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Changing Agricultural Markets: Industrialization and Vertical Coordination in the Dry Edible Bean Industry

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  • William Chambers
  • Robert P. King

Abstract

The agricultural sector is undergoing a transformation that is altering marketing relationships to better serve customer needs. These changes are drawing consumers, processors, and farmers into closer marketing relationships, improving the flow of information up the supply chain, and enabling firms to better meet customer demand. This paper uses case studies to analyze this process as it is occurring in the dry edible bean industry. A major finding is that contracts are not necessarily used in these new marketing relationships. Other factors—such as quality monitoring, certification procedures, and reputation—were also found to be highly important.

Suggested Citation

  • William Chambers & Robert P. King, 2002. "Changing Agricultural Markets: Industrialization and Vertical Coordination in the Dry Edible Bean Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 495-511.
    • Handle: RePEc:oup:revage:v:24:y:2002:i:2:p:495-511.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00111
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    References listed on IDEAS

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    1. Drabenstott, Mark, 1994. "Industrialization: Steady Current or Tidal Wave?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 9(4), pages 1-5.
    2. Boehlje, Michael, 1996. "Industrialization of Agriculture: What are the Implications?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 11(1), pages 1-4.
    3. Alan Barkema, 1993. "Reaching Consumers in the Twenty-First Century: The Short Way Around the Barn," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(5), pages 1126-1131.
    4. Randall Westgren & Kelly Zering, 1998. "Case study research methods for firm and market research," Agribusiness, John Wiley & Sons, Ltd., vol. 14(5), pages 415-423.
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    Cited by:

    1. Robert D. Weaver, 2008. "Collaborative pull innovation: origins and adoption in the new economy," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 388-402.
    2. Julius J. Okello & Scott M. Swinton, 2007. "Compliance with International Food Safety Standards in Kenya's Green Bean Industry: Comparison of a Small- and a Large-scale Farm Producing for Export," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 269-285.
    3. Elbehri, Aziz, 2007. "The Changing Face Of The U.S. Grain System: Differentiation And Identity Preservation Trends," Economic Research Report 7185, United States Department of Agriculture, Economic Research Service.
    4. Olmos, Marta Fernandez & Rosell-Martinez, Jorge & Espitia-Escuer, Manuel Antonio, 2008. "The yield/quality trade-off and contractual choice," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6065, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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