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Analysing the robustness of spice chains in Nepal from a smallholder perspective

Author
Salil BhattaraiMichael C. Lyne and Sandra K. Martin
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Asian Journal of Agriculture and rural Development, 2015, vol. 5, issue 4, 88-102

Abstract: This study assesses the performance of supply chains for ginger and large cardamom, two major export crops produced in Nepal. In particular, it aims to identify factors that constrain marketing choices available to smallholders, so 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 external attributes on the modes of engagement available to smallholders. Informal market trading was the only mode 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. The analysis suggests that access to other modes of engagement is constrained mainly by under-investment in value-adding assets. 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 cardamomgingertransaction costcollective marketingcase study (search for similar items in EconPapers)
Date: 2015Salil Bhattarai, Michael C. Lyne and Sandra K. Martin 

Additional contact information

Asian Journal of Agriculture and rural Development, 2015, vol. 5, issue 4, 88-102

Abstract: This study assesses the performance of supply chains for ginger and large cardamom, two major export crops produced in Nepal. In particular, it aims to identify factors that constrain marketing choices available to smallholders, so 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 external attributes on the modes of engagement available to smallholders. Informal market trading was the only mode 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. The analysis suggests that access to other modes of engagement is constrained mainly by under-investment in value-adding assets. 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 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:asi:ajosrd:2015:p:88-102

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Asian Journal of Agriculture and rural Development is currently edited by Kashif Imran

More articles in Asian Journal of Agriculture and rural Development from Asian Economic and Social Society Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan.
Series data maintained by Qazi Muhammad Imran (editor.aess@yahoo.com).
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.aessweb.com/download.php?id=3170 (application/pdf)
http://www.aessweb.com/journals/5005/April2015 (text/html)

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:asi:ajosrd:2015:p:88-102
Access Statistics for this article
Asian Journal of Agriculture and rural Development is currently edited by Kashif Imran
More articles in Asian Journal of Agriculture and rural Development from Asian Economic and Social Society Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan.
Series data maintained by Qazi Muhammad Imran (editor.aess@yahoo.com).

For further details log on website :
https://econpapers.repec.org/article/asiajosrd/2015_3ap_3a88-102.htm

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