Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30075
Matching Farmer Competence and Farm Resources with the Transformation of Agri-Food Marketing Systems

Authors: Bhawat Chiamjinnawat

Abstract:

The agri-food market transformation has implied market growth for the fruit industry in Thailand. This article focuses on analysis of farmer competence and farm resources which affect market strategies used by fruit farmers in Chanthaburi province of Thailand. The survey data were collected through the use of face-to-face interviews with structured questionnaires. This study identified 14 drivers related to farmer competence and farm resources of which some had significant effect on the decision to use either high-value markets or traditional markets. The results suggest that farmers who used high-value markets were better educated and they had longer experience and larger sized business. Identifying the important factors that match with the market transformation provides policy with opportunities to support the fruit farmers to increase their market power. Policies that promote business expansion of agricultural cooperatives and knowledge sharing among farmers are recommended to reduce limitations due to limited knowledge, low experience, and small business sizes.

Keywords: Farmer competence, farm resources, fruit industry, high-value markets, Thailand.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.2643567

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 209

References:


[1] McCullough, E. B., Pingali, P. L., & Stamoulis, K. G. (Eds.). (2008). The transformation of agri-food systems: Globalization, supply chains and smallholder farmers. Rome; London; Sterling, VA: Food and Agriculture Organization of the United Nations.
[2] Reardon, T., Barrett, C. B., Berdegué, J. A., & Swinnen, J. F. M. (2009). Agrifood industry transformation and small farmers in developing countries. World Development, 37(11), 1717-1727.
[3] Reardon, T., Timmer, C. P., & Minten, B. (2012). Supermarket revolution in Asia and emerging development strategies to include small farmers. Proceedings Of The National Academy Of Sciences Of The United States Of America, 109(31), 12332-12337.
[4] Poapongsakorn, N. (2011). R & D and performance of the Thai agriculture and food-processing industry: The role of government, agribusiness firms, and farmers. In J. Ponciano S. Intal, Sothea Oum, & M. J. O. Simorangkir (Eds.), Agricultural development, trade & regional cooperation in developing East Asia (pp. 401-475). Jakarta: Economic Research Institute for ASEAN and East Asia (ERIA).
[5] Kersting, S., & Wollni, M. (2012). New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand. Food Policy, 37(4), 452-462.
[6] Sardsud, V. (2007). National Experiences: Thailand. New York and Geneva: United Nations.
[7] Schipmann, C., & Qaim, M. (2011). Supply chain differentiation, contract agriculture, and farmers' marketing preferences: The case of sweet pepper in Thailand. Food Policy, 36(5), 666-676.
[8] Gulati, A., Minot, N., Delgado, C., & Bora, S. (2005). Growth in high-value agriculture in Asia and the emergence of vertical links with farmers. Paper presented at the Linking Small-scale producers to markets: Old and new challenges.
[9] Shukla, M., & Jharkharia, S. (2013). Agri-fresh produce supply chain management: A state-of-the-art literature review. International Journal of Operations & Production Management, 33(2), 114-158.
[10] Brodt, S., Klonsky, K., & Tourte, L. (2006). Farmer goals and management styles: Implications for advancing biologically based agriculture. Agricultural Systems, 89(1), 90-105.
[11] Park, T., Mishra, A. K., & Wozniak, S. J. (2013). Do farm operators benefit from direct to consumer marketing strategies? Agricultural Economics, 45(2), 213-224.
[12] Hansson, H., & Ferguson, R. (2011). Factors influencing the strategic decision to further develop dairy production – a study of farmers in central Sweden. Livestock Science, 135(2), 110-123.
[13] Ohlmer, B., Olson, K., & Brehmer, B. (1998). Understanding farmers' decision making processes and improving managerial assistance. Agricultural Economics, 18(3), 273-290.
[14] Duesberg, S., O’Connor, D., & Dhubháin, Á. N. (2013). To plant or not to plant—Irish farmers’ goals and values with regard to afforestation. Land Use Policy, 32, 155-164.
[15] Ondersteijn, C. J. M., Giesen, G. W. J., & Huirne, R. B. M. (2003). Identification of farmer characteristics and farm strategies explaining changes in environmental management and environmental and economic performance of dairy farms. Agricultural Systems, 78(1), 31-55.
[16] Inderhees, P. G., & Theuvsen, L. (2009). Farmers' strategies in globalizing markets: Empirical results from Germany. Journal of International Food and Agribusiness Marketing, 21(4), 253-268.
[17] Farmar-Bowers, Q., & Lane, R. (2009). Understanding farmers' strategic decision-making processes and the implications for biodiversity conservation policy. Journal of Environmental Management, 90(2), 1135-1144.
[18] Fairweather, J., & Keating, N. (1994). Goals and management styles of New Zealand farmers. Agricultural Systems, 44(2), 181-200.
[19] Roy, D., & Thorat, A. (2008). Success in high value horticultural export markets for the small farmers: The case of Mahagrapes in India. World Development, 36(10), 1874-1890.
[20] Narrod, C., Roy, D., Okello, J., Avendaño, B., & Rich, K. (2009). Public-private partnerships and collective action in high value fruit and vegetable supply chains. Food policy, 34(1), 8-15.
[21] Hellin, J., Lundy, M., & Meijer, M. (2009). Farmer organization, collective action and market access in Meso-America. Food Policy, 34(1), 16-22.
[22] World Bank. (2006). China’s compliance with food safety requirements for fruits and vegetables: Promoting food safety, competitiveness and poverty reduction. Retrieved 30 July 2013, from http://siteresources.worldbank.org/ Intranettrade/Resources/Topics/Standards/CHINA_Jan06part1.pdf.
[23] Lippe, R. S., Seebens, H., & Isvilanonda, S. (2010). Urban household demand for fresh fruits and vegetables in thailand. Applied Economics Journal 17(1), 1-26.
[24] Srimanee, Y., & Routray, J. K. (2012). The fruit and vegetable marketing chains in Thailand: Policy impacts and implications. International Journal of Retail and Distribution Management, 40(9), 656-675.
[25] Wongprawmas, R., Canavari, M., & Waisarayutt, C. (2015). A multi-stakeholder perspective on the adoption of good agricultural practices in the Thai fresh produce industry. British Food Journal, 117(9), 2234-2249.
[26] Mintzberg, H. (1987). The strategy concept II: Another look at why organizations need strategies. California Management Review, 30(1), 25-32.
[27] David, F. R. (2011). Strategic management concepts and cases. Upper Saddle River, New Jersey: Pearson Education, Inc.
[28] Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2011). Strategic management: Competitiveness & globalization: Concepts and cases (9th ed.): Mason, Ohio: South-Western Cengage Learning.
[29] Jeffs, C. (2008). Strategic management. Los Angeles; London: SAGE.
[30] Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
[31] Brouthers, K. D., Andriessen, F., & Nicolaes, I. (1998). Driving blind: Strategic decision-making in small companies. Long Range Planning, 31(1), 130-138.
[32] Hitt, M. A., & Tyler, B. B. (1991). Strategic decision models: Integrating different perspectives. Strategic Management Journal, 12(5), 327-351.
[33] Papadakis, V. M., Lioukas, S., & Chambers, D. (1998). Strategic decision-making processes: The role of management and context. Strategic Management Journal 19(2), 115-148.
[34] Rajagopalan, N., Rasheed, A. M. A., & Datta, D. K. (1993). Strategic decision processes: Critical review and future directions. Journal of Management, 19(2), 349-385.
[35] Shepherd, N. G., & Rudd, J. M. (2014). The influence of context on the strategic decision-making process: A review of the literature. International Journal of Management Reviews, 16(3), 340-364.
[36] Bowmar, R. K. (2008). Farmer level marketing: Case studies in the South Island of New Zealand. Lincoln, N.Z.: Agribusiness and Economics Research Unit, Lincoln University.
[37] Hansson, H. (2007). Strategy factors as drivers and restraints on dairy farm performance: Evidence from Sweden. Agricultural Systems, 94(3), 726-737.
[38] Ruben, R., Boselie, D., & Lu, H. (2007). Vegetables procurement by Asian supermarkets: A transaction cost approach. Supply Chain Management, An International Journal, 12(1), 60-68.
[39] Reardon, T., Timmer, C. P., Barrett, C. B., & Berdegué, J. (2003). The rise of supermarkets in Africa, Asia, and Latin America. American Journal of Agricultural Economics 85(5), 1140-1146.
[40] Oerlemans, N., & Assouline, G. (2004). Enhancing farmers’ networking strategies for sustainable development. Journal of Cleaner Production, 12, 469-478.
[41] Barham, J., & Chitemi, C. (2009). Collective action initiatives to improve marketing performance: Lessons from farmer groups in Tanzania. Food policy, 34(1), 53-59
[42] Kaganzi, E., Ferris, S., Barham, J., Abenakyo, A., Sanginga, P., & Njuki, J. (2009). Sustaining linkages to high value markets through collective action in Uganda. Food policy, 34(1), 23-30.
[43] Markelova, H., M, R., Hellin, J., & Dohrn, S. (2009). Collective action for smallholder market access. Food Policy, 34(1), 1-7.
[44] Hellin, J., Lundy, M., & Meijer, M. (2009). Farmer organization, collective action and market access in Meso-America. Food Policy, 34(1), 16-22.
[45] Tsourgiannis, L., Warren, M., & Eddison, J. (2008). Factors affecting the marketing channel choice of sheep and goat farmers in the region of east Macedonia in Greece regarding the distribution of their milk production. Small Ruminant Research, 79(1), 87-97.
[46] Xaba, B. G., & Masuku, M. B. (2013). Factors Affecting the choice of marketing channel by vegetable farmers in Swaziland. Sustainable Agriculture Research, 2(1), 112-123.
[47] Nuthall, P. (2009). Modelling the origins of managerial ability in agricultural production. Australian Journal of Agricultural and Resource Economics, 53(3), 413-436.
[48] Crawford, C., Grossman, J., Warren, S. T., & Cubbage, F. (2015). Grower communication networks: Information sources for organic farmers. Journal of Extension, 53(3), 12-26.
[49] Tepic, M., Trienekens, J. H., Hoste, R., & Omta, S. W. F. (2012). The influence of networking and absorptive capacity on the innovativeness of farmers in the Dutch pork sector. International Food and Agribusiness Management Review, 15(3), 1-33.
[50] FAOSTAT. Available at http://www.fao.org/faostat/en/#home