Statutory Marketing Authorities in the Third World

In a previous paper, the value of SMAs as vehicles for advancing agricultural development in developing countries was called into question. The sequel presented in this paper is to examine recent trends in agricultural marketing in these countries, and review current thinking on the future role of SMAs. Some lessons for policy makers are suggested, based on experiences in the post-war period, and especiaiy in recent years. While the adverse empirical evidence on the past performance of SMAs appears to justify their demise, pitfalls abound in attempts at divestment.     

Privatization of Statutory Marketing Authorities and the Regulatory Role of Government in Developing Countries

In recent years, there has been a trend away from intensive government participation in agricultural and food marketing systems in developing countries. As greater emphasis is placed on the role of private marketers, uncertainty prevails over the appropriate future role of statutory marketing authorities in these systems. This is especially so in respect of the regulatory role.     

Strategic Agricultural Export Marketing in South Pacific Island Nations

Agribusiness firms in small developing countries face a special set of circumstances when formulating strategic marketing decisions. The nature of small economies usually means that agribusiness firms must have a strong export orientation, but they have little influence in the markets to which they export. The potential for domestic market expansion is limited. Information needed for developing export marketing strategies is often lacking, or difficult and expensive to obtain. An associated feature is the high degree of risk in export marketing, caused particularly by the variability in the world markets in which these nations sell their agricultural commodities. The importance of agricultural exports to economic development in these nations means that governments intervene a good deal in the export processes. Hence, government strategic decisions also affect agribusiness export performance. Finally, the number of competing firms is often small because of the smallness of the agricultural economy and the desire by agribusiness firms to avoid severe diseconomies of small size. This set of circumstances is examined in this paper in relation to a number of small South Pacific island nations (SPINS). Emphasis in the analysis of the strategic marketing concerns of agribusiness firms in these nations is on the competitive marketing strategies adopted in both the domestic and international sectors of the agricultural export markets. The special strategic marketing problems these firms face and the ways in which they have sought to overcome them are the main focus of study. But some attention is also given to the strategic decision-making processes of governments in the region, because they also have an impact on export strategies and performance of agribusiness marketing firms.     

Towards an Integrated Marketing System of Agricultural Products in Developing Countries

The myriad of deficiencies that are responsible for derailing efforts of development in the developing countries has among its culprits, most of the marketing activities and institutions. The agricultural sector is the most important sector of development in developing countries; furthermore, it comprises the most catastrophic problems. A model is deemed necessary, one which offers the decislon makers in developing countries an opponuniv to find a solution to these identifiable problems. Such a model was proposed in this study to integrate the marketing system for their agricultural products. The model is conceptual in nature and is based on a system's approach; considerations were given to the following variables: current environments, domestic and international conditions, internal and external determinants, plans, macro and micro decisions, modifiers, spheres of activities, marketing mix, switches and ultimate output.     

AN EVALUATION OF A NEW ZEALAND MARKETING BOARD'S SUPPLY DIVERSION STRATEGIES

It appears that the agricultural economics literature lacks much evidence upon which we can judge the performance of statutory boards as marketing institutions. This paper reports the achievements of the New Zealand Apple and Pear Marketing Board in two areas of supply diversion—the allocation of fruit between fresh and process markets, and the allocation of fresh fruit sales over time. Results indicate that the Board has achieved considerable gains for producers in the first of these areas, while in the second its behaviour has favoured consumers.     

Fair Trade and Organic Agriculture in Developing Countries: A Review

Fair trade regimes and organic agricultural systems are 2 innovations that increasingly play an important role for agriculture in developing countries. Whereas fair trade regimes have their origin in the developing countries, organic agriculture was started in the rich countries and has only recently become popular in the Third World. Both innovations can be mutually reinforcing as fair trade often combined with organic production standards opens up new market prospects. In this article we explore the opportunities and constraints of marketing organic products from developing countries under fair trade regimes. Based on available literature, we review evidence of the magnitude of organic production and fair trade systems in developing countries. We also propose a framework for studying the impact of fair traded organically produced commodities using the case of black pepper in India. The framework will generate testable hypotheses regarding the 2 innovations.     

Intellectual property rights and developing country agriculture

Theoretical studies indicate that the welfare of the developing countries might either be improved or damaged by the strengthening of their own intellectual property rights. Net gains through their agricultural sectors will be positive if the payoff from new innovations is sufficiently different as compared to the technology-exporting countries. Scattered evidence supports the hypotheses that agricultural R&D is responsive to IPRs in developing countries, but there is also evidence that developed-country technology is sufficiently appropriate for developing countries as to offer substantial free-rider gains. However, without IPRs it seems unlikely that the agricultural productivity rates in developing countries can begin to catch up with those in developed country agriculture.     

Impact and implications of price policy and land degradation on agricultural growth in developing countries

In many developing countries, a high proportion of the population resides and works in rural areas. Agriculture is the dominant sector in rural areas and has the greatest concentration of poverty: landless workers, small tenant farmers, and small farm owners. Thus, any development strategy that is directed towards increasing employment and alleviating a country's hunger must concentrate on sustainable agricultural growth. Historically, economic development in most countries has been based on exploitation of natural resources, particularly land resources. Soil erosion and land degradation have been serious worldwide. Due to reasons such as high population pressure on land and limited fossil energy supplies, land degradation is generally more serious in the developing world. Empirical studies show that soil erosion and degradation of agricultural land not only decrease the land productivity but they can also result in major downstream or off-site damage which may be several times that of on-site damage. In promoting industrialization, governments of many developing countries adopt a package of price and other policies that reduce agricultural production incentives and encourage a flow of resources out of agriculture. Increasing evidence shows that these policies cause a substantial efficiency or social welfare loss, and a great loss in foreign exchange earnings. In addition, a World Bank study on the effect of price distortions on economic growth rates concluded that neither rich resource endowments, nor a high stage of economic development, nor privatization are able to make up the adverse effects caused by high price distortions. This analysis is primarily concerned with identifying the factors that determine the agricultural production growth rate and in testing the effects these factors have on agricultural growth in developing countries. Specifically, this study involves statistical estimation of an aggregate agricultural growth function based on cross-country data for 28 developing countries. Special attention is devoted to land degradation and agricultural pricing policy, and to the policy implications resulting from the effects these variables have on agricultural and food production growth. The overall results of this study show that price distortions in the economy and land degradation had statistically significant negative impacts while the change in arable and permanent land was positively related to the growth of agricultural production and food production in 28 developing countries from 1971 to 1980. These results emphasize the importance of ‘getting prices right’ and implementation of sustainable land and water management practices if future growth in food and agricultural output is to be realized and sustained in developing countries.     

THE RELATIONSHIP BETWEEN WORLD PRICE INSTABILITY AND THE PRICES FARMERS RECEIVE IN DEVELOPING COUNTRIES

World prices for agricultural commodities are traditionally unstable, but they were particularly turbulent during the late 1970s and early 1980s. This paper uses available post-War data on individual commodity prices to test whether world price instability is increasing, and to examine its impact on the prices producers receive in developing countries. It is found that the recent turbulence was more a statistical fluke than the beginning of any longer-term increase in market instability. Further, while the variability in world prices has been almost entirely transmitted to developing countries in the dollar value of their export unit values, it has not been fully transmitted to average producer prices. Real exchange rates, domestic marketing arrangements and government intervention have acted to buffer price movements for producers in many developing countries.     

International trade and agricultural development in developing countries: Significance of the Uruguay Round of GATT negotiations

Liberalization of world trade in agricultural products ranks high on the agenda of the Uruguay Round. After a period of more than six years, however, the negotiations have not been concluded. Nevertheless, an outcome seems to be in sight. The agreement will most likely not result in a move to freer trade. It seems that domestic policies will become even more regulative than in the past in an attempt to cut exportable surpluses and to ease trade tensions among the main exporting nations. This paper explores possible impacts of the GATT Round on agricultural development in developing countries. Agricultural development is more than only growth in agricultural production or productivity. However, it is argued in the paper that other variables which also indicate agricultural development are often closely correlated with growth in production and productivity. Trade in agricultural products is not always an engine for agricultural development. If internal divergences are not accounted for by appropriate domestic policies, trade may be even harmful to agricultural development. Hence, empirical research based on cross-country analysis does not provide a clear answer about the role of trade for development. Past policies in industrialized countries have most likely had a negative effect on developing countries as a group; however, the effects differ widely across countries. Liberalization policies in industrialized countries would not just reverse these negative effects for developing countries. Price reduction in industrialized countries may not result in the often-cited production decline in the short term. Present X-inefficiency in agriculture will be reduced by liberalization, leading to an outward shift of the supply curve. Hence, liberalization may not lead to higher world market prices for temperate-zone products in the short and medium term. Apart from this, empirical models differ widely in the price effects they predict. The expected outcome of the Uruguay Round – increased regulation of domestic policies – is likely both more negative for developing countries than past protectionist policies and worse than an overall liberalization. World market prices will increase, uncertainty and instability can be expected to grow, and food aid may become less available. There will be a need to react to these challenges with measures on the international and national level. Initiatives to deal with food crises in developing countries and to stimulate liberalization in developing countries should be considered. Finally, developing countries should be made aware that their own domestic policies have a much greater economic impact than policies in other countries, even if the latter are as protectionist as current agricultural policies in the industrialized world.     

AGRICULTURAL EXPORTS OF DEVELOPING COUNTRIES: ESTIMATES OF INCOME AND PRICE ELASTICITIES OF DEMAND AND SUPPLY

This paper provides new evidence on income and price elasticities of demand and supply of agricultural exports from developing countries, on the basis of (a) a consistent and fully specified supply and demand model, and (b) statistical estimation procedures not frequently used in the estimation of agricultural export functions. Estimates of price and income elasticities of demand for aggregate agricultural exports for all developing countries taken together — as distinct from individual exporting countries — are found to be low; moreover, export price as distinguished from non-price factors plays a relatively insignificant role in increasing export supply. Hence, an attempt by all developing countries to expand traditional agricultural exports with low price elasticity of demand may not yield rising earnings for all; but in fact may result in falling export revenues. Insofar as individual exports of all developing countries (not individual countries) are concerned, income and price elasticities of demand for such tropical commodities as tea, coffee, cocoa and bananas are also found to be low, except for new, non-traditional exports like pineapples. This indicates the importance of diversification of agricultural exports as a vehicle for their future growth.     

The breakdown of the Milk marketing schemes

Abstract

For almost 60 years milk marketing in the UK has been controlled by statutory milk marketing boards, which have often been regarded as a classic example of the use of discriminatory monopoly pricing exercised for the benefit of producers. This paper describes the development and characteristics of the system, questions the effectiveness of the boards, and considers the challenges to their authority which have recently emerged. These stem partly from opposition by producers and processors and from the latent antagonism of the European Commission. It is now anticipated that the boards will lose their statutory powers and possibility be replaced by unitary voluntary cooperatives. This paper considers the prospects for co‐operative success concluding that there are substantial difficulties still to be overcome.     

Trade and agricultural development in the 1980s and the challenges for the 1990s: Asia

Asian developing countries have had varying experiences in trade and agricultural development in the 1980s, attributable in part to their differing stages of economic development and structural characteristics. Other important influences relate to the external economic environment and the policy choices made by their governments not only during the period but also in the preceding decade. The achievements of Asian developing countries under the adverse external conditions of the 1980s are discussed in terms of their macrocconomic and agricultural growth, the commodity structure of agricultural growth, their food production and trade, the expansion and diversification of their agricultural exports, and the policy and nonpolicy factors affecting them. Special attention is given to the role of policy reforms implemented in China and the South Asian countries, following similar policy developments in Northeast and Southeast Asia in the 1960s and 1970s, toward greater openness in their trade regime and increased private-sector participation in the economy. These reforms have contributed to the observed acceleration in gup , agricultural, and export growth in the 1980s. However, macroeconomic imbalances have emerged that threaten the sustainability of economic liberalization in those countries. The major challenges for the 1990s also differ among the Asian developing countries. In the industrially advanced Northeast economies of Taiwan and South Korea, the primary need is to ease the transition of the remaining rural population as farm incomes continue to fall and workers move to industrial and service activities. This challenge has to be addressed in the context of growing external pressure to further open their domestic market for agricultural imports. Among the Southeast and South Asian countries, there is a need to reduce the existing policy biases against agriculture, particularly against export crop production. Moreover, China and the South Asian countries face the additional challenges of continuing to deregulate their trade regime and internal markets, and of promoting macroeconomic stability. Despite the external trend recently toward regionalism, Asian developing countries generally seem committed to an open trading system, on which in fact their past impressive economic performance has been predicated. An important challenge for them in the 1990s is to play an active role in arresting and reversing any protectionist tendencies arising from the formation of regional trading blocs and to support multilateral initiatives such as the Uruguay Round that promote global trade liberalization.     

Supply and Marketing Organization for Agricultural Processing in the Developing Countries

In many developing countries the processing of agricultural and fishery products is a major contribution to development. However, projects to set up such enterprises there have often failed. Inadequate attention to arrangements for obtaining raw material and marketing the processed product bears much of the responsibility. The systems used by enterprises that have been successful are examined and the advantages and limitations of alternative forms of enterprise assessed.     

Grain marketing and National Competition Policy: Reform or Reaction?

Grain marketing arrangements in Australia have been controversial for many years. Following an account of the historical background to grain marketing, this article concentrates on more recent debates. The most interesting technical economic argument concerns the validity of claims that statutory marketing authorities with export monopoly powers can obtain higher prices. The article also discusses how marketing in Australia has been affected by Commonwealth and State Government policies with respect to microeconomic reform and privatization. Although major changes appear to have been made in grain marketing and its institutions, there are inherent economic problems with the current approach to deregulation.     

Links between economic liberalization and rural resource degradation in the developing regions

This paper examines evidence of the effects of economic liberalization and globalization on rural resource degradation in developing countries. The principal resource effects of concern are processes of land use change leading to forestland conversion, degradation and deforestation. The main trends in globalization of interest are trade liberalization and economy-wide reforms in developing countries that have 'opened up' the agroindustrial sectors, thus increasing their export-orientation. Such reforms have clearly spurred agroindustrialization, rural development and economic growth, but there is also concern that there may be direct and indirect impacts on rural resource degradation. The direct impacts may occur as increased agricultural activity leads to conversion of forests and increased land degradation from 'unsustainable' production methods. However, there may also be indirect effects if agroindustrial development displaces landless, near-landless and rural poor generally, who then migrate to marginal agricultural lands and forest frontier regions. This paper explores these direct and indirect effects of globalization and agroindustrialization on rural resource degradation both generally, plus through examining case study evidence. The paper focuses in particular on the examples of structural adjustment, trade liberalization and agricultural development in Ghana, and maize sector liberalization in Mexico under North American Free Trade Agreement (NAFTA).     

中国农产品网络营销的现状及问题研究

中国是一个农业大国,农民人口占了总人口的70％左右,发展农产品的网络营销是解决我国“三农”问题的一个非常有用的途径。本文阐述了中国在农产品方面要大力发展网络营销的必然因素,并在此基础上针对中国农产品要更进一步地发展网络营销的现状进行剖析,总结出农产品网络营销存在着信息化平台、政府对农产品网络营销活动的规范性、农业从业人员的网络营销意识、农产品网络营销的最终目的等几个亟待解决的问题,进一步提出中国在发展农产品网络营销过程中需要改进的措施,以推动中国,特别是中国的南方农产品网络营销的快速发展。     

Malawi's Agricultural Development: A Success Story?

At a time when attention was focused on Africa's poor agricultural performance, Malawi demonstrated a capacity not only to feed itself, but to produce a surplus for export. During the periods covered in this paper, its agricultural growth exceeded that of most African countries and compared favorably with 'success stories' on the continent. This research focuses on Malawi's recent performance, with particular attention on trends in the provision of essential agro-support services: credit; extension and farmer training; and input supply and marketing. Trends in these services are examined first at the national level and then at the district level. While overall trends indicate substantial progress, district level data reveal extensive unevenness. Moreover, at the farm level, census data on farmer training and technology utilization show fewer benefits to female operators and smaller farmers. Important elements of developmentally oriented infrastructure and services have been put in place and are functioning better than in most African countries. This is important in terms of longer-term agricultural development prospects. There is ample evidence, however, that Malawi's progress has not spread across different segments of the farm population or Agriculture Development Districts. Both the unevenness and overall progress have been heavily influenced by donor-support.     

Global Commodity Chains and African Export Agriculture

The last twenty years or so have seen a new conjuncture in international trade in tropical agricultural products. That conjuncture combines both changes in the organization of the (Northern) manufacturer and consumer segments of the global commodity chains for those products, and in marketing arrangements in their (Southern) countries of origin, associated with structural adjustment and liberalization. This introductory essay provides the context for the case studies that follow, first by introducing some of the key concepts and analytical issues in the global commodity chain (GCC) approach and other recent relevant literature such as the French 'convention' theory. It then sketches an historical framework for examining international trade in tropical agricultural products, with brief illustrations of the specific trajectories of Africa and some African countries within that framework. Finally, it shows how a number of issues are explored in the case studies presented, including how current changes might affect the future prospects of smallholder ('peasant') production of tropical export crops.     

African Agricultural Development: Lessons and Challenges

This paper reviews what has been learned from experiences of African agriculture and hence what policy lessons may be. Views of African agriculture over the last 130 years have changed from optimism to pessimism and at least halfway back again as the performance of the sector has fluctuated. Fortunately it seems the deep pessimism about agricultural prospects expressed in the 1980s and 1990s has receded. The performance of African agriculture since 1990 suggests that neither those who doubt that any significant advances are taking place, nor those who see advances in some remarkable but perhaps isolated cases of rapid transformation of farming and agricultural supply chains, have sufficient evidence – either from national data or small‐scale studies – to support their positions. Hence policy has to rely largely on general principles and historic lessons, rather than more clearly proven propositions. Policy debates over African agricultural development may sharply divide on some topics, but there is little debate over the importance of basic conditions for agricultural development of an enabling investment climate and the provision of rural public goods. Beyond these basics, the challenge is to remedy the failings of markets that deny most smallholders access to inputs, financial services and insurance. Here opinion divides between whether to return to public provision, as with fertiliser subsidies, or whether private and collective institutional innovations will be sufficient. Recent initiatives to test and scale up the latter look promising, but most have yet to be evaluated. If agricultural development is first and foremost about establishing the basic conditions for growth, then most countries in Africa may be better placed than they have been in the past. Given the many examples that show African smallholders investing and innovating when they have the chance, then there are reasons to hope that the modest growth of production and productivity seen in the last two decades may accelerate in the future – thereby allowing African countries to make the transition from agrarian to urban economies.