Assessing the table grape supply chain performance in China - a value chain analysis perspective

Abstract

Purpose

The paper aims to understand the cost-benefits, financial performance and relationships of the key actors in the table grape supply chain by using value chain analysis method.

Design/methodology/approach

This study presents the result of analysis on financial performance of key actors in three table grape supply chains and the relationship among them using value chain analysis. The table grape supply chain was analyzed using data collected from a field survey in 5 regions of China. The key actors of these chains were interviewed. The costs, benefits, operational and financial performance of supply chain actors were analyzed.

Findings

The results show that, despite receiving the highest proportion of total net profit and making the highest value creation, vinegrowers are facing fluctuant and uncertain commercial returns due to the production and market risks, fluctuation of farm-gate price and the buyer dominant relationship with wholesalers. Moreover, although it is profitable to all key actors, table grape supply chain still faces several challenges including unorganized and dispersed production systems, power asymmetry and lack of information sharing, all of which are the barriers to the improvement of the whole chain performance and the long term sustainability of this important industry.

Originality/value

This paper not only helps to understand the relationship among the key actors and the critical factors impacting on the whole chain performance, but also offer useful guidance for the policy makers and key actors to achieve further improvement of the table grape supply chain performance and provide valuable implications for the future studies on agriculture products.

Citation

Deng, L., Wang, R., Dong, T., Feng, J. and Weisong, M. (2016), "Assessing the table grape supply chain performance in China - a value chain analysis perspective", British Food Journal, Vol. 118 No. 5. https://doi.org/10.1108/BFJ-09-2015-0310