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Long-term sustainability of third-party facilitated market linkages: Evidence from the USDA marketing assistance program in the Armenian dairy industry
Affiliation:1. Kansas State University, 305D Waters Hall, Manhattan, KS 66506, USA;2. Michigan State University, USA;3. Massey University, New Zealand;1. Faculty of Engineering, Information and Systems, University of Tsukuba, Ibaraki, Japan;2. Saïd Busihess School, University of Oxford, Oxford, UK;3. The University of Tokyo, Tokyo, Japan;1. Department of Occupational Health, School of Health, Guilan University of Medical Sciences, Rasht, Iran;2. Department of Occupational Health Engineering, Boroujerd Branch, Islamic Azad University, Boroujerd, Lorestan, Iran;1. Forschungszentrum Jülich GmbH, Institute of Energy and Climate Research, IEK-3: Electrochemical Process Engineering, 52425 Jülich, Germany;2. Forschungszentrum Jülich GmbH, Institute of Bio- and Geosciences, IBG-2: Plant Sciences/BioSpec, 52425 Jülich, Germany;3. Chair for Fuel Cells, RWTH Aachen University, Germany;1. Blackland Research and Extension Center, Texas A&M University, 720 East Blackland Road, Temple, Texas 76502, USA;2. Department of Land, Air and Water Resources, University of California, Davis, Davis 95616, USA;3. Department of Agricultural and Biological Engineering, Purdue University, West Lafayette IN 47907, USA;4. Department of Marine Environmental Informatics, National Taiwan Ocean University, Keelung City 202, Taiwan;5. Center of Excellence for Ocean Engineering, National Taiwan Ocean University, Keelung City 202, Taiwan;6. Department of Water Resources Engineering and Conservation, Feng Chia University, Taichung City 40724, Taiwan;7. Water Resources Planning Institute, Water Resources Agency, Ministry of Economic Affairs, Taiwan;8. Grassland, Soil & Water Research Laboratory, USDA-ARS, 808 East Blackland Road, Temple, Texas 76502, USA
Abstract:Public–private partnerships are increasingly seen as an important tool to build agri-food supply chains and develop markets for agri-food products in emerging economies. However, many of these initiatives fail when the public component of the program ends. One exception is the USDA Market Assistance Program (MAP) that facilitated the redevelopment of the Armenian dairy sector after privatization. This paper presents a case study of this initiative and hypothesize that the USDA MAP facilitated farmer investment in private enforcement capital. This investment resulted in sustainable market relationships between farmers and dairy processors even after the USDA MAP expired. We find empirical evidence to support this hypothesis using a panel dataset collected from 172 Armenian dairy farmers in 2004 and 2009.
Keywords:Sustainable food markets  Third-party facilitation  Market development  Institutional economics  Transition economies
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