Author
Salil Bhattari, Michael Lyne and Sandra Martin
No 160194, 2013 Conference, August 28-30, 2013, Christchurch, New Zealand from New Zealand Agricultural and Resource Economics Society
Abstract: This study assesses the performance of supply chains for two major export crops produced in Nepal (ginger and large cardamom) from a smallholder perspective. It aims to identify factors that constrain marketing choices available to smallholders, limiting the chain’s robustness from their perspective. A qualitative case study method was used to gather and analyse data on farmer-buyer dyads in the ginger and cardamom chains. These case studies were informed by a conceptual model based on Transaction Cost Economics. The analysis included a cross-case comparison to identify the effects of exogenous chain attributes on the channels available to smallholders. Informal market trading was the only form of smallholder engagement observed in both chains. However, there was evidence that smallholders had previously engaged in relational contracts in the ginger chain, and in ‘captive’ relational contracts in the cardamom chain. There was no evidence that smallholders had ever engaged in either spot markets or conventional contracts in these chains. Although the informal market channel continues to operate, the ginger and cardamom chains are not robust from a smallholder perspective as producers are unable to select channels that better match their risk-reward preferences. The analysis suggests that access to other channels is constrained mainly by underinvestment in value-adding assets. Government should give more attention to the cooperative model that it supports to promote collective marketing. Traditional cooperatives can and do help to resolve problems of asymmetric information and high unit transaction costs, but more innovative cooperative models are required to encourage the investment needed to finance value-adding assets and activities.
Keywords: Large cardamom; ginger; transaction cost; collective marketing; case study; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Consumer/Household Economics; Crop Production/Industries; Demand and Price Analysis; Environmental Economics and Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Land Economics/Use; Production Economics; Productivity Analysis (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2013-08
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://purl.umn.edu/160194 (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ags:nzar13:160194
Access Statistics for this paper
More papers in 2013 Conference, August 28-30, 2013, Christchurch, New Zealand from New Zealand Agricultural and Resource Economics Society Contact information at EDIRC.
Series data maintained by AgEcon Search (aesearch@umn.edu).
For further details log on website :
https://econpapers.repec.org/paper/agsnzar13/160194.htm
Salil Bhattari, Michael Lyne and Sandra Martin
No 160194, 2013 Conference, August 28-30, 2013, Christchurch, New Zealand from New Zealand Agricultural and Resource Economics Society
Abstract: This study assesses the performance of supply chains for two major export crops produced in Nepal (ginger and large cardamom) from a smallholder perspective. It aims to identify factors that constrain marketing choices available to smallholders, limiting the chain’s robustness from their perspective. A qualitative case study method was used to gather and analyse data on farmer-buyer dyads in the ginger and cardamom chains. These case studies were informed by a conceptual model based on Transaction Cost Economics. The analysis included a cross-case comparison to identify the effects of exogenous chain attributes on the channels available to smallholders. Informal market trading was the only form of smallholder engagement observed in both chains. However, there was evidence that smallholders had previously engaged in relational contracts in the ginger chain, and in ‘captive’ relational contracts in the cardamom chain. There was no evidence that smallholders had ever engaged in either spot markets or conventional contracts in these chains. Although the informal market channel continues to operate, the ginger and cardamom chains are not robust from a smallholder perspective as producers are unable to select channels that better match their risk-reward preferences. The analysis suggests that access to other channels is constrained mainly by underinvestment in value-adding assets. Government should give more attention to the cooperative model that it supports to promote collective marketing. Traditional cooperatives can and do help to resolve problems of asymmetric information and high unit transaction costs, but more innovative cooperative models are required to encourage the investment needed to finance value-adding assets and activities.
Keywords: Large cardamom; ginger; transaction cost; collective marketing; case study; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Consumer/Household Economics; Crop Production/Industries; Demand and Price Analysis; Environmental Economics and Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Land Economics/Use; Production Economics; Productivity Analysis (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2013-08
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://purl.umn.edu/160194 (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ags:nzar13:160194
Access Statistics for this paper
More papers in 2013 Conference, August 28-30, 2013, Christchurch, New Zealand from New Zealand Agricultural and Resource Economics Society Contact information at EDIRC.
Series data maintained by AgEcon Search (aesearch@umn.edu).
For further details log on website :
https://econpapers.repec.org/paper/agsnzar13/160194.htm
No comments:
Post a Comment