Pubs from CGSpace

The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand)

There is a vigorous debate on liberalization of the heavily regulated agricultural markets in India. A crucial institutional characteristic is the role of state-regulated brokers in wholesale markets. Relying on data from a unique survey in Uttarakhand, a state in North India, we find that regulations on margins are ineffective, since most brokers charge rates that significantly exceed the regulated ones. We also find that a majority of farmers self-select into long-term relationships with brokers. These relationships allow some of the farmers to interlink credit and insurance markets to the agricultural output market. This interlinkage does not, however, appear to be an instrument for farmer exploitation (since it does not lead to worse inputs, higher interest rates, or lower implicit output prices) but is seemingly an extra service provided by brokers to establish farmer loyalty and thereby ensure future supplies.

Research principles for developing country food value chains

From farm to table, multidisciplinary research is needed to improve the economic benefit of food production in the developing world.

Foreign direct investment in land in West Africa: The status quo, lessons from other regions, implications for research

The long-term imbalances between supply and demand and international trade changes that triggered the recent crises in global food markets are also fueling a spike in overseas investments in agricultural land. Africa is a major destination of investment flows because it has the largest reserves of arable land.

Modern food supply chains and development: Evidence from horticulture export sectors in sub-Saharan Africa

The global food system is undergoing rapid processes of transformation and modernisation. This is causing important changes in developing‐country food supply chains, particularly in supermarket‐driven and high‐value export chains, but the welfare implications of these changes are poorly understood. This article analyses and compares the welfare effects in different horticulture export chains in sub‐Saharan Africa, disentangling different types of effects and the channels through which rural households are affected. Its main conclusion is that increased high‐value exports and the modernisation of export supply chains can bring about important positive welfare effects, which can occur in various ways through product‐ or labour‐market effects and through direct and indirect effects.

Regulations, brokers, and interlinkages: The institutional organization of wholesale markets in India

The political economy of relief aid allocation: Evidence from Madagascar

This paper studies the political economy of relief allocation using evidence from aid programs after cyclone Gafilo hit Madagascar in 2004. Relief was provided by the government as well as local and international aid agencies. Aid was more likely in areas with a higher need for relief, in more easily accessible communes and in cyclone-affected communes with higher radio coverage and stronger political support for the government. Compared to relief provided by the government, aid by agencies was less affected by media or political factors, but more likely to go to poorer and more easily accessible communes, unconditional on impact.

Multinationals vs. cooperatives: The income and efficiency effects of supply chain governance in India

The impact of multinational firms on the domestic agricultural sector in developing countries is controversial, in particular in India. Relying on a unique set of household‐level data from the state of Punjab, we study the biggest dairy company in the world (Nestlé) in India and compare its vertical spillover effects on upstream suppliers to other market channels (informal sector and cooperatives). We find that farmers that supply informal channels are less efficient and earn lower profits per dairy animal than farmers supplying the cooperative and the multinational sector. Furthermore, we find that farmers using the multinational channel are more efficient than farmers in the cooperative channel, but equally profitable. Hence, we do not find that supplying the cooperative channel is more beneficial for local dairy farmers than supplying the multinational channel. Overall, however, dairy productivity and profitability levels are still dramatically low, with substantial scope for dairy development.

Perspectives on relevant concepts related to food and nutrition security

Trade liberalization, rural poverty and the environment: two studies of agricultural exports in Madagascar

The economics of beer

Beer was the drink of choice in many ancient societies and throughout the past centuries in large parts of the world. Right now, it is globally by far the most important alcoholic drink, in volume and value terms. The largest brewing companies have developed into global multinationals. The beer market is characterized by strong growth in emerging economies, by a substantial decline of (per capita) beer consumption in traditional markets, and a shift to new products. There has been a strong interaction between governments (politics) and markets (economics) in the beer industry. For centuries, taxes on beer or its raw materials were a major source of tax revenue for governments. Governments have also regulated the beer industry for reasons related to quality, health, and competition. The beer market is not only an interesting sector to study in itself but also yields important general economic insights. This book is the first economic analysis of the beer market and brewing industry. It comprises a comprehensive and unique set of economic research and analysis on the economics of beer and brewing. The various chapters cover economic history and development, demand and supply, trade and investment, geography and scale economies, technology and innovation, health and nutrition, quantity and quality, industrial organization and competition, taxation and regulation, and regional beer market developments.