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Article
Publication date: 8 August 2009

Miranda P.M. Meuwissen, Alex L.A. Van Andel, Marcel A.P.M. Van Asseldonk and Ruud B.M. Huirne

The purpose of this paper is to assess direct and indirect damages of dairy processors and pig and poultry slaughterhouses in The Netherlands following the occurrence of a feed…

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Abstract

Purpose

The purpose of this paper is to assess direct and indirect damages of dairy processors and pig and poultry slaughterhouses in The Netherlands following the occurrence of a feed crisis.

Design/methodology/approach

Starting from a number of feed crisis scenarios the paper analyses processing industry damage parameters through a combination of sector data and individual company assessments. In case of confidential data, outcomes are presented as indices.

Findings

The paper finds that, in the most likely scenario, it is expected that a feed crisis affects 15 processors, i.e. 20 per cent of processing business in The Netherlands. Processors' direct damage is largely (>90 per cent) determined by the mixing of produce during various phases of processing. Indirect damage is on average perceived not to exceed direct damage.

Practical implications

The results are useful in current stakeholder debates on sharing damage burdens of feed crises across supply chain partners.

Originality/value

This paper extends currently available risk analyses of feed contaminations by eliciting damage beyond farm level.

Details

British Food Journal, vol. 111 no. 8
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 23 February 2018

Juliane Doms, Norbert Hirschauer, Michael Marz and Falk Boettcher

The purpose of this paper is to analyze the hedging efficiency (HE) of weather index insurances (WII) based on a whole-farm approach. The aim is to identify how different types of…

377

Abstract

Purpose

The purpose of this paper is to analyze the hedging efficiency (HE) of weather index insurances (WII) based on a whole-farm approach. The aim is to identify how different types of WII affect the economic performance risk of real farms in the light of the heterogeneity of farm operations and natural conditions.

Design/methodology/approach

Using historic simulation, the HE of various hedging strategies is computed for 20 farms in regions with moderate natural conditions. A priori defined “standardized” WII and hedge ratios as well as ex post “optimized” strategies are analyzed. The latter is identified through a risk programming approach that determines the strike level and hedge ratio that would have minimized the volatility of each farm’s historic total gross margins (TGMs) ex post.

Findings

(i) The correlations between the weather indexes and the yields of the farms’ main crop (wheat) do not provide useful insights regarding the whole-farm HE because farms’ performance risk is considerably affected by volatile factors other than wheat yield; (ii) Standardized WII are ill-suited to hedge performance risk for the majority of studied farms; (iii) A considerable positive whole-farm HE could have been obtained on average if farmers had been able to use the “optimized” risk management strategy. Using farm-specific information thus seems to be essential for identifying meaningful hedging strategies.

Originality/value

This study provides added value by analyzing the HE of WII for 20 German crop farms in “moderate” regions. The results show that exemplary tests of WII in extreme conditions provide no decision support for farmers in other regions.

Details

Agricultural Finance Review, vol. 78 no. 3
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 9 March 2018

Marcel van Asseldonk, Harold van der Meulen, Ruud van der Meer, Huib Silvis and Petra Berkhout

The purpose of this paper is to determine which factors influence the choice to adopt subsidized multi-peril crop insurance (MPCI) in the Netherlands and whether prior hail…

257

Abstract

Purpose

The purpose of this paper is to determine which factors influence the choice to adopt subsidized multi-peril crop insurance (MPCI) in the Netherlands and whether prior hail insurance uptake is one of the determinants of MPCI adoption. In addition, it is analyzed whether subsidized MPCI has reduced disaster relief spending.

Design/methodology/approach

Cross-sectional survey with 512 respondents using a stratified design comprising MPCI adopters and non-adopters sampled from the Dutch national census data base. The national census, including information on subsidized MPCI adoption from 2010 up to and including 2015, was supplemented with information on (prior) traditional market-based hail insurance uptake, and other underlying determining factors were elicited. Logistic regression analysis was used to determine which factors influence the choice to adopt MPCI.

Findings

Analysis of MPCI adoption reveals that subsidized MPCI mainly substituted for market-based hail insurance uptake up to now. Growers who did not insure against hail in the past were hardly reached. Approximately, three-quarter of MPCI adopters insured hail prior to market introduction of MPCI. In the arable sector, MPCI adoption was 2.89 (p<0.01) more likely for prior hail insurance adopters compared to non-adopters, while it was 9.67 (p<0.01) more likely in the fruit sector.

Research limitations/implications

In the arable sector, it is expected that MPCI uptake in the coming years will reach more prior non-adopters of hail insurance as demand is expected to increase. Prior hail insurance adopters in the arable sector can be seen as the early MPCI adopters. In the fruit sector, adoption rates are already at a relative high level and a further significant increase by targeting non-adopters of hail insurance is not likely.

Originality/value

Governmental support has crowded out to some extend traditional market-based hail insurance in the Netherlands. Since the Common Agricultural Policy of the European Union is creating more momentum to subsidize crop insurance more member states with a long history of a mature hail insurance market may be confronted with similar crowding-out effects.

Details

Agricultural Finance Review, vol. 78 no. 2
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 25 January 2008

Jacques Trienekens, Ruud van Uffelen, Jeremy Debaire and Onno Omta

This paper aims to bridge the concepts of innovation and performance and to develop a framework to assess innovation and performance in food chains.

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Abstract

Purpose

This paper aims to bridge the concepts of innovation and performance and to develop a framework to assess innovation and performance in food chains.

Design/methodology/approach

Based on an extensive literature search the paper identifies critical success factors (CSFs) and related indicators for innovation in food chains, on the one hand, and performance in food chains, on the other. Main CSF categories for innovation are: product, process, market and organization. Main CSF categories for performance are: efficiency, responsiveness, quality and flexibility. A chain process model is developed that enables one to identify main chain processes that impact on innovation and performance. A trade‐off matrix is constructed in which effects of innovations on performance and vice versa in typical chain processes can be identified.

Findings

This article reviewed available supply‐chain innovation and performance indicators and models and methods used to assess performance and innovation within fruit supply chains. Based on the existing literature a conceptual framework for assessing innovation and performance of companies in the European fruit supply chain has been developed. The framework consists of a supply chain process model and an innovation‐performance matrix which have been successfully applied to several cases along the apple chain in The Netherlands.

Practical implications

The chain process model and matrix are applied in an integrated way to the Dutch fruit chain. An apple grower case and a fruit cooperative case are worked out. Managers in food chains can use the framework to assess their company's innovations and performances.

Originality/value

The paper aims to bridge the concepts of innovation and performance. Literature and research on this subject are minimal.

Details

British Food Journal, vol. 110 no. 1
Type: Research Article
ISSN: 0007-070X

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