...
Tipo: Conference Paper or Presentation Palavras-chave: Trade; FDI; Poverty; Vertical coordination; Modern supply chains; Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development; Food Security and Poverty; International Relations/Trade; F2; J43; O12; Q12; Q17.
Ano: 2009 URL: http://purl.umn.edu/51668
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Grocery Retailers' Dominant Role in Evolving World Food Markets AgEcon
Sexton, Richard J..
Tipo: Journal Article Palavras-chave: Market consolidation; Food retailers; Food quality; Vertical coordination; Supermarket; Market power; Farmer welfare; Agribusiness; International Relations/Trade; Q13; L13.
Ano: 2010 URL: http://purl.umn.edu/94763
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INCREASING VERTICAL LINKAGES IN AGRIFOOD SUPPLY CHAINS: A CONCEPTUAL MODEL AND SOME PRELIMINARY EVIDENCE AgEcon
Hobbs, Jill E.; Young, Linda M..
Tipo: Working or Discussion Paper Palavras-chave: Agricultural industrialization; Vertical linkages; Vertical coordination; Supply chain management; Agribusiness; Q1.
Ano: 1999 URL: http://purl.umn.edu/29166
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INDUSTRIALIZATION OF HEARTLAND AGRICULTURE: CHALLENGES, OPPORTUNITIES, CONSEQUENCES, ALTERNATIVES; CONFERENCE PROCEEDINGS AgEcon
Farmers in America's Heartland are paying increasing attention to emerging trends of consolidation of farm firms, contractual and ownership linkages across input suppliers/processor and farm firms, and strategic partnering across the stages of food production, processing, and the firms that do business with farmers. The papers contained in this conference proceedings provide an overview of industrialization, and addresses its causes and consequences for producers, rural communities, food firms, and their customers. Industrialization holds different meaning, implications, and opportunities for different people.
Tipo: Working or Discussion Paper Palavras-chave: Industrialization; Rural community; Public policy; Strategic alliances; Vertical coordination; Industry structure; Agribusiness; Productivity Analysis.
Ano: 1995 URL: http://purl.umn.edu/23111
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Producer preferences towards vertical coordination: The case of Canadian beef alliances AgEcon
Steiner, Bodo E.; Lan, Kevin; Unterschultz, James R.; Boxall, Peter C.; Laate, Emmanuel; Yang, Danyi.
A survey among cow-calf producers was conducted during 2006 in Western Canada, to assess producers’ preferences towards participation in beef alliances. Producers’ choices were analyzed by varying the degree of vertical coordination in hypothetical lliance participation, while controlling for producer and farm-specific characteristics to explore risk, transaction cost and incentive considerations in participation decisions. Estimates from the attribute-based choice experiments suggest that information sharing regarding animal performance, revenue-risk and residual claimancy are important factors for producers driving alliance choices. Overall, cowcalf producers are willing to move toward higher levels of vertical coordination based on individual animal...
Tipo: Presentation Palavras-chave: Beef value chain; Vertical coordination; Canada; Risk and Uncertainty; Q12; Q13; C83; D22..
Ano: 2012 URL: http://purl.umn.edu/122441
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PUBLIC POLICY RESPONSES TO INCREASED VERTICAL LINKAGES IN AGRI-FOOD SUPPLY CHAINS AgEcon
Young, Linda M.; Hobbs, Jill E..
Tipo: Working or Discussion Paper Palavras-chave: Vertical coordination; Vertical linkage; Public policy; Agri-food supply chains; Supply chain management; Agribusiness; Q1; L1.
Ano: 2000 URL: http://purl.umn.edu/29237
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Quantifying Strategic Choice Along the Vertical Coordination Continuum AgEcon
Wysocki, Allen F.; Peterson, H. Christopher; Harsh, Stephen B..
The qualitative and quantitative results of a study undertaken to test a decision framework firms might consider in choosing a vertical coordination strategy are presented. The posited five-step decision making process tested that a change in coordination strategy would occur if and only if a "yes" decision was made at each step. The results reported as case-based frequencies and as a discriminate analysis function provide strong support for the study's research propositions. The ability of an alternative to reduce the costliness of a coordination error and the acceptability of the risk/return tradeoff were critical to the willingness of a sample of producers to change coordination strategy. Implementability was significant, but not to the same extent...
Tipo: Journal Article Palavras-chave: Vertical coordination; Vertical coordination continuum; Discriminate analysis; Willingness to change; Unwillingness to change; Coordination error; Programmability; Implementability; Risk/return tradeoff; Industrial Organization.
Ano: 2003 URL: http://purl.umn.edu/34395
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RELATIONSHIPS BETWEEN INDUSTRIALIZED AGRICULTURE AND ENVIRONMENTAL CONSEQUENCES: THE CASE OF VERTICAL COORDINATION IN BROILERS AND HOGS AgEcon
Martin, Laura L.; Zering, Kelly D..
This paper examines the relationship between industrialized production in the pork and broiler industries and the natural environment. Historical perspectives are presented regarding the movement toward increasingly concentrated and coordinated pork and broiler production units in the South. The relationships between animal by-product management and environmental quality, both at the farm level and within a geographic region, are addressed. Using the North Carolina pork industry as a background, current regulations and potential policy implications to protect environmental quality are discussed.
Tipo: Journal Article Palavras-chave: Industrialized agriculture; Sustainability; Vertical coordination; Environmental Economics and Policy; Livestock Production/Industries.
Ano: 1997 URL: http://purl.umn.edu/15549
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Securing Food Quality in the Danish Broiler Supply Chain - an Economic and Organizational Study AgEcon
Graversen, Jesper T.; Bramsen, Jens-Martin; Lund, Mogens; Sondergaard, Janus.
Using the Danish broiler sector and an ongoing food quality project as a case study, the paper provides a dicussion of how new food safety and food quality standards might be implemented. In the paper the design of new payment schemes is seen as an important part of the realignment of the poultry supply chain. The basic principles of such a new scheme is outlined and suggestions for a redesign of the incentive structures are discussed. Furthermore economic and organizational issues, related to the structural realignment of the supply chain raised by the development and implementation of a chain-wide HACCP system, are discussed. It is concluded that successfully implementation of HACCP principles in a sector as a whole, not only is a matter of describing...
Tipo: Conference Paper or Presentation Palavras-chave: HACCP; Broilers; Chain perspective; Incentive structures; Payment schemes; Vertical coordination; Transaction costs; Food Consumption/Nutrition/Food Safety.
Ano: 2004 URL: http://purl.umn.edu/24997
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Small farmers in the Romanian dairy market: Do they have a future? AgEcon
Pieniadz, Agata; Hanf, Jon Henrich; Voicilas, Dan Marius; Wegener, Stefan; Goetz, Linde.
This paper investigates various modes of vertical coordination, with the focus on small farm integration in the Romanian dairy chain. It draws on results from a World Bank study based on semi-structured interviews conducted in spring 2009. The findings indicate that large and prosperous dairy chains fortify their chain efficiency by partner selection and provision of sophisticated assistance to relatively larger farmers. On the contrary, many barriers exist for small and medium-sized dairy chains (processors and farmers). The main factors hampering their potential exploitation are restricted access to inputs markets (capital, know-how) as well as poor quality of input service (agricultural service delivery, veterinary issues). The majority of cow's milk in...
Tipo: Conference Paper or Presentation Palavras-chave: Vertical coordination; Small farms; Romania; Dairy.; Livestock Production/Industries.
Ano: 2009 URL: http://purl.umn.edu/52861
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Supply Chain Management and the Changing Structure of U.S. Organic Produce AgEcon
Tondel, Fabien; Woods, Timothy A..
Replaced with revised version of paper 08/31/06.
Tipo: Conference Paper or Presentation Palavras-chave: Supply chain; Produce; Organic; Vertical coordination; Agribusiness.
Ano: 2006 URL: http://purl.umn.edu/21435
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