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on Agricultural Economics |
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Issue of 2010‒11‒13
101 papers chosen by |
| By: | Stokstad, G. |
| Abstract: | The combination of nature and farmed land is one reason why Northern Norway is attracting tourists. It is therefore of interest to know which farms that are more likely to quit faming, and to see what factors that are important for abandonment of farm land when the owner of the farm exits farming. Our results indicate that smaller properties in areas with few farmers are the most likely to be abandoned. Property structure is another important factor for abandonment, but is less important for the exit-decision. Size of the farm, including both rented and own farm land, appears to be more important for the exit-decision. Larger farm operations, with breeding stock, primary sheep and dairy cattle are more likely to continue farming. |
| Keywords: | Farm exit, abandoned land, logistic regression., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95343&r=agr |
| By: | Kapfer, M.; Ziesel, S.; Kantelhardt, J. |
| Abstract: | Our study examines the potential developments of cultural landscapes, taking into consideration various economic and social conditions (scenarios). The study takes place in three project regions which represent typical landscapes in Southern Germany and Austria. In each project area, the influence of a changing agri-food environment is analysed. The following scenarios are defined: (1) status quo (current economic and agri-political framework); (2) high-producer prices and constant (or even increasing) direct payments; and (3) low-producer prices and no (or very low) direct payments. In all three regions, potential production responses are estimated for all farms and aggregated on a regional level. The estimation takes into account social and economic parameters such as cash flow, size and type of farms, age of farmers and workload. The results show that the impact of the changing agro-economic environment differs in particular on the level of the study regions. Due to a lack of production alternatives, agricultural production in grassland areas is very unstable â especially if site conditions are unfavourable and economic conditions are disadvantageous. As a result, large-scale abandonment of agriculture is likely in low-yield grassland areas and consequences for landscape appearance might be dramatic. In high-yield grassland areas, agriculture is much more stable. However, under very disadvantageous conditions the extent of farms giving-up production is as high as in marginal grassland regions. Nevertheless one cannot expect large-scale set aside, because remaining farmers use the possibility of growth and lease a considerable quantity of land In contrast to this, farm structure in the arable regions is stable due to a high potential of production alternatives. However, landscape appearance may also change dramatically in this region due to the increasing importance of maize. |
| Keywords: | scenario analyses, structural change, landscape visualisation, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95042&r=agr |
| By: | Bergevoet, Ron; Kuipers, Abele; Marija, Klopcic |
| Abstract: | Agriculture in Slovenia is characterized by less-favourable natural and structural conditions. The degree of competitiveness of the whole agro-food sector will eventually decide whether farmers and industry will be able to compete on the EU market. Slovenian agriculture at the moment still lacks competitiveness Farmers that want to stay into business will have to further develop their farm. For farm development, besides craftsmanship and management skills increasingly entrepreneurial competencies are needed. To get insight into the entrepreneurial characteristics of Slovenian dairy farmers by investigating the opportunities and threats as perceived by farmers (external factors) to establish a future in rural Slovenia in the relation to internal factors (farmersâ and farm characteristics) and future strategy of the farmer. |
| Keywords: | rural development, structural changes, farmers, strategies, Slovenia, Community/Rural/Urban Development, Q18, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94614&r=agr |
| By: | Baptista, A.; Tiberio, L.; Cristovao, A. |
| Abstract: | Even in relatively peripheral areas, such as the Portuguese-Spanish border regions, agriculture and food systems have changed greatly in the last decades. Traditional agricultural systems have been declining and some products are no longer appreciated, or even tend to become quantitatively insignificant. Not only are producers ageing but their knowledge and know-how along with the local genetic heritage and biodiversity associated with farming are at risk of disappearing. Local products and markets have been progressively integrated into the larger framework of the global food market. Distributors, restaurant owners and consumers in general rely more and more on exogenous food products, despite the undeniable quality of the existing products and the emerging new urban demand for these products at a larger scale. Recent studies show that there is still room for small-scale production and localized food systems, although a considerable effort needs to be made if they are to be strengthened or re-established. This paper presents a comparative study of both the potential and limitations of traditional local products in the border area of Northern Portugal and the Spanish Province of Salamanca, in Castilla-Léon. It analyzes the types of products, production processes, qualification strategies, as well as the markets and commercialization approaches. The study is based on official published documents and interviews with local producers. Results show that the Portuguese regions are better positioned in terms of number of producers of traditional products, especially the organic products. On the whole, the major difficulties seem to lie in adequately qualifying, promoting and commercializing the products. Besides, co-operation among local agri-food entrepreneurs (in each zone and across the border) is quite feeble and does pose a challenge for the future. In general, localized systems tend to be quite weak, due to the decrease in population and the poor co-ordination among actors and the organization of local supply chains. |
| Keywords: | Local agri-food products, peripheral areas, Portugal, Spain., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:94925&r=agr |
| By: | D'Souza, Anna; Jolliffe, Dean |
| Abstract: | This paper investigates the impact of rising wheat prices -- during the 2007/08 global food crisis -- on food security in Afghanistan. Exploiting the temporal stratification of a unique nationally-representative household survey, the analysis finds evidence of large declines in real per capita food consumption and in food security (per capita calorie intake and household dietary diversity) corresponding to the price shocks. The data reveal smaller price elasticities with respect to calories than with respect to food consumption, suggesting that households trade off quality for quantity as they move toward staple foods and away from nutrient-rich foods such as meat and vegetables. In addition, there is increased demand in the face of price increases (Giffen good properties) for wheat products in urban areas. This study improves on country-level simulation studies by providing estimates of actual household wellbeing before and during the height of the global food crisis in one of the world's poorest, most food-insecure countries. |
| Keywords: | Food&Beverage Industry,Regional Economic Development,Rural Poverty Reduction,Nutrition |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5466&r=agr |
| By: | Rocchi, B.; Cavicchi, A.; Baldeschi, M. |
| Abstract: | Farmers Markets (FMs) around the world are often considered as one key response to the less sustainable conventional food production systems. Despite the economic crisis, international studies show that the most important factor leading people to buy fresh products in these points of sale is the quality. In fact, consumers usually cite âbetter food qualityâ, âlocally produced foodsâ, âhigher social interactionâ and âlearning directly about the vendors and their food production practicesâ, as the principal motivations in buying in FM environment. In this paper the results of a survey carried out in several FMs and shops in Tuscany are presented. A sample of consumers were interviewed on-site using a structured questionnaire. The attitude of respondent towards FM was assessed using a test scale composed of 16 items referring to five different features of this form of distribution, supposed to be relevant in the consumer choice: quality of products, direct contact with farmers, convenience, environmental sustainability, and support for rural development processes. The high level of reliability of the attitude scale allowed its use in performing a cluster analysis of observed units. The cluster analysis allowed to identify two groups of consumers with different characteristics both in term of socio-economic descriptive variables and in term of attitudes and motivations towards FMs. |
| Keywords: | Food miles, Sustainability, Short Food Supply Chain. 800822056, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95224&r=agr |
| By: | Dao, The Anh; Trinh, Van Tuan; Hoang, Xuan Truong |
| Abstract: | In a market economy, poor breeding farmers usually face many difficulties due to the lack of information exchange in advanced technology and science, market and breeding experience. Cao Bang Province in the mountainous North of Viet Nam has the highest household poverty ratio, with 40% in 2007. The Hâmong minority settled recently in the agro-ecological setting of the high mountains of Northern Vietnam, including Cao Bang, with small-scale land; therefore intensive livestock has become a main source for their livelihood. Cao Bang has two main local cattle races namely, âSmall yellowâ and âHâmongâ registered in the Vietnam animal breed Atlas. Hâmong beef accounts for 30% number of total animal. Hâmong beef is indigenous breed, fairly weight, mature male beef weigh 400 â 600 kg, fresh red meat, and smooth muscle, special sweet tasting. This local Hâmong beef has good meat quality but this quality value is not known by supermarket in cities due to the weak coordination in beef value chain. An actionresearch by CASRAD/CIRAD funded by IFAD (Superchain project) and aiming to link rural poor households to supermarkets and other quality chains has selected the Hâmong beef value chain. The objective is to develop small scale Hâmong beef farming in groups, and link them to high value chains becoming a localized production cluster, in a way which is suitable to breeding conditions in mountainous areas. The approach is based on the theories of Institutional economics and collective action (Dao the Anh et al., 2007). Collective actions of small scale farmers may reduce transaction costs; increase the size of commodities in trading and the possibility of market access of the farmers. It is also based on value chain analyze (Kaplinsky et al. 2001; Gereffi et al., 2003). Characteristics of transactions, in particular in terms of quality, and the supplierâs capacity will create different regulating structures of the value chains. The supply capacity in terms of quantity and quality is the key barrier of participation of the poor into the value chain. |
| Keywords: | Hâmong beef, farmer group, territory., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95008&r=agr |
| By: | Ferede T. |
| Abstract: | After two decades of agricultural-led development strategies since the early 1990s, economic growth has been erratic, land degradation has worsened, and the country has failed to enjoy significant drop in the number of food insecure population. By using a complementary qualitative and quantitative analysis, this study shades some insights regarding the effects of policy reforms on household livelihoods in rural Ethiopia. The qualitative results indicate that agricultural productivity declined and households experienced a downward livelihood trajectories. Farm households have stuck in a stagnant and low productivity agriculture as output growth is largely driven by employment expansion with limited or no productivity gain. Simulation results based on the village computable general equilibrium (CGE) model indicate that growth in agricultural productivity does not promote the development of the nonfarm sector in the form of labour-intensive small businesses. In settings characterized by low productivity, complementary reforms are required to trigger growth and to improve household livelihoods. The growth and employment linkages are strengthened when agricultural growth is driven by a set of mutually reinforcing policy reforms. |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2010018&r=agr |
| By: | Sauer, Johannes; Davidova, Sophia; Latruffe, Laure |
| Abstract: | The objective of this article is to investigate why farmers in Kosovo leave land fallow when the total land of their farms is small and households, almost fully dependent on farming for their livelihoods, are large. In order to elicit some of the barriers to land utilization, the article uses a comprehensive survey carried out during the agricultural year 2005/2006 to explore agricultural householdsâ perceptions of production, market conditions, and general security six years after the end of the military conflict in the former Yugoslavia. Several agro-environmental, household and farm characteristics are employed to empirically approximate the significance of different factors for leaving land fallow. Three different econometric models are used to address the characteristics of the dependent variable distribution by accounting for endogeneity. The main determinants of the share of land left fallow are found to be related to the economic and institutional structure: low profitability of farming; difficulty in accessing production factors and variable inputs; as well as uncertainty regarding property rights in land. |
| Keywords: | Fallow land decision, Kosovo, Endogeneity, Community/Rural/Urban Development, C24, Q12, Q15, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94917&r=agr |
| By: | Cernic Istenic, Majda |
| Abstract: | Successes and failures of EU food quality schemes: experience from the case of âScent of Prekmurjeâ, Slovenia |
| Keywords: | food quality scheme, multifunctional agriculture, actors, case study, Rural Development Programme 2007-2013, Community/Rural/Urban Development, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94903&r=agr |
| By: | Tabeau, A.; Hatna, E.; Verburg, P.H. |
| Abstract: | The paper assess uncertainty of future spatial allocation of agricultural land in Europe. To assess the possible future development of agricultural production and land for the period 2000 â 2030, two contrasting scenarios are constructed. The scenarios storylines lead to different measurable assumptions concerning scenario specific drivers (variables) and parameters. Many of them are estimations and thus include a certain level of uncertainty regarding their true values. This leads to uncertainty of the scenario outcomes. In this study we use sensitivity analysis to estimate the uncertainty of agricultural land use. |
| Keywords: | spatial uncertainty, scenario approach, sensitivity analysis., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95235&r=agr |
| By: | Viaggi, D.; Bartolini, F.; Raggi, M.; Sardonini, L. |
| Abstract: | The objective of this paper is to analyse and quantify the spatial dimension of the CAP effects in an area of Northern Italy. The analysis is based on survey information about stated intentions of farm-household in two CAP scenarios, treated through statistical analysis intended to identify the potential determinants of different farm reactions, focusing on explicit spatial variables (altitude, LFA, agrarian regions) among explanatory variables. Altogether, the study shows the relevance of explicitly addressing the spatial effects of policies and also the differentiated spatial effect of policy on different dimensions of agricultural activities. However, the work also highlights the limitation of the location-based representation of the spatial dimension compared with both non-spatial variables and more functional variables underlying the spatial dimension. |
| Keywords: | Common Agricultural Policy, Spatial effects, Emilia-Romagna., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95242&r=agr |
| By: | Nogar, Ada Graciela |
| Keywords: | Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95209&r=agr |
| By: | Lovo, S.; Magnani, R.; Perali, F. |
| Abstract: | In this paper we develop a multi-regional general equilibrium model (MEG-R) to compare the social desirability of the CAP reform in the three Italian macro-regions: North, Center and South. The model employs a mixed complementary framework that allows for the decision of not producing a particular crop in one or more regions and presents an attempt to model interregional trade flows. The model incorporates the links between production and consumption that characterize farm householdâs behavior and allows for heterogeneous household responses across regions. Results show a general tendency to reallocations from cereal crops to forage that appear more severe in the South. In this region, the reduction in crops cannot be translated into an effective expansion of fodder and could lead to the âdeactivationâ of the land. |
| Keywords: | Multi regional general equilibrium model, farm households, interregional trade., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95059&r=agr |
| By: | Jaenicke, Hannah; The Anh, Dao; Cong Nghiep, Pham |
| Abstract: | The project âCoalition to Diversify Income through Underused Cropsâ (CoDI) operates in Vietnam and India since 2008. The project supports local communities in the production, processing and marketing of neglected crops â local grains, fruits and vegetables. Those varieties have close relation with local territory. An evaluation of the situation of previous activities in India and Vietnam showed that the key weaknesses were: ⢠Demonstrations were not enough and too far away and too far apart. ⢠Post-harvest handling and processing methods suggested were too complicated. ⢠No financial support was provided. ⢠Not enough training courses were offered and access to information was limited. The main question was how to help farmers to produce indigenous species on a larger scale in a localized area for a marketing purpose. The CoDI project has chosen the Innovation System Approach to realize action-research for development with four main activities, owned and managed by the communities: 1. Food Processing Parks (FPPs), to which people are coming for training, information and business development services, processing, grading and other post-harvest activities and for wider support on available market opportunities, credit advice and links to other value chain actors at local, national and international levels. 2. Village Crop Fairs, during which local fruits and plants are being evaluated and the best ones selected by the communities. 3. Community Germplasm Orchards (nurseries), which then receive planting material from the selected lines for further propagation and which also serve as training grounds for plant propagation and nursery management skills. 4. Annual Knowledge Fairs, to communicate and discuss the experience with wider stakeholders from the public and private sector. The coalition builds upon in-depth experience of each of the partners in Vietnam on making markets work for the poor by facilitating links between rural cooperatives and urban quality distribution, focusing on women farmers who form the majority of vegetable and traditional crops producers, in an increasing urban environment where many men move to the towns for off-farm employment. |
| Keywords: | farmer association, traditional products, market access 2, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95038&r=agr |
| By: | KlopÄiÄ, Marija; Kuipers, Abele; Koops, Wiebe J.; Osterc, Jože |
| Abstract: | After accession to EU, farmers in the new-member states have to adjust to the EU agricultural policies and market. In Slovenia an analysis is made of the farm development plans and information exchange under quota and CAP. Three research questions were addressed: what information is received and how; how does the farmer prefer to receive information and what kind; how to make decisions to react to the new EU policies concerning farm management and future plans. These questions were linked to the base variables, being the farm and farmersâ characteristics. As tool a questionnaire was distributed to dairy farmers. 1114 questionnaires, 22% of the distributed ones have been returned anonymously, implying that 11% of the dairy farmersâ population is part of the analysis. It appeared that the research sample of farmers used represents the more future oriented farmers. As main factors describing the farm and farmersâ characteristics were found farm size, age and number of other activities than dairy. Results show that nearly all farmers did receive information about some specific aspects of the quota system. Communication channels dealing with this administrative info and also with farm management advice are divers, but frequency of direct contact with advisors may be less than predicted. Results also indicate a very significant demand for info about strategic planning, farm management aspects and EU premium programs, especially about CAP general policies and milk premiums, and a considerable activity in farm planning. About 40% of farmers choose for keeping the farm business the same and 50% intend to develop the farm further. |
| Keywords: | CAP, Slovenian cattle farmers, information, decisions, future plans, Community/Rural/Urban Development, Q18, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95304&r=agr |
| By: | Gianasi, L.M.; Tubaldini, M.A. |
| Abstract: | This article focuses on one of the themes developed in the Project leader between Fluminense Federal University - UFF (Rio de Janeiro State) and Federal University of Minas Gerais - UFMG (Minas Gerais State) sponsored by CAPES (Coordination of Improvement of Higher Education Personnel). The research is developed in Earth and Society Nucleus - Study Group on Agrarian Geography, Familiar Agriculture and Peasant Culture and the Laboratory of Agrarian Geography and Agriculture Family, linked to the Graduate Program in Geography and the Department of Geography of UFMG and the Research Center for Agricultural-Environmental of the Graduate Program in Geography of UFF. The main project is related with "Family agriculture, environmental sustainability and territoriality in the Amazon". In this paper the proposal is to discuss one part of the global research: âterritoriality of the agroecological and conventional systems in family farming in Rondônia - the Amazon forest. This study will present a brief discussion about the qualitative contribution of agroecological systems for the family farmers in the state of Rondônia and their effects on regional-local sustainable development. In the conventional agricultural method it will be presented the evidence of degradation of the environment in some figures. The focus of this paper is on a reinterpretation of family farmers that practice an agro-ecologic agriculture and others in this area. Intend to debate where the agroecological families are located in this territory if has or not a territory of agroecology, how they can survive using this type of agriculture and to show the importance of the commercialization (especially in the trade fair) of this production as a source of economic resources for this families. |
| Keywords: | agroecology, Rondôniaâamazon Region, familiar agriculture., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95202&r=agr |
| By: | Fanchette, Sylvie |
| Keywords: | Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95017&r=agr |
| By: | Zulfiqar, Farhad |
| Abstract: | The knowledge of supply response greatly helps in farm decisions in allocation of resources in right direction. It can help planners and policy makers to allocate and achieve production targets and in long term planning. It thus provides a framework for adjusting production to the optimum resource employment to promote economic development. The study of supply response at disaggregated level is imperative as responses may be different for different agro-ecological zones of Pakistan. Therefore, the concern of this thesis was to examine the impact of different factors on the supply of agricultural commodities in different agro-ecological zones in Punjab in order to make necessary adjustments in the policy reforms. This study was carried out to estimate the wheat yield response function. The explanatory variables were economic, location and climatic variables. The proxy variable for economic variable was input change, for location variable it was area change and for climatic variables these were temperature and rainfall. Time trend variable was used to capture the affect of technological advances and improved farm management practices. Time series data on these variables was collected from secondary sources for the period 1979-2009. Mixed and cotton-wheat zone of Punjab were selected for the analysis and Faisalabad and Bahawalpur were selected from the above two zones respectively, mainly because of their major share in production of wheat. Dummy variable test and F-test results showed that data pooling was appropriate, so data from the two districts was pooled and used as a single entity. Then method of Ordinary Least Square was used to draw the wheat yield response function. The effect of climatic variables was found significantly higher than that of non-climatic variables i.e., economic and location variables. The largest impact was of mean maximum average temperature at the time of maturity, ceteris paribus with one oC in its increase the average wheat yield increases by 1.4 mounds per hectare. It was concluded from the economic variable results that the level of input use was less than optimum. The location variables suggest that increasing the area virtually decreases the yield. Vertical expansion was found to be the solution of Pakistan’s growing food security needs. Horizontal expansion will result in further decline in the productivity of wheat. The recommendations from this research study were that there should be timely availability of inputs, provision of adequate finance to ensure optimal input use and creating awareness among farming community about the benefits from using recommended package of inputs. There will be growing need of developing new wheat varieties which should be more adaptable to changing climatic conditions. |
| Keywords: | Yield Response; Wheat; OLS; Pakistan |
| JEL: | Q13 Q0 |
| Date: | 2010–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26503&r=agr |
| By: | Mettepenningen, Evy; Mazodier, Marion; Vandermeulen, Valerie; Van Huylenbroeck, Guido |
| Abstract: | Regional development is receiving a lot of attention nowadays in European policy. A possible stepping stone to achieve regional development is regional identity. This paper investigates whether regional identity can contribute to the specific case of agricultural regional development. One possible way for agriculture to profit from regional identity is by diversifying farm activities. The paper shows that regional identity can stimulate farmers to take up diversification and can also stimulate inhabitants of the region to consume products directly from the farmer. |
| Keywords: | Regional identity, regional development, multifunctional agriculture, diversification, farm income, Community/Rural/Urban Development, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94894&r=agr |
| By: | Brummer, Bernhard; Von Cramon-Taubadel, Stephan; Nivievskyi, Oleg; Schlather, Martin |
| Abstract: | Even after more than 15 years of transition from plan to market, agriculture in Ukraine still faces many challenges in terms of its structure. The evidence in the literature points to significant heterogeneity of technical efficiency and productivity scores in Ukraine. Moreover, both the recently approved WTO accession, and the ongoing negotiations on a free trade agreement with the EU will require further improvements in productivity and competitiveness at the farm level. Using farm-level data for 2004-2005, we study the presence and possible causes of agglomeration economies in Ukrainian dairy sector. One of the most important results is that there are agglomeration effects in the sector. The performance of dairy farms is influenced by the performance of its neighbors. Furthermore, the dairy farms in the neighborhood of a dairy processor outperform the more distant ones, although the heterogeneity of this effect is substantial. |
| Keywords: | Ukraine, dairy farming, order-m frontier, spatial dependence, agglomeration., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:94990&r=agr |
| By: | Cruz, Fabiana Thomé da; de Souza Mendonça, Menezes, Sônia |
| Abstract: | In this article, we used empirical data from research related to the production of two traditional cheeses in Brazil: the Serrano Cheese and Coalho Cheese, produced, respectively, in Campos de Cima da Serra, Rio Grande do Sul, and Sertão Sergipano, in Sergipe. The production characteristics and similarities found between the modes of production of these products, the cultural and historical aspects that approximate these cheeses produced in two geographically distant regions in Brazil, provide elements to discuss the role of traditional foods as promoters of rural development strategies. In this article, our aim is to emphasize the debate around the potential of connection between consumers and producers towards organization and consolidation of short circuits of production and distribution of traditional foods. In the limit, the debate we propose points out the role of these spaces or local markets - alternative to the hegemonic ones - in rural development strategies. |
| Keywords: | Serrano and Coalho Cheeses, rural development, small farmers., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95345&r=agr |
| By: | Bertazzoli, Aldo; Ruggeri, Arianna; Samoggia, Antonella |
| Abstract: | The paper focuses on the competitiveness of organic horticultural farms implementing short food supply chain (SFSC), by analysing the organisational structures adopted by farmers and their economic performance. The collection of data based on face to face interviews with farmers and the review of the rural development plans of three central Italy regions. Results show that farms prefer a combination of organizational structures that involve both business to consumer and business to business strategies. A high number of farms realise direct selling to consumers implemented through in farm selling and market distribution channels. Nonetheless, farms performing the highest turnover take advantage from the support of informal or formal network of producers. At policy level intervention towards strengthening SFSCâs competitiveness is still lacking. |
| Keywords: | short chain, direct selling, horticultural, organisation, economic performance, Community/Rural/Urban Development, Q13, R11, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94918&r=agr |
| By: | Gouzhary, Izhar; Margarian, Anne |
| Abstract: | Food production and food processing, nowadays, are economic activities in which local and global strategies are interconnected. Moreover the importance of the food industry in total manufacturing is growing; local production systems are competing on the global market by producing specific quality goods or products. Many local regions have attempted to improve their economic situation by encouraging the growth of manufacturing activities. The basic objective of this study to determine and analyze the patterns of food manufacturing and the spatial changes between 2007 and 2001 in the 439 regions in Germany. |
| Keywords: | Spatial analysis, Food, Germany., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95330&r=agr |
| By: | Baptista, Alberto; Biswas, Pradip |
| Abstract: | Despite special quality of the olive oil of Trás-os-Montes (TM), producers fail to create niche market and raise price commensurate with the high cost. Some local manufacturers made some attempts to establish special brands for their oil and the association of the local producers (AOTAD) made the required efforts to bring the product of the region under PDO, designated as Azeite de Trás-os-Montes DOP. Only a small part of the marketed product is sold under PDO (4%) and a fraction of which is sold under some brand till date. The cost structure of olive oil depends on multiple factors - the type of production system (traditional or intensive), plant variety, inclination of plots and productivity, among others. The harvesting cost in general represents more than 50 percent of the total costs. The massive increase of production with the use of intensive farming at lower unit cost in other regions has pulled down the overall market price making traditional farms unviable. For the modern super intensive farm unit cost is only one fourth of that of traditional farm. The issue is not of protecting an unviable traditional system from the competition of an intensive system, but of the realisation of the true value of a product that the market mechanism fails to accomplish. This kind of problem of adverse selection due incomplete/ asymmetric information in the market is often interpreted in terms of the âlemon effectâ or âGreshamâs Lawâ. It states that in the case of buyer failing to discriminate between the products of different qualities at the time of purchase, the producers of higher quality products cannot charge a premium price. Under these circumstances, if the cost of high quality product exceeds that of low quality product, the producers of the former cannot sustain in the market. This is precisely what happens with the good quality high cost olive oil of TM against the competition of the low quality low cost olive oil of some other places. As an exotic high quality product its characteristics must be described in most visible and attractive forms and search its niche market globally. |
| Keywords: | Olive Oil in Trás-os-Montes, Quality Differentiation, Viability, Traditional Farming, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95325&r=agr |
| By: | Wichelns, Dennis |
| Abstract: | In summary, irrigation costs and prices are rising in most regions of the United States, due to a combination of increasing scarcity, changes in public preferences regarding water allocation among competing uses, increasing budget scrutiny in the national and state legislatures, rising energy prices, and increasing awareness of climate change and the potential implications for rainfall and the availability of surface water resources. These issues likely will continue encouraging public officials to utilize water pricing and other market-based incentives to motivate further improvements in water use efficiency in agriculture and other sectors. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:reg:wpaper:46&r=agr |
| By: | Cai, Wenbiao |
| Abstract: | This paper develops a general equilibrium model to quantitatively explain high labor share, low productivity and small farm size in agriculture in low income countries. The model features individual heterogeneity in skill that is augmentable over time and endogenous occupation choice. Calibrated to the U.S, the model can reproduce bulk of the observed variations in agriculture employment, agriculture output per worker and mean farm size across countries in the sample. In addition, the model generates endogenous farm size distributions that closely resemble the empirical counterpart for a large set of countries. Counterfactual exercises show TFP to be the main source of productivity differences. |
| Keywords: | Income differences; agricultural productivity; Skill investment; farm size distribution |
| JEL: | O11 O15 O13 O14 |
| Date: | 2010–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26439&r=agr |
| By: | Bouamra-Mechemache, Z.; Chaaban, J. |
| Abstract: | This paper seeks to establish whether public agro-food interventions like food quality labels contribute or not to the promotion of rural employment. To this end, the paper uses original longitudinal firm and plant level datasets on the French cheese industry to assess the impact of the Protected Designation of Origin (PDO) label on rural employment. The data is used to test the impact of the PDO label on equilibrium market structure in the downstream cheese processing segment, and to establish backward linkages this segment has on upstream plant-level employment and the number of dairy farmers. Our results show that the PDO label has increased the equilibrium number of firms at the national level, because the introduction of this label has created market segmentation which reduced barriers to entry. In turn, this higher number of cheese firms resulted in more employment in dairy farms and processing plants at the district level. However, the PDO label exerts pressure on farmers to abide by strict production techniques, which may cause exit due to cost increases. Yet our estimates show that the employment benefits of this label outweigh the potential losses it might create due to its product specification stringency. |
| Keywords: | Market Structure, Protected Designation of Origin, Rural Employment, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:94987&r=agr |
| By: | Bezabih, Mintewab; Holden, Stein |
| Abstract: | The importance of providing secure land rights to smallholder farmers in developing countries is now widely recognized. In line with this, our paper analyzes the impact of land certification on boosting productivity of female-headed households in Ethiopia, which are believed to be systematically more tenure insecure than their male counterparts. Based on parametric and semi-parametric analyses, the impact of certification on plot-level productivity is positive and significant. However, certification has different impacts on male and female productivity: male-headed households gain significantly and women gain only modestly. Hence, the results indicate that, while certification is clearly beneficial to farm-level productivity, it does not necessarily lead to more gains for female-headed households. |
| Keywords: | productivity, female-headed households, land certification |
| JEL: | D2 Q12 Q15 |
| Date: | 2010–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-23-efd&r=agr |
| By: | Niemi, Jyrki; Xing, Liu |
| Abstract: | Buyer power and competition policy in food supply chains has emerged as an important economic issue and a highly sensitive item on the policy agenda all around the world. Claims that large retailers and food companies are depressing farm prices because of their market power have been made in many countries around the world (Swinnen and Vandeplas, 2009). Arising concentration of retailer sector increases the concern of existence and gradual growth of buyer power in this sector. The key reason is that the growing buyer power may have the effect of considerably distorting both retail and producer competition, and eventually it may damage economic welfare. In Finland, the increased concentration of the retail sector, with fewer outlets and the growth of the large supermarket chains, has been particularly fast. The two leading Finnish retail chains of food and daily goods increased their market share from 55 per cent in 1990 to nearly 75 per cent in 2008 (Niemi and Ahlstedt 2009).. The purpose of this paper is to investigate the possible existence of buyer power in Finnish food retail food industry. In details, we follow an approach used by Lloyd et al (2009) to measures oligopoly and oligopsony market power in the Finnish food retail industry. This offers a âfirst-filterâ test of price data that may be used as part of the preliminary analyses into the presence of buyer power in food markets. In practice, we apply a vector error correction mechanism (VECM) to perform two-stage tests: First is to test the hypothesis of cointegration between the supply and demand price indices with expected signs for the coefficients irrespective of the degree of retail competition; second is to test the null hypothesis of the perfect competition. The model also serves as a useful device for characterising how prices are transmitted in food market, albeit in simplified form. |
| Keywords: | concentration, market power, VECM, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95336&r=agr |
| By: | Campos, Monica; JakliÄ, Tina; JuvanÄiÄ, Luka |
| Abstract: | The paper is investigating the recent evolution of farm productivity in five EU New Member States (NMS): Bulgaria, Hungary, Romania, Poland and Slovenia. More precisely, the paper deals with determinants influencing farm productivity in a changing market and policy environment brought by their full integration to the CAP. With a combination of multivariate statistics and econometric techniques, it attempts to identify and explain the patterns of agricultural labour productivity change in the period 2003-2005. Results suggest that adjustment patterns are diverging and are region-specific, depending mainly on the initial farm structural conditions, and availability of non-farm jobs. Policy implications of the paper suggest that agricultural policy should move away from the concept of transfers to agriculture to more pro-active role in creating conditions for job creation in rural areas. |
| Keywords: | structural adjustment, farm productivity, farming types, EU-accession, Community/Rural/Urban Development, Q12, R11, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95315&r=agr |
| By: | Santeramo, F.G.; Cioffi, A. |
| Abstract: | The paper explores the characteristics of spatial price dynamics for fresh vegetables. The analysis is carried out on selected EU prices for tomatoes and cauliflowers collected on some of the main production and consumption markets. It is based on the estimation of an time-varying threshold autoregressive econometric specification that is shown capable to underline the asymmetries in inter-Countries price transmission. The model shows that that horizontal price transmissions among net producer and net consumer markets is asymmetric and how such characteristic differs for markets closer to production areas or to consumption locations. This paper allowed to assess the average elapsing time for shocks to be transmitted among spatially separated markets, and, in particular, it shows the speed of transmission of price raises and price falls. |
| Keywords: | price transmission, TVECM, vegetables, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95228&r=agr |
| By: | Alpízar, Francisco; Carlsson, Fredrik; Naranjo, Maria A. |
| Abstract: | The risk of losing income and productive means due to adverse weather can differ significantly among farmers sharing a productive landscape and is, of course, hard to estimate or even “guesstimate” empirically. Moreover, the costs associated with investments in adaptation to climate are likely to exhibit economies of scope. We explore the implications of these characteristics on Costa Rican coffee farmers’ decisions to adapt to climate change, using a framed field experiment. Despite having a baseline of high levels of risk aversion, we still found that farmers more frequently chose the safe options when the setting is characterized by unknown risk (that is, poor or unreliable risk information). Second, we found that farmers, to a large extent, coordinated their decisions to secure a lower adaptation cost and that communication among farmers strongly facilitated coordination. |
| Keywords: | risk, ambiguity, technology adoption, climate change, field experiment |
| JEL: | C93 D81 H41 Q16 Q54 |
| Date: | 2010–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-09-18-rev-efd&r=agr |
| By: | Hubbard, Carmen; Szigeti, Judith; Podruzsik, Szilard |
| Abstract: | This paper focuses on the estimation of changes in economic welfare (real income) on different groups (income deciles) of Hungarian and Romanian consumers following food price changes as a result of accession to the European Union (EU) in 2004 and 2007. It identifies in both countries those consumer groups most vulnerable to food price changes using the most recent, official, post accession data. Slutsky Compensating Variation, based on Laspeyres indexes is employed for a food basket of 16 products. The results show that real food prices have changed with some going up and others falling. However, overall both Hungary and Romania have experienced a rise in real food prices by 9 per cent and 20 per cent, respectively. The rise in food prices has resulted in a welfare loss for all income deciles, particularly for those in the lower income groups. Although, in absolute terms, Romanian food consumers seem to be more affected (the decrease in their real income varies between 4 per cent for decile 10 and 12 per cent for decile 1) than Hungarian consumers (0.4 per cent for decile 10 and 2.2 per cent for decile 1), the distribution of the impact is higher in Hungary, a five-fold difference between decile 1 and decile 10 as opposed to a three-fold difference in Romania.This paper focuses on the estimation of changes in economic welfare (real income) on different groups (income deciles) of Hungarian and Romanian consumers following food price changes as a result of accession to the European Union (EU) in 2004 and 2007. It identifies in both countries those consumer groups most vulnerable to food price changes using the most recent, official, post accession data. Slutsky Compensating Variation, based on Laspeyres indexes is employed for a food basket of 16 products. The results show that real food prices have changed with some going up and others falling. However, overall both Hungary and Romania have experienced a rise in real food prices by 9 per cent and 20 per cent, respectively. The rise in food prices has resulted in a welfare loss for all income deciles, particularly for those in the lower income groups. Although, in absolute terms, Romanian food consumers seem to be more affected (the decrease in their real income varies between 4 per cent for decile 10 and 12 per cent for decile 1) than Hungarian consumers (0.4 per cent for decile 10 and 2.2 per cent for decile 1), the distribution of the impact is higher in Hungary, a five-fold difference between decile 1 and decile 10 as opposed to a three-fold difference in Romania. |
| Keywords: | prices, consumers, welfare, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95036&r=agr |
| By: | MacÃas Vázquez, Alfredo; Vence Deza, Xavier |
| Keywords: | Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95199&r=agr |
| By: | Rosa, F.; Sossai, E.; Vasciaveo, M. |
| Abstract: | The aim of this paper is to discuss the planning of regional Agri-food supply chain using an integrated database territorial information. The objective is to optimize the chain performance using alternative solutions. Evidences are obtained with a case study performed in FVG region applied to maize-crop. Firstly it is explored the chain network composed by farms, collection points and processing plants; then territorial, agronomic and climate information are integrated to simulate realistic production forecast model applied to maize crop. Finally a program from graph analysis is used to allocate the production through the chain. The economic performance is evaluated using the net revenues varying with the intensification of maize production and adoption of different organization solutions (independent and cooperative). Conclusions are that the chain performance is influenced by a combination of technology and organization decisions and the policy maker can use these results to orient their targets about regional planning. |
| Keywords: | data integration, supply chain, decision support system, crop simulation, regional policy., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95226&r=agr |
| By: | Viaggi, Davide; Imami, Drinimi; Zhllima, Edvin; Leonetti, Luciano |
| Abstract: | Albania is a transition country aspiring to become a member of EU, while it is expected that it will become Candidate member within 2012, enabling access to IPARD funding. EU integration implies more opportunities, in form of subsidies for rural and agriculture development, but also imposes standards related to quality and safety on one hand, and enhancement of efficiency on the other hand. More specifically, in order to be eligible for the coming IPARD funding, Albanian agriculture holdings and agro-processors, need to meet national and EU safety standards (see [1], [2] and [3]). In this upgrading process, the role that extension services can and should play is crucial. The Albanian agriculture extension services have undergone a drastic change from the time of the state-organized economy to the market economy, as also the private extension services have emerged. In this study, we look into current situation and future perspectives for extension agriculture services in fruits, vegetables and livestock subsectors, in order to identify: a) the present behaviour related to the use and provision of extension services; b) the (perceived) needs for technical assistance and Capacity Building (CB) from the perspective of service providers and clients (agriculture holdings and agro-processors) with regards to services related to quality and safety standards, certification etc. Despite improvements in some private and public services, such as cattle insemination and vaccinations, other services are poorly served, such as services related to quality/safety standards certification [9]. Further research on extension services in Albania is needed as availability of quality extension services is a key factor to achieve agriculture competitiveness in Albania. This is particularly important in the context of EU integration and in the light of multiple relationships developing with the globalised economy in terms of: a) support to extension services through donor activities; b) chain interplay between local and foreign agriculture and agri-food industry; c) growing competition even in the domestic market. |
| Keywords: | Extension service, Albania., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95241&r=agr |
| By: | Lakner, Sebastian |
| Abstract: | This paper investigates regional cluster of organic grassland farms with respect to technical efficiency. The data-base consists of organic grassland and mixed farms in Germany from 1994/95 to 2005/06. In a first step five inputs and one output are analyzed by means of a stochastic frontier production function, allowing for heteroscedasticity and technical effects. The selection of determinants of technical efficiency is based on location theory. Since organic farming has regional centers, technical efficiency (TE) of organic farms is found to be affected by regional variables (such as agglomeration effects). In a second step we identified regional clusters of organic farms and analyzed the technical efficiency of the regional clusters. The results show that organic farms in distinct regions show different efficiency performance - suggesting that there are agglomeration and urbanization effects in the organic market. |
| Keywords: | Efficiency, Agglomeration Effects, Organic Farming., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95053&r=agr |
| By: | Anania, Giovanni; Nistico, R |
| Abstract: | â Price dispersion, i.e. a homogeneous product sold at different prices by different sellers, is among the most replicated findings in empirical economics. The paper assesses the extent and determinants of spatial price dispersion for 14 perfectly homogeneous food products in more than 400 retailers in a market characterized by the persistence of a large number of relatively small traditional food stores, side by side with large supermarkets. The extent of observed price dispersion is quite high, suggesting that, despite their large number, monopolistic competition prevails among sellers as a result of the heterogeneity of services offered. When prices in an urban area (where the spatial concentration of sellers is much higher and consumer search costs significantly lower) have been compared with those in smaller towns and rural areas, differences in search costs and the potentially higher degree of competition did not yield lower prices; quite the contrary, they were, on average, higher for 11 of the 14 products considered. Supermarkets proved to be often, but not always, less expensive than traditional retailers, although average savings associated to food shopping at supermarkets were extremely low. Finally, the results of the study suggest that sellers behave differently in their pricing decision strategies; these differences emerge both at the firm level and, for supermarkets, within the same chain. The fact that products considered were homogeneous, purchases frequently repeated, the number of sellers large, and search costs relatively low, did not suffice to keep price dispersion low. Based on the results presented in the paper, it is clear that more important in explaining price dispersion is the contemporaneous heterogeneity of retailers (in terms of services rendered) and consumers (in terms of their propensity to search and shopping preferences), which makes it possible for a monopolistic competition structure of the market to emerge and for small traditional food retail stores to remain in business. |
| Keywords: | Price dispersion, retail pricing, food markets., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:94921&r=agr |
| By: | Schnicke, Hauke Joachim |
| Abstract: | This paper addresses three issues of socio-economic factors of Hungarian farm households and their impacts on structural change. This concerns the role of age as a factor influencing the opportunity costs of labour, the impact of empirical age patterns on structural change, and the role of a varied probability of young farm successors entering into the farming business. Results of a farm household survey are integrated in simulation experiments with the agent-based model AgriPoliS which has been adapted to a Hungarian case study region. It could be shown that impediments of a flexible labour adjustment slow down structural change while the timing of persisting or exiting of farms highly depends on the age distribution of farmers. |
| Keywords: | socio-economic characteristics, farm households, empirical age patterns, farm succession, structural change, Community/Rural/Urban Development, Q18, Q14, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94905&r=agr |
| By: | Nakajima, T.; Matsuda, H.; Rifin, A. |
| Abstract: | In this paper, we analyze the structural change in the supply chain of oil palm in North Sumatra, Indonesia, especially after the financial crisis of the late 20th century. We first describe the past and present market structure and conduct of oil palm industries in North Sumatra with an industrial organization approach based on our field study. The analysis reveals that the supply chain of oil palm in North Sumatra has changed such that farmers had more power to determine FFB prices over crushing companies, especially from 2001 through 2004. However, farmers lost bargaining power during 2007-2008 due to a decrease in palm oil demand, plunging of palm oil prices, and a regulation imposed upon crushing companies by the Ministry of Agriculture. To analyze such structural changes empirically, we test the existence of Asymmetric Price Transmission (APT), in which the speed of adjustments of the output price after the input price increases or decreases is different; the existence of APT implies the existence of market power. We apply the (Momentum) Threshold Autoregressive ((M-)TAR) model to estimate APT. According to the estimation results, crushing companies had more power to determine FFB prices over farmers until around March 2002. This situation changed such that farmers had more bargaining power from around April 2002 to around April 2007 before the power became balanced. The structural change test also shows these time points as optimal structural change points. The APT estimation, however, has little rigorous theoretical background, and the concept of APT is not necessarily related to market power. Hence, we next analyze the market power of crushers and farmers both theoretically and empirically. The estimation result of market power indicates that the farmers had no market power before the third quarter of 2002, but they did have market power from the next quarter to the first quarter of 2008, after which time they again lose market power. These empirical results are consistent both with each other and with the descriptions of the structural change. Finally, we conclude and draw some implications for farmers, crushers, and consumers of palm oil. |
| Keywords: | Indonesian palm oil, market power, Asymmetric Price Transmission (APT), (Momentum) Threshold Autoregressive ((M-)TAR) model., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95206&r=agr |
| By: | Mishev, Plamen Dimitrov; Ivanova, Nedka Momcheva; Harizanova, Hristina Stefanova |
| Abstract: | The rural areas in Bulgaria cover more then 80% of the country territory and account for about 29% of the population. Their development depends strongly on agricultural sector. The paper examines structural changes in agriculture, labour market situation in rural areas and presents the main results of the survey performed in three region of Bulgaria. The study shows a substantial decline in the number of farm with economic size between 0,5 and 3 ESU and a stable increase in the number of large farms. Major factors having impact on farm restructuring are: improvements in economic situation, in particular the increase in real income, positive developments of land market, deterioration of age structure of rural population and the habits of rural population to keep some agricultural activity. An important development of subsistence and semi subsistence farms is observed indicating two opposite processes: a process of transforming of a small part of semi-subsistence into commercial farms or into higher economic size group and another part of them converged to subsistence farms. The number of subsistence farms with economic size 0,5 â 1 ESU also declined as the reduction is either due to reduction of farm activity or due to exit from the sector. The most important option for employment and source of income in villages studied is agriculture, but the earned income is much below the national average The most important factor having impact on a decision to start a job outside agriculture is âTo ensure households leaving standards/ generate cash incomeâ. Generally the respondents do not think that they will have possibility to start their self employed business outside agriculture in the next 5 years. Only 25% of them expect to stay in agriculture as nearly 50% of the commercial farms will keep operating and only 17% - 26% of small farms will remain in the sector |
| Keywords: | rural development, farm restructuring, labour markets, Community/Rural/Urban Development, J21, R23, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95317&r=agr |
| By: | Josef L. Loening (World Bank, Washington); Masato Higashi (Columbia University) |
| Abstract: | This paper proposes a technique to decompose short-run fluctuations in the terms of trade. Using Ethiopia as an example, we decompose the commodity terms of trade into various components to measure the impact of price and volume shifts as well as export diversification. We use monthly data from the past decade, including periods during the global food and financial crises. Our findings suggest that diversification out of traditional coffee exports to other export commodities successfully mitigated a terms of trade shock. Continued export diversification will be beneficial. |
| Keywords: | Terms of Trade, Food Price Crisis, Financial Crisis, Ethiopia |
| JEL: | F14 O11 O55 |
| Date: | 2010–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:got:iaidps:205&r=agr |
| By: | Cavicchioli, D. |
| Abstract: | This paper applies to Italian milk supply chain a theoretically grounded methodology able to detect for the presence of market power along the supply chain itself using easily available data. The model, developed by Lloyd et al. brings to estimate a quasi-reduced form equation in which consumer price is regressed against producer price, marketing costs and demand and supply shifters. When market power is exerted along the supply chain both of the shifters are statistically significant and signed accordingly to model prescriptions, while with perfect competition none of the shifters is significant. 29 time series have been used in the analysis, within three different dataset covering partially or totally overlapped time periods. Variables having the same order of integration have been used within an Error Correction Model framework. Among all the variables having one cointegrating vector, only those with statistically significant parameters and signed according to model prescriptions have brought to conclusive results, detecting market power exertion along the Italian milk supply chain during two over the three periods examined. The present methodology may be useful in competition policy analysis as a preliminary âfastâ test on food supply chain conduct. For this purpose theoretical model validation is however necessary using Monte Carlo simulations. In this line, further improvements relates to explicitly modeling food processing-retailing relationships in order to detect for market power on each segment of the supply chain. |
| Keywords: | market power, cointegration, supply chain., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:94991&r=agr |
| By: | Hoffmann, J. |
| Abstract: | This paper deals with the identification of spatial agglomerations in the German food processing industry, using the Cluster Index developed by Sternberg and Litzenberger. Previous studies have analyzed this industry as one of several others utilizing highly aggregated data. The results of these studies mostly indicate a lack of agglomerations for the German food industry. Given the very heterogeneous character of this branch, an analysis at such an aggregated level might provide flawed results. Therefore, the following study analyzes German industry sectors for the first time at a highly disaggregated spatial (429 districts) and sectoral (23 subsectors of food processing industry) level. Results show that spatial agglomerations exist for several subsectors. This holds especially for processing and preserving of meat, fish, fruit, wine and milk processing as well as for breweries and the processing of mineral water. |
| Keywords: | Regional Cluster, Spatial Economics, German Food Processing Industry, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95032&r=agr |
| By: | HernandezâVillafuerte, Karla |
| Abstract: | The objectives of this research are to investigate the influence of geographical distance on the cointegration relationship in order to increase knowledge on the issue, and to indentify its role in Brazilian agricultural markets. With this intention, the cointegration framework is applied allowing for the presence of multiple structural breaks in the long run equation. The inclusion of breaks is in response to the multiple changes of the agricultural system during the period of investigation. The spatial integration is calculated between each market pair. The cointegration coefficient and geographical distance relationship is calculated by means of an OLS regression, taking into account the quality of roads and the proximity to a border or port. The effect of the distance depends on the product. In the case of rice markets, there is a weak, negative and significant relation. Concerning soybeans, the relationship is not significant. After allowing for the inclusion of breaks in the long run, the results remain unvaried. In addition, the region and a better access to export points are the main variables in the definition of the prices. |
| Keywords: | cointegration, price transmission, geographical distance, structural breaks, rice, soybeans, Brazil., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95030&r=agr |
| By: | Revoredo-Giha, C.; Watts, D.; Leat, P. |
| Abstract: | Local food and its possibilities for addressing sustainable regional growth, food availability, accessibility and affordability has received considerable attention in the discussion on and development of the National Food Policy in Scotland. In terms of methodology, the paper continues the analysis of the local food database for Scotland constructed in Watts et al (2010) by exploring the marketing outlets used by the local food enterprises. This subject is important because it may provide information about the degree of entrepreneurship of the involved firms. |
| Keywords: | Local food, Scotland, marketing outlets., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95223&r=agr |
| By: | Araujo-Enciso, Sergio Rene |
| Abstract: | The present document provides evidence of how prices along the Mexican Tortilla Industry are related and co-integrated, furthermore it attempts to derive a formal relationship between market integration and socioeconomic variables that affects transaction costs and therefore price transmission. Although not conclusive, it sets the ground for further steps on achieving such objective by implementing more advanced techniques. |
| Keywords: | maize tortilla industry, vertical price transmission, socioeconomic variables., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:94922&r=agr |
| By: | Kleinhanß, Werner; Offermann, Frank; Ehrmann, Markus |
| Abstract: | At the time of the introduction of the quota system the structure of dairy production in Germany was rather unfavourable. Since 1993, German policy generally aimed at improving quota mobility. The introduction of transfers without land in 1993 facilitated farm growth and the transfer of resources and production to the better farm managers and to locations best suited for dairy production; however the latter was restricted by the regional limitations of the trading zones. The quota auctions introduced in 2000 significantly improved the transparency of quota markets. Larger regional shifts in production will be enabled by the recent reduction of the number of trading zones. Overall, structural change in dairy production has been strong (halving the number of dairy farms every ten years) despite the limitations by the quota system. Still many regions in Germany, notably the case study region of Bavaria, are characterised by small farm structure, where the main share of milk production is still realised by small and medium sized farms. -- Zur Zeit der Einführung des Quotensystems war die Struktur der Milchproduktion in Deutschland eher ungünstig. Durch die anfängliche strikte Flächenbindung der Quote wurden strukturelle Anpassungen behindert. Die Einführung des Quotentransfers ohne Land im Jahr 1993 erleichterte betriebliches Wachstum und die Verlagerung der Quote zu den besten Wirten und Standorten (innerhalb der Übertragungsgebiete). Mit der 2000 eingeführten Übertragung über Börsen wurde die Flächbindung aufgehoben und eine bessere Transparenz auf dem Quotenmarkt erreicht. Größere regionale Verlagerungen der Milcherzeugung ergeben sich seit Verringerung der Anzahl der Handelszonen seit 2007. Trotz der Beschränkungen durch das Quotensystem ist der Strukturwandel stark ausgeprägt mit einer annähernden Halbierung der Zahl der Milcherzeuger im Zehnjahreszeitraum. |
| Keywords: | Milk quota,Agricultural policy,structural change,environmental impacts,Milchquote,Agrarpolitik,Strukturwandel,Umwelteffekte |
| JEL: | Q12 Q18 Q51 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vtiaba:072010&r=agr |
| By: | Sottomayor, M.J.; Souza Monteiro, D. M.; Teixeira, M. S. |
| Abstract: | The Portuguese olive oil market had a remarkable development in recent years. Production is rising steadily is response to a EU program supporting a renewal of olive groves. Moreover there is a proliferation of national brands and private labels. These are often associated to regional collective labels or to organic production. The aim of our research is to determine how consumers value these nested names or co-brands. We conducted a pilot survey on a convenience sample of 103 consumers in the Oporto and Lisbon metropolitan areas as well in a rural area. Our results reveal some contradictions, for instance while origin is an important purchasing criteria, few PDO olive oils are recognized. Moreover, only 25% of respondents identify organic olive oils sold in the market and this attribute is one of the last purchasing criteria, but organic olive oils have the highest willingness to pay. Finally we find that associating a PDO to private labels increases willingness to pay by 33.3%, but doesnât affect valuation of national brands. While we canât take definite conclusions our findings give us interesting cues for future research. Therefore we aim to investigate whether regional identity, alternative usage and health or environmental conscience determine of affect valuation and choices of different olive oils brands and labels. |
| Keywords: | olive oil, nested names, valuation., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95233&r=agr |
| By: | Conto, F.; La Sala, P.; Papapietro, P. |
| Abstract: | The introduction of the Integrated Projects of Food Chain requires the development of models capable of interpreting the dynamics of vertical and horizontal coordination between agents and the definition of the issues that most affect the ability of professionals to provide value added to goods and products to acquire in exchange a competitive advantage. With reference to the Basilicata region, the production structure of the region and the recent development of the Integrated Projects of Food Chain, this research has developed a new model of territorial organization of rural development. Now connect a new food chain model that combines theories of productivity, typical of contract economic, with those of social welfare and environmental economics: multifunctionality and biodiversity related to the needs of income and efficiency of companies in various stages of the food chain classic, in a context in which planning consultation is major determinant of local and regional development. |
| Keywords: | Food Chain, Rural Development, Integrated Project of Food Chain., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95001&r=agr |
| By: | Fredriksson, Lena; Davidova, Sophia; Bailey, Alastair |
| Abstract: | Commercialisation of small farmers, of which many are subsistence farmers producing mainly for own consumption needs, is an important policy objective for the restructuring process of the farm structure in the EU New Member States (NMS). Drawing on primary survey data from five EU NMS, this paper first assesses the importance of subsistence farming in the NMS through the valuation of subsistence production at market prices. Secondly, the paper analyses the differences between subsistence and commercial households. Where previous studies normally classify households as subsistence or commercial based on a pre-defined threshold, the use of latent class regression in this paper represents a way to systematically analyse heterogeneous groups of households in a more objective way, as determinant of class membership (subsistence or commercial) is not pre-defined. The latent class regression provides evidence of two classes â one subsistence and one commercially oriented â who differ in behaviour with respect to a set of explanatory variables accounting for attitudes, production and household characteristics. |
| Keywords: | Agricultural households, subsistence, commercialisation, market integration, latent class regression, Community/Rural/Urban Development, Q12, Q18, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94902&r=agr |
| By: | Montresor, Elisa; Pecci, Francesco; Pontarollo, Nicola |
| Abstract: | The paper investigates the coexistence of different organisational patterns of local productions and evaluate which local governance may be more appropriate in a globalized agro-food scenery. We analyze, through the spatial analysis tools and the use of suitable indicators at municipality level, some PDO/PGI products in two Italian regions, Veneto and Emilia Romagna, which adopted very different strategies. The regional institutions in Veneto preferred to individualize "from the top" the quality agro-food districts at provincial level. In Emilia Romagna, instead, the policy makers decided to recognize the initiatives from the "bottom", born through various types of agreements. The spatial analysis allows to select the most appropriate indicators in order to identify homogeneous local systems, reducing the complexity of the issues to be addressed in the definition of their geographic boundaries. The results of our analysis allow to evaluate these approaches, highlighting the strengths and weaknesses of two different models of the agro-food districts. The purpose of our comparison is not to suggest the best model to be transferred to other regions, but rather to assess whether the regional strategies are appropriate to the specificities of their territories. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95204&r=agr |
| By: | Requier-Desjardins, Denis |
| Abstract: | LAS (Localised Agri-food Systems) approach has been viewed until now as either an analysis of a variety of local production system or an anthropological vision of the links between food and places. Although theses approaches are relevant, they prove sometimes hard to differentiate themselves of close concepts such as Local production systems. This paper intends to assess in what measure LAS approach can be redefined as an approach of rural development processes, which could be the basis of a rural development policy. If LAS's are to be considered as the basis of a rural development path, LAS approach must be cast in the current debate on diversification of rural activities. Drawing on that, LAS can be the basis of a rural development policy, but only fit to some places, with a very specific âresidentialâ relationship with the overall economic environment. |
| Keywords: | LAS, rural development, new rurality, Sustainable rural livelihoods, residential economy., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95222&r=agr |
| By: | Mykhaylenko, Maryna; Schaft, Franziska |
| Abstract: | This contribution aims to analyze the main factors determining the initiation of vertical coordination between processing enterprises and milk producers in Ukraine. In this regard special attention is paid to the role of uncertainty, asset specificity and resource availability. Furthermore, the impact of vertical coordination on quality improvement, trust development and strategic advantages achieved is analyzed. The survey results indicate that uncertainty is a major driver for the processing level to initiate vertical coordination schemes. Although vertical coordination appears to have positive impacts on both supplier groups, corporate farms tend to benefit more from vertical coordination schemes than semi-subsistence farms. |
| Keywords: | vertical coordination, transaction costs, Ukraine, Community/Rural/Urban Development, L14, Q12, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94901&r=agr |
| By: | Todorov, Kiril; Vittuari, Matteo |
| Abstract: | Public support for agriculture in R. Macedonia is characterized by a significant evolution, but it is still largely affected by the lack of a consistent long-term development-oriented strategy. Within this framework measures for agricultural and rural development are changing on annual basis generating consistent disorientation among final users. However, with the Strategy for Approximation of the Macedonian Agro-Food Sector to the CAP of the EU, Macedonian agricultural policy has taken a major step towards the process of identification of its own resources in order to create the necessary basis for the design of a new agriculture and rural development policy. The paper aims at assessing the place that agriculture has in the overall economy and especially in the rural areas of R. Macedonia, analyzing the basic structure and income and investigating how subsidies and support strategies are evolving in light of the European integration process. |
| Keywords: | subsidies, policy, resources, rural development, Community/Rural/Urban Development, Q18, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94898&r=agr |
| By: | Deimel, Mark; Ludwig, Arens; Ludwig, Theuvsen |
| Abstract: | As a result of a large number of food scandals, societal interest in transparency in the food sector has grown considerably. Deficits have been discovered, which new legal frameworks of the EU and the German legislative body have attempted to address. Hence, the creation of transparency in the production process has been the focus of the legislation. In this context, traceability systems for animal-based foods, for instance, have been established (Regulation (EC) 178/2002). In addition to tracking and tracing, one finds in the public discussion an increasing number of demands for further information, for instance information on food safety, animal and environmental protection and generally for sustainability of the production processes for foods. This is intended as a response to the general call for more transparency or a "gläserne Produktion ". It has not been sufficiently clarified which information about the production process, and thus which level of transparency is actually desired, or can actually be processed, by consumers at the point of sale. This is related to the question of to what extent the demands for more transparency in meat production are influenced by new campaigns of many consumer organisations and NGOs, or whether these actually represent user preferences at the point of sale. In order to analyse this topic from the viewpoint of the consumer, a large-scale empirical study has been conducted. This is intended to determine what transparency expectations, in the form of information on packaged pork, consumers have, using an adaptive conjoint analysis |
| Keywords: | Transparency, pork production, adaptive conjoint analysis., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:94923&r=agr |
| By: | Nuppenau, Ernst-August |
| Abstract: | We will analyze a newly emerging conflict within the second pillar of the rural de¬ve¬lo¬pment policy of the EU: a conflict between those farmers, who want to par¬ti¬ci¬pa¬te in high nature value agriculture, and farmers, who feel negative¬ly im¬pac¬ted by supporting nature provision. We see a link through com¬petition for land between nature provision in agriculture and cost minimal production of commer¬cial farmers. The idea is to model this conflict using a political bargain appro¬ach and make a contribution on how to solve the conflict by innovative institutional arrangements. The power of groups will be analyzed and what governments can do. |
| Keywords: | conflict, political economy, nature provision, Community/Rural/Urban Development, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95313&r=agr |
| By: | Veveris, Armands |
| Abstract: | The paper provides analysis of dairy farms in the Baltic States, their development since accessing EU. During this period the specialisation level has increased but the total number of farms has fast reduced. The total economic indicators increased until 2007, but they still significantly lag behind Western Europe. Big investment has been made, but in the result, the cost level has not reduced but even increased, which has several reasons. Thus many farms were not ready to survive the economic downturn. The results of the research allow concluding that when planning future support for dairy industry the main attention should be paid to introducing cost competitive technologies, supporting cooperation in the purchase and use of fixed assets; it is necessary to educate farmers in efficient business management, as well as to facilitate integration of milk producing and processing enterprises. |
| Keywords: | Dairy sector (O13), income (Q14), investment (O16), support (Q18)., Community/Rural/Urban Development, O13, Q14, O16, Q18, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95309&r=agr |
| By: | Verdi, A.R.; Otani, M.N.; Fredo, C.E. |
| Abstract: | São Paulo stateâs vitiviniculture ranks second in Brazil, being characterized by the production of table grapes and wines derived from American and hybrid varieties. Despite its economic, social, and environmental benefits, the stateâs vitiviniculture has witnessed an increasing dependence on grapes produced in other states over the last decade. Besides adding to the cost of producing wine in São Paulo, grape imports from the state of Rio Grande do Sul compromises not only product quality, but also the process of creating an identity for the product. To give a new impetus to the production of grapes and wines in São Paulo, the State of São Paulo Research Foundation (FAPESP) developed a project called âRevitalizing São Pauloâs Vitivinicultural Chain,â a joint effort by the stateâs Agriculture and Supply Secretariat, Federation of Industries, municipal governments, and main unions and cooperatives of the industry. Data about vitiviniculture was gathered from specific questionnaires given to grape growers and wine producers in the municipalities of Jarinu, JundiaÃ, São Miguel Arcanjo, and São Roque. This information enabled the creation of an original database for the stateâs sector. The analyses of São Pauloâs vitivinicultural chain conducted through this project allowed us to address policy issues focused on reinforcing special product attributes related to specific territorial resources. This process resulted from the valorization of the characteristic cultural diversity of the state, including the social values constructed by people of Italian, Japanese, and Portuguese heritage over the course of the regionâs history. From this perspective, the project proposed differentiation strategies based on specific territorial resources, primarily typical grape varieties such as the Niagara and the IAC 138-22 âMáximo.â Thus, the strategies aimed at building an identity for the stateâs wines include recovering the traditional cultural attributes of São Pauloâs vitiviniculture and developing the production of the local wine grape varieties. |
| Keywords: | territorial resources, development, vitiviniculture., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95240&r=agr |
| By: | Eboli, M.G.; Macri, M.C.; Micocci, A.; Verrecchia, F. |
| Abstract: | The TOP-MARD research project (Toward a Policy Model of Multifunctional Agriculture and Rural Development), that will be here described in its Italian version, links farmersâ behaviour with their economic, social and environmental effects, showing the difference between a behaviour guided by market profitability only and one guided by the interest of a broader social group. It was financed by EU in 11 European countries, and it took place in 2006-2008. The TOP-MARD research defined a 10-modules model (POMMARD), that links use of land and production techniques to several dimensions of a context (quantitative and qualitative, from economic to social and environmental) and to the quality of life of its population. STELLA, a Systems Thinking software, has been used in order to develop the POMMARD model. The POMMARD model is partially supply-driven with demand constraints: land use and its dynamics produce a mix of marketable and non-marketable goods, that impact other sectors and the territory through an I-O or a SAM, and through the consequences of their production on the quality of life. Labour requirements and demography can produce â therefore â immigration, and contribute to job creation and dynamics. Public intervention influences local resources and human behaviour. Farmers can choose their style of production and land use, that are the âkey driversâ of change: when land is converted from a land use to another or from a conventional to a non-conventional style of production, there occurs a change in the vector of inputs (means of production and workers) and in the vector of outputs, that also comprehends public goods. Provision of public goods increases the quality of life. Rural areas become therefore more attractive to younger generations, encouraging them to stay rather than migrate, and attracting new-comers. Tourism can also be influenced by the attractiveness of the area, which can contribute further income, within the limits of tourism capacity and seasonality. Starting from the actual systematic links, the model considers the main variables (population, income, â¦) under different policy scenarios: providing suggestions to policy makers about the possible effects of exogenous shocks, such as policy measures, on rural development and quality of life. |
| Keywords: | Multifunctional Agriculture, Quality of Life, Policy Decision., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95015&r=agr |
| By: | Weber, Anja Michaela; Nuppenau, Ernst-August |
| Abstract: | Agri-environmental schemes provide payments for farmers in return for environmental services. Their implementation induces transaction costs for administration and farmers. Although transaction costs became subject of research in recent years, little attention has been paid to activities which create them. This paper uses insights from Principal-Agent-Theory to show, how information gaps between contracting partners result in tradeoffs inducing activities conducted at implementation level. A Grassland Extensification Scheme, provided in Hesse, Germany, serves as a case-study. The paper shows that attempts and incentives to overcome informational gaps are different for administration and farmer. Further, attempts to reduce transaction costs of own activities may have spillover effects on the transaction costs of the contracting partner and along the transaction process. Those effects should be taken into account in discussions on scheme evaluation and development. |
| Keywords: | agri-environmental schemes, transaction costs, principal-agent-theory, hesse, Germany, Community/Rural/Urban Development, Q18, Q23, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94919&r=agr |
| By: | Samoggia, Antonella; Maccani, Paola; Marchi, Alan |
| Abstract: | The food chain concept is an increasingly common theoretical instrument for food and rural development policy and many countries adopt the so-called ânew rural paradigmâ, so to integrate different sectoral policies. This paper aims at adopting the food chain paradigm in order to analyse the regional agro-food system and to sustain the design and delivery of consistent inter-sectoral policies. It adopts the netchain concept (Lazzarini et al, 2001) and the theory of governance patterns in global value chains (Gereffi et al, 2005). Results show this innovative approach contributes to better understand and stimulate economic performance of the whole agro-food network. |
| Keywords: | rural policy, region, agro-food chain, performance, intersectoral approach, Community/Rural/Urban Development, O18, Q18, R11, R58, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94900&r=agr |
| By: | Loconto, A. |
| Abstract: | The objective of this paper is to examine value chain governance through case studies of four different certified value chains for Tanzanian tea. This paper takes a look at a traditional export commodity, tea, and discusses the implications of involvement in value-based certification schemes (Ethical Trading Initiative, Fairtrade, Organic and Rainforest Alliance) on certified producers in Tanzania. Each of these certification schemes makes claims on specific values that it is instilling in a particular âvalue chainâ. This paper specifically analyses the network construction of each certified value chain and answers the questions: 1) which actors are involved in each value chain, 2) which values are claimed as organizing principles of these value chains, and 3) what does this mix of actors and values contribute to our understanding of value chain governance. Between 2008 and 2010, eighty in-depth interviews were conducted with stakeholders who are certified against sustainability standards. Twenty-one focus groups were formed comprising certified smallholders and hired labourers. The conclusions suggest that despite claims about the ability to change trading relationships through the certification systems, most of the old networks are still in place. The certification systems only add additional buyers to global value chains that were already governed by highly relational and hierarchical mechanisms. These conclusions thus place in question some of the claims made by certification bodies as to their abilities to change practices. |
| Keywords: | Certification, Governance, Global Value Chains, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95057&r=agr |
| By: | Jeanneaux, Ph.; Barjolle, D.; Meyer, D. |
| Abstract: | Some Localised Agro-Food Systems (LAFS) are traditionally qualified as success stories (Comté PDO in France, Gruyere PDO in Switzerland, Parmigiano Reggiano PDO in Italy), whilst other PDOs (as for example the Cantal PDO from France) pay the same price for the milk as standard milk. The price difference may reach between 10 and 25% over a long period. To explain this difference, we assume that the agents who make up the LAFS developed a collective action to protect their localized cheese production system against unfair competition and to promote their product outside its region of origin. The aim of this communication is to shed light on levers which the agents activate to assure their uniqueness is irrevocable, and uphold the benefits of their LAFS. We propose to discuss the idea that the search for market power based on the strategy of raising rivalsâ costs may be used even outside a situation of vertical integration or a situation in which pressure is applied to suppliers to challenge competitors. We assume that some companies within the LAFS have sufficient control on the rules governing the organization of the traditional system to benefit from it. They also succeed in protecting a kind of relationship between business companies. The Raising Rivalsâ Costs theory helps to analyze the economic consequences of the legal set-up implementation and of its control by some companies. Indeed, we show that the collective control of the rules which are set up in the PDO legal framework explain the difficulties met by rivals to stand out through an alternative and independent production system based on the costs leadership strategy. The collective set up of institutions and rules help the agents to achieve a collective competitive advantage in which every agent benefits individually. This is the strategy developed in Europe and particularly for two PDO Localised Agro-cheese Systems: Comté PDO for France and Gruyère PDO for Switzerland. |
| Keywords: | PDO, localised agro-food system, Raising rivalsâ costs, regulation, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95040&r=agr |
| By: | Kompas, Tom; Chu, Long |
| Abstract: | We use a bang-bang optimal control model to derive a rule of thumb for an optimal management of invasive weeds, in terms of the marginal benefits and costs of various control actions. Instead of determining the size of infestation under an optimal surveillance measure, the rule specifies the types of land where an invasive weed should be first prevented from establishment, and under what conditions control should be initiated. The types of land are modeled via the heterogeneous vulnerability of land to the weed and likely infestation. This easy-to-use rule is applied to determine how hawkweed should be controlled in Australia, across three potential control strategies: containment, eradication and no action. We investigate this rule-of-thumb in both deterministic and stochastic settings. With uncertainty, when calculating the threshold of when and how to act, we take into account the fact that delaying a control action will incur not only larger damage and a potentially larger spread but also a higher cost from uncertainty in the spread of the weed itself. The land value threshold is thus given by the unit cost of keeping a weed off a parcel of land times the difference between the interest rate and the current weed spread rate plus the effect of uncertainty. An application to hawkweed in Australia is provided. The rule specifies that hawkweed should be immediately eradicated in all types of agricultural lands they currently occupy where the potential damage is larger than 15AUD/ha/year. This generates a full eradication strategy under broad parameter values. Though the cost of removing hawkweeds is significant, it is overwhelmed by the damage if Hawkweeds spread to higher value agricultural land. |
| Keywords: | Stochastic optimal control, biosecurity, invasive weed management, hawkweed, Crop Production/Industries, |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eerhrr:95046&r=agr |
| By: | Marotta, Giuseppe; Nazzaro, Concetta |
| Abstract: | The paper focuses on a new theoretical-methodological approach to interpreting functional transformation processes of farms located in rural areas and marked by a delay in development. We have defined a theoretical paradigm of optimal value portfolio (OVP) which considers -in a new light- multifunctional agricultural farms as an ensemble of governance structures optimizing the creation of value. The need to validate the OVP functionality has led us to identify a new methodological approach referred to as the Value Portfolio and Multifunctional Governance Analysis (VPMGA). This analysis embeds value chain analysis and governance value analysis and at the same time attempts to overcome the âsectoralâ limits representing also a new and further development. We deem, in fact, that the VPMGA best responds to the specificities of multifunctional agricultural farms. Through the VPMGA we have identified four determining family variables which are internal and external to the farm (internal resources, market, territory, policies). We have also assessed the functional links with the boundary shift processes and the mechanisms governing transactions and the creation of an optimal value portfolio. We have empirically verified this approach on selected agro-food chains which are located in rural areas characterized by different levels of development. From the findings we have defined various ideal types of farms that allowed us to make future scientific assumptions and highlight normative implications for improving managerial decision-making processes based on the VPMGA model. In this way, the VPMGA can be a tool to inform policy makers, especially in the light of the new challenges facing rural development. |
| Keywords: | multifunctionality, rural development, positive externalities, value chains, Community/Rural/Urban Development, Q12, Q18, Q19, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95322&r=agr |
| By: | Guido, Valeria Agustina; Rodriguez, Maria Soledad |
| Abstract: | The following document will approach the analysis of the Provincial Agricultural Services Program, PROSAP, as a tool to promote the sustainable development of agriculture, taking into consideration the economic and social needs, with a strong regional and territorial insertion. The purpose is to go beyond the prospects of the sector, identifying the changes in the management of public policies for the agricultural area through the PROSAP. Although a new governance paradigm with larger consensus and more coordination is foreseen, its institutionalization will face frictions, difficulties and challenges. |
| Keywords: | Agricultural Policy - Structure, Scope, and Performance of Government, Community/Rural/Urban Development, Q18, H11, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94909&r=agr |
| By: | Sini, Maria Paola |
| Abstract: | This paper is intended as an approach to the complex matter of the co-existence of long and short chains. It introduces a stimulus to further study these questions more thoroughly, which current market situations lead us to believe will be an interesting field, and one well worthy of consideration. The potentials and limits of short chain efficiency are analyzed in different contexts, in order to help identify its correct collocation in the search for the best combination of the different ways by which products can be released on the markets, with specific reference to the coexistence of the short and long chain. On this regard, a brief examination is also made of the effects of growing wholesaler power and the possibilities of a relevant control. Amongst other aspects, the paper highlights the fact that the relationship between short and long chain need not always be one of conflict, and refers particularly to the scope of agricultural-industrial districts. Context analysis, and specifically SWOT analysis, has been used to debate two different contexts. Many different situations have been examined and summarized, and amassed into two large context groups: developed and underdeveloped countries. The connections between short chain, self-centred development and protectionism are considered. The need is highlighted, and difficulty evaluated, of construction suitable models simulating alternative agricultural-food market function both on a local and global scale, also with reference to region and international trade growth models based on heterodox rather than orthodox development theories. This involves the need to identify emblematic indicators that are able to provide a summary expression of data and information to be included in these models in order to active them. As such, as set of indicators of the short chain juxtaposed to the long chain, suitable to assessing the social and economic, as well as environmental impacts, is proposed, and its validity discussed. The results of the analyses performed contribute towards evaluating and choosing the most appropriate options for the release of the product, for the different types of agricultural companies in different settings. |
| Keywords: | Market, Short chain, Globalisation, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95342&r=agr |
| By: | Ghib, Marie Luce; Berriet-Solliec, Marielle |
| Abstract: | Romanian rural areas contain the highest level of agricultural workers in the European Union, resulting in the challenge of stimulating non-agricultural employment. This paper uses the methodology of policy evaluation to analyse the influence of 3 measures the CAP. From an objectives tree to reveal the objectives of the programme to statistical analysis and field surveys, we analysed the pertinence, the coherence and the first results of those schemes. It was found that the targeted population was under estimated for one of the semi-subsistence schemes. Choosing activities (tourism and enterprise) which are open to all rural society leads to enhanced competition between beneficiaries. Due to the global context of economic crisis, co-financing can be met only by owners of strong capital, and the previous targeted population would then be only indirectly touched by the creation of jobs in rural areas. |
| Keywords: | rural policies, policy evaluation, small farms, Romania, Community/Rural/Urban Development, R58, O21, H72, C13, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94915&r=agr |
| By: | Galluzzo, Nicola |
| Abstract: | Aim of this paper was to find some correlation, using a model of linear regression, between rural development and rural district in two different period of study. The analysis is divided in two parts to compare two different stages of application of II pillar of Common agriculture policy from 2000-2006 to 2007-2013. European funds, allocated to guarantee a generational turnover, are something of very important for rural development in Italy and the rural district is able to be a centre of propulsion for a well balanced growth of rural areas and it can be an element of attraction for farmers. |
| Keywords: | rural districts, rural areas, L.e.a.d.e.r., certified quality food, cooperative credit banks, Community/Rural/Urban Development, Q18, Q19, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95301&r=agr |
| By: | Visser, Oane; Spoor, Max |
| Abstract: | While âland grabbingâ in Africa by China, and other populous, high-income Asian countries such as South Korea got quite some attention, land grabbing in post-Soviet Eurasia has gone largely unnoticed. However, as this paper shows, recently also in the latter region foreign state and private companies are accumulating vast expanses of farm land. The paper discusses the factors which make post-Soviet Eurasia such an attractive area for international investment, with arguably much more potential than most areas in Africa or Asia. Second, the process of land accumulation and acquisition of farms is described. Both domestic as well as international accumulation of land is dealt with, placing this in the domestic context of agricultural development and institutions. Furthermore, the main actors (investors) involved in land grabbing are distinguished (according to their country of origin and legal or institutional form). Third, the paper outlines the main obstacles (and points of contention) concerning the emergence (and effectiveness/performance) of domestic and especially international, agro-holdings in the region, and will present some preliminary findings around the question whether this development is a necessary step towards agricultural modernization, or that there are substantial disadvantages to land grabbing. |
| Keywords: | land grabbing, post-Soviet countries, agroholdings, economic inequality, Community/Rural/Urban Development, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95314&r=agr |
| By: | Penker, M.; Klemen, F. |
| Abstract: | Since 1992, the European Union protects names of regional foods as Protected Designation of Origin (PDO) or Protected Geographical Indication (PGI). Besides direct benefits such as higher prices or the protection from unfair competition, researchers and rural development agents emphasize the indirect benefits resulting from an intensified interaction of producers, processers and retailers during the registration process. Based on a comparative case study in Austria, this paper analyses the relation of transaction costs and transaction benefits associated with the registration process of two PGIs. Whereas one case was based on extensive outsourcing to a private consultancy (for just under 50,000 Euro + 160 working hours invested by the producers over 3.5 years), the other one was mostly the result of extensive personal contributions of the regional producer group (2,000 hours over ten years) who were assisted by the state extension services (Chamber of Agriculture, additional 1,000 work hours). The comparative case study does not give any indication that outsourcing necessarily bears the risk of diminishing indirect benefits, such as social capital building, intensified co-operations with other rural sectors, higher awareness of and compliance with quality standards. This does not mean that there is no positive relation between transaction costs and transaction benefits but it emphasizes that there are more and less efficient processes. |
| Keywords: | transaction costs, registration process, Protected Geographical Indication, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95213&r=agr |
| By: | Bojnec, Štefan; Bakucs, Lajos Zoltán; Ferto, Imre; Latruffe, Laure |
| Abstract: | The article investigates the impact of non-farm income on the investment for Hungarian and Slovenian farms using FADN panel data for the years 2004-2008 and different econometric estimation approaches. We find that non-farm income is more important for Slovenian farms than for Hungarian farms. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is negatively associated with non-farm income, but positively associated with investment subsidies. Specific results by country are found depending on growing vs. declining real sales and on farm indebtedness. |
| Keywords: | non-farm income, farm investment, soft budget constraint, panel data analysis, Community/Rural/Urban Development, D81, D92, O12, Q12, C23, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95318&r=agr |
| By: | Raggi, Meri; Sardonini, Laura; Viaggi, Davide |
| Abstract: | Many economic analysis tools are used to evaluate the effects of policies on rural development. However, a number of unexplored options are still available from the literature about policy analysis and biophysical systems representations. A particularly important need concerns the representation of the complexity of rural systems either in a static or dynamic framework In this paper we use Bayesian networks, to the best knowledge of the authors, basically ignored by the literature on rural development. The objective of this paper is to discuss the potential use of Bayesian Networks tools to represent the impact of the Common Agricultural Policies in rural areas. |
| Keywords: | Bayesian Networks (BNs), farm-household, exit, Community/Rural/Urban Development, Q1, Q18, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94911&r=agr |
| By: | Saavedra Gallo, Gonzalo; MacÃas Vázquez, Alfredo |
| Abstract: | Our purpose in the present work is to make a methodological contribution to enrich the SYAL concept from two points of view. Firstly, as a critical reconsideration of the theory of territorial development, and more specifically SYAL development, taking into account the fact that the local institutional framework is the result of the complex - even conflictive - interaction of economic rationales based on diverse cultural logics. Secondly, as an analysis of the strategies promoted by this type of development, identifying the endogenous components which strengthen and reinforce in local actors the ability to reflectively structure and re-structure system relationships at the territorial level. The empirical-ethnographic support for these reflections is drawn from two zones of Chile's southern coastline. The first, in the southern Aysen Region, illustrates the dilemmas and responses of local-traditional economies based on small-scale fishing in the face of the sustained growth of the captive salmon production mega-industry along a large part of the coastline. The second, in the neighbouring Los Lagos Region, reports on the strategies of traditional small-scale mussel-growers in the Reloncavà Estuary, in the context of the invasion of their economic space by multinational companies and the technification of their traditional systems. |
| Keywords: | endogenous development, localised agro food system, small-scale fishing, reflection, hybridisation, subjectivity, Chile., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95227&r=agr |
| By: | Kopeva, Diana Ilieva; Peneva, Mariya Marinova; Madjarova, Svetla Ivanova |
| Abstract: | The sustainable development of rural areas faces nowadays the challenges of global changes. The need to adapt land and landscape use to the new social, economic and ecological demands (non-farm activities, employment in rural areas, forest and agro- related tourism, real estate pressure, etc.) requires an analysis of the land multifunctionality and of the multipurpose land management strategies. The paper aims to review the concept of land use and landscape multifunctionality and to review the role of multifunctional land use in Rural Development Policy in Bulgaria. |
| Keywords: | multifunctional land use, rural development, rural development policy, Bulgaria, Community/Rural/Urban Development, Q01, Q15, R58, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94828&r=agr |
| By: | Dentoni, D.; Menozzi, D.; Capelli, M. G. |
| Abstract: | Several studies have analyzed the conditions under which geographical indications (GIs), such as the European Protected Designations of Origin (PDOs) and Protected Geographical Indications (PGIs), can represent a profitable market opportunity for agri-food producers. The development of a common set of rules by a group of producers and the governance of the collective brand are key issues to jointly exploit market opportunities through GIs. This paper explores whether heterogeneous characteristics, resources and strategies of individual producers within a PDO Consortium influence their level of agreement on the future of the collective regulation and governance of GIs. We conduct an in-depth study on a representative sample of firms member of the âProsciutto di Parmaâ PDO Consortium by integrating a multi-variate statistical analysis with a qualitative description of the vision that companies have for the future of their PDO. From the results of this study, we found confirmation that âProsciutto di Parmaâ PDO Consortium members have highly heterogeneous characteristics which lead to significant segmentation in two major groups. The first segment includes a large number of Consortium members, mostly constituted by smaller firms, producing mainly PDO-labeled âProsciutto di Parmaâ. The second is composed by a group of larger companies focusing on production of generic hams without the PDO-label. This difference clearly affects the level of agreement on the future regulation of "Prosciutto di Parma" as GI. The first segment advocates for the establishment of a âhigh-qualityâ PDO or for a PDO with stricter controls and standards, while the second would prefer that a PGI label was introduced, either in substitution to or parallel with the current PDO. Results, although explorative in nature, show that group heterogeneity influences the level of cooperation among the members of a producer group regulating and governing a PDO. Therefore, this study provides evidence that increasing group heterogeneity may represent a new challenge for the sustainability and profitability of GIs. |
| Keywords: | Geographical Indications, Collective Action, Group Heterogeneity, Multi-Variate Statistics., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95203&r=agr |
| By: | Hashiguchi, Takuya |
| Abstract: | Since 2000, âThe System of Direct Payment of Subsidies to Farmers in Hilly and Mountainous Areasâ is in operation in Japan. The objective of this paper is to evaluate and survey Japanâs policy for less favoured areas. This system has two characteristics: âcoverage subsidies for disadvantageâ and âsubsidies for rural community activationâ. Given these characteristics, the subsidy system can be evaluated to have exhibited high effectiveness. I have statistically analyzed the outcomes of this system. But I conclude that it does not have a promising future because subsidies are inadequate for maintaining household finances of farmers. |
| Keywords: | Rural Policy, Direct Payment, Less Favoured Areas, Subsidy, Japan, Community/Rural/Urban Development, Q18, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:95302&r=agr |
| By: | Valentini, Elena |
| Abstract: | Fair Trade is defined as a set of socio-economic activities which are alternative to traditional and international trade. It began from the belief that the principal market's laws tend to cause serious damage to the South, and especially to the many workers devoted to 'agriculture'. The concept of Fair Trade is very important and powerful because it states that all trades should follow right principles; this statement highlights the importance of the movement as a regulatory model for all the incorporation models of trade regulations[1]. In this paper, with both historical and analytical approaches, we will try to analyze the economic paradigms which are taking place in the South and to highlight the importance, sometimes forgotten by stakeholders in the North, of Fair Trade as a new way to change market rules and turn them to the service of those who are excluded from the economic system. We have taken as a case study Brazil, which since 2001 has undertaken a very attractive challenge: to become not just a supplier, but producer and consumer of Fair Trade food and hand-made products too. Various social actors in Brazil have formed a discussion platform named the Forum de Articulação do Comércio Ãtico e Solidário(FACES), in order to discuss and suggest the construction of a favourable and necessary environment for the implementation of a cohesive national market. With the promotion and the construction of a Brazilian Fair Trade system it will be possible to ensure a national identity for the concept and to create a cohesive national market, promoting the diffusion of products and producers as part of the system. This works for the South-South economy but also for the North-North version, thanks to the construction of "networks of solidarity economy" in which the relationship between producers and consumers is measured by social and human "indicators" too, not only by monetary and financial ones. |
| Keywords: | fair trade â solidarity economy â local development, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95348&r=agr |
| By: | Giacomini, Corrado; Arfini, Filippo; de Roest, Kees |
| Abstract: | In the modern agri-food sector the need of manage quality and to improve market efficiency has generated new form of governance along the food chain. Even for typical products inter-profession organization is considered one of the most interesting institutions able to link the production phase to the commercialization phase, according to the more general objective to generate a more efficient contract-based relationship between the companies operating in the various phases of the same supply chain. In this framework, this work would like to analyse the specific case of the Parmigiano Reggiano cheese supply chain in relation to the role that an interprofessional body could play and the possibility that it could be established in order to support and increase the action of the protection consortium, or to take over some of its functions. The analysis on the Statute and on the real organization of the Consortium show that this organization is not an interprofessional body as it does not represent all the parties in the supply chain and lacks the other requirements laid down in the other experience. In the case of Parmigiano Reggiano Consortium, it appears necessary to overcome the individualism of the single operators to unite them in associative forms which are able to mediate and represent the collective interests which, in the case of a PDO products, are the substance itself of the history and nature of the product and the relations which link the various operators together. At this condition the Consortium can become the âthird party bodyâ protecting the overall interests of the supply chain which is internally expressed democratically and, if possible, unanimously, as is seen in the French experience. |
| Keywords: | interprofession, hybrid form, typical products, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95026&r=agr |
| By: | Wei Xu; Ostap Okhrin; Martin Odening; Ji Cao |
| Abstract: | The supply of affordable crop insurance is hampered by the existence of systemic weather risk which results in large risk premiums. In this article, we assess the systemic nature of weather risk for 17 agricultural production regions in China and explore the possibility of spatial diversification of this risk. We simulate the buffer load of hypothetical temperature-based insurance and investigate the relation between the size of the buffer load and the size of the trading area of the insurance. The analysis makes use of a hierarchical Archimedean copula approach (HAC) which allows flexible modeling of the joint loss distribution and reveals the dependence structure of losses in different insured regions. Our results show a significant decrease of the required risk loading when the insured area expands. Nevertheless, a considerable part of undiversifiable risk remains with the insurer. We find that the spatial diversification effect depends on the type of the weather index and the strike level of the insurance. Our findings are relevant for insurers and insurance regulators as they shed light on the viability of private crop insurance in China. |
| Keywords: | crop insurance, systemic weather risk, hierarchical Archimedean copulas |
| JEL: | C14 Q19 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2010-053&r=agr |
| By: | Perret, A.O.; Thévenod-Mottet, E. |
| Abstract: | When considering the Florida oranges as a local production system, two questions currently arise: is this system frightened by a globalization of the orange juice as a commodity whereas it is integrated to a globalized system? And is there any specific local asset remaining, such as a special quality and reputation which would justify a recognition as a geographical indication? Our findings demonstrate that there is a dilemma, for the State authorities as well as for some actors of the system, between an origin product approach and a sectorial commodity one. |
| Keywords: | Geographical indications, commodity, globalization., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95215&r=agr |
| By: | Vamsidhar Reddy, T.S. (RIU); Hall, Andy (RIU CRT, UNU-MERIT); Sulaiman V., Rasheed (RIU CRT) |
| Abstract: | This paper sets out to explore the nature of new organisational and institutional vehicles for managing innovation in order to put research into use for social gain. It has reviewed four classes of such vehicles found in South Asia. The first two - contract farming and organised retailing - represent what is becoming commonly-accepted in policy circles: namely that the private corporate sector can play a more prominent role in agricultural development, particularly in arrangements that combine providing access to markets in combination with access to technology needed to service those markets. The second two classes of vehicles -hybrid enterprises and social venture capital - represent a new, albeit fluid in definition, class of initiatives and organisations that combine features referred to as bottom-of-the pyramid and below-the-radar innovation. For each of these classes of innovation management vehicles this review has mapped the diversity of emerging examples and discussed their relevance for putting research into use for social gain. The paper concludes by saying that it is these new and as yet poorly-understood modes of innovation that have the greatest potential to effect change, although developing ways of supporting them is going to require some creative public policy instruments. |
| Keywords: | Agricultural Research, Innovation Management, Development Policy, Contract Farming, Food Retailing, Social Venture Capital, Value Chain Development, Hybrid Enterprises, South Asia |
| JEL: | L24 L33 O13 O33 O38 O53 Q13 Q16 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2010054&r=agr |
| By: | Hertel, Thomas W.; Rosch, Stephanie D. |
| Abstract: | Although much has been written about climate change and poverty as distinct and complex problems, the link between them has received little attention. Understanding this link is vital for the formulation of effective policy responses to climate change. This paper focuses on agriculture as a primary means by which the impacts of climate change are transmitted to the poor, and as a sector at the forefront of climate change mitigation efforts in developing countries. In so doing, the paper offers some important insights that mayhelp shape future policies as well as ongoing research in this area. |
| Keywords: | Wetlands,Climate Change Mitigation and Green House Gases,Climate Change Economics,Environmental Economics&Policies,Science of Climate Change |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5468&r=agr |
| By: | PAUS, Marguerite; REVIRON, Sophie |
| Abstract: | Collective action cannot develop without the commitment of partners to a common project. Building a new Geographical Indication (GI) needs to make crucial strategic decisions regarding the production process norms, the limits of the geographical area and the choice of the protected GI name. Who is going to make these decisions? What is the best path to kick-off with success the initiative? Two approaches have been tested recently in practice: the cluster approach and the working group approach. This paper presents the scientific background of these two approaches. A state of the art is proposed on the concept of cluster, developed in Industrial Economics. The translation theory, developed in Economic Sociology, is mobilised to analyse the âtranslation cyclesâ followed by most working groups. Using case studies, this paper highlights and explains the benefits and risks of both approaches. It proposes an approach that combines face to face negotiations between the facilitator and potential partners, large information campaigns, and a representative working group in order to guarantee access to information to all and avoid further oppositions. |
| Keywords: | collective action, geographical indications, clusters, translation cycles, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95212&r=agr |
| By: | Bassi, Ivana; De Poi, P. |
| Abstract: | The reform of EU agricultural policy set up by Agenda 2000 was intended to develop a competitive, sustainable and multifunctional agriculture, through instruments of both the market and income support policy and the rural development policy. To design strategies and actions while simultaneously considering the multifunctional character of farming and of rural areas, it is necessary to measure the multifunctionality with reference to the sectorial and territorial dimensions. This research represents a methodological contribution to the analyses whose aim it is to describe the multifunctional character of the territory. The availability of data regarding the functions performed by farms, the private or public nature of goods produced and the location of the business, suggested focusing our research on agritourism enterprises at community level. Data was analyzed using the fuzzy clustering algorithm Fanny, which allowed us to test a procedure in order to create a partition in which the communities (statistical units) of each group were functionally similar and geographically close to each other. Furthermore, fuzzy clustering allowed us not only to classify the units into homogeneous groups, but also offered the possibility of identifying the membership degrees of each unit. As to planning all this information is important in designing sectorial and regional development paths differing with regards to each cluster and in identifying any particular intracluster properties at which to target specific projects. The last one is the case of those communities that, having the characteristics of different groups, can be made to migrate towards one cluster rather than another through specific planning, consistent with the objectives of sectorial and territorial policy. |
| Keywords: | Multifunctional characterization, spatial proximity, fuzzy clustering., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:94927&r=agr |
| By: | Privitera, D. |
| Abstract: | In recent times, the search for a new relationship with nature, of quality and safety of foodstuffs and in particular the need for âidentityâ, of characterizing places as bearers of values and traditions have led an increasing number of people to see rural areas as places of values, resources, culture and products to discover and enjoy. Agriculture has taken on a multifunctional role and link with tourism is required to protect and exploit its âhistoricalâ resources (heritage) as a tool of interconnection between local products, countryside, traditions, cultural values but also to place emphasis of the territory and communicate it. The aim of paper is the role assumed today by firms regarding both the primary activity and other services, in particular those that express and support rural tourism. The objective is to assess the relationship between the company image, the entrepreneurial behavior built according to values, âtypicalâ signs, historical resources of the rural world and the spin-offs on the territory. The research will be carried out by making specific reference to Calabria, a representative region of the Mediterranean area. Here, case-studies will be considered in sample areas where tourism and agriculture are integrated, with specific reference to vineyards and wine-making firms, is part of specific rural development strategies and initiatives. Therefore, we intend to highlight the important role of heritage and heritage marketing in order to privilege the competitive advantage that it can have for the company. The finding suggest the utility for rural tourism development: the heritage, which is often well preserved in rural areas is a valuable resource to integrate with management providing useful help as a vehicle for economic benefits also for a territory. |
| Keywords: | heritage marketing, wine tourism, case study, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95216&r=agr |
| By: | Roel, Jongeneel; Ge, Lan |
| Abstract: | Aiming to stimulate the role of agriculture as provider of public goods, the new CAP reform raises many theoretical and practical questions. The most relevant ones concern farmersâ response to the policy instruments. This paper uses a formal model to analyse the incentives and constraints generated by policy instruments and their potential impact on farmersâ participation decision. The analysis shows that, when choosing policy instruments to stimulate provision of public good, it is important to take into account different degrees and mechanisms of jointness between commodity and non-commodity (potentially public good) production, as they can enhance or erode the desired effect of the policy instruments. Some implications for modelling and policy analysis are discussed. |
| Keywords: | Farmersâ behaviour, provision of public goods, jointness, Common Agricultural Policy (CAP), Community/Rural/Urban Development, H41, Q12, Q18, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94615&r=agr |
| By: | Maraglino, T.; Ricco, V.; Schiralli, M.; Giordano, R.; Pappagallo, G. |
| Abstract: | Drought and desertification are largely considered as the major and most complex natural hazards. This is mainly due to the complexity of the web of impacts that ripple through too many sectors causing serious economic, social and environmental consequences. Hence, a wide range of actors are interested by drought effects. Empirical investigations in scientific literature have highlighted the differences between the stakeholder' perceptions of drought and desertification phenomena and the results of scientific â technical evaluation. There is no unique definition of the problem, but each individual has her/his own perception of drought and desertification, which is influenced by previous drought experiences and the mental models used to analyse these experiences. This could result in ambiguity in the definition of the problem. The ambiguity in drought and desertification definition could have a strong negative impact on the effectiveness of mitigation strategies. For these reasons, the involvement of stakeholder in the decision making process for drought and desertification management since its early stages has played a fundamental role. This work describes the experiences done to support drought and desertification management in the Apulia Region (Southern Italy). The methods and tools adopted in two different phases are described and the lessons learned during the process are discussed. The work is structured as follows: in section 1 there is an introduction and a description of the backgrounds regarding the project and the investigated territory. The objectives of the study and the empirical methodology applied state in section 2. Section 3 presents discussion and suggestion on decision making process. Conclusions and final remarks are proposed in section 4. |
| Keywords: | Stakeholder, desertification, decision making process., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95201&r=agr |
| By: | Ohe, Y.; Ciani, A. |
| Abstract: | This paper focused on how and what diversified activities influence the price level of agritourism. A hypothesis that contrasts two directions was examined: facility-based and local culture-based activities. First, from the conceptual consideration, we defined that agritourism based on local cultural resources can internalize positive externalities, which are accompanied by local cultural resources, into income, unlike facility-based activity that has no connection with local cultural resources. Second, the results of estimations from the price determinant ordered logit model clarified that owning a swimming pool was the most common and influential factor in enhancing the price level while regional diversity was observed in terms of local cultural resource-based activities such as restaurants, world heritage sites and DOC wines. These findings indicate that hardware-based evolution is more effective in the short term than evolution based on software aspects. Nevertheless, this hardware-based evolution of agritourism is implicitly based on the assumption of continuously growing demand and sufficient financial capability for the fixed investment. When growth in demand becomes stagnant, facility installation can be a heavy burden on operators. Consequently, for the sustainable development of agritourism it will be necessary to harness locality to create a balance between facility-based services and local culture-based services. |
| Keywords: | agritourism, local cultural heritage, hedonic pricing, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95210&r=agr |
| By: | Nowicki, Peter |
| Abstract: | Two separate, but interlinked methodological approaches â the modelling approach and non-modelling approach â have been used in a study commissioned by DG Agriculture and Rural Development to understand the impact of Modulation. In these two approaches a range of methodological and analytical tools are used, as follows: Non-modelling Approach ⢠Literature Review; ⢠Case Studies carried out in eight Member States; ⢠Questionnaires carried out by telephone interviews in the 19 Member States, in which case studies were not conducted; ⢠CMEF Indicators â collation of information on output, result and impact indicators for the case study Member States. Modelling Approach: ⢠Budget model, tailor made for the project, provides much of the financial detail that is specific to the study; ⢠A suite of economic models (LEITAP, ESIM, CAPRI and FES) to assess the economic and sectoral impacts; ⢠Dyna-CLUE, a land-use model, allows the results from the economic models to be disaggregated spatially. Some of these tools offer projections, others, such as the case studies, provide insights that are context-specific, whilst others provide information on impacts that can be compared across the EU-27. Individually they do not provide a comprehensive picture of the full range of impacts arising from different modulation scenarios. However, the methodology has been developed in such a way so that the data generated from these different approaches is complimentary and may be triangulated. This means that the results from different methodological tools can be cross-checked and validated. |
| Keywords: | rural development policy evaluation, modelling, non-modelling, modulation, Community/Rural/Urban Development, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94893&r=agr |
| By: | Lena Giesbert; Kati Schindler |
| Abstract: | Using a micro-level approach to poverty traps, this paper explores welfare dynamics among households in post-war rural Mozambique. Conceptually, the paper builds on an asset-based approach to poverty and tests empirically, with household panel data, for the existence of a poverty trap. Findings indicate that there is little differentiation in productive asset endowments over time and that rural households gravitate towards a single equilibrium, which is at a surprisingly low level. The analysis shows that shocks and household coping behavior help to explain the observed poverty dynamics. The single low-level equilibrium points to an overall development trap in the rural farm-based economy. This is attributed to the long-term impact of the civil war, which has consolidated unfavorable economic conditions in rural areas and limited new economic opportunities outside of the agricultural sector. |
| Keywords: | Asset-based approach, Mozambique, poverty trap, shocks, violent conflict |
| JEL: | D31 I32 O12 O18 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1073&r=agr |
| By: | Kuhne, Bianka; Gellynck, Xavier; Weaver, R.D. |
| Abstract: | In the New Economy, the network is considered as more important than the firm itself. In this paper the focus is on chain networks which include vertical networks among chain members, horizontal networks with peers, and networking with third parties. Networks have an important role in the diffusion and adoption of innovations, thus they are the locus of innovation. While previous research focused on the firm, we contribute to the understanding of innovations in chain networks, i.e. we investigate the innovation capacity in vertical networks and how networking with peers and third parties is influencing the innovation capacity of the vertical network. We propose that there is a positive relationship between the network connections the direct chain partners have with peers and third parties and the innovation capacity of the vertical network. Data were collected from 90 direct agrifood chains in the traditional food sector. Cluster analysis suggested three clusters of chains corresponding to three distinct levels of innovation capacity: low, medium and high. Via descriptive analysis and binary logistic regression the influence of networking with peers and third parties on the innovation capacity of the vertical network was investigated. Our results confirm our proposition. However, we found that the chain partners are either horizontally or vertically networking for innovation. Nevertheless, more networking within the chain and with peers and third parties is linked to higher levels of innovation capacity. Consequently, our study adds to the research in the field of the New Economy by deepening the understanding of how innovation capacity is developed in vertical networks. We can confirm that the network is very important for the development and implementation of innovations and that the innovation capacity of one firm is linked to the innovation capacity of its chain partners. For future research we propose to investigate the link between networking for innovation and types of innovation which can be achieved. Further, future research should explore further inter-organizational links in the chain network and explore wider networks than the direct chain. |
| Keywords: | SMEs, chain networks, traditional food products, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital, |
| Date: | 2010–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa116:95050&r=agr |
| By: | Benjamin Bureau (CERNA - Centre d'économie industrielle - Mines ParisTech) |
| Abstract: | This paper analyses the distributional effects of alternative scenarios of carbon taxes on car fuels using disaggregated French panel data from 2003 to 2006. It incorporates household price responsiveness that differs across income groups into a consumer surplus measure of tax burden. Carbon taxation is regressive before revenue recycling. However, taking into account the benefits from congestion reduction induced by the tax mitigates regressivity. We show also that recycling additional revenues from the carbon tax either in equal amounts to each household or according to household size makes poorest households better off. |
| Keywords: | carbon tax; distributional effects |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00530054_v1&r=agr |
| By: | Carlos Santiago Caballero |
| Abstract: | The following paper presents original tithe series for the province of Guadalajara in New Castile. The series include the four main grains, wheat, barley, rye and oats and their evolution during the eighteenth century. The series complete previous estimations of grain production for New Castile and suggest that the eighteenth century was a period of growth. However the increase was not a sustained process, but one with intense imbalances with production reaching its peak in the mid 1750s followed by a deep crisis and very weak recovery. Wheat was clearly the most important of the four grains in volume and especially in value. Its predominance was maintained thanks to a demand encouraged by the demographic that took place during the eighteenth century. A comparison with other tithe series from the interior of Spain reveals similarities like the crisis of the late 1750s. |
| Keywords: | Tithe, Agricultural output, Spain |
| JEL: | N01 N53 N93 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:cte:whrepe:wp10-12&r=agr |
| By: | McAfee, R. Preston; Miller, ALan |
| Abstract: | We develop a model of scarce, renewable resources to study the commons problem. We show that, contrary to conventional wisdom, property rights can often be less efficient than a commons. In particular, we study two effects: (1) waste which arises when individuals expend resources to use a resource unavailable due to congestion and (2) the risk of underutilization of the resource. We provide necessary and sufficient conditions for each effect to dominate the other when the cost of determining the availability of a resource is low. |
| Keywords: | Tragedy of the Commons; Spectrum; Open Access; Appointments; Property Rights; Reservations |
| JEL: | D23 K23 D45 |
| Date: | 2010–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26423&r=agr |
| By: | Moroz, Serhiy Mykolayovych |
| Abstract: | The paper describes the main tendencies and perspectives of development of rural areas in Ukraine. It emphasizes that the key reason of existing socio-economic issues in rural regions is the absence of well-defined rural development policy. Thus, it is necessary for Ukraine to implement long-term rural policy, as it takes place in countries of the European Union. Rural development should be based on the territorial approach. The special attention should be paid to the creation of local action groups. Hence, it is essential to introduce a program, similar to the LEADER initiative, to use local possibilities, and to implement the bottom-up approach for the solution of rural issues. Also, special strategies should be developed to expand non-farm rural activities. The above-mentioned measures will give good opportunities to improve the socio-economic situation in rural areas, to increase the standard of living of rural people, and to enhance the competitiveness of the rural economy. |
| Keywords: | Rural development, rural policy, Ukraine, Community/Rural/Urban Development, R11, R58, |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa118:94624&r=agr |
| By: | Srijit Mishra |
| Abstract: | Based on a multi-sited based ethnography conducted during August 95 through February 96 in two inland tribal regions of Orissa the study tries to identify temporal and spatial specifications in terms of the socio-cultural milieu and techno economic feasibilities. This time space analysis also helps in explaining the differences between the two regions with regard to (i) the nitty-gritty of the production process and (ii) the transactions leading to the outflow of paddy from these inland regions. [Working Paper No. 271] |
| Keywords: | socio-cultural milieu, techno-economic feasibililics, outflow of paddy, adverse terms of trade |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3141&r=agr |
| By: | Pieroni, Luca; Salmasi, Luca |
| Abstract: | This work examines the socio-economic determinants of body weight in the United Kingdom by means of two recent waves from the British Household Panel Survey. While the patterns of overweight and obesity have drawn economists’ interest in recent years, our main contribution is to examine the weight determinants on the conditional distribution of body weight across individuals. Are there differing socio-economic causes for gaining weight in highly overweight people compared with underweight ones? For instance, we examine whether reduction in smoking affects differently individuals located among the most and the least of the weight distributions. Our results for significant determinants support some findings in the literature, but also point to new conclusions. In many cases, quantile regression estimates are quite different from OLS regressions ones. Among obese people, our results reveal that they are less so as males do not spend extra-time at work or females increases physical activities. Furthermore, smoking cessation may lead to moderate effects on weight increases only for underweight and normalweight subjects but they are not significant for people affected by higher obesity prevalence rates. |
| Keywords: | Body Mass Index; Overweight and Obesity; Quantile regression; Elasticity |
| JEL: | I12 I18 I10 |
| Date: | 2010–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26434&r=agr |
| By: | Mahvish Shami (Institute of Food and Resource Economics, University of Copenhagen) |
| Abstract: | Backed by a range of studies finding only limited propensity for free-riding when communities have an interest in self provision, the last few decades have seen a surge of interest in community based development amongst international organisations. A major caveat to the ‘second wave’ of collective action studies, however, is that collective action will often break down under hierarchical social relationships. This is unfortunate news for rural societies in developing countries, as these are often entrenched in patron-client networks. And while studies of collective action under clientelism are in short supply, the few that exist are generally pessimistic. This paper argues, however, that clientelist relations are highly context-specific, which matters a great deal for their implications for collective action. Making use of a natural experiment in rural Punjab, Pakistan, the paper finds that the unequal relationship between landlords and peasants does not, in and by itself, block peasant collective action. Rather, it is the interaction between clientelism and isolation that allow patrons to block community based projects. Despite still relying on powerful landlords, peasants in connected villages face no such constraints. On the contrary, their patrons assisted them in their collective endeavours, making the hierarchical network an added resource for peasants to rely upon. |
| Keywords: | Collective action, Clientelism, Interlinked markets, Rural road networks, Pakistan |
| JEL: | O18 Z13 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2010_14&r=agr |