Small producers,supermarkets, and the role of intermediaries in Turkey's fresh fruit and vegetable market

A wide range of empirical studies show the extent to which the rise of supermarkets in developing countries transforms domestic marketing channels. In many countries, the exclusion of small producers from so‐called dynamic marketing channels (that is, remunerative ones) has become a concern. Based on data collected in Turkey in 2007 at the producer and the wholesale market levels, we show that intermediaries are important to understanding the impact of downstream restructuring (supermarkets) on upstream decisions (producers). Results show first that producers are not aware of the final buyer of their produce, because intermediaries hinder the visibility of the marketing channel, thereby restricting a producer's choice to that of the first intermediary. Econometric results show that producers who are indirectly linked to the supermarkets are more sensitive to their requirements in terms of quality and packaging than to the price premia compensating the effort made to meet standards. Therefore, the results lead us to question the role of the wholesale market agents who act as a buffer in the chain and protect small producers from negative shocks, but who stop positive shocks as well, and thereby reduce incentives.     

Buyer preferences for sheep and goats in southern Nigeria: A hedonic price analysis

A survey of two rural markets in southwest Nigeria over 14 months showed that supplies, sales and prices of sheep and goats varied widely during the period with a sharp peak during the Muslim festival of' Eid-el-Kabir and a smaller peak during the Christmas-New Year period. Local West African Dwarf (WAD) sheep and goats and northern Y'ankasa sheep and Red Sokoto goats were traded in the markets and animals were purchased for rearing, trading, ceremonies, butchering/catering, sacrifice, and festivals. There were significant differences between species/breeds purchased for various purposes. A hedonic price model was fitted to determine factors influencing price. After adjustments were made for age, weight, sex, time of transaction and market, WAD sheep commanded higher prices than WAD goats and Red Sokoto goats for all purposes except for butchering/catering; Red Sokoto goats commanded similar or lower prices than WAD goats depending on the purpose for purchase; and Y'ankasa sheep, principally purchased for the Eid-el-Kabir festival, commanded marginally higher prices than WAD sheep. The market share of WAD sheep is currently small and is under competition from northern sheep and goats, so increased production of WAD sheep in the south will benefit both producers and consumers in the area. In general, the results indicate that buyers have preferences for specific breeds and species for specific purposes, so producers and sellers may benefit by targeting specific buyer categories and times of the year.     

Price volatility and rational expectations in a sectoral framework commodity model: a multivariate GARCH approach

This article explores supply response models in a rational expectations framework with endogenous risk by using a multivariate generalized autoregressive conditional heteroskedasticity model with Cholesky decomposition. This approach allows the incorporation of price volatility as a risk factor into the supply response of a primary commodity sector that is composed of several markets of homogenous products. The model is applied to the Greek meat sector, which is composed of four major meat categories, that is, beef, lamb, pork, and broiler, and thus the model for the entire market includes supply and demand equations for all the four meat markets, which are estimated simultaneously. The empirical results confirm that price volatility is a significant risk factor in Greek meat production and also provide useful implications about the cost factors of production. Furthermore, the empirical findings show that the last reform of the Common Agricultural Policy seems to have had a negative effect on beef and lamb production in Greece.     

Market power,market outcomes,and remedies in the UK groceries market

This article describes a number of the issues that played a central role in the UK Competition Commission's investigation into the UK Groceries Sector. We describe the questions at issue, the evidence collected to address those questions, and the conclusions drawn. We go on to describe the CC's remedies both vertically vis‐à‐vis the supply chain and horizontally vis‐à‐vis markets of high local concentration.     

Price and quantity adjustment in a dual character market The case of the Greek poultry sector

In this paper we set up, estimate and test a short-run model for the poultry sector in Greece. The model allows for the simultaneous existence of a monopolistically competitive and a competitive segment, and determines producer and consumer prices, and the quantity consumed. We provide evidence on steady-state parameters such as demand and supply elasticities, as well as on speeds of adjustment of prices and quantities. The evidence suggests that adjustment is very rapid, although quantities appear to be adjusting more quickly than prices. The model is used to examine the dynamics of adjustment to demand and supply-side disturbances.     

Bt Cotton,Pesticide Use and Environmental Efficiency in Pakistan

There is a broad literature on the impact of Bt cotton adoption in different countries, but few studies have explicitly looked at environmental and health effects from an economic perspective. We analyse the impact of Bt cotton on environmental efficiency in Pakistan, using farm survey data and a doubly heteroskedastic stochastic production function framework. Negative environmental and health effects of chemical pesticide use are quantified with the environmental impact quotient. Bt‐adopting farms have higher cotton yields, while using lower pesticide quantities and causing less environmental damage. Bt farms are both technically and environmentally more efficient than non‐Bt farms. Bt adoption increases environmental efficiency by 37%. Achieving the same reduction in negative environmental and health impact without Bt would cost conventional cotton farmers US$ 54 per acre in terms of foregone yields and revenues (7% of total revenues). Extrapolating this shadow price of the technology's health and environmental benefits to the total Bt cotton area in Pakistan results in an aggregate value of US$ 370 million. These benefits are in addition to the profit gains for Bt‐adopting farmers. Our results suggest that Bt technology can contribute to sustainable agricultural development.     

Valuing financial,health, and environmental benefits of Bt cotton in Pakistan

Data from a farm survey and choice experiment are used to value the benefits of Bt cotton in Pakistan. Unlike previous research on the economic impacts of Bt, which mostly concentrated on financial benefits in terms of gross margins, we also quantify and monetize health and environmental benefits associated with technology adoption. Due to lower chemical pesticide use on Bt cotton plots, there are significant health advantages in terms of fewer incidents of acute pesticide poisoning, and environmental advantages in terms of higher farmland biodiversity and lower soil and groundwater contamination. Farmers themselves value these positive effects at US$ 79 per acre, of which half is attributable to health and the other half to environmental improvements. Adding average gross margin gains of US$ 204 results in aggregate benefits of US$ 283 per acre, or US$ 1.8 billion for the total Bt cotton area in Pakistan.     

Production risk,risk aversion and the determination of risk attitudes among Spanish rice producers

Agricultural production is subject to risk and the attitudes of producers toward risk will influence input choices insofar as these affect production risk. Risk attitudes in turn may be affected by certain socioeconomic characteristics of producers. Using 2004 survey data from a cross‐section of 130 Spanish rice farms, we estimate risk‐aversion coefficients of farmers and investigate the influence of a series of socioeconomic variables on their risk attitudes. Our results show that farmers exhibit risk‐averse behavior and that risk attitudes are related to a series of socioeconomic characteristics. In particular, the belief that the farm will continue after the producer retires is found to increase the degree of risk aversion, while age is found to have nonlinear effects on risk aversion. Off‐farm income, especially from nonagricultural activities, is found to reduce risk aversion. Neither the educational level of the producer nor the presence of dependents on the household is found to have an effect on risk preferences. Regarding the production technology, we find that land, labor, and fitosanitary products are risk‐reducing inputs, whereas capital, seeds, and fertilizer all increase risk.     

Price premiums,payment delays,and default risk: understanding developing country farmers’ decisions to market through a cooperative or a private trader

Smallholder farmers in developing countries face a competitive disadvantage in modern agricultural supply chains. Joint marketing through cooperatives is a potential tool to mitigate these disadvantages; yet cooperatives’ success in these settings is uneven at best. We develop an analytical model to study a farmer's choice of selling to a private trader who pays cash on delivery but may exercise market power or a cooperative that promises a price premium but delays payment and carries a concomitant risk of default. In the presence of impatient and risk‐averse farmers, we show that these factors can severely limit smallholder patronage of a cooperative, despite a promised price premium. We then construct and parameterize a simulation model to fit a profile of heterogeneous farmers within a prototype developing‐country village, and study the optimal decisions of farmers regarding marketing through a cooperative versus a private trader. Results suggest that modest improvements in either timeliness of payment or probability of default can induce a substantial increase in a cooperative's market share and economic viability. Extending the simulation analysis to a dynamic setting shows how implementing reasonable policies to improve a cooperative's payment timeliness and default probability can markedly improve its growth trajectory.     

Underlying and proximate driving causes of land use change in district Swat,Pakistan

Swat is part of the high mountain Hindu-Kush Himalayan region of Pakistan, with diverse biophysical and socio-economic characteristics. The region is endowed with many fragile and fragmented ecosystems, and land use and land cover changes have accelerated destructive processes with irreversible effects on ecosystems. The paper aims to (1) find proximate and underlying causes of land use and land cover changes; (2) analyse the drivers of change; and (3) reflect on the role of governance and policy.We used land use maps for the years 1968 and 2007 to highlight the extent and type of land use changes, and household surveys and expert interviews were conducted to collect quantitative and qualitative data for detecting and analysing the drivers of change.Results of household surveys and expert interviews show that technological and environmental factors, accessibility and proximity to local markets, immense use of firewood, conflicting property rights and other institutional weaknesses, and over-grazing of alpine pastures were the main driving forces for agriculture expansion and deforestation.Given the present governance structure of forest management in Pakistan a multi-sectoral and multi-scale framework is required to conserve the Swat's natural landscape and associated ecosystem services. A carefully crafted reform programme is required to clarify and assign unambiguous property rights, provisions for communal management and market-based incentives, depending on the social, economic, and ecological characteristics of the different zones under consideration. Only with such policies in place can the current rapid rate of deforestation be avoided and sustainable natural resources use be ensured.     

Price linkages in the international skim milk powder market: empirical evidence from nonparametric and time‐varying copulas

The objective of this article is to assess the integration of the international skim milk powder (SMP) market. This is pursued using monthly data over 2001 to 2014 from the three principal SMP‐producing regions (the EU, the USA and Oceania) and nonparametric kernel‐based and time‐varying copulas. The empirical results point to a strong and an increasing degree of overall price co‐movement and to statistically significant probabilities for joint price crashes and booms. While the EU and Oceania have been the regions with the highest degree of integration, the USA has been catching up with them.     

地价会影响开发商利润率--谈土地使用权招拍挂出让与土地价格的关系

从土地取得成本角度讲,协议出让条件下,土地取得成本包括原用地方的补偿价、项目转让价、政府出让金等;招拍挂出让条件下,土地取得成本包括原用地方的补偿价(收购补偿价或土地一级开发成本)、政府收取的地价款。协议出让条件下,由于原用地方的补偿价为双方私下协商,价格可能偏高或偏低,部分开发商靠朋友关系低成本从原用地方取得土地使用权,同时部分项目还有转让价发生,这样对有实力却又没有土地信息来源的开发商是不公平的。此外,政府收取得的出让金也不一定完全符合市场,土地价格未真正反映出来;招拍挂出让的条件下,大家都从土地市场取得…     

A Question of Integrity: Variants of Bt Cotton,Pesticides and Productivity in Pakistan

Bt cotton remains one of the most widely grown biotech crops among smallholder farmers in lower income countries, and numerous studies attest to its advantages. However, the effectiveness of Bt toxin, which depends on many technical constraints, is heterogeneous. In Pakistan, the diffusion of Bt cotton occurred despite a weak regulatory system and without seed quality control; whether or not many varieties sold as Bt are in fact Bt is also questionable. We utilise nationally representative sample data to test the effects of Bt cotton use on productivity. Unlike previous studies, we invoke several indicators of Bt identity: variety name, official approval status, farmer belief, laboratory tests of Bt presence in plant tissue, and biophysical assays measuring Bt effectiveness. Only farmer belief affects cotton productivity in the standard production model, which does not treat Bt appropriately as damage‐abating. In the damage control framework, all Bt indicators reduce damage from pests. Biophysical indicators have the largest effect and official approval has the weakest. Findings have implications for impact measurement. For policy‐makers, they suggest the need, on ethical and productivity grounds, to improve variety information and monitor variety integrity closer to point of sale.     

Tariff Liberalisation,Price Transmission and Rural Welfare in China

China's tariff liberalisation as part of its WTO accession application and eventual agreement has been thoroughly analysed in the literature. However, much of this literature is based on forward‐looking ex‐ante analyses and few studies provide empirical evidence on its actual impact. We fill in this gap by evaluating empirically the welfare effects of China's actual tariff liberalisation on Chinese farmers during the 1997–2010 period. By estimating the domestic market price effects of China's tariff liberalisation and the associated wage earning effects, we find that on average Chinese farmers were able to gain more from reduced consumption prices than they would lose from reduced agricultural and wage income due to tariff liberalisation. Welfare gains over time are estimated to be positively correlated with the actual degrees of tariff liberalisation, implying that relatively more gains were realized immediately before and after China's WTO accession in 2001, as compared to the more recent period when relatively little liberalisation was carried out. Farmers’ rising non‐agricultural income and increasing consumption shares of non‐agricultural products are important determinants of these positive average welfare effects. Moreover, welfare gains from tariff liberalisation are shown to be distributed unevenly across Chinese provinces and income levels, with farmers located in coastal provinces and at higher income levels gaining more than their counterparts in remote provinces and at lower income levels.     

Human capital,labour market outcomes,and horizontal inequality in Guatemala

With the second largest indigenous population by percentage in Latin America, Guatemala is an important case for understanding horizontal inequality and indigenous politics. This paper presents new analysis of survey data, allowing for consideration both of indigenous and ladino populations, as well as of ethno-linguistic diversity within the indigenous population. Our analysis illustrates both the depth and persistence of horizontal inequalities in educational and labour market outcomes, and a broad trend towards greater equality. Earnings gaps have been reduced by, among other factors, improved educational outcomes. Ethnic groups also show distinct patterns of wages and wage gaps, and there is evidence of ‘sticky floors’ affecting some groups more than others. Our findings suggest that the focus on the indigenous/non-indigenous divide found in much of the economic literature on Latin America obscures meaningful diversity within the indigenous population. We posit that further consideration of such within-group diversity has implications for broader theories of ethnic politics, and in particular for understanding the comparative weakness of indigenous political mobilisation in Guatemala.     

Marketing reforms,market development and agricultural production in China

Chinese agricultural reforms have consisted of two transitional stages; initially decollectivization in the late 1970s followed by market liberalization in the mid 1980s. While much research has been conducted on the initial stage of increasing the incentives for farmers in collective cultivation, little quantitative evidence exists on how marketing reforms and the development of rural markets has affected agricultural production decisions. Using more accurate and disaggregated measures of the reform and market development components of liberalization than previous research, this study examined the effects of these liberalization policies on the agricultural production decisions in Shaanxi province. Procurement quota levels were found to be positively associated with the area planted to grain crops. Thus, quotas represent an effective way of increasing grain production and thereby also a means of achieving food self sufficiency which remains an important policy objective for the Chinese government. The involvement of state grain stations in free market grain trade and the expansion of rural markets has increased the area planted to the two potential cash crops, soybeans and wheat, and reduced the sown area of the Subsistence crop, corn reflecting the reduced need to plant corn as a self insurance mechanism for smoothing consumption. An increase in procurement quotas increases fertilizer use on grain crops, due to the policy of linking quotas to access to below-market priced fertilizer, but decreases the use of labor, which shifts to other more profitable enterprises. Market development has increased these off-farm employment opportunities and the earnings associated with them, thereby promoting the shift of labor out of crop production and increased the use of fertilizer which has also become more available.     

Farm size,productivity and returns to scale in agriculture revisited: a case study of wine producers in South Africa

The inverse relationship between farm size and productivity has almost become a ‘stylised fact’ in the economic development literature. Most of the studies contributing to this preception have been Hawed by methodological shortcomings and the request is that these studies be treated with caution. Using recent farm survey data from the wine producing areas of the Western Cape of South Africa, this study attempts to overcome some of the methodological problems, distinguishing between partial and total productivity measures. Using data envelopment analysis, most of the wine grape producers were found to operate under constant returns to scale. Co-operative membership seemed to overcome the economies of scale associated with processing and marketing. The inverse relationship between farm size and both land productivity and total factor productivity is weak, not consistently negative and differs between regions. Thus, caution must be used when advocating rural development policies based on the inevitability of an inverse relationship existing in all sectors and production regions of agriculture.     

地价与房价关系的探讨—江苏省徐州市的实证研究

现有的地价与房价关系研究主要集中于宏观层面,而对房地产市场的区域差异性关注不够.基于2000 2010年徐州市市区的住宅用途地价与房价的相关数据,在理论分析的基础上应用波动分析、协整分析及误差修正模型等计最分析方法,分析了该市地价与房价之间的关系.结果表明:在较长时间尺度上,徐州市市区的地价与房价存在稳定的均衡关系;在较短时间尺度上两者也存在相互影响,但房价的变动对地价的影响更大.