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Article
Publication date: 14 June 2021

Mohita Gangwar Sharma

Many commodity supply chains suffer from an unfair value distribution across the supply chain like “Coffee Paradox.” This study explores the coffee supply chain to determine how…

Abstract

Purpose

Many commodity supply chains suffer from an unfair value distribution across the supply chain like “Coffee Paradox.” This study explores the coffee supply chain to determine how the country of origin–geographical indicator can be used as a method of fair distribution of value and provenance across the supply chain effectuated by the blockchain technology. By looking at an exemplar case study for India, this study provides insights into diverse research streams and practice.

Design/methodology/approach

Based on the case method, analyzing the implementation of blockchain in the coffee industry by a leading Indian software implementation of the logic, dynamics and forces for a provenance model has been devised. It further adopts a stakeholder cum institutional theory framework to understand the logical implementation of a blockchain project embedded in a territorial logic for a commodity supply chain.

Findings

This study specifically looks at coffee which is representative of a commodity supply chain. It also explores how the malaise of unfair value distribution gets addressed by bringing farmers and the consumers on a common platform facilitated by blockchain technology. This study contributes to the literature on blockchain, territory, commodity and supply chain. Using stakeholder cum institutional theory, this study helps to explore how the implementation is successful by different actors in the supply chain through collaboration.

Research limitations/implications

This study provides a new stream of multi-disciplinary study at the interface of supply chain, technology, international trade and geography.

Practical implications

Blockchains are embedded in the supply chain, and supply chains are embedded in territories. This linkage is paramount and the ability to make these blockchain projects successful requires the deep study of the interaction of territory, technology and actors from the provenance angle. De-commodification of coffee can be actualized through blockchain.

Social implications

The coffee paradox and skewed value distribution is also a social problem wherein the farmers do not get the right price of their produce and are exploited. This case also highlights how this social malaise can be addressed and rightful and equitable distribution of value happens across the value chain.

Originality/value

This linkage between territory, blockchain, commodity supply chain and institutions has not been discussed in the literature. Adopting the territorial design approach, this study is an attempt to stimulate inter-disciplinary conversations and thereby create a provenance framework for commodity and research questions for scholars from different disciplines and divergent disciplinary perspectives.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 14 May 2019

Kristin Franklin and James Oehmke

The purpose of this paper is to analyze the social institutions of trust, accountability and corporate shared value in creating an enabling environment for private sector…

Abstract

Purpose

The purpose of this paper is to analyze the social institutions of trust, accountability and corporate shared value in creating an enabling environment for private sector investment in African agricultural and food systems.

Design/methodology/approach

This paper uses mixed methods. A value chain framework models interactions among stakeholders in the agriculture, agribusiness and food sectors. The social institutions of accountability and trust are introduced into the model, followed by a Rwanda premium coffee value chain case study.

Findings

The conceptual and case study results show that best practices can increase smallholder farmer, agricultural service provider, financial intermediary, and food processor investments in and benefits from the agriculture sector.

Research limitations/implications

Further research is needed on the economic foundations of development cooperation based on trust, accountability and shared values, best practices and the link with desired societal outcomes, such as the sustainable development goals.

Social implications

Mutual accountability processes, as they are maturing in Africa, are at the cutting edge of creating processes where multiple stakeholders, including agribusiness, can come together to make joint commitments to a shared development agenda, and where stakeholders hold themselves and others accountable for meeting these commitments.

Originality/value

This is the first paper to bring together cutting-edge advances in corporate shared values, trust and accountability in the context of African agricultural and agribusiness development.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 29 April 2021

Saket Shanker, Hritika Sharma and Akhilesh Barve

The purpose of this study is to analyse various risks associated with third-party logistics (3PL) in the coffee supply chain and to present a framework that computes the influence…

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Abstract

Purpose

The purpose of this study is to analyse various risks associated with third-party logistics (3PL) in the coffee supply chain and to present a framework that computes the influence of these risks on the critical success factors of the coffee supply chain.

Design/methodology/approach

The risks have been identified through a comprehensive literature review and validation by industry experts. The paper utilises an interpretive structural modelling (ISM) methodology for developing a hierarchical relationship among the CSFs. Furthermore, fuzzy MICMAC analysis is carried out to categorise these CSFs based on their driving power and dependence value. The fuzzy technique for order preferences by the similarity of an ideal solution (fuzzy-TOPSIS) approach has been applied to prioritise the risks associated with 3PL based on their ability to influence the CSFs of the coffee SC. Furthermore, we performed a sensitivity analysis to analyse the stability of the results obtained in this study.

Findings

This study illustrates ten risks associated with 3PL and five CSFs in the coffee supply chain. The analysis revealed that coffee enterprises need to develop a balanced pricing strategy to ensure a sustainable competitive advantage, whereas the lack of direct customer communication is the most dominant 3PL risk affecting the CSFs.

Practical implications

This research provides coffee enterprises with a generalised framework with set parameters that can be used to attain a successful coffee supply chain in any developing nation.

Originality/value

The study contributes to the literature by being the first kind of study, which has used fuzzy ISM-MICMAC to analyse the CSFs of the coffee supply chain and fuzzy-TOPSIS for analysing the impact of various risks associated with the 3PL in the coffee supply chain. Thus, this work can be considered a benchmark for future research and advancement in the coffee business field.

Details

Journal of Advances in Management Research, vol. 19 no. 2
Type: Research Article
ISSN: 0972-7981

Keywords

Open Access
Article
Publication date: 18 September 2017

Sanjay V. Lanka, Iqbal Khadaroo and Steffen Böhm

The purpose of this paper is to provide a socio-ecological counter account of the role that agroecology plays in supporting the sustainable livelihoods of a co-operative of…

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Abstract

Purpose

The purpose of this paper is to provide a socio-ecological counter account of the role that agroecology plays in supporting the sustainable livelihoods of a co-operative of smallholder coffee farmers, where very little value is created at their end of the coffee commodity chain. Agroecology may be defined as the science that provides the ecological principles and concepts for the design and management of productive agricultural ecosystems that conserve natural resources.

Design/methodology/approach

This study uses a case study design of a coffee-producing co-operative in India using data collected from participant observation, focus groups and unstructured interviews with indigenous smallholder farmers. It combines the science of agroecology with the labour theory of value as a theoretical framework.

Findings

An agroecological approach supports agricultural biodiversity, while promoting sustainable livelihoods since members of the co-operative are able to reduce their use of external inputs. However, an agroecological transformation is curtailed by the continued dependence on corporate value chains. A framework using the labour theory of value is used to explain the extraction of surplus value from the labour of both the smallholder farmers as well as nature. This study provides evidence of the role of government policy and practice in perpetuating the status quo by not promoting either research on agroecology or direct consumer to producer value chains while providing subsidies for the inputs of industrial agriculture.

Originality/value

There have been very few studies that have provided an account of the limited value generated in agricultural commodity chains for smallholder farmers due to the need to purchase the inputs of industrial agriculture supported by government subsidies. This study extends the field of accounting for biodiversity into agriculture using the science of agroecology to explain the role played by biodiversity in increasing the amount of value generated by smallholder farmers. By utilising the labour theory of value, the authors have introduced the notion of the labour power of nature as represented by the environmental services that nature provides.

Details

Accounting, Auditing & Accountability Journal, vol. 30 no. 7
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 25 May 2012

Maria‐Alejandra Gonzalez‐Perez and Santiago Gutierrez‐Viana

The purpose of this paper is to present a cross‐country study comparing Colombia and Vietnam, two of the major coffee exporting countries in the world, in terms of their…

5914

Abstract

Purpose

The purpose of this paper is to present a cross‐country study comparing Colombia and Vietnam, two of the major coffee exporting countries in the world, in terms of their infrastructures, the roles of external shocks, technology adoption at different stages of production, added value, positioning in both domestic and global markets, internationalisation patterns, marketing and branding innovations, regulatory frameworks, and policy environments. This study also explores other aspects linked to production, and marketing strategies that open niche markets such as speciality coffees, and socially‐, labour‐ and environmentally‐responsible trade. Furthermore, it identifies opportunities of cooperation and competition between these two countries.

Design/methodology/approach

Using value chain analysis as primary research method, this paper identifies links and dynamics in the value chains that have been developed in the coffee industry in both countries to improve competitiveness, increase sustainability, and respond to market demands.

Findings

Using value chain analysis, it was found that Colombia and Vietnam produce different types of coffee, and that both have implemented diverse strategies in order to be more competitive in domestic and foreign markets via product differentiation. These differences make explicit room for cooperation between these two countries in an international environment where fierce competition persists.

Originality/value

Cooperation between producing countries is an under‐researched subject. These findings will be useful both for policy makers in coffee‐producing countries and agribusiness researchers.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 2 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 30 December 2021

Andrew Gerard, Maria Claudia Lopez, John Kerr and Alfred R. Bizoza

In developing countries, local buyers often rely on relational contracting based on reciprocity and trust. This paper analyzes relational contracting and global value chain (GVC…

Abstract

Purpose

In developing countries, local buyers often rely on relational contracting based on reciprocity and trust. This paper analyzes relational contracting and global value chain (GVC) governance by focusing on how domestic and foreign coffee exporters in Rwanda confront challenges.

Design/methodology/approach

Semi-structured interviews were conducted with 25 representatives of Rwandan private, Rwandan cooperative-owned and foreign exporters, and four coffee sector stakeholders.

Findings

Foreign firms export most Rwandan coffee, and local exporters express concerns about their ability to compete. Rwandan exporters face challenges accessing capital, competing with foreign firms and managing high transaction costs. They use relational contracts to reduce transaction costs, and they benefit from a monopsony zoning regulation that reduces competition. Foreign exporters face regulatory challenges: a government-set coffee price and the zoning regulation. They vertically integrate to reduce costs and lock in suppliers through prefinancing.

Research limitations/implications

Future research should analyze differences between local and foreign exporters in other contexts to advance understanding of the different challenges faced and contracting approaches used.

Originality/value

Few GVC governance studies address the role of relational contracts in contexts where enforcement is costly. Considering relational contracts within GVCs can improve value chain analysis, specifically in the developing countries where many GVCs start.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 18 May 2022

Emmanuel Kwame Opoku, Mei-jung Sebrina Wang, Shirley Guevarra, Martin Bazylewich and Aaron Tham

This paper aims to reconceptualise entrenched supply chains associated with coffee production and consumption to digital supply chains for sustainable development.

Abstract

Purpose

This paper aims to reconceptualise entrenched supply chains associated with coffee production and consumption to digital supply chains for sustainable development.

Design/methodology/approach

A case study of seven small businesses involved with Philippine coffee is employed to examine how coffee value chains should be envisioned following COVID-19.

Findings

The COVID-19 pandemic reveals truncated barriers concerned with the lack of infrastructure, poverty cycles, sporadic workforce development policies and financial pressures that need to be redefined for coffee production and consumption to be more sustainable in the future.

Research limitations/implications

The study is restricted to a single country and a small pool of respondents that may not reflect similar practices in other regions or contexts.

Originality/value

This paper illuminates the plight of coffee farmers in an emerging production landscape of the Philippines, and develops new propositions to envision a digital value chain post-COVID-19.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Book part
Publication date: 15 April 2019

Stephen Pitts S. J.

Coffee producers typically sell raw coffee beans as the first step in a global value chain. Recently, groups of producers have formed coffee cooperatives that attempt to regain…

Abstract

Coffee producers typically sell raw coffee beans as the first step in a global value chain. Recently, groups of producers have formed coffee cooperatives that attempt to regain market power by integrating the other steps of the value chain. This study uses matching to estimate the effect of membership in one such cooperative on the household economy of indigenous coffee producers in the state of Chiapas, Mexico. It contributes to the literature by considering new determinants of participation and outcomes of interest. First, social capital at the individual and village level is correlated with cooperative membership more than other demographic factors. Second, cooperative members report an increase in the share of coffee sold and income from coffee sales but not in per-kilo price or total income. These two results reflect particular features of the Chiapas reality and the desires of the indigenous people the cooperative serves. Thus, they reiterate the importance for economic development projects to consider the context of their interventions.

Details

Entrepreneurship and Development in the 21st Century
Type: Book
ISBN: 978-1-78973-233-7

Keywords

Book part
Publication date: 31 July 2023

Katie Andrews, Noemi Sinkovics and Rudolf R. Sinkovics

This chapter investigates the coffee value chain in Latin America. By drawing on the concept of just transitions as a “connective tissue” between the sustainable development goals…

Abstract

This chapter investigates the coffee value chain in Latin America. By drawing on the concept of just transitions as a “connective tissue” between the sustainable development goals (SDGs), the discussion zooms in on the promise of agroforestry for environmental upgrading. The chapter concludes by providing examples of trade-offs between environmental, social and economic aspects.

Details

International Business and Sustainable Development Goals
Type: Book
ISBN: 978-1-83753-505-7

Keywords

Article
Publication date: 20 January 2022

Benjamin Marcus, Elif Sisli-Ciamarra and Lee Phillip McGinnis

The paper aims to understand the role of sensory quality scoring used at the competition auctions on pricing outcomes and how the auction process could be improved to increase…

Abstract

Purpose

The paper aims to understand the role of sensory quality scoring used at the competition auctions on pricing outcomes and how the auction process could be improved to increase sustainability in the specialty coffee market.

Design/methodology/approach

The authors build a conceptual model explaining the potential role of sensory quality scoring in generating inequitable outcomes in specialty coffee auctions. The authors' research is exploratory. The authors base the propositions on the findings of the extant literature and our analysis of data from 24 Best of Panama (BOP) Auctions that took place between 2017 and 2021.

Findings

A striking feature in recent BOP Auctions is a winner-takes-all (WTA) outcome. The authors also document the presence of significant price inversion. The authors attribute these outcomes to the interactions of information-poor producers, information-rich intermediaries and conspicuous consumers in competition auctions, where the product quality measurement is highly unreliable.

Research limitations/implications

Data need to be gathered more broadly to enable the operationalization of the current propositions into testable hypotheses.

Social implications

These strategies intend to provide guidelines for producers, consumers and other value chain participants on creating equitable solutions to a thriving industry where a WTA phenomenon occurs.

Originality/value

The current study is the first to argue that existing quality scoring practices, as well as conspicuous consumption, contribute to the inequities. Finally, the study proposes novel interventions to standardize the quality grading protocols and communicate them transparently to both producers and consumers.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

1 – 10 of over 5000