29-08-2014, 12:36 PM
AGRO-FOOD CHAINS AND NETWORKS FOR
DEVELOPMENT
[attachment=67319]
Abstract.
Agro-food chains and networks play an increasingly important role in providing access to
markets for producers in developing countries. Globalization of trade and integration of supply chains
lead to new demands regarding food quality and safety. Analytical approaches for addressing the role of
trade for development involve a mixture of disciplines that focus on issues of efficiency, organization and
innovation as key dimensions of competitiveness. Smallholder participation in global supply chains is
critically determined by three processes: market access, network governance and chain upgrading. Public
and voluntary agencies may provide important contributions for reinforcing the supply-chain
environment.
INTRODUCTION
Globalization, urbanization and agro-industrialization put increasing demands on the
organization of agro-food chains and networks. Food and agribusiness supply chains
and networks – once characterized by autonomy and independence of actors – are
now swiftly moving toward globally interconnected systems with a large variety of
complex relationships. This is also affecting the ways food is produced, processed
and delivered at the market (Reardon and Barrett 2000; Van der Laan et al. 1999).
Perishable food products can nowadays be shipped from halfway around the world
at fairly competitive prices. The market exerts a dual pressure on agro-food chains,
forcing towards continuous innovation and agency coordination. Classical price and
quality issues are more important than ever, since consumers can choose from an
increasing number of products offered by competing chains.
GLOBALIZATION AND INTEGRATION OF AGRO-FOOD CHAINS
Food and agribusiness chains are greatly affected by consumers’ concerns regarding
food quality and safety and the sustainability of food production and handling
methods. Societal concerns regarding GMOs, chemical residues and environmental
impact have to be met in a competitive, increasingly global environment. Higher
consumer demands regarding the quality, traceability and environmental friendliness
of products and processes call for fundamentally new ways of developing, producing
and marketing products (Humphrey and Oetero 2000; Omta et al. 2001). This
triggers the development of grades and standards and agreements regarding good
production and management practices, as well as adequate monitoring systems to
guarantee prompt responses and quality compliance. Integrated production, logistics
and information and innovation systems become of critical importance for
maintaining a competitive market position. In order to achieve international
collaboration between farmers, agro-industries and retail companies, strategic and
cross-cultural alignment, relational trust and compliance to national and
international regulations have become key issues. Mutual learning procedures and
feed-back mechanisms are important to guarantee such global alliances.
TRADE AND DEVELOPMENT: TOWARDS A NEW PARADIGM
Early studies on the role of international trade for development have focused on
cross-country assessments of the terms of trade and provide recommendations to
public agencies regarding appropriate exchange-rate regimes and conducive
monetary policies (Krueger et al. 1988). In a similar vein, economic integration has
been envisaged from the perspective of creating free-trade zones amongst
neighbouring countries. The competitive advantage of most developing nations was
considered to be based on their natural resource endowments (i.e., favourable
climate conditions for growing tropical crops) and their low relative land and labour
costs. Foreign direct investments are mainly channelled towards those developing
DEVELOPMENT
[attachment=67319]
Abstract.
Agro-food chains and networks play an increasingly important role in providing access to
markets for producers in developing countries. Globalization of trade and integration of supply chains
lead to new demands regarding food quality and safety. Analytical approaches for addressing the role of
trade for development involve a mixture of disciplines that focus on issues of efficiency, organization and
innovation as key dimensions of competitiveness. Smallholder participation in global supply chains is
critically determined by three processes: market access, network governance and chain upgrading. Public
and voluntary agencies may provide important contributions for reinforcing the supply-chain
environment.
INTRODUCTION
Globalization, urbanization and agro-industrialization put increasing demands on the
organization of agro-food chains and networks. Food and agribusiness supply chains
and networks – once characterized by autonomy and independence of actors – are
now swiftly moving toward globally interconnected systems with a large variety of
complex relationships. This is also affecting the ways food is produced, processed
and delivered at the market (Reardon and Barrett 2000; Van der Laan et al. 1999).
Perishable food products can nowadays be shipped from halfway around the world
at fairly competitive prices. The market exerts a dual pressure on agro-food chains,
forcing towards continuous innovation and agency coordination. Classical price and
quality issues are more important than ever, since consumers can choose from an
increasing number of products offered by competing chains.
GLOBALIZATION AND INTEGRATION OF AGRO-FOOD CHAINS
Food and agribusiness chains are greatly affected by consumers’ concerns regarding
food quality and safety and the sustainability of food production and handling
methods. Societal concerns regarding GMOs, chemical residues and environmental
impact have to be met in a competitive, increasingly global environment. Higher
consumer demands regarding the quality, traceability and environmental friendliness
of products and processes call for fundamentally new ways of developing, producing
and marketing products (Humphrey and Oetero 2000; Omta et al. 2001). This
triggers the development of grades and standards and agreements regarding good
production and management practices, as well as adequate monitoring systems to
guarantee prompt responses and quality compliance. Integrated production, logistics
and information and innovation systems become of critical importance for
maintaining a competitive market position. In order to achieve international
collaboration between farmers, agro-industries and retail companies, strategic and
cross-cultural alignment, relational trust and compliance to national and
international regulations have become key issues. Mutual learning procedures and
feed-back mechanisms are important to guarantee such global alliances.
TRADE AND DEVELOPMENT: TOWARDS A NEW PARADIGM
Early studies on the role of international trade for development have focused on
cross-country assessments of the terms of trade and provide recommendations to
public agencies regarding appropriate exchange-rate regimes and conducive
monetary policies (Krueger et al. 1988). In a similar vein, economic integration has
been envisaged from the perspective of creating free-trade zones amongst
neighbouring countries. The competitive advantage of most developing nations was
considered to be based on their natural resource endowments (i.e., favourable
climate conditions for growing tropical crops) and their low relative land and labour
costs. Foreign direct investments are mainly channelled towards those developing