The existence of buyer power in the Italian fresh milk supply chain

2016 ◽  
Vol 118 (1) ◽  
pp. 70-82 ◽  
Author(s):  
Fabio A. Madau ◽  
Roberto Furesi ◽  
Pietro Pulina
Keyword(s):  
Supply Chain ◽  
Milk Supply ◽  
Producer Price ◽  
Content Type ◽  
Food Supply Chains ◽  
Fresh Milk ◽  
Italian Market ◽  
Price Indexes ◽  
First Pass ◽  
Buyer Power

Purpose – Buyer power can be defined as the ability to obtain trade terms more favourable than a supplier’s normal trade terms. The purpose of this paper is to estimate existence of buyer power in the Italian market of fresh milk. The sector is characterised by high industrial and retail firms concentration and a significant gap between the downstream and upstream prices exists. Design/methodology/approach – The authors applied the “first-pass” test proposed by Lloyd et al. (2009) on a set of monthly price indexes series from 2000 to 2013 in order to estimate if a buyer power exists in this sector. This in order to verify how prices are transmitted along the supply chain and to determine if buyer power contributes in conditioning the retail-producer price spread. Findings – Estimated results suggest that buyer power exists in the Italian fresh milk supply chain and oligopsonistic behaviour affects the spread between downstream and upstream prices. Originality/value – The paper gives a contribute on estimation of buyer power in the agro-food supply chains. However, more research needs to be carried out in order to precisely evaluate the nature and the causes of presence of buyer power.

Market power in food supply chain: evidence from Italian pasta chain

2018 ◽  
Vol 120 (9) ◽  
pp. 2129-2141 ◽  
Author(s):  
Luca Cacchiarelli ◽  
Alessandro Sorrentino
Keyword(s):  
Supply Chain ◽  
Durum Wheat ◽  
Market Power ◽  
Food Supply ◽  
Design Methodology ◽  
Food Supply Chain ◽  
Content Type ◽  
Antitrust Authority ◽  
Price Indexes ◽  
First Pass

PurposeDuring the last years, the Italian pasta chain has been strongly affected by some events such as CAP reforms in the durum wheat sector that have progressively reduced government intervention in the market and a case of anti-competitive practices against pasta makers was identified and sanctioned by the Italian Antitrust Authority. The purpose of this paper is to detect the presence of market power in the different phases of the Italian pasta supply chain.Design/methodology/approachThe authors applied the “first-pass” test proposed by Lloydet al.(2009) on a set of monthly price indexes series from 2000 to 2013 in order to estimate if market power exists along Italian pasta chain.FindingsEstimated results suggest that market power exists in the Italian pasta supply chain. Precisely, the presence of market power is detected for semolina producers in 2000–2004, for pasta makers in 2005–2008 as already identified by Italian antitrust and, finally, for retailers in 2008–2013.Research limitations/implicationsThe method is a “first pass” test that only allows researchers to identify the presence of market power, but it is unable to estimate the intensity of this power.Originality/valueThe paper gives a contribute on estimation of market power in a food supply chain affected by CAP reform and antitrust intervention.

Dynamic capabilities in the “new normal”: a study of organizational flexibility, integration and agility in the Peruvian coffee supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edgar Ramos ◽  
Andrea S. Patrucco ◽  
Melissa Chavez
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Food Supply ◽  
Dynamic Capabilities ◽  
Partial Least Square ◽  
Least Square ◽  
Supply Chain Performance ◽  
Organizational Flexibility ◽  
Content Type ◽  
Food Supply Chains

Purpose Considering the unprecedented supply chain disruptions due to the COVID-19 pandemic, especially in the agri-food sector, the possession of dynamic capabilities (DCs) – particularly, the need for higher agility – seems to be the key to survival in highly uncertain environments. This study aims to use the dynamic capability view (DCV) theory to analyze how three key supply chain capabilities – organizational flexibility, integration and agility – should be combined to obtain the desired supply chain performance. Design/methodology/approach The authors designed a conceptual model in which the relationships between these three key capabilities and supply chain performance were hypothesized. The model was first tested through partial least square regression using survey data collected from 98 members of the Peruvian coffee supply chain. A fuzzy-set qualitative comparative analysis (fsQCA) was conducted to uncover how DCs could be combined in successful supply chain configurations. Findings The authors show that organizational flexibility is a driver of higher agility in agri-food supply chains, together with external and internal supply chain integration, that have a direct impact on agility, which positively affects supply chain performance. Higher levels of supply chain agility are necessary but insufficient to guarantee high performance, as sufficiency is reached when both integration (internal and/or external) and agility are present. Originality/value This study represents a pioneering attempt to apply the DCV theory to agri-food supply chains – characterized by many sources of uncertainty. All the DCs are included within the same model and the joint use of PLS regression and fsQCA provides evidence about the relationships between DCs and how they can empower agri-food supply to obtain the desired performance.

Factors affecting the diffusion of traceability practices in an imported fresh produce supply chain in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Yi ◽  
Phil Bremer ◽  
Damien Mather ◽  
Miranda Mirosa
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Diffusion Of Innovation ◽  
Food Supply ◽  
Fresh Produce ◽  
Content Type ◽  
Factors Affecting ◽  
Integrated Framework ◽  
Food Supply Chains ◽  
Food Recalls

PurposeThe purpose of this paper is to facilitate the successful adoption of traceability technologies, such as blockchain, into food supply chains and facilitate the understanding of the barriers and enablers to their uptake by channel members' needs so that appropriate enabling strategy can be put in place.Design/methodology/approachIn this paper, an integrated framework involving five components was used as the methodology: (1) diffusion of innovation theory, (2) the innovation concept, (3) the business structure-conduct-performance paradigm, (4) legitimacy and (5) trust was developed and assessed for validity through interviewing 21 channel members, including distributors, wholesalers, Internet retailers and traditional retailers associated with a global fresh produce company's supply chain in China.FindingsBarriers negatively framing channel members' attitudes and decisions included a perceived lack of need owing to fresh produce having a short shelf life and being of low value and risk. However, the importance of traceability and the need for effective food recalls were not always understood among channel members, and distributed trust innovations were also suppressed by their lack of compatibility with the Chinese hierarchical culture.Originality/valueTo date, channel members' perception of innovations in food supply chains has not been considered in light of the components proposed in the integrated framework. The adapted framework used in this study ensured a comprehensive assessment of channel members' attitude and motivations toward traceability practices.

The structure of knowledge management in inter-organisational exchanges for resilient supply chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Umar ◽  
Mark Wilson ◽  
Jeff Heyl
Keyword(s):  
Knowledge Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Knowledge Generation ◽  
Collaborative Culture ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Food Supply Chains ◽  
Study Approach ◽  
Structure Of Knowledge

Purpose This study aims to build on the extant literature of knowledge management (KM) capabilities, notably infrastructure and processes, and examine how these capabilities influence the resilience of supply chains that experience regular natural disasters. Design/methodology/approach A multiple case study approach has been adopted to investigate the role of KM within foods supply chains of two different South Asian regions. This context was selected as these regions are prone to regular natural disruptions and these food supply chains also play a crucial role in the relief process. Findings The data shows that supply chain resilience can be enhanced when supply chain members collaborate to generate, share and use knowledge. These KM processes are greatly facilitated by KM infrastructure capabilities. IT advancements, a cohesive collaborative culture and the presence of strong central hubs firms in the network facilitate knowledge generation, knowledge sharing and knowledge utilisation, thus building supply chain resilience. Given the abductive nature of this research, these findings form the most likely associations, but with a degree of uncertainty. Hence, the authors provide propositions for further detailed research in this important area. Originality/value This study is one of the few, as far as the authors can tell, that seeks to examine the influence of KM on the resilience of supply chains. Further, uncovering the sub-structure of KM in this context adds to this emerging body of literature.

Social gains for artisanal agroindustrial producers induced by cooperation and collaboration in agri-food supply chain

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Renato Rocha dos Santos ◽  
Patricia Guarnieri
Keyword(s):  
Supply Chain ◽  
Social Responsibility ◽  
Supply Chains ◽  
Detailed Analysis ◽  
Food Supply ◽  
Social Indicators ◽  
Collective Actions ◽  
Content Type ◽  
Food Supply Chains ◽  
Positive Effects

Purpose This study aims to analyze which collective actions (cooperation, coordination and collaboration), present in the supply chain of artisanal products, generate positive effects in terms of social gains. Design/methodology/approach The authors conduct multiple case studies in the supply chain of seven artisanal agroindustries in the Distrito Federal, Brazil. The data were collected through interviews, documental analysis and direct observation. The data were analyzed using the content analysis technique proposed by Bardin (1977). With priori and a posteriori analytical categories, it was possible to conduct: a detailed analysis of the current situation of artisanal agroindustries regarding collective actions from the perspective of supplier/supplier and supplier/client and a detailed analysis for the possible effects of collective actions that impact the supply chain and the indicators of social sustainability of artisanal agroindustries. Findings The results indicate that cooperation and collaboration have contributed positively in the transactions of the products of the artisanal agroindustries, reflecting in social gains for the producing families. In this context, some collective actions can be highlighted as follows: the collective commercial spaces, the demonstration spaces of the artisan products in the clients’ environment, the prospecting of improvements from the final consumers, the face-to-face meetings with the suppliers, the product dissemination by the customer, the joint marketing actions and the rationalization of transportation logistics. Research limitations/implications The study used a qualitative approach and findings and discussion are inherently interpretative and cannot be generalized. Practical implications This study can contribute to researchers and practitioners interested in collective actions contributing to the incrementation of social responsibility in agri-food supply chains. Social implications Understanding how the collective actions support the inclusion of smallholding and artisanal producers in agri-food supply chains can help policymakers and managers to implement initiatives related to social responsibility, which can be measured using social indicators. This creates a social benefit through rural growth and economic development, generation of income and social productive inclusion of the artisanal producers in larger agri-food supply chains. Originality/value For the best of the authors’ knowledge, this is the first paper approaching collective actions as the main source of incrementation of social benefits, which can measure the incrementation of social responsibility in agri-food supply chains.

Estimating the Impact of Blockchain Adoption in the Food Processing Industry and Supply Chain

2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Francesco Longo ◽  
Letizia Nicoletti ◽  
Antonio Padovano
Keyword(s):  
Supply Chain ◽  
Processing Industry ◽  
Minimal Impact ◽  
Food Supply Chains ◽  
Fresh Milk ◽  
Blockchain Technology ◽  
Safety Risks ◽  
Review Reports ◽  
The Cost ◽  
The Impact

AbstractFood supply chains are benefiting from blockchain technology, as it establishes a shared, secure record of information flows, thus reducing food safety risks, increasing consumers’ trust in products’ provenance and enhancing supply chain efficiency. However, despite some embryonic applications, systematic literature review reports very few investigation studies. This article proposes a potential design and update frequency of relevant data to be stored in the Ethereum blockchain for monitoring and traceability purposes and explores the cost connected to every transaction in the case of a fresh milk processing industry and supply chain, from dairy farms to the end consumers. Results show that (i) investments are limited for the supply chain actors; (ii) the benefits of a blockchain-enabled supply chain can be achieved with a minimal impact on the product’s consumer price, and (iii) the costs of operating the blockchain increases as we move down along the tiers of the supply chain.

scholarly journals Empirical “first-filter” test for the existence of buyer power in the Finnish food supply chain

2016 ◽  
Vol 25 (3) ◽  
Author(s):  
Jyrki Niemi ◽  
Xing Liu
Keyword(s):  
Supply Chain ◽  
Food Supply ◽  
Food Industry ◽  
Food Supply Chain ◽  
Food Supply Chains ◽  
Highly Sensitive ◽  
Competitive Behaviour ◽  
Filter Test ◽  
Buyer Power ◽  
Oligopsony Power

Buyer power and competition policy in food supply chains has emerged as an important economic issue and a highly sensitive item on the policy agenda around the world. In Finland, the increasing concentration of the distribution sector and processing industry has raised concern over the existence and gradual growth of buyer power in these sectors. The purpose of this paper is to investigate the possible existence of buyer power in the Finnish food supply chain. More specifically, we follow an approach used by Lloyd et al. (2009) to measure oligopsony power among the Finnish food industry and retailers against farmers. The results suggest that the spread between producer and retailer prices in Finland is not consistent with perfectly competitive behaviour, and might thus be caused, at least as a candidate amongst other factors, by the existence of oligopsony power in the Finnish food supply chain.

scholarly journals Improving the sustainability of food supply chains through circular economy practices – a qualitative mapping approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luciano Batista ◽  
Manoj Dora ◽  
Jose Arturo Garza-Reyes ◽  
Vikas Kumar
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Food Waste ◽  
Circular Economy ◽  
Food Supply ◽  
Industrial Ecology ◽  
Qualitative Approach ◽  
Future Scenarios ◽  
Content Type ◽  
Food Supply Chains

PurposeThe purpose of this paper is to present a methodological approach to support qualitative analysis of waste flows in food supply chains. The methodological framework introduced allows the identification of circular food waste flows that can maximise the sustainability of food supply chains.Design/methodology/approachFollowing a qualitative approach, circular economy perspectives are combined with core industrial ecology concepts in the specification of a standardised analytical method to map food waste flows and industrial synergies across a supply chain.FindingsThe mapped waste flows and industrial linkages depict two time-related scenarios: (1) current scenarios showing the status quo of existing food waste flows, and (2) future scenarios pointing out circular flows along the supply chain. The future scenarios inform potential alternatives to take waste flows up the food waste hierarchy.Research limitations/implicationsThe qualitative approach does not allow generalisations of findings out of the scope of the study. The framework is intended for providing focussed analysis, case by case. Future research involving mixed methods where quantitative approaches complement the qualitative perspectives of the framework would expand the analytical perspective.Originality/valueThe framework provides a relatively low-cost and pragmatic method to identify alternatives to minimise landfill disposals and improve the sustainability of food supply chains. Its phased methodology and standardised outcomes serve as a referential basis to inform not only comparative analysis, but also policymaking and strategic decisions aimed at transforming linear food supply chains into circular economy ecosystems.

Producers’ cooperative products in short food supply chains: consumers’ response

2019 ◽  
Vol 122 (1) ◽  
pp. 198-211
Author(s):  
Stavriani Koutsou ◽  
Panagiota Sergaki
Keyword(s):  
Financial Performance ◽  
Food Supply ◽  
Urban Areas ◽  
Food System ◽  
Financial Indicators ◽  
Content Type ◽  
Food Supply Chains ◽  
Vending Machines ◽  
Fresh Milk ◽  
Short Time

Purpose The purpose of this paper is to investigate an innovation concerning a short food supply chain (SFSC) created by a newly established producers’ cooperative in Greece that sells fresh milk to consumers via automatic vending machines; the consumers’ response toward this innovation; and the financial performance of the cooperative. Design/methodology/approach The case study focused on consumer’s attitudes toward the cooperative’s fresh milk sold by automatic vending machines and the cooperative’s financial performance. A structured questionnaire was answered by 912 consumers in Thessaloniki during 2015 and analyzed using the IBM SPSS STATISTICS program, version 22. Additionally, the cooperative’s financial data (2012–2015) were used in order to calculate its financial performance. Findings The authors identified five unique consumer categories according to consumer motive, of which social motives are considered in the sample as the most important. The cooperative’s financial indicators are satisfying, especially taking into consideration the severe economic crisis in Greece over the past years. Research limitations/implications It is difficult to evaluate Thesgala as there exists no similar producer cooperative in SFSCs in Greece. The cooperative is recently established and therefore financial indicators represent a short time period. Practical implications Producers, especially small ones in remote or peri-urban areas, can be involved in a SFCS and reach consumers via their cooperatives (or by founding a cooperative). Producer’s cooperatives can include SFSCs in their strategic planning in order to stimulate changes in the food system for the benefit of both producers and consumers. Social implications Policy makers should orient the appropriate policy measures to support SFSCs for the benefit of society as a whole. Originality/value The research investigates an SFSC that was created as a producer’s initiative (not a consumer’s) via their cooperative. It advances knowledge of how to initiate changes in the food system.

Sustainable food supply chains: overcoming key challenges through digital technologies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kamran Mahroof ◽  
Amizan Omar ◽  
Berk Kucukaltan
Keyword(s):  
Supply Chain ◽  
Thematic Analysis ◽  
Circular Economy ◽  
Food Supply ◽  
Success Factors ◽  
Digital Technologies ◽  
Food Supply Chain ◽  
Content Type ◽  
Food Supply Chains ◽  
Critical Success

PurposeThe purpose of this paper is to offer a consolidative approach in exploring the potential contribution of digital technologies in sustainable supply chain management (SSCM) for the sustainable performance of food supply chain business, through the circular economy concepts.Design/methodology/approachAs a single case study, this qualitative, interpretivist research was based on one of the largest food producers in the United Kingdom. The research utilises semi-structured interviews and applies thematic analysis to offer rich insights into SSCM challenges and their relationship with the business performance, through ten in-depth interviews.FindingsFindings derived from thematic analysis of the interview transcripts suggest four main critical success factors underpinning SSCM practices and businesses performance – i.e. business continuity, waste reduction, performance measurement approach, and organisational learning, which could use the help of digital technologies to improve. This led to seven propositions to be addressed in the future research.Originality/valueThis research offers real, practical insights into SSCM challenges, within the context of food supply chain and explores the potential of digital technologies in overcoming them. Accordingly, the primary contribution of this work is grounded in the identification of critical success factors in SSCM for food supply chains (FSC). Hence, this work contributes further to the literature on SSCM, as well as circular economy, by providing a study of a business in the context of the highly pertinent and valuable food industry.

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