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Author |
Biely, K.; Von Muenchhausen, S.; Van Passel, S. |
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Title |
Vertical integration as a strategy to increase value absorption by primary producers : the Belgian sugar beet and the German rapeseed case |
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A1 Journal article |
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Year  |
2022 |
Publication |
AIMS Agriculture and Food |
Abbreviated Journal |
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Volume |
7 |
Issue |
3 |
Pages |
659-682 |
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Keywords |
A1 Journal article; Pharmacology. Therapy; Engineering Management (ENM) |
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Abstract |
Vertical integration is a means of increasing market power. For some agricultural products, it is easier for farmers to exert control over their product beyond the farm gate, but for others it is more difficult. Cases in the latter category have two main characteristics. First, the farmer cannot sell the respective product to final consumers without processing. Second, processing is capital-intensive. Consequently, farmers have limited sales channels, and vertical integration of the supply chain is complex and challenging. It implies cooperation among farmers to process the raw material at a profitable scale and to finance the installation of processing facilities. Thus, for these product categories, farmers are prone to market power issues, since they depend on private businesses that have the financial means to install processing facilities and the logistical capacities to organize the collection of large amounts of raw material. This paper aims to identify and analyze the role of supply chain integration for farmers who are already cooperating horizontally. Two case studies serve as the basis for the analysis: sugar beet in Flanders, Belgium, and oilseed rape in Hessen, Germany. The analysis is based on a qualitative research approach combining interviews, focus groups, and workshops with farmers and processors. While for sugar beet, the effects of market power are emerging only now with the termination of the quota system, farmers growing oilseed rape have been experiencing these problems since the 1990s. Our analysis concludes that most strategies to maintain or improve farm income have been exhausted. Even various forms of vertical integration supported by European policies do not necessarily work as a successful strategy. |
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Wos |
000860666800001 |
Publication Date |
2022-08-17 |
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ISSN |
2471-2086 |
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Additional Links |
UA library record; WoS full record |
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Impact Factor |
1.8 |
Times cited |
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Open Access |
OpenAccess |
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Approved |
Most recent IF: 1.8 |
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Call Number |
UA @ admin @ c:irua:191514 |
Serial |
7374 |
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Author |
Biely, K.; Mathijs, E.; Van Passel, S. |
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Title |
Causal loop diagrams to systematically analyze market power in the Belgian sugar value chain |
Type |
A1 Journal article |
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Year |
2019 |
Publication |
AIMS Agriculture and Food |
Abbreviated Journal |
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Volume |
4 |
Issue |
3 |
Pages |
711-730 |
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Keywords |
A1 Journal article; Engineering Management (ENM) |
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Abstract |
It has been acknowledged that power is a fundamental aspect that needs to be considered when performing a value chain analysis. The structure of the value chain is indicative of the power distribution along the chain. By employing systems thinking the structure of the value chain can be further investigated and inferences on market power issues can be made. This novel approach connects value chain research with insights from Industrial Organization (IO) literature. Depending on the case, market power may not be measurable by traditional economic tools. Systems thinking offers an alternative tool, allowing the employment of qualitative and quantitative data, overcoming drawbacks of IO methods and providing more depth to value chain analysis. In this paper the valuable contribution of systems thinking to market power analysis is exemplified by the Belgian sugar beet case. The analysis showed that transportability and perishability of sugar beet are key causes of market failure in the Belgian sugar value chain. Systems thinking can support understanding potential future behavior of the market based on the thorough understanding of the current market structure. We illustrate how to integrate factors determining the market structure into causal loop diagrams. This novel approach allows a comprehensive evaluation and thus opens up market power analysis to interdisciplinary research. |
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Wos |
000488251600014 |
Publication Date |
2019-08-09 |
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ISSN |
2471-2086 |
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Additional Links |
UA library record; WoS full record |
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Notes |
; This research was performed within the frame of the EU's HORIZON 2020 project SUFISA with the grant agreement number 635577. The authors want to thank colleagues from the SUFISA project for stimulating and inspiring discussions on this topic. ; |
Approved |
Most recent IF: NA |
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Call Number |
UA @ admin @ c:irua:163833 |
Serial |
6165 |
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Author |
Creemers, S.; Van Passel, S.; Vigani, M.; Vlahos, G. |
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Title |
Relationship between farmers' perception of sustainability and future farming strategies : a commodity-level comparison |
Type |
A1 Journal article |
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Year |
2019 |
Publication |
AIMS Agriculture and Food |
Abbreviated Journal |
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Volume |
4 |
Issue |
3 |
Pages |
613-642 |
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Keywords |
A1 Journal article; Engineering Management (ENM) |
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Abstract |
The environmental challenges have become increasingly integrated into the European Union's Common Agricultural Policy (CAP). The Europe 2020 CAP Framework defines new rules for farmers and targets on innovation, resource efficiency, economic viability, and environmental sustainability. Given the continual evolution of the CAP, it is relevant to focus on sustainable agriculture and which indicators can be employed to aid our understanding of the future farming strategies. This study examines the relationship between perceived sustainability and future farming strategies for three different commodities: sugar beet, dairy, and feta cheese. Survey data collected between 2017-2018 from 191 Belgian sugar beet farmers, 524 dairy farmers (from UK, Denmark, France, and Latvia), and 150 Greek sheep and goat farmers producing milk for feta cheese were analysed using multinomial logistic regressions. Our results show that the farmers' attitude towards sustainability affects intentions to implement specific farming strategies. Belgian sugar beet farmers who perceive their supply chain arrangements (SCAs) environmentally sustainable are less likely to reduce the scale of their farms' operations rather than to maintain them. Dairy farmers are more likely to change the existing scale than to maintain scale if they perceive that production choices affect environmental sustainability to a higher extent. Dairy farmers who perceive their SCAs economically sustainable are less likely to abandon farming. Greek sheep and goat farmers who perceive their SCAs economically sustainable are more likely to expand the existing scale. The observed differences at commodity-level show the importance of well targeted policy measures towards more sustainable farming systems in the European Union. |
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Wos |
000488251600009 |
Publication Date |
2019-08-08 |
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Abbreviated Series Title |
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Edition |
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ISSN |
2471-2086 |
ISBN |
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Additional Links |
UA library record; WoS full record |
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Impact Factor |
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Times cited |
1 |
Open Access |
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Notes |
; This research was performed within the frame of the EU's HORIZON 2020 project SUFISA with the grant agreement number 635577. The authors want to thank colleagues from the SUFISA project for stimulating and inspiring discussions on this topic. In particular we would like to thank all the participants of the 2019 SUFISA final conference at the Jagiellonian University of Krakow for fruitful discussions. ; |
Approved |
Most recent IF: NA |
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Call Number |
UA @ admin @ c:irua:163832 |
Serial |
6242 |
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