Supply chain differentiation, contract agriculture, and farmers? marketing preferences: the case of sweet pepper in Thailand GlobalFood Discussion Papers No.3 uri icon

abstract

  • There is an emerging body of literature analyzing how smallholder farmers in developingcountries can be linked to modern supply chains. However, most of the available studiesconcentrate on farm and farmer characteristics, failing to capture details of institutionalarrangements between farmers and traders. Moreover, farmers? preferences have rarely beenconsidered. Here, we address these gaps by analyzing different market channels for sweetpepper in Thailand. Using data from a survey and choice experiment with farmers, we findthat there is a general preference for marketing options that do not involve a contract.Additional provision of inputs and credit can increase the attractiveness of contracts. Yet, themost important factor for farmers is to personally know the buyer they deal with, which maybe related to issues of trust. Some policy implications are discussed

publication date

  • 2011