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How do Farmers interact with Input Suppliers: Some Evidence from the Dairy Sector in Poland

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  • Malak-Rawlikowska, Agata
  • Milczarek-Andrzejewska, Dominika

Abstract

The extensive and growing literature on food supply chain has been mainly focused on relations between farmers, processing and retail sectors. Various studies have investigated for example the determinants of supply chain relationships (e.g. Dries et al., 2014) and a situation of small-scale producers in the face of rapid supply chain restructuring (e.g. Briones, 2015; Vorley et al., 2007). However, a systematic understanding of how farmers interact with input suppliers is very scarce. In response to this, the paper aims at improving our knowledge about farmers’ relations with input suppliers. The specific example that we examine comes from the Polish dairy sector, which seems to be particularly well suited for investigating relationships within the food value chain. On the one hand, fragmented structure of local farms, and poor income situation of small agricultural holdings are frequently emphasised (Milczarek-Andrzejewska, 2014). On the other hand, Polish dairy and feed sectors have undergone a thorough modernisation (Dries et al., 2011; Piwowar 2013). Rising farmer demand (due to production technology change being necessitated by milk productivity improvement) and increased competition in the feed sector have led to new vertical relations between the farm and feed production segments. Vertical coordination took many forms, including contracting, advisory programs, financial support etc. However, the existing theoretical and empitical literature on vertical spillovers through backward linkages (i.e. from buyers to suppliers) is scarce and focused on manufacturing (Kuijpers, Swinnen, 2016; Jarzębowski, 2013). A study on the relationship between dairy farmers and feed producers means that we examine also the relations between two agri-food chains. These two – dairy and feed – supply chains are vertically connected. The feed supply chain ends at the farm level where the feed is finally used in the milk production process, and where the dairy supply chain starts. Our study allows then to characterize the “boundary” segments of supply chains.

Suggested Citation

  • Malak-Rawlikowska, Agata & Milczarek-Andrzejewska, Dominika, 2016. "How do Farmers interact with Input Suppliers: Some Evidence from the Dairy Sector in Poland," 2016 International European Forum (151st EAAE Seminar), February 15-19, 2016, Innsbruck-Igls, Austria 244537, International European Forum on System Dynamics and Innovation in Food Networks.
    • Handle: RePEc:ags:iefi16:244537
    DOI: 10.22004/ag.econ.244537
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    References listed on IDEAS

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    1. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
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    1. Malak-Rawlikowska, Agata, 2018. "Are Farmers Trapped in Hold-Up Relationships? The Case of Dairy Farmers and Feed Suppliers," International Journal of Agricultural Sciences and Technology (IJAGST), SvedbergOpen, vol. 181(4), December.
    2. Wiśniewska-Paluszak, Joanna A. & Paluszak, Grzegorz T., 2018. "The Features and Categorization of Agribusiness Networks on the Example of the Polish Fruit and Vegetable Industry Enterprises," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276858, International European Forum on System Dynamics and Innovation in Food Networks.
    3. Joanna Sredzinska & Pawel Sieminski & Monika Godek, 2021. "Income Situation of Dairy Farms in European Union Countries: A Synthetic Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 993-1011.

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    Keywords

    Agribusiness; Farm Management;

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