Whether or not local producers can gain access to global value chains and at which point is likely to be an important factor in determining whether they will benefit from trade liberalization. Understanding how these chains/networks are organized, controlled and governed is key to understanding how gains from them are shared across the chain participants. This paper analyzes the functioning of these chains with special focus on the implications for small producers in Asia. Besides defining and discussing the various aspects of the value chain framework and its utility for analysis, it also examines the context in which governance of these chains has acquired importance. It profiles the governance mechanisms and the issues involved, with specific focus on chains originating in Asia. The paper concludes by outlining some of the ways through which the participation of the small producers in these chains can be facilitated.
Get full access to this article
View all access options for this article.
References
1.
ArceAMarsdenT (1993): “The Social Construction of International Food: a new research agenda”, Economic Geography, 69, 299–311.
2.
BarrientosSKritzingerA (2004): Squaring the Circle: Global Production and the Informalisation of Work in South African Fruit Exports, Journal of International Development, 16, 81–92.
3.
BattJ PRexhaN (1999): Building Trust in Agribusiness Supply Chains: A Conceptual Model of Buyer-Seller Relationships in the Seed Potato Industry in Asia, Journal of International Food & Agribusiness Marketing, 11 (1), 1–17.
4.
ChengappaP GAchothLRashmiK K PDeggaVReddyB M RJoshiP K (2005): Emergence of Organised Retail Chains in India during Post Liberalisation Era, paper presented at the South Asia Regional Conf. (Globalisation of Agriculture in South Asia: Has it made Difference to Rural Livelihoods?), organised at Hyderabad, India by CESS/IFPRI/IAAE/ISAE/ISAM/ANGR U, March 23–25, 2005.
5.
DeshingkarPKulkarniURaoLRaoS (2003): Changing Food Systems in India: Resource Sharing and Marketing Arrangements for Vegetable Production in Andhra Pradesh, Development Policy Review, 21 (5–6), 627–639.
6.
DolanCHumphreyJ (2000): Governance and Trade in Fresh Vegetables; The Impact of UK Supermarkets on the African Horticulture Industry, Journal of Development Studies, 37(2)147–176.
7.
EapenMJeyaranjanJHarilalK NSwaminathanPKanjiN (2003): Liberalisation, Gender and Livelihoods: the cashew nut case: India, Phase – 1, Revisiting the Cashew Industry, IIED Working Paper 3, International Institute of Environment and Development (IIED), London, December.
8.
FAO (2004): Report on the FAO/AFMA/FAMA Regional Workshop on the Growth of Supermarkets as Retailers of Fresh Produce, Kuala Lumpur, October 4–7, Food and Agriculture Organisation (FAO), Rome.
9.
FarinaE M M Q (2002): “Consolidation, Multinationalisation, and Competition in Brazil: Impacts on Horticulture and Dairy Products Systems”, Development Policy Review, 20 (4), 441–457.
10.
FarinaE M M QNunesRde MonteiroG F (2005): “Supermarkets and their Impacts on the Agrifood System of Brazil: The Competition among Retailers”, Agribusiness, 21(2), 133–147.
11.
FletcherKWaayerNVreelandJ MGroseL (1999): “Creating a final product” in MyersDStoltonS (eds.): Organic cotton from field to final product, Intermediate Technology Publications, London, 45–64 (chapter 5).
12.
FreidbergS (2003): The Contradictions of Clean: Supermarket Ethical Trade and African.
13.
Horticulture, IIED Gatekeeper Series No. 109, International Institute for Environment and Development (IIED), London. Gandhi, V, G Kumar and R Marsh (2001): “Agroindustry for Rural and Small Farmer Development: Issues and Lessons from India”, International Food and Agribusiness Management Review, 2(3/4), 331–344.
14.
GereffiG (2001): “Beyond the Producer-driven/Buyer-driven Dichotomy: The Evolution of Global Value Chains in the Internet Era”, IDS Bulletin, 32(3), July, 30–40.
15.
GereffiGHumphreyJKaplinskyRSturgeonT J (2001): “Introduction: Globalization, Value Chains and Development”, IDS Bulletin, 32(3), July, 1–8.
16.
GibbonP (2001) “Agro-Commodity Chains: An Introduction”, IDS Bulletin32(3), July, 60–68.
17.
GibbonP. (2001a): “Upgrading Primary Production: A Global Commodity Chain Approach”, World Development, 29(2), 345–363.
18.
GibbonP (2003): (Value Chain Governance, Public Regulation and Entry Barriers in the Global Fresh Fruit and Vegetable Chain into the EU), Development Policy Review, 21(5–6), 615–625.
19.
GibbonP. (2003a): “The African Growth and Opportunity Act and the Global Commodity Chain for Clothing”, World Development, 31(11), 1809–1827.
20.
GiulianiEPietrobelliCRabellottiR (2005): “Upgrading in Global Value Chains: Lessons from Latin American Clusters”, World Development, 33(4), 549–573.
21.
GutmanG E (2002): “Impact of the Rapid Rise of Supermarkets on Dairy Products Systems in Argentina”, Development Policy Review, 20 (4), 409–427.
22.
HanfJ HKuhlR (2005): “Branding and Its Consequences for German Agribusiness”, Agribusiness”, 21(2), 177–189.
23.
HazellP B R (2005): “Is there a future for small farms?”, in ColmanDVinkN (eds.): Reshaping Agriculture's Contributions to Society, Proceedings of the 25th Intl. Conference of Agricultural Economists (ICAE), August, 16–22, Blackwell, USA, 93–101.
24.
HeronL R (2003) “Creating Food Futures: Reflections on Food Governance Issues in New Zealand's Agri-food Sector”, Journal of Rural Studies, 19(1), 111–125.
25.
HumphreyJSchmitzH (2001): “Governance in Global Value Chains”IDS Bulletin, 32(3), July, 19–29.
26.
IDS (Institute of Development Studies) (2003): The Cost of Compliance Global Standards for Small Scale Firms and Workers, IDS Policy Briefing 18, May, IDS Sussex (Brighton), U.K.
27.
JohnS (2005): “Buy Local, Sell Global”, The Times of India, Mumbai, October 13, 2005, p. 18, Business Times Special.
28.
JohnSPalASurendarT (2005): “Big Biz Comes to Small India”, The Times of India, Mumbai, October 13, 2005, p. 18, Business Times Special.
29.
KabeerNMahmudS (2004): “Globalisation, Gender and Poverty: Bangladeshi Women Workers in Export and Local Markets”, Journal of International Development, 16, 93–109.
30.
KaplinskyR (2000): “Globalization and Unequalisation: What can be learned from value chain analysis?”Journal of Development Studies, 37(2), 117–146.
31.
LangT (2003): “Food Industrialization and Food Power: Implications for Food Governance”, Development Policy Review, 21 (5–6), 555–568.
32.
MuradianRPelupessyW (2005): “Governing the Coffee Chain: The Role of Voluntary Regulatory Systems”, World Development, 33(12), 2029–2044.
33.
NadviK, J T Thoburn, and others (2004): “Vietnam in the Global Garment and Textile Value Chain: Impacts on Firms and Workers”, Journal of International Development, 16, 111–123.
34.
GibbonP (2001) “Agro-Commodity Chains: An Introduction”, IDS Bulletin32(3), July, 60–68.
35.
GibbonP (2001a): “Upgrading Primary Production: A Global Commodity Chain Approach”, World Development, 29 (2), 345–363.
36.
GibbonP (2003): (Value Chain Governance, Public Regulation and Entry Barriers in the Global Fresh Fruit and Vegetable Chain into the EU), Development Policy Review, 21(5–6), 615–625.
37.
GibbonP (2003a): “The African Growth and Opportunity Act and the Global Commodity Chain for Clothing”, World Development, 31 (11), 1809–1827.
38.
GiulianiEPietrobelliCRabellottiR (2005): “Upgrading in Global Value Chains: Lessons from Latin American Clusters”, World Development, 33(4), 549–573.
39.
GutmanG E (2002): “Impact of the Rapid Rise of Supermarkets on Dairy Products Systems in Argentina”, Development Policy Review, 20 (4), 409–427.
40.
HanfJ HKuhlR (2005): “Branding and Its Consequences for German Agribusiness”, Agribusiness”, 21(2), 177–189.
41.
HazellP B R (2005): “Is there a future for small farms?”, in ColmanDVinkN (eds.): Reshaping Agriculture's Contributions to Society, Proceedings of the 25th Intl. Conference of Agricultural Economists (ICAE), August, 16–22, Blackwell, USA, 93–101.
42.
HeronL R (2003) “Creating Food Futures: Reflections on Food Governance Issues in New Zealand's Agri-food Sector”, Journal of Rural Studies, 19 (1), 111–125.
43.
HumphreyJSchmitzH (2001): “Governance in Global Value Chains”IDS Bulletin, 32(3), July, 19–29.
44.
IDS (Institute of Development Studies) (2003): The Cost of Compliance Global Standards for Small Scale Firms and Workers, IDS Policy Briefing 18, May, IDS Sussex (Brighton), U.K.
45.
JohnS (2005): “Buy Local, Sell Global”, The Times of India, Mumbai, October 13, 2005, p. 18, Business Times Special.
46.
JohnSPalASurendarT (2005): “Big Biz Comes to Small India”, The Times of India, Mumbai, October 13, 2005, p.18, Business Times Special.
47.
KabeerNMahmudS (2004): “Globalisation, Gender and Poverty: Bangladeshi Women Workers in Export and Local Markets”, Journal of International Development, 16, 93–109.
48.
KaplinskyR (2000): “Globalization and Unequalisation: What can be learned from value chain analysis?”Journal of Development Studies, 37(2), 117–146.
49.
LangT (2003): “Food Industrialization and Food Power: Implications for Food Governance”, Development Policy Review, 21 (5–6), 555–568.
50.
MuradianRPelupessyW (2005): “Governing the Coffee Chain: The Role of Voluntary Regulatory Systems”, World Development, 33(12), 2029–2044.
51.
NadviKThoburnJ Tothers (2004): “Vietnam in the Global Garment and Textile Value Chain: Impacts on Firms and Workers”, Journal of International Development, 16, 111–123.
52.
OpondoM M (2000): “The Socioeconomic and Ecological Impacts of the Agro-industrial Food Chain on the Rural Economy in Kenya”, Ambio, 29(1), February. 35–41.
53.
PageSSlaterR (2003): “Small Producer Participation in Global Food Systems: Policy Opportunities and Constraints”, Development Policy Review, 21 (5–6), 641–654.
54.
PereraManoshiKodithuwakkuS SWeerahewaJ (2005): “Vegetable supply chains of Supermarkets in Sri Lanka and their impact on the rural vegetable farmer”, paper presented at the South Asia Regional Conf. (Globalisation of Agriculture in South Asia: Has it made Difference to Rural Livelihoods?), organised at Hyderabad, IndiabyCESS/IFPRI/IAAE/ISAE/ISAM/ANGR AU, March 23–25, 2005.
55.
PingaliPKhwajaY (2004): “Globalisation of Indian Diets and the Transformation of Food Supply Systems”, Indian Journal of Agricultural Marketing, 18(1), 2004, 26–49.
56.
RaynoldsL T (2004): “The Globalisation of Organic Agro-Food Networks”, World Development, 32(5): 725–743.
57.
ReardonTBerdegueJ A (2002) “The Rapid Rise of Supermarkets in Latin America: Challenges and Opportunities for Development”, Development Policy Review, 20 (4), 371–388.
58.
RibotJ C (1998): “Theorizing Access: Forest Profits along Senegal's Charcoal Commodity Chain”, Development and Change, 29(2), April, 307–341.
59.
RossetPRiceRWattsM (1999): “Thailand and the World Tomato: Globalisation, New Agricultural Countries (NACs) and the Agrarian Question”, International Journal of Sociology of Agriculture and Food, 8.
60.
Sabates-WheelerR (2002): “Farm Strategy, Self Selection and Productivity: Can Small Farming Groups offer Production Benefits to Farmers in Post Socialist Romania?”, World Development, 30(10), 1737–1753.
61.
ScialabbaN E (2005): “Global Trends in Organic Agriculture Markets and Countries' Demand for FAO assistance”, paper presented at the Global Learning Opportunity-International Farming Systems Association's Roundtable: Organic Agriculture, Rome, November 1, FAO.
62.
ShepherdA W (2005): “The implications of supermarket development for horticultural farmers and traditional marketing systems in Asia”, revised version of the paper presented at the FAO/AFMA/FAMA Regional Workshop on the Growth of Supermarkets as Retailers of Fresh Produce, Kuala Lumpur, October 4–7, 2004, FAO, Rome.
63.
ShepherdA W (2005a): Changes in food retailing in Asia, AMMF Occasional Paper 8, FAO, Rome.
64.
SinghGAsokanS R (2005): Contract Farming in India: Text and case studies, Oxford & IBH, New Delhi.
65.
SinghS (1997): “Managing Marketing: Co-operatives in Horticultural Business in South Gujarat”, Indian Journal of Agricultural Marketing, 11 (1&2), 73–82.
66.
SinghS (2002): “Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab”, World Development, 30(9), September, 1621–1638.
67.
SinghS (2003): Contract Farming in India: Impacts on Women and Child Workers’, the Gatekeeper Series Paper No. 111, International Inst. for Environment and Development (IIED), London.
68.
SinghS (2004): “The New Generation Co-operative: Theory, Practice and Relevance”, The Co-operator, 42(5): 229–230.
69.
SinghS (2004a): “Marketing of Indian Organic Products: Status, Issues and Prospects” IIMA Working Paper No. 2004-10-01, October, IIM, Ahmedabad.
70.
SrinivasN N (2005): “Field test: You reap what you sow”, The Economic Times, Ahmedabad, March 30: 1.
71.
SturgeonT J (2001): “How do we define value chains and production networks?”, IDS Bulletin, 32(3), July, 9–18.
72.
SuryanataK (2002): “Diversified Agriculture, Land Use, and Agrofood Networks in Hawaii”, Economic Geography, 78(1), January, 71–86.
73.
WirthgenA (2005): “Consumer, Retailer, and Producer Assessments of Product Differentiation according to Regional Origin and Process Quality”, Agribusiness, 21(2), 191–211.
