Monopsonists, disruptive innovation and food security: The case of high‐value commodity

Private firms in monopsony undertake disruptive innovation like contract farming (CF), where the firm invests in the food supply chain, provides credit, assumes the risk, and implements management strategies. This study investigates the impact of monopsonist involvement in CF and its impact on food...

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Detalles Bibliográficos
Autores principales: Mishra, Ashok K., Kumar, Anjani, Joshi, Pramod Kumar, Dsouza, Alwin
Formato: Journal Article
Lenguaje:Inglés
Publicado: Agricultural and Applied Economics Association 2022
Materias:
Acceso en línea:https://hdl.handle.net/10568/141320
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author Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
Dsouza, Alwin
author_browse Dsouza, Alwin
Joshi, Pramod Kumar
Kumar, Anjani
Mishra, Ashok K.
author_facet Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
Dsouza, Alwin
author_sort Mishra, Ashok K.
collection Repository of Agricultural Research Outputs (CGSpace)
description Private firms in monopsony undertake disruptive innovation like contract farming (CF), where the firm invests in the food supply chain, provides credit, assumes the risk, and implements management strategies. This study investigates the impact of monopsonist involvement in CF and its impact on food security indicators among smallholders. Findings reveal that the monopsonist CF structure for ginger processing in Nepal increases the market price by about 18%, yields by 10%, and profits by 66%. However, the impact varies with farm size. Small farms (≤0.51 hectares (ha)) engaged in CF have higher yields (18%), earn higher profits (81%), and receive higher market prices (12%) than small noncontract ginger producers. Contrary to popular belief, disruptive innovation in value chains by monopsonists could lead to higher yields, the market price received, and profitability for both small and large farmers.
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spelling CGSpace1413202025-10-26T13:01:54Z Monopsonists, disruptive innovation and food security: The case of high‐value commodity Mishra, Ashok K. Kumar, Anjani Joshi, Pramod Kumar Dsouza, Alwin commodities food security contract farming profit Private firms in monopsony undertake disruptive innovation like contract farming (CF), where the firm invests in the food supply chain, provides credit, assumes the risk, and implements management strategies. This study investigates the impact of monopsonist involvement in CF and its impact on food security indicators among smallholders. Findings reveal that the monopsonist CF structure for ginger processing in Nepal increases the market price by about 18%, yields by 10%, and profits by 66%. However, the impact varies with farm size. Small farms (≤0.51 hectares (ha)) engaged in CF have higher yields (18%), earn higher profits (81%), and receive higher market prices (12%) than small noncontract ginger producers. Contrary to popular belief, disruptive innovation in value chains by monopsonists could lead to higher yields, the market price received, and profitability for both small and large farmers. 2022-03 2024-04-12T13:37:41Z 2024-04-12T13:37:41Z Journal Article https://hdl.handle.net/10568/141320 en Limited Access Agricultural and Applied Economics Association Mishra, Ashok K.; Kumar, Anjani; Joshi, Pramod Kumar; and Dsouza, Alwin. 2022. Monopsonists, disruptive innovation and food security: The case of high‐value commodity. Applied Economic Perspectives and Policy 44(1): 460-476. https://doi.org/10.1002/aepp.13122
spellingShingle commodities
food security
contract farming
profit
Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
Dsouza, Alwin
Monopsonists, disruptive innovation and food security: The case of high‐value commodity
title Monopsonists, disruptive innovation and food security: The case of high‐value commodity
title_full Monopsonists, disruptive innovation and food security: The case of high‐value commodity
title_fullStr Monopsonists, disruptive innovation and food security: The case of high‐value commodity
title_full_unstemmed Monopsonists, disruptive innovation and food security: The case of high‐value commodity
title_short Monopsonists, disruptive innovation and food security: The case of high‐value commodity
title_sort monopsonists disruptive innovation and food security the case of high value commodity
topic commodities
food security
contract farming
profit
url https://hdl.handle.net/10568/141320
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