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Article
Publication date: 7 August 2017

Jan Fałkowski, Agata Malak-Rawlikowska and Dominika Milczarek-Andrzejewska

While it is commonly argued that food supply chains are characterized by severe imbalances of power between contracting parties, there is an insufficient understanding of the…

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Abstract

Purpose

While it is commonly argued that food supply chains are characterized by severe imbalances of power between contracting parties, there is an insufficient understanding of the factors affecting the negotiating position of farmers. The purpose of this paper is to provide quantitative evidence documenting the position of farmers and to explain variation in farm gate prices in the dairy supply chain by using unique micro-survey data from Poland.

Design/methodology/approach

The bargaining power of farmers is elicited from their self-reported assessment about how confident they feel in their relationships with both the processing industry and input suppliers.

Findings

Using econometric modelling, it is shown that farmers who perceive themselves as having a relatively “strong position” in the food chain receive a higher milk price from dairy companies.

Research limitations/implications

While this result comes with some caveats, it suggests that the self-reported beliefs farmers hold about relations with their contractors may reveal additional insights into the distribution of power throughout the food chain.

Originality/value

Compared to the existing studies, the paper offers two innovations. First, to construct a proxy for farmers’ bargaining power, their subjective opinion on how easy they could be substituted for by their contractors is used. In effect, the paper goes beyond the standard measures which focus on farm size or its location. Second, it investigates farmers’ relationships vis-à-vis both processing industry and input suppliers. Consequently, this paper is the first to analyze power relationships by explicitly taking into account three stages of the supply chain.

Details

British Food Journal, vol. 119 no. 8
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 4 May 2012

Pavel Ciaian, Jan Fałkowski and d'Artis Kancs

The purpose of this paper is to analyse how farm production and input use (land, variable inputs, labour, and capital) is related to farm access to credit in the Central and…

1141

Abstract

Purpose

The purpose of this paper is to analyse how farm production and input use (land, variable inputs, labour, and capital) is related to farm access to credit in the Central and Eastern Europe (CEE) transition countries.

Design/methodology/approach

Drawing on a unique farm level panel data set with 37,409 observations and employing a matching estimator, this paper analyses how farm access to credit affects farm input allocation and farm efficiency in the CEE transition countries. The large size of the FADN data set has an additional advantage. It allows the authors to employ a semi‐parametric estimator based on the propensity score matching. Using more than 37,409 observations assures that the loss in efficiency of semi‐parametric estimates, as compared to parametric ones, is not a problem. This is important for at least two reasons. First, applying a semi‐parametric propensity score matching (PSM) estimator allows to control for any heterogeneity in the relationship between farm performance and their observable characteristics (in particular access to credit). Second, matching estimators are robust in situations where farms having access to credit systematically differ from those that do not.

Findings

It is found that farms are asymmetrically credit constrained between inputs. The use of variable inputs and capital investment increases up to 2.3 percent and 29 percent, respectively, per 1,000 EUR of additional credit. The authors' estimates suggest also that farm access to credit increases the total factor productivity up to 1.9 percent per 1,000 EUR of additional credit, indicating that an improved access to credit results in adjusting the relative input intensities on farms. This finding is further supported by a negative effect of better access to credit on labour, suggesting that these two are substitutes. Interestingly, farms are found not to be credit constrained with respect to land.

Originality/value

To the best of the authors' knowledge, the present paper is the first to investigate the importance of access to credit for farm performance in the CEE region as a whole.

Details

Agricultural Finance Review, vol. 72 no. 1
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 5 October 2015

Jan Falkowski

Recent literature has considerably improved our understanding of vertical relations in the food chain. One area which has received relatively little attention however relates to…

1071

Abstract

Purpose

Recent literature has considerably improved our understanding of vertical relations in the food chain. One area which has received relatively little attention however relates to the resilience of an agro-food supply chain, that is its ability to face and, if needed, to recover after a major disruption. The purpose of this paper is to study what factors, including characteristics of vertical links between upstream and downstream sectors, may make farmer-processor relationships more or less resilient to adverse shocks.

Design/methodology/approach

To do so, the author uses a unique region-level data set on disruptions to dairy supply chain in Poland during the transition from a centrally planned economy to a market economy. More specifically, using between-region variation, the author investigates why in some regions supply chain disruptions, measured as the breakdown of relationships between farmers and processing industry, were smaller than in other regions.

Findings

The findings suggest that the supply chain which the author analysed was less resilient to crisis, i.e. the author observed larger disruptions to supply relations, when the supply base was more fragmented and when farmers had better outside options to market their produce via direct sales to consumers. In addition, dairy supply chain in Poland seemed to be less resilient in regions with larger share of the state-owned land.

Research limitations/implications

The results come with several caveats. First, the empirical evidence comes from Poland during the specific period and thus it may not be easily generalised. Second, the results are based on historical correlations. Therefore, although they are robust across various specifications which the author estimates, they may not establish causal relationship due to some omitted variables or potential endogeneity issue. Finally, what the author uses here are region-level data. One may argue therefore that farm-level data would give more fine-tuned focus for testing impacts and theories regarding supply chain resilience.

Originality/value

To the best of the author’s knowledge, this paper is the first to provide some evidence on agro-food supply chain from this perspective.

Details

British Food Journal, vol. 117 no. 10
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 10 August 2015

Jan Falkowski

Much has been said about the nature of the agro-food supply chain. Yet, the consequences of reforming supply chain institutions have less often been studied, especially from an…

562

Abstract

Purpose

Much has been said about the nature of the agro-food supply chain. Yet, the consequences of reforming supply chain institutions have less often been studied, especially from an empirical perspective. The purpose of this paper is to examine the economic consequences of a radical reorganisation of the system of exchange in the agro-food sector in Central and Eastern Europe, during the process of transition from a centrally planned economy to a market economy. By considering a historical example from the dairy sector in Poland, the author provides evidence that the disorganisation of vertical linkages between upstream and downstream producers can be very costly. The most conservative estimates suggest that the dislocation of inter-firm relationships accounted for approximately 20 per cent of the drop in milk production observed in the early-transition phase in question.

Design/methodology/approach

The empirical approach is based on econometric analyses. The empirical strategy the author adopts is similar in spirit to a standard difference-in-differences method. More specifically, to study the outcomes of the disruptions in supply chain the author adopts an event-study approach. Thus, the author compares the relative changes in milk production in the post-treatment period relative to pre-treatment period between regions more or less exposed to disruptions to supply chain.

Findings

The most conservative estimates suggest that the dislocation to inter-firm relationships accounted for approximately 20 per cent of the fall in milk production observed in the early-transition phase.

Originality/value

Two key features distinguish the approach from the previous studies. First, through the use of a more direct measure of problems affecting vertical relationships between farmers and processors the author has access to higher quality proxies for the supply chain disruptions. To this end, the author focuses on the dislocation to milk procurement system that arose in the very early phase of transition, manifesting itself in the break up of vertical linkages between farmers and dairy industry. Second, in contrast to the existing studies which exploit variation between transition countries, the author focus on within-country evidence. To best of the author knowledge, this paper is the first to investigate agricultural output during transition using within country variation.

Details

Journal of Organizational Change Management, vol. 28 no. 5
Type: Research Article
ISSN: 0953-4814

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Article
Publication date: 14 January 2025

Vimal Kumar, Pratima Verma, Bhavin Shah and Vikas Kumar

Short food supply chains (SFSCs) have been extensively researched for their environmental and economic implications. However, these are now confronted with shortcomings such as…

45

Abstract

Purpose

Short food supply chains (SFSCs) have been extensively researched for their environmental and economic implications. However, these are now confronted with shortcomings such as supply chain resilience (SLR) and societal livelihood (SL) hindering growth. The purpose of this study is to revisit and critically analyze existing SFSC literature, with a focus on SLR, SL, sustainability and human-centricity elements, to propose redesigning attributes for SFSCs in the era of Industry 5.0.

Design/methodology/approach

The systematic review scope is confined to the SFSC domain with an analysis of contemporary articles published in the British Food Journal (BFJ). The meta-data and research papers are sourced from the Scopus database and the VOSviewer software is used for the analysis. The thematic, diversified geographies and method-wise investigation bring theoretical insights toward building sustainable and resilient SFSCs.

Findings

The study findings could serve as a fitting theoretical framework to redesign the SFSCs for resiliency, sustainability and societal aspects of the economy, environment and human livelihood, respectively. The results also discuss the prior accomplishments and elaborate on avenues for future research.

Research limitations/implications

Emphasizing recent trends, challenges, policy design, conceptual framework and future research directions for the SFSC domain, considering SLR and SL, has extended the literature in line with the United Nations' Sustainable Development Goals.

Practical implications

This study offers comprehensive guidelines to the concerned stakeholders for redesigning the SFSCs by linking sustainability, resilience and societal livelihood dimensions.

Originality/value

The study derives comprehensive insights into how redesigning SFSCs has contributed to more sustainable and resilient food systems worldwide over 2 decades. It extends the BFJ’s literature body by establishing the linkages between SLR and SL concerning human-centric SFSC.

Details

British Food Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 2 September 2019

Arun Jose and PrasannaVenkatesan Shanmugam

The purpose of this paper is to investigate the significant supply chain issues in the small and medium-sized enterprise (SME) food industry. The objectives are to identify the…

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Abstract

Purpose

The purpose of this paper is to investigate the significant supply chain issues in the small and medium-sized enterprise (SME) food industry. The objectives are to identify the major themes and the dynamic evolution of SME food supply chain (FSC) issues, the current research trends, the different modelling approaches used in SME FSC, and the most addressed SME food sector.

Design/methodology/approach

In all, 3,733 published articles from 2002 to 2018 in the Clarivate Analytics Web of Science database were collected, from which 1,091 articles were shortlisted for the review. The authors used bibliographic coupling combined with co-word analysis to identify the historical relations of the research themes that emerged during the periods 2002–2014 and 2002–2018.

Findings

This research identified five major research themes such as production and distribution in alternative food networks, relationship, safety and standards in the FSC, greenhouse gas (GHG) emission impact of the farm food system, traceability and product quality in FSC and asymmetric price transmission in the FSC. Among the identified themes, GHG emission impact of the farm food system and traceability and product quality in the FSC have received increasing attention in recent years. The dairy sector is the most addressed sector (36 per cent), followed by fruits and vegetables (27 per cent), meat and poultry (18 per cent), seafood (10 per cent) and grains and oilseed (8 per cent). It is also identified that the dairy sector has received significant attention in the “GHG Emission impact of farm food system” theme. Similarly, meat and poultry sectors have received much attention in the “Traceability and product quality in the food supply chain” theme. Also, the authors identified that the empirical modelling approaches are the most commonly used solution methodology, followed by the conceptual/qualitative methods in the SME FSC.

Originality/value

This study maps and summarizes the existing knowledge base of supply chain issues in the SME food sector. The results of this review provide the major research areas, most commonly used approaches and food sectors addressed. This study also highlights the research gaps and potential future research direction.

Details

Journal of Advances in Management Research, vol. 17 no. 1
Type: Research Article
ISSN: 0972-7981

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Article
Publication date: 1 October 2018

Man Mohan Siddh, Gunjan Soni, Rakesh Jain and Milind Kumar Sharma

The purpose of this paper is to examine the concept of perishable food supply chain quality (PFSCQ) and to suggest a structural model that counts the influence of PFSCQ practices…

1926

Abstract

Purpose

The purpose of this paper is to examine the concept of perishable food supply chain quality (PFSCQ) and to suggest a structural model that counts the influence of PFSCQ practices on organizational sustainable performance.

Design/methodology/approach

On the basis of comprehensive literature review, PFSCQ highly significant practices were examined and designated. These practices were classified into four dimensions: upstream quality (supplier quality), downstream quality (customer focus), internal quality (process and logistics quality) and support practices (top management leadership and commitment to quality, quality of human resource, quality of information and supply chain integration). The measurement instrument of organizational sustainable performance was also build on, containing three aspects: economic, environmental and social performance.

Findings

An inventive conceptual model that specifies a comprehensive image cover up core dimensions of PFSCQ and various aspects of organizational sustainable performance was suggested. This conceptual model can be used as “a directive” for theory developing and measurement instrument development of PFSCQ practices and organizational sustainable performance. More prominently, on the road to achieving additional insight, an extensive structural model that makes out direct and indirect relationships between PFSCQ practices and organizational sustainable performance was also developed. Practitioners can apply this model as “a path plan” for implementing PFSCQ practices to improve organizational sustainable performance.

Originality/value

The integration of quality and supply chain even now remains inadequate in the literature. Consequently, it is required to have a more focused approach in assessing quality issues inside the upstream, internal and downstream of the supply chain. This study concentrates on the practices which make better quality aspects of the supply chain, known as PFSCQ practices. Suggested research models in this paper contribute to conceptual frameworks for theory building in PFSCQ and sustainable organizational performance. It is also expected that this research can suggest a useful direction for determining and implementing PFSCQ practices as well as make possible further studies in this arena.

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