IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/335094.html
   My bibliography  Save this article

Techlex: a corporate practice to initiate inclusive agri-food value chain development in China

Author

Listed:
  • Zhou, Yunyi
  • Hu, Song
  • Chen, Kevin.

Abstract

A tradeoff lies between inclusiveness and economic efficiency in meeting the Sustainable Development Goals such as poverty reduction, food security, and climate resilience. Vertical coordination between agribusinesses and farmers, in tandem with corporate social responsibility, has been perceived as an approach to surmount such tradeoff from a micro perspective. In a localized context of developing economies, the vertical coordination with farmers is reducible to a path for agribusinesses towards inclusive local value chain development (LVCD) at the grassroots level. However, few models are documented for agribusiness managers to refer to in practice. This study harnesses the Techlex Group and its pig business as a case, zooming in on the vertical coordination of agribusiness and vulnerable smallholders in lagging rural areas of China. Based on an overview of China’s pig industry and Techlex’s value chain, this study highlights three inclusive models and their alternatives for the LVCD. Though proffered in the Chinese context, those models can enrich the LVCD toolkit and be attuned to fit a different scenario.

Suggested Citation

  • Zhou, Yunyi & Hu, Song & Chen, Kevin., 2022. "Techlex: a corporate practice to initiate inclusive agri-food value chain development in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(2), November.
    • Handle: RePEc:ags:ifaamr:335094
    DOI: 10.22004/ag.econ.335094
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/335094/files/ifamr2021.0097.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.335094?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Timothy Bresnahan & Jonathan Levin, 2012. "Vertical Integration and Market Structure [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    2. repec:bla:devpol:v:28:y:2010:i:2:p:195-216 is not listed on IDEAS
    3. repec:bla:devpol:v:28:y:2010:i:2:p:173-194 is not listed on IDEAS
    4. Waldron, Scott & Brown, Colin & Longworth, John, 2010. "A critique of high-value supply chains as a means of modernising agriculture in China: The case of the beef industry," Food Policy, Elsevier, vol. 35(5), pages 479-487, October.
    5. Anh Tru Nguyen & Janet Dzator & Andrew Nadolny, 2015. "Does contract farming improve productivity and income of farmers? A review of theory and evidence," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(6), pages 531-538, Special I.
    6. Peter Lund‐Thomsen & Khalid Nadvi, 2010. "Global value chains, local collective action and corporate social responsibility: a review of empirical evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 19(1), pages 1-13, January.
    7. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    8. Catherine Kilelu & Laurens Klerkx & Amos Omore & Isabelle Baltenweck & Cees Leeuwis & Julius Githinji, 2017. "Value Chain Upgrading and the Inclusion of Smallholders in Markets: Reflections on Contributions of Multi-Stakeholder Processes in Dairy Development in Tanzania," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(5), pages 1102-1121, November.
    9. Pratap S. Birthal & Ramesh Chand & P. K. Joshi & Raka Saxena & Pallavi Rajkhowa & Md. Tajuddin Khan & Mohd. Arshad Khan & Khyali R. Chaudhary, 2017. "Formal Versus Informal: Efficiency, Inclusiveness and Financing of Dairy Value Chains in Indian Punjab," India Studies in Business and Economics, in: Gyanendra Mani & P.K. Joshi & M.V. Ashok (ed.), Financing Agriculture Value Chains in India, pages 57-87, Springer.
    10. Fernando Luco & Guillermo Marshall, 2020. "The Competitive Impact of Vertical Integration by Multiproduct Firms," American Economic Review, American Economic Association, vol. 110(7), pages 2041-2064, July.
    11. Rich, Karl M. & Ross, R. Brent & Baker, A. Derek & Negassa, Asfaw, 2011. "Quantifying value chain analysis in the context of livestock systems in developing countries," Food Policy, Elsevier, vol. 36(2), pages 214-222, April.
    12. Kaat Van Hoyweghen & Anna Fabry & Hendrik Feyaerts & Idrissa Wade & Miet Maertens, 2021. "Resilience of global and local value chains to the Covid‐19 pandemic: Survey evidence from vegetable value chains in Senegal," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 423-440, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antje Wahl & Gary Bull, 2014. "Mapping Research Topics and Theories in Private Regulation for Sustainability in Global Value Chains," Journal of Business Ethics, Springer, vol. 124(4), pages 585-608, November.
    2. Awal Abdul‐Rahaman & Gazali Issahaku & Wanglin Ma, 2023. "Agrifood system participation and production efficiency among smallholder vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 812-835, July.
    3. Jochen Dürr, 2018. "Global value chains and traditional supply chains: Evidence from Guatemala," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 857-879, September.
    4. Vivek Soundararajan & Jill A. Brown, 2016. "Voluntary Governance Mechanisms in Global Supply Chains: Beyond CSR to a Stakeholder Utility Perspective," Journal of Business Ethics, Springer, vol. 134(1), pages 83-102, March.
    5. Eduardo Hernandez-Rodriguez & Ron Boschma & Andrea Morrison & Xianjia Ye, 2024. "Functional upgrading and downgrading in global value chains: The role of complementary interregional value chain linkages in EU regions," Papers in Evolutionary Economic Geography (PEEG) 2432, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2024.
    6. Amira Khattak & Christina Stringer, 2017. "Environmental Upgrading in Pakistan's Sporting Goods Industry in Global Value Chains: A Question of Progress?," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(1), pages 43-64, March.
    7. Chagomoka, Takemore & Afari-Sefa, Victor & Pitoro, Raul, 2013. "Value Chain Analysis of Indigenous Vegetables from Malawi and Mozambique," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161449, African Association of Agricultural Economists (AAAE).
    8. Iulia Sorina Dan & Ionel Mugurel Jitea, 2023. "Barriers and Levers in the Development of the Value Chain of Organic Vegetables in Romania," Sustainability, MDPI, vol. 15(16), pages 1-17, August.
    9. Linqing Liu & Shiye Mei, 2016. "Visualizing the GVC research: a co-occurrence network based bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(2), pages 953-977, November.
    10. Donna, Javier D. & Pereira, Pedro & Trindade, Andre & Yoshida, Renan C., 2020. "Direct-to-Consumer Sales by Manufacturers and Bargaining," MPRA Paper 105773, University Library of Munich, Germany.
    11. Maryono, Maryono & Killoes, Aditya Marendra & Adhikari, Rajendra & Abdul Aziz, Ammar, 2024. "Agriculture development through multi-stakeholder partnerships in developing countries: A systematic literature review," Agricultural Systems, Elsevier, vol. 213(C).
    12. Roberta Rabellotti & Alessia Amighini, 2003. "The effect of globalisation on industrial districts in Italy: evidence from the footwear sector," ERSA conference papers ersa03p500, European Regional Science Association.
    13. Anjani Kumar & Ashok K. Mishra & Sunil Saroj & Vinay K. Sonkar & Ganesh Thapa & Pramod K. Joshi, 2020. "Food safety measures and food security of smallholder dairy farmers: Empirical evidence from Bihar, India," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 363-384, June.
    14. Christopher Hansman & Jonas Hjort & Gianmarco León-Ciliotta & Matthieu Teachout, 2020. "Vertical Integration, Supplier Behavior, and Quality Upgrading among Exporters," Journal of Political Economy, University of Chicago Press, vol. 128(9), pages 3570-3625.
    15. Margareet Visser & Matthew Alford, 2024. "Governance and Power Across Intersecting Value Chains: The Case of South African Apples," Journal of Business Ethics, Springer, vol. 189(1), pages 69-86, January.
    16. Wilson Charles Wilson & Maja Slingerland & Frederick P. Baijukya & Hannah Zanten & Simon Oosting & Ken E. Giller, 2021. "Integrating the soybean-maize-chicken value chains to attain nutritious diets in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1595-1612, December.
    17. Panizzon, Marion & Sieber-Gasser, Charlotte, 2010. "Legal Framework for Cross-Regional Networks: The Case of Services and Migration," Papers 98, World Trade Institute.
    18. Wang, Jingyu & Peng, Lu & Chen, Jiancheng & Deng, Xiangzheng, 2024. "Impact of rural industrial integration on farmers' income: Evidence from agricultural counties in China," Journal of Asian Economics, Elsevier, vol. 93(C).
    19. Ayako Ebata & Hayley MacGregor & Michael Loevinsohn & Khine Su Win & Alexander W. Tucker, 0. "Value Chain Governance, Power and Negative Externalities: What Influences Efforts to Control Pig Diseases in Myanmar?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-22.
    20. Emanuela Todeva & Ruslan Rakhmatullin, 2016. "Industry Global Value Chains, Connectivity and Regional Smart Specialisation in Europe. An Overview of Theoretical Approaches and Mapping Methodologies," JRC Research Reports JRC102801, Joint Research Centre.

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:335094. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.