Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India

The impact of multinational firms on the domestic agricultural sector in developing countries is controversial, in particular in India. Relying on a unique set of household‐level data from the state of Punjab, we study the biggest dairy company in the world (Nestlé) in India and compare its vertical...

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Autores principales: Vandeplas, Anneleen, Minten, Bart, Swinnen, Johan
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2013
Materias:
Acceso en línea:https://hdl.handle.net/10568/152746
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author Vandeplas, Anneleen
Minten, Bart
Swinnen, Johan
author_browse Minten, Bart
Swinnen, Johan
Vandeplas, Anneleen
author_facet Vandeplas, Anneleen
Minten, Bart
Swinnen, Johan
author_sort Vandeplas, Anneleen
collection Repository of Agricultural Research Outputs (CGSpace)
description The impact of multinational firms on the domestic agricultural sector in developing countries is controversial, in particular in India. Relying on a unique set of household‐level data from the state of Punjab, we study the biggest dairy company in the world (Nestlé) in India and compare its vertical spillover effects on upstream suppliers to other market channels (informal sector and cooperatives). We find that farmers that supply informal channels are less efficient and earn lower profits per dairy animal than farmers supplying the cooperative and the multinational sector. Furthermore, we find that farmers using the multinational channel are more efficient than farmers in the cooperative channel, but equally profitable. Hence, we do not find that supplying the cooperative channel is more beneficial for local dairy farmers than supplying the multinational channel. Overall, however, dairy productivity and profitability levels are still dramatically low, with substantial scope for dairy development.
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spelling CGSpace1527462024-11-15T08:53:06Z Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India Vandeplas, Anneleen Minten, Bart Swinnen, Johan cooperatives dairy foreign investment income productivity agricultural policies food policies household expenditure industrial organizations international development agro-industrial sector The impact of multinational firms on the domestic agricultural sector in developing countries is controversial, in particular in India. Relying on a unique set of household‐level data from the state of Punjab, we study the biggest dairy company in the world (Nestlé) in India and compare its vertical spillover effects on upstream suppliers to other market channels (informal sector and cooperatives). We find that farmers that supply informal channels are less efficient and earn lower profits per dairy animal than farmers supplying the cooperative and the multinational sector. Furthermore, we find that farmers using the multinational channel are more efficient than farmers in the cooperative channel, but equally profitable. Hence, we do not find that supplying the cooperative channel is more beneficial for local dairy farmers than supplying the multinational channel. Overall, however, dairy productivity and profitability levels are still dramatically low, with substantial scope for dairy development. 2013-02 2024-10-01T13:55:09Z 2024-10-01T13:55:09Z Journal Article https://hdl.handle.net/10568/152746 en Limited Access Wiley Vandeplas, Anneleen; Minten, Bart; Swinnen, Johan. 2013. Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India. Journal of Agricultural Economics 64(1): 217-244. https://doi.org/10.1111/1477-9552.12004
spellingShingle cooperatives
dairy
foreign investment
income
productivity
agricultural policies
food policies
household expenditure
industrial organizations
international development
agro-industrial sector
Vandeplas, Anneleen
Minten, Bart
Swinnen, Johan
Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India
title Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India
title_full Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India
title_fullStr Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India
title_full_unstemmed Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India
title_short Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India
title_sort multinationals vs cooperatives the income and efficiency effects of supply chain governance in india
topic cooperatives
dairy
foreign investment
income
productivity
agricultural policies
food policies
household expenditure
industrial organizations
international development
agro-industrial sector
url https://hdl.handle.net/10568/152746
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AT swinnenjohan multinationalsvscooperativestheincomeandefficiencyeffectsofsupplychaingovernanceinindia