Constraints and Challenges in Constraints and Challenges in Governance and Channel Choice Governance and Channel Choice
in Tropical in Tropical Agri-FoodAgri-Food Chains: Chains: the the Case of Pineapple Supply Chains Case of Pineapple Supply Chains
in Beninin Benin
Arinloyé A.A.D; Hagelaar, G.; Arinloyé A.A.D; Hagelaar, G.; Linnemann, A.R.; Linnemann, A.R.; Coulibaly, O. and Royer, A.Coulibaly, O. and Royer, A.
WECARD Cotonou, 24 - 27 May 2010WECARD Cotonou, 24 - 27 May 2010
Outline
Problem statement and objectives Background on pineapple chains Theoretical framework Methodology Results and conclusion
Important issues in the pineapple supply chain:
High transaction costs: cheating, opportunism behavior, corruption, weak logistic facilities, etc.
Limited collective action: lack of organized governance structure
Irregular and scattered supply by smallholders Thin assembly markets Poor and variable product quality
Understanding chains’ coordination and organization is needed for a co-innovative quality performance of Beninese pineapple supply chains
Problem statement
Analyze the organization and structure of pineapple supply chains in Benin with a focus on chain governance and channel choice for quality improvement
Research objective
Key Questions Answering the following questions leads to reach the research objective :
Which actors are directly and indirectly involved in pineapple activities?
What kind of linkages and flows exist in the cooperative networks and how do they affect pineapple quality and chain performance?
What are the pineapple quality issues that are hampering actors’ access to more profitable markets?
Which conflicts or synergies occur between chain actors and who are involved in managing and resolving these conflicts ?
In 2007 government selected pineapple (among others) as a spearhead to counterbalance dependence on cotton
Pineapple production zones With 90% from Atlantique
department
GuineoCongolian Zone
Background
figure 1: Pineapple production and yieldSource: INSAE, 2005 and FAOSTAT, 2010
020000400006000080000
100000120000140000160000
0
10
20
30
40
50
60
70
Production(kg) Yield (kg/ha)
Tonne Tonne/ha
Background In one decade,
pineapple production increased threefold from 44,836 tonnes in 1998 to 136,123 tonnes in 2008
Market choice
Chain Governance
Institutional environment
Firm characteristics
Performance
Quality management
Theoretical framework
Case study approach most indicated in responding to:• which ?• what ?• How to understand ?
Information gathering• literature review, questionnaires • interviews and focus group discussions
Sampling • Input suppliers (2)• Producers (20)• Traders (12)• Processors (5)• Exporter (2)• Research institutes , extension and quality control services (12)
Research methodology
Design tests and employed tacticsTable1. Design tests and tactics employed during the case study
Design test Theoretical explanation of the construct
Case study tactics
Construct validity
Construct validity is to ensure that correct operational measures have been established for the concepts that are being studied
- Multiple sources of evidence Chain - Interview respondents - Reviewing draft of case study report
Internal validity
Internal validity is to make sure that a causal relationship - i.e., certain conditions lead to other conditions - has been established.
- Pattern matching - Explanation building
External validity
External validity is to prove that the domain to which a case study’s findings belong can be generalized.
- Specification of the population of interest - Replication logic in multiple with different chain actors in different areas - Interview protocol
Reliability Reliability involves demonstrating that the findings from a case study can be repeated if the case study procedures are followed.
- Clearly conceptualized constructs - Multiple indicators - Execution of pilot tests - Case study data base and records
Pineapple chains are characterized by large and heterogeneous group of producers;
Differences in farm size, scale of production, technical and financial capacities, access to input, land and labour
Current debate for international market: MRL <= 0.5ppm (mg/kg) instead of 2ppm
Firm Characteristics
Mismatch between producers requirements and observed interventions
Low public sectors intervention and supports along the chains
High transaction cost (police/gendarme harassment & rural roads conditions)
Subsidized fertilizers sold on the black market
Inappropriate existing credits/loan (2M fcfa for 1ha)
Loans from IMF (36 and 47% APR) Loans from informal sectors (as high as 20% a day) Personal savings and relationship based financial supports Pre-financing in cash or in kind from pineapple trader or exporters
Institutional Environment
Choice of a specific chain is affected by:
Price attribute (fixed vs varying) Temporary specificity Socio-cultural condition Product attributes (size) competition with other fruits
5 main chains targetedBut no quantitative data available
Channel choice
Regional Fresh Export, 40%
Fresh Export to EU, 2%Local process
to Juice, 15%
Local Fresh consumption,
35%
Dried pineapple Export, 8%
Pineapple chains map
Governance structures mainly consist of: spot market relations relational contracts collective action combination of contracts and collective action
Outgrowing schemes Relying on exporter to get advice and inputs
support Benefit for both involved parties Formalizing the trading with Nigeria
Chain governance mechanisms
ILO; HACCP; EurepGAP; ISO, etc. Stringent norms and quality standards
Reduction of export possibilities (2%) Consumer’s quality requirements on local and
border markets are generally low Quality affected by :
Less qualified labour and qualified competences with adapted equipments
Farming systems Access to inputs (planting & fertilizers) Need of tractability system (accreditation and
certification)
Quality Management and control
Constraints and Challenges in Constraints and Challenges in Governance and Channel Choice Governance and Channel Choice
in Tropical in Tropical Agri-FoodAgri-Food Chains: Chains: the the Case of Pineapple Supply Chains Case of Pineapple Supply Chains
in Beninin Benin
Arinloyé A.A.D; Hagelaar, G.; Arinloyé A.A.D; Hagelaar, G.; Linnemann, A.R.; Linnemann, A.R.; Coulibaly, O. and Royer, A.Coulibaly, O. and Royer, A.
WECARD Cotonou, 24 - 27 May 2010WECARD Cotonou, 24 - 27 May 2010
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