Vertical coordination in high-value commodities: implications for smallholders
Rising per capita income, urbanization and globalization are changing the consumption basket in the developing countries towards high-value commodities (like fruits & vegetables, milk, meat, poultry, fish, etc.). This paper explores how smallholders can benefit from the emerging opportunities from a...
| Main Authors: | , , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2005
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/160702 |
| _version_ | 1855538815890882560 |
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| author | Birthal, Pratap Singh Joshi, Pramod Kumar Gulati, Ashok |
| author_browse | Birthal, Pratap Singh Gulati, Ashok Joshi, Pramod Kumar |
| author_facet | Birthal, Pratap Singh Joshi, Pramod Kumar Gulati, Ashok |
| author_sort | Birthal, Pratap Singh |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Rising per capita income, urbanization and globalization are changing the consumption basket in the developing countries towards high-value commodities (like fruits & vegetables, milk, meat, poultry, fish, etc.). This paper explores how smallholders can benefit from the emerging opportunities from a silent demand-driven changes in high-value agriculture in India. The study examines the institutional mechanisms adopted by different firms to integrate small producers of milk, broilers and vegetables in supply chain and their effects on producers’ transaction costs and farm profitability. The study finds that the innovative institutional arrangements in the form of contract farming have considerably reduced transaction costs and improved market efficiency to benefit the smallholders. The study does not find any bias against smallholders in contract farming. Also, the study does not find that the relevant firms have exploited their monopsonistic position by paying lower prices to farmers. On the contrary, contract producers were found enjoying benefits of assured procurement of their produce and higher prices. The study lists policy hurdles in scaling up the innovative models of vertical coordination in high-value food commodities |
| format | Artículo preliminar |
| id | CGSpace160702 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2005 |
| publishDateRange | 2005 |
| publishDateSort | 2005 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1607022025-11-06T07:21:28Z Vertical coordination in high-value commodities: implications for smallholders Birthal, Pratap Singh Joshi, Pramod Kumar Gulati, Ashok urbanization costs smallholders small farms scaling up Rising per capita income, urbanization and globalization are changing the consumption basket in the developing countries towards high-value commodities (like fruits & vegetables, milk, meat, poultry, fish, etc.). This paper explores how smallholders can benefit from the emerging opportunities from a silent demand-driven changes in high-value agriculture in India. The study examines the institutional mechanisms adopted by different firms to integrate small producers of milk, broilers and vegetables in supply chain and their effects on producers’ transaction costs and farm profitability. The study finds that the innovative institutional arrangements in the form of contract farming have considerably reduced transaction costs and improved market efficiency to benefit the smallholders. The study does not find any bias against smallholders in contract farming. Also, the study does not find that the relevant firms have exploited their monopsonistic position by paying lower prices to farmers. On the contrary, contract producers were found enjoying benefits of assured procurement of their produce and higher prices. The study lists policy hurdles in scaling up the innovative models of vertical coordination in high-value food commodities 2005 2024-11-21T09:51:40Z 2024-11-21T09:51:40Z Working Paper https://hdl.handle.net/10568/160702 en Open Access application/pdf International Food Policy Research Institute Birthal, Pratap Singh; Joshi, Pramod Kumar; Gulati, Ashok. Vertical coordination in high-value commodities: implications for smallholders. MTID Discussion Paper 85. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160702 |
| spellingShingle | urbanization costs smallholders small farms scaling up Birthal, Pratap Singh Joshi, Pramod Kumar Gulati, Ashok Vertical coordination in high-value commodities: implications for smallholders |
| title | Vertical coordination in high-value commodities: implications for smallholders |
| title_full | Vertical coordination in high-value commodities: implications for smallholders |
| title_fullStr | Vertical coordination in high-value commodities: implications for smallholders |
| title_full_unstemmed | Vertical coordination in high-value commodities: implications for smallholders |
| title_short | Vertical coordination in high-value commodities: implications for smallholders |
| title_sort | vertical coordination in high value commodities implications for smallholders |
| topic | urbanization costs smallholders small farms scaling up |
| url | https://hdl.handle.net/10568/160702 |
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