IDEAS home Printed from https://ideas.repec.org/a/ags/ijofsd/346647.html
   My bibliography  Save this article

Value Chain Upgrading through Producer Organisations: Linking Smallholder Vegetable Farmers with Modern Retail Markets in Indonesia

Author

Listed:
  • Widadie, Fanny
  • Bijman, Jos
  • Trienekens, Jacques

Abstract

The study uses three elements of value chain analysis (VCA) – network structure, added value, and governance – to explore upgrading possibilities of value chains of producer organisations (PO)s in Indonesia in order to link smallholders to the modern retail market. Qualitative data are obtained through semi-structured interviews with PO members and other value chain actors. POs upgrade their value chains through linking smallholders with the modern retail market. Upgrading network structures is achieved by building collaboration between PO members and buyers. Upgrading added value is obtained by increasing the capability of farmers to meet quality requirements. Upgrading of governance structures in the chains is reached through contracts as vertical governance mechanisms and enhanced member services as horizontal arrangements.

Suggested Citation

  • Widadie, Fanny & Bijman, Jos & Trienekens, Jacques, 2021. "Value Chain Upgrading through Producer Organisations: Linking Smallholder Vegetable Farmers with Modern Retail Markets in Indonesia," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 12(01), January.
    • Handle: RePEc:ags:ijofsd:346647
    DOI: 10.22004/ag.econ.346647
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/346647/files/VALUE%20CHAIN%20UPGRADING%20THROUGH%20PRODUCER%20ORGANISATIONS.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.346647?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. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    2. Nicholas Minot & Randy Stringer & Wendy J. Umberger & Wahida Maghraby, 2015. "Urban Shopping Patterns in Indonesia and Their Implications for Small Farmers," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(3), pages 375-388, December.
    3. Muhammad Ibnu & Astrid Offermans & Pieter Glasbergen, 2018. "Certification and Farmer Organisation: Indonesian Smallholder Perceptions of Benefits," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 54(3), pages 387-415, September.
    4. Kaganzi, Elly & Ferris, Shaun & Barham, James & Abenakyo, Annet & Sanginga, Pascal & Njuki, Jemimah, 2009. "Sustaining linkages to high value markets through collective action in Uganda," Food Policy, Elsevier, vol. 34(1), pages 23-30, February.
    5. Miet Maertens & Bart Minten & Johan Swinnen, 2012. "Modern Food Supply Chains and Development: Evidence from Horticulture Export Sectors in Sub-Saharan Africa," Development Policy Review, Overseas Development Institute, vol. 30(4), pages 473-497, July.
    6. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    7. Johann Kirsten & Kurt Sartorius, 2002. "Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?," Development Southern Africa, Taylor & Francis Journals, vol. 19(4), pages 503-529.
    8. Reardon, Thomas, 2011. "The global rise and impact of supermarkets: an international perspective," 2011: The Supermarket Revolution in Food: Good, Bad or Ugly for the World's Farmers, Consumers and Retailers?, 14-16 August 2011 125312, Crawford Fund.
    9. Roy, Devesh & Thorat, Amit, 2008. "Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India," World Development, Elsevier, vol. 36(10), pages 1874-1890, October.
    10. 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.
    11. Giuliani, Elisa & Pietrobelli, Carlo & Rabellotti, Roberta, 2005. "Upgrading in Global Value Chains: Lessons from Latin American Clusters," World Development, Elsevier, vol. 33(4), pages 549-573, April.
    12. Trienekens, Jacques H., 2011. "Agricultural Value Chains in Developing Countries A Framework for Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-32, May.
    13. Suryadarma, Daniel & Poesoro, Adri & Akhmadi & Budiyati, Sri & Rosfadhila, Meuthia & Suryahadi, Asep, 2010. "Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia," Food Policy, Elsevier, vol. 35(1), pages 79-86, February.
    14. Ellis, Emmanuella & Kwofie, Ebenezer Miezah & Ngadi, Michael, 2019. "Value Beyond Price: End User Value Chain Analysis," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 10(04), October.
    15. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    16. Moustier, Paule & Tam, Phan Thi Giac & Anh, Dao The & Binh, Vu Trong & Loc, Nguyen Thi Tan, 2010. "The role of farmer organizations in supplying supermarkets with quality food in Vietnam," Food Policy, Elsevier, vol. 35(1), pages 69-78, February.
    17. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    18. Alim Setiawan Slamet & Akira Nakayasu & Masahiro Ichikawa, 2017. "Small-Scale Vegetable Farmers’ Participation in Modern Retail Market Channels in Indonesia: The Determinants of and Effects on Their Income," Agriculture, MDPI, vol. 7(2), pages 1-16, February.
    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. Fanny Widadie & Jos Bijman & Jacques Trienekens, 2022. "Alignment between vertical and horizontal coordination for food quality and safety in Indonesian vegetable chains," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    2. Raoul Herrmann & Ephraim Nkonya & Anja Faße, 2018. "Food value chain linkages and household food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 827-839, August.
    3. Otsuka, Keijiro & Ali, Mubarik, 2020. "Strategy for the development of agro-based clusters," World Development Perspectives, Elsevier, vol. 20(C).
    4. Shinya Ikeda & Ronnie S. Natawidjaja, 2022. "The Sustainability of Contract Farming with Specialized Suppliers to Modern Retailers: Insights from Vegetable Marketing in Indonesia," Agriculture, MDPI, vol. 12(3), pages 1-11, March.
    5. Kuijpers, Rob, 2020. "Integrated Value Chain Development: Evidence from Bangladesh," Food Policy, Elsevier, vol. 97(C).
    6. 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.
    7. Adetoyinbo, Ayobami & Otter, Verena, 2020. "Organizational Structures, Gender Roles and Upgrading Strategies for Smallholders in Developing Countries’ Local Value Chains," GlobalFood Discussion Papers 305193, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Anna Giunta & Domenico Scalera & Francesco Trivieri & Jeffrey B. Nugent & Mariarosaria Agostino, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers 2011R09, Orkestra - Basque Institute of Competitiveness.
    9. Saon Ray & Smita Miglani, 2018. "Upgrading in the Indian automobile sector: The role of lead firms," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 360, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    10. Yun-Cih Chang & Min-Fang Wei & Yir-Hueih Luh, 2021. "Choice of Modern Food Distribution Channels and Its Welfare Effects: Empirical Evidence from Taiwan," Agriculture, MDPI, vol. 11(6), pages 1-13, May.
    11. Pham, Hanh Song Thi & Petersen, Bent, 2021. "The bargaining power, value capture, and export performance of Vietnamese manufacturers in global value chains," International Business Review, Elsevier, vol. 30(6).
    12. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.
    13. Paulina Ramirez & Helen Rainbird, 2010. "Making the connections: bringing skill formation into global value chain analysis," Work, Employment & Society, British Sociological Association, vol. 24(4), pages 699-710, December.
    14. Ha Thi Van Pham & Bent Petersen, 2010. "Do OEM Exporters Differ from Independent Exporters in Terms of Global Connectivity and Export Performance?," Review of Market Integration, India Development Foundation, vol. 2(1), pages 9-42, April.
    15. 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.
    16. Torrecillas, Celia & Martínez, Catalina, 2022. "Patterns of specialisation by country and sector in olive applications," Technology in Society, Elsevier, vol. 70(C).
    17. Christopher Sausman & Marian Garcia & Andrew Fearne & Melanie Felgate & Akka Ait El Mekki & Selim Cagatay & Ibrahim Soliman & Boubaker Thabet & Chokri Thabet & Mohamed Ben Saïd & Abderraouf Laajimi & , 2015. "From Value Chain Analysis to Global Value Chain Analysis: Fresh Orange Export Sector in Mediterranean Partner Countries," Cooperative Management, in: Michel Petit & Etienne Montaigne & Fatima El Hadad-Gauthier & José María García Álvarez-Coque & Kons (ed.), Sustainable Agricultural Development, edition 127, chapter 0, pages 197-225, Springer.
    18. 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.
    19. Konstantins Benkovskis & Jaan Masso & Olegs Tkacevs & Priit Vahter & Naomitsu Yashiro, 2020. "Export and productivity in global value chains: comparative evidence from Latvia and Estonia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(3), pages 557-577, August.
    20. Ziliang Deng & Xufei Ma & Ziyan Zhu, 2022. "Transactional Dependence and Technological Upgrading in Global Value Chains," Journal of Management Studies, Wiley Blackwell, vol. 59(2), pages 390-416, March.

    More about this item

    Keywords

    Production Economics; Supply Chain;

    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:ijofsd:346647. 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/centmde.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.