A violent market price contract for agribusiness supply chain

Author(s):  
Ranjeet Rajput ◽  
Sri Vanamalla Venkataraman
Keyword(s):  
Horticulturae ◽  
2021 ◽  
Vol 8 (1) ◽  
pp. 39
Author(s):  
Margaret Thorsen ◽  
Miranda Mirosa ◽  
Sheila Skeaff

Reducing food loss and waste (FLW) is one strategy to limit the environmental impact of the food supply chain. Australian data suggest that primary production accounts for 31% of national FLW, but there are no comparable data in New Zealand. This study aimed to measure food loss and explore food loss drivers for one of New Zealand’s largest tomato growers by weighing and visually assessing tomato losses at the glasshouse, packhouse and sales warehouse. Qualitative interviews were also held with the grower (n = 3), employees (n = 10), and key industry stakeholders (n = 8). Total food loss for this greenhouse tomato grower was 16.9% of marketed yield, consisting of 13.9% unharvested tomatoes, 2.8% rejected at the glasshouse and 0.3% rejected at the packhouse. The grower’s tomato loss predominantly resulted from commercial factors such as market price, competitor activity and supply and demand. Similar issues were recognized throughout the New Zealand horticulture sector. Commercial factors, in particular, are challenging to address, and collaboration throughout the supply chain will be required to help growers reduce food losses.


2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Shizhao Wang ◽  
Yong Luo

Aiming to find the effect of the same status entities’ horizontal coordination on supply chain, this paper studied the coalition stability of dealers in a two-stage supply chain with one supplier and multiple dealers. First, a vertical sequential game model is built, where the supplier is leader and the multiple dealers are followers. In the second stage of the game, multiple dealers face two selections: playing Nash game with each other or developing a coalition. Then, according to the results acquired by comparing the dealers’ profits which depend on their coalition situations, the criterion of coalition stability is developed. Finally, numerical simulation is used to verify the validity of the model, and some insights are obtained. For example, if the sensitivity coefficientTof the market price is fixed, dealers’ coalition tends to be stable with the increasing of the substitution ratekin a reasonable range; the supplier’s optimal wholesale price is constant with and without dealer’s coalition, but dealers’ coalition causes demand to decrease, which leads to the decrease of the supplier’s profit too. The result of this paper provides an important reference for the formation of dealers’ coalition in IT or automobile supply chain.


2020 ◽  
Vol 66 (12) ◽  
pp. 5648-5664 ◽  
Author(s):  
C. Gizem Korpeoglu ◽  
Ersin Körpeoğlu ◽  
Soo-Haeng Cho

We study supply chains where multiple suppliers sell to multiple retailers through a wholesale market. In practice, we often observe that both suppliers and retailers tend to influence the wholesale market price that retailers pay to suppliers. However, existing models of supply chain competition do not capture retailers’ influence on the wholesale price (i.e., buyer power) and show that the wholesale price and the order quantity per retailer do not change with the number of retailers. To overcome this limitation, we develop a competition model based on the market game mechanism in which the wholesale price is determined based on both suppliers’ and retailers’ decisions. When taking into account retailers’ buyer power, we obtain the result that is consistent with the observed practice: As the number of retailers increases, each retailer’s buyer power decreases, and each retailer is willing to pay more for her order, so the wholesale price increases. In this case, supply chain expansion to include more retailers (or suppliers) turns out to be more beneficial in terms of supply chain efficiency than what the prior literature shows without considering buyer power. Finally, we analyze the integration of two local supply chains and show that although the profit of the integrated supply chain is greater than the sum of total profits of local supply chains, integration may reduce the total profit of firms in a retailer-oriented supply chain that has more retailers than suppliers. This paper was accepted by Charles Corbett, operations management.


2019 ◽  
Vol 11 (7) ◽  
pp. 2097 ◽  
Author(s):  
Bandar Alkhayyal

A research model using the market price for greenhouse gas (GHG) emissions illustrates how the policies, and economic and environment implications of the carbon price can be formulated using a deterministic equilibrium model. However, with increasing carbon costs, the optimal reverse supply chain (RSC) system is being required to adapt and has undergone many distinct shifts in character as it seeks out new configurations through which costs may be effectively managed and minimized. The model was studied comprehensively in terms of quantitative performance using orthogonal arrays. The results were compared to top-down estimates produced through economic input-output life cycle assessment (EIO-LCA) models, providing a basis to contrast remanufacturing GHG emission quantities with those realized through original equipment manufacturing operations. Introducing a carbon cost of $40/t CO2e increased modeled remanufacturing costs by 2.7%, but also increased original equipment costs by 2.3%. The research presented in this study puts forward the theoretical modeling of optimal RSC systems and provides an empirical case study concerning remanufactured appliances, an area of current industrial literature in which there is a dearth of study.


2019 ◽  
Vol 9 (1) ◽  
pp. 17-32
Author(s):  
Qashiratuttarafi Qashiratuttarafi ◽  
Andriyono Kilat Adhi ◽  
Wahyu Budi Priatna

This study was aimed to analyze the supply chain distribution patterns of forest honey in the West Sumbawa through Sumbawa Forest Honey Network or Jaringan Madu Hutan Sumbawa (JMHS) using descriptive qualitative data. This study uses a supply chain distribution pattern approach based on the product, financial and information flow. In the product flow, honey is harvested by honey hunters in the forest and assembled to a group leader. Then, honey is handed over to JMHS and marketed at Rumah Madu” (Honey House). The forest honey harvest season in Sumbawa is between August-December. Honey hunters can harvest 15-20 liters of honey per hunter in one hunting day. In financial flow, we observed that the pricing of honey is decided by JMHS according to the market price and the harvest season. Honey price from the hunter is ranging from 60,000 - 75,000 IDR per 660 ml bottle. The purchasing price of honey by JMHS is 65,000-85.000 IDR per 660 ml bottle and after the packaging by JMHS, honey is marketed to the last consumers with a selling price of 110,000 IDR per 500 ml. The information flows in both directions. The group of honey hunters inform to JMHS about the locations of honey as well as the amount of harvested. In the JMHS side, they distribute information of the classification and quality of honey, provide the good harvest training and information on honey price to hunters.


Proceedings ◽  
2020 ◽  
Vol 36 (1) ◽  
pp. 48
Author(s):  
Ergashev

Tomato is an important vegetable crop that contributes significantly to income security and healthy diets of people worldwide. Queensland produces the majority of tomatoes for fresh consumption accounting for 40 per cent of national supply in Australia. The purpose of this study is to provide an analytical summary of the Queensland tomato supply chain, by focusing on margins along the supply chain. For that, a representative tomato gross margin model in Southern Queensland was used to analyse the estimated income, grouped variable costs and the gross margin for four tomato varieties: gourmet, round, grape, and cherry. The mean yields of the sampled varieties varied considerably, depending on climatic conditions, pests and diseases, the season and whether tomatoes are grown on the ground or trellises. Driven by high revenues and relatively low freight costs, grape tomatoes have the highest gross margin ($73 thousand per hectare) as well as the highest market price at $4.64 per kilo compared to other varieties. The cost of growing the crop up to harvest can exceed $10,000 per hectare with high labour requirement for harvesting and packing. While costs for machinery, fertiliser, herbicide, weed control, insecticide, and fungicide largely remain constant across four tomato varieties, it is planting and irrigation that makes a difference. With average value of $9,303 per hectare, planting costs range from $5,134 for round tomatoes to $12,241 for cherry tomatoes. The results of this gross margin analysis can be helpful to explore profitability at the farm level, allowing regional and international comparisons


2015 ◽  
Vol 13 (3) ◽  
pp. e0105 ◽  
Author(s):  
Pierre Sans ◽  
Ana I. Sanjuán-López

<p class="StyleTexteSJAR">Attitudes towards beef animal welfare (AW) and Willingness to Pay (WTP) for AW certification are investigated among consumers in two Spanish and two French regions located on both sides of the Pyrenees (n=1213). Attitudes were measured through a scale of 11 animal practices, on which, consumers report their degree of concern and trust on the supply chain compliance. Attitudes significantly differed across regions, especially with respect to those AW practices carried out by farmers, while trust lies behind concerns. Three segments based on individual consumer attitudes are defined by opposing those consumers who are more concerned and who trust more on the compliance with AW standards (n=264, 22%) to those less concerned and who are more uncertain about stakeholders´ compliance with AW rules (n=356, 29%). Consumer location, gender, age and education significantly differed across attitudinal clusters. Results from a contingent valuation survey show that WTP for certified animal friendly beef ranged between 20.6% and 22.6% over the average market price of standard beef, in Spain and France, respectively. Both, consumers’ socio-demographic characteristics and habits regarding beef meat purchasing and attitudes towards farmers influenced this WTP (the more consumers trust in farmers’ involvement in animal welfare, the highest is their WTP), while a negative overall attitude significantly reduced WTP.</p>


Author(s):  
Syed Ariful Haque ◽  
Md. Fakhrul Islam ◽  
Mohammad Chhiddikur Rahman ◽  
Md. Saiful Islam ◽  
Md. Mokhlasur Rahman

Fishery sector plays a vital role in the socio-economic development of Bangladesh. In the fish economy of Bangladesh, one of the most flourishing traffic activities is fish marketing. This study was aimed to investigate the fish species availability, supply chain, quality loss, price behavior and constrains associated with fish marketing in order to provide better suggestion for efficient fish marketing in Jamalpur district of Bangladesh. Data were collected form Sadar upazila markets by using a structured interview schedule, focus group discussions (FGD) and key informant interviews (KII) with the stakeholders involved in supplying fish from farm to fork, such as- aratdars, retailers, and consumers during 2020-21. A total 78 fish species were found (72 Fresh water and 2 Marine water), among them 20 frequently, 17 less amount, 25 occasionally, and 16 species were rarely available in the market. It was estimated that 72% fish species were sourced from culture fishery whereas 28% were from capture fishery. About 91.5% fishes in Jamalpur markets were supplied locally, whereas rests were from other districts. The post-harvest quality losses of fish in the sampled markets were assessed which indicate that small indigenous species (SIS) spoiled quicker than medium to large sizes fishes due to different factors. The price behavior of the fish market influenced by the demand of the fish species, quality, size, catching sources (culture fishery or capture fishery) and the purchasing time (beginning, middle or last time of market). The study found positive correlation between the market price and fish quality. Several problems of fish market were identified resulting consumer dissatisfaction and financial losses for fish traders. Considering the importance of fish market to the economy, this study suggested to take necessary steps for establishing modern fish market to ensure the adequate quality maintenance of fish with efficient marketing.


Author(s):  
Haryono Haryono ◽  
Endhang Siswati ◽  
Indah Epriliati ◽  
Mochammad Muchid ◽  
Indra Pratama Putra Salmon

This study is based on the need to make pumpkin as an alternative in food diversification through the role of business people. The initial strategy was to approach mapping the actors in the pumpkin agriculture sector from upstream to downstream. The aim of this research was to map the supply chain management of pumpkin in pumpkin production centers in East Java. This research used qualitative methods and participatory approaches. Data collection was done through in-depth interviews, observation, and study of documents and data. The results showed that the management of pumpkin supply chain in East Java had a structure, mechanism, and institutional pattern. The existing structure was formed through the role of 9 (nine) business operators in the pumpkin agriculture sector. Information flow occurs in two directions in the form of information on the quality and quantity of pumpkin harvested, the market price of pumpkin, previous collaboration experience, products that have been produced from pumpkin, pumpkin distribution schedule, and product innovations that have been produced from pumpkin harvest. Financial flow was carried out in the form of cash and credit between business actors. The product flow is in the form of fresh pumpkin products to semi-processed products such as pumpkin chips and pumpkin flour. Based on the supply chain flow patterns, the interwoven relationships that occur are vertical/horizontal as well as trade and partnership patterns.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qingyu Zhang ◽  
Tianlong Luo

PurposeIn the presence of government procurement, one important driving force behind a poor farmer entering into sales format agreements is to improve profits. In this study, the authors examine two widely used sales formats, namely resale format and agent format, to investigate how parameters influence the optimal sales format selection and decision equilibriums of supply chain members under the scenarios with or without the buyer's poverty alleviation efforts.Design/methodology/approachThis paper adopts the Stackelberg game-theoretical approach to examine the interactions between the farmer from poor/rural areas and the buyer.FindingsThe authors find that under certain conditions, the optimal sales format of the poor farmer and buyer can be consistent, which eliminates conflicts in the sales format selection. In addition, with the buyer's poverty alleviation effort, the poor farmer and buyer can achieve the Pareto improvement, which is a win–win outcome for them. The authors also find that the market price in government procurement is independent of competition, which is consistent with practical observations.Originality/valueIt is the first study to investigate the optimal sales format selection given government procurement as a poverty alleviation effort which is in competition with a firm's regular channel.


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