Perishability and market power in Nepalese food crop production
This study provides empirical evidence for the relation between perishability in vertically coordinated supply chains and the market power exercised over smallholders in Nepal. Using survey data from small‐scale farms of tomatoes, ginger, high‐yielding variety paddy seeds, and lentils, we demonstrat...
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| Published in | Journal of agricultural economics Vol. 73; no. 2; pp. 518 - 540 |
|---|---|
| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
Hoboken, NJ
Wiley
01.06.2022
Wiley Subscription Services, Inc |
| Subjects | |
| Online Access | Get full text |
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| Abstract | This study provides empirical evidence for the relation between perishability in vertically coordinated supply chains and the market power exercised over smallholders in Nepal. Using survey data from small‐scale farms of tomatoes, ginger, high‐yielding variety paddy seeds, and lentils, we demonstrate how varying levels of perishability affect the degree of market power exercised by contractors and in cooperative farming. We show how much value‐added is diverted from farmers, compared to the benchmark set by the least perishable good. Results indicate that more perishable crops are subject to a greater degree of market power. A subsequent scenario analysis reveals that the redistributive effects of market power based on crop perishability are substantial: smallholders’ farm profitability increase by 18% as crop perishability is reduced by 50%. We conclude by discussing policy measures to reduce power imbalances due to crop perishability. |
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| AbstractList | This study provides empirical evidence for the relation between perishability in vertically coordinated supply chains and the market power exercised over smallholders in Nepal. Using survey data from small‐scale farms of tomatoes, ginger, high‐yielding variety paddy seeds, and lentils, we demonstrate how varying levels of perishability affect the degree of market power exercised by contractors and in cooperative farming. We show how much value‐added is diverted from farmers, compared to the benchmark set by the least perishable good. Results indicate that more perishable crops are subject to a greater degree of market power. A subsequent scenario analysis reveals that the redistributive effects of market power based on crop perishability are substantial: smallholders’ farm profitability increase by 18% as crop perishability is reduced by 50%. We conclude by discussing policy measures to reduce power imbalances due to crop perishability. |
| Author | Mishra, Ashok K Kopp, Thomas |
| Author_xml | – sequence: 1 givenname: Thomas surname: Kopp fullname: Kopp, Thomas – sequence: 2 givenname: Ashok K surname: Mishra fullname: Mishra, Ashok K |
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| CitedBy_id | crossref_primary_10_1080_13504851_2023_2289389 crossref_primary_10_22573_spg_ijals_022_s122000109 crossref_primary_10_1016_j_eap_2024_02_004 crossref_primary_10_1108_JADEE_06_2022_0105 crossref_primary_10_1016_j_foodpol_2024_102683 crossref_primary_10_1017_S1742170524000176 |
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| SubjectTerms | Agricultural production Contractors Crop production Crops Economics Empirical analysis farm profitability Farmers Farms food crops Food production ginger high-yielding varieties issues and policy Lentils market power Nepal paddies perishability Power Profitability Seeds Small-scale farming storability Supply Supply chains surveys Tomatoes value added |
| Title | Perishability and market power in Nepalese food crop production |
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