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Article
Publication date: 29 November 2022

Anil Kumar Dixit, Smita Sirohi, K.M. Ravishankar, A.G. Adeeth Cariappa, Shiv Kumar, Gunjan Bhandari, Adesh K. Sharma, Amit Thakur, Gaganpreet Kaur Bhullar and Arti Thakur

The purpose of the study is to identify the factors affecting the entrepreneur's choice of the dairy value chain and evaluate the impact of the value chain on farm performance…

Abstract

Purpose

The purpose of the study is to identify the factors affecting the entrepreneur's choice of the dairy value chain and evaluate the impact of the value chain on farm performance (profit).

Design/methodology/approach

Primary data were collected from dairy entrepreneurs in India, covering nine states. A multinomial treatment effect model (controlling for selection bias and endogeneity) was used to evaluate the impact of the choice of the value chain on entrepreneurs' profit.

Findings

Dairy entrepreneurs operating in any recognized value chain other than the value chain driven by the consumer household realize a comparatively lesser profit. Dairy farmers have established direct linkages with customers in urban areas – who could pay premium prices for safe and quality milk. Food safety compliance is positively associated with profit and entrepreneurs (who have undergone formal training in dairying) preferred partnerships with a formal value chain. The prospects of starting a dairy enterprise are slightly higher in villages compared to urban areas.

Research limitations/implications

Dairy entrepreneurs can make a shift in accordance with the study's findings and boost their profitability. It aids in comprehending how trainees (who obtained advice and training for raising dairy animals from R&D organizations) and non-trainee dairy farmers make value chain selections, which ultimately affect profitability. However, purposive sampling and a small sample size limit the universal implications of the study.

Social implications

Developing entrepreneurial behavior and startup culture is at the center of policymaking in India. The findings imply that the emerging value chain not only enhances the profit of dairy farmers by resolving consumer concerns about food safety and the quality of milk and milk products but also builds consumer trust.

Originality/value

This paper offers insight into how the benefits of dairy entrepreneurs vary with their participation in the different value chains. The impact of skill development/training programs on value chain selection and farm profitability has not yet been fully understood. Here is an attempt to fill this gap. This paper through light on how trained and educated dairy entrepreneurs are able to establish a territorial market by approaching premium customers – this is an addition to the existing literature.

Details

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

Keywords

Article
Publication date: 4 June 2018

Viet Khoi Nguyen, Hoang Thi Hai Yen, Tong Van Khai, Linh Huong To and Nguyen Tien Duc

The purpose of this paper is to find out the distribution of benefits, costs, and value added among the actors and problems in the practical management in dairy milk value chain

Abstract

Purpose

The purpose of this paper is to find out the distribution of benefits, costs, and value added among the actors and problems in the practical management in dairy milk value chain, especially in one of the most important dairy areas in Vietnam to see how they upgrade in the value chain.

Design/methodology/approach

A survey was carried out in Bavi, Hanoi where a large amount of fresh milk is produced annually. The content of the survey was built before conducting in Bavi with 160 questionnaires. The questionnaires were based on the criteria which reflect the main objectives of the paper such as the actor’s profits and costs, the relationship among these actors, and the advantages and disadvantages in the dairy milk’s value chain. Some part of results of the paper was evaluated by conducting interviews with the relevant target groups in the value chain of dairy milk. Data collected were aggregated and analyzed by SPSS20, Excel. The calculation of cost and profit margin of each actor in the chain was also be presented by a quantitative tool for value chain analysis.

Findings

This study pointed out the systemized problems in the value chain of one of the biggest dairy companies in Vietnam. This study revealed some wicked problems in the value chains of Vietnam under globalization.

Research limitations/implications

This study could not cover all of the detailed actors in the dairy value chain.

Originality/value

The value of income in the chain is distributed unequally. The benefits that farmers receive are inadequate with the costs they have to pay. This is a particular chain, in which the main factors boosting the chain are factories, and an increase in revenue also reflects the benefits of them. The result is that the value added in the chain is also biased toward the dairy plant. The paper also pointed out the shortcomings in the cost calculation of farmers. All the expenses, such as wages and the opportunity cost, are calculated in the total cost of the dairy plant, whereas dairy farmers do not mention these costs. Thus, in terms of benefits, farmers suffer more disadvantages, thus they should be received more value. In terms of management, Bavi’s authorities could not manage the output of milk in the perfect way. The lax management has led to a series of counterfeit goods that appear on the market today. These low-quality products are sold right on the highway and the Bavi’s tourist destination.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 16 November 2020

Gladys Kemitare, Frank Kabuye, Anthony Moni Olyanga and Nichodemus Rudaheranwa

The purpose of this paper was to establish the contribution of value chain and productivity to trade performance in the dairy industry using evidence from Uganda.

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Abstract

Purpose

The purpose of this paper was to establish the contribution of value chain and productivity to trade performance in the dairy industry using evidence from Uganda.

Design/methodology/approach

This study research design is cross-sectional and correlational. Data were collected through a questionnaire survey of 108 dairy farmers, processors and exporters. Data were analysed through correlation coefficients and linear regression using Statistical Package for Social Sciences.

Findings

Hierarchical regression results indicate that value chain and productivity contribute significantly to variances in trade performance of dairy products. Therefore, appropriate value chain processes and high levels of productivity lead to increased trade performance in the dairy industry.

Research limitations/implications

This study focusses on trade performance of dairy products in Uganda. These research findings are useful for informing the deliberations of academicians, regulators and the business community. The results are applicable to all countries that carry out trade specifically in dairy products.

Practical implications

The results are important for trade policy development in the dairy industry. For example, this study informs farmers, processors and exporters of dairy products how value chain activities in dairy farming can be re-aligned to achieve better quality and productivity for exportation. Similarly, the current study provides policy guidance for the relevant ministries such as ministry of trade and other players to come up with holistic policy actions aimed at improving the trade performance of dairy products in the country.

Originality/value

To the researchers' knowledge, this is the first study that provides an initial empirical evidence on the contribution of value chain and productivity on trade performance of dairy products in Uganda.

Details

Modern Supply Chain Research and Applications, vol. 3 no. 1
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 16 July 2020

Aries Susanty, Nia Budi Puspitasari, Heru Prastawa and Stellya Veronica Renaldi

This research primarily aims to find and analyse the interaction among success factors for improving the performance of Indonesia’s dairy milk supply chain. Further, this research…

Abstract

Purpose

This research primarily aims to find and analyse the interaction among success factors for improving the performance of Indonesia’s dairy milk supply chain. Further, this research aims to formulate the right policies for improving the performance of the chain based on the success factor that belongs to cause groups.

Design/methodology/approach

The paper analyses 10 success factors for improving the performance of the Indonesian dairy supply chain with the decision-making trial and evaluation laboratory (DEMATEL) method and analyses the Delphi method to formulate the right policies for improving performance.

Findings

There are four important influencing factors that directly impact the overall system, i.e. the number of dairy cattle import, national milk demand, the total number of dairy farmers and the number of dairy cattle ownership or herd size. Several alternative policies have been designed by several experts according to the influencing factors, i.e. the government assists in the procurement of imported cattle, provides financial assistance to farmers in the form of low-interest financing, improves the partnership system between farmers and dairy cooperatives, provides a reward system for the farmers and increases the level of formality of contract between the farmers and cooperatives.

Research limitations/implications

Interrelationships of each success factor and the most important influencing success factors could not be generally determined because it depends on the point of view of the experts. Future research can apply the success factors proposed by this research to the different dairy milk supply chain. Then, this research used only nine experts for formulating alternative policies. Future research may repeat this method using multiple experts to justify the validity of the research. Moreover, this research only explored 21 success factors of the increase in the performance of the Indonesian dairy supply chain. Future research should consider not only the supply side and number of dairy cattle but also several success factors from the causal relationship diagram in the broader dairy milk supply chain.

Practical implications

This research provides essential insights for policymakers, as they have to understand and evaluate the success factors before formulating several alternative policies.

Social implications

The research has revealed that the right alternative policies can be designed, as the causal factor has been known.

Originality/value

This research contributes to applying a combination of causal relationship diagram of System Dynamic and DEMATEL method as a qualitative and quantitative method in one integrated way through performance dairy supply chain analysis. As a result, this research draws a policy for the dairy supply chain referring to the success factor as a cause for the low performance of the Indonesian dairy supply chain.

Details

Journal of Modelling in Management, vol. 16 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 5 October 2015

Kristine Van Herck and Johan Swinnen

In the past decade, there has been a dramatic decline in agricultural employment in Bulgaria and several reports have pointed at supply chain modernisation and poor milk quality…

Abstract

Purpose

In the past decade, there has been a dramatic decline in agricultural employment in Bulgaria and several reports have pointed at supply chain modernisation and poor milk quality as the main reasons for the dramatic decline in the number of farms. However, to date the policy debate is been based on ad hoc claims, while there is relatively little micro-level evidence. The purpose of this paper is to analyse the determinants of structural change in the Bulgarian dairy sector in the period 2003-2009.

Design/methodology/approach

This paper analyses the determinants of structural change in the Bulgarian dairy sector in the period 2003-2009, using a unique panel survey of 296 farm households in the North and South Central Region of Bulgaria. In order to control for sample attrition bias, the authors use a two-step Heckman model of farm survival and growth model.

Findings

The data confirms the rapid outflow of agricultural labour from dairy farming activities: 55 per cent of the farm households supplying milk to a dairy company in 2003 stopped supplying in 2009. The main reasons for quitting are ageing of the household, health problems and an increase in off-farm employment alternatives and not supply chain modernisation and milk quality standards. The institutional innovations which are associated with integration in modern supply chains, such as the provision of farm assistance programmes, have a positive impact on small farms’ growth.

Originality/value

The study is one of the first to use panel data to analyse the impact of standards on the survival and growth of small farms in value chains. The authors analyse the determinants of farm survival and growth in the Bulgarian dairy sector in the period 2003-2009, using panel surveys of 296 dairy farm households in the North and South Central Region of Bulgaria and panel data from interviews with dairy companies. The findings are relevant beyond the Bulgarian dairy sector as supply chain modernisation and changes in quality regulations are taken place in many other transition and developing countries.

Details

British Food Journal, vol. 117 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 14 October 2021

Saule Burkitbayeva, Emma Janssen and Johan Swinnen

This paper provides one of the first and most detailed accounts of the large modern dairy farms that are emerging in the dairy sector in India. Qualitative interviews are used to…

Abstract

Purpose

This paper provides one of the first and most detailed accounts of the large modern dairy farms that are emerging in the dairy sector in India. Qualitative interviews are used to understand how these farms differ from their traditional smallholder counterparts and how well integrated they are into the value chains.

Design/methodology/approach

Snowball sampling was used to identify large farmers. In total, 49 in-depth interviews were conducted with large commercial modern farms in Punjab. A detailed description of the main characteristics of these modern dairy farms is provided. Data from previous studies conducted in Punjab is used to compare the new farms with traditional smallholder farms.

Findings

The modern dairy farms are much more advanced in their use of technology compared to their traditional counterparts. These large commercial modern farms are very well integrated into the value chains. They often, but not exclusively, sell milk to formal supply chains, sometimes on a contractual basis.

Originality/value

Most of the literature on the Indian dairy sector focuses on smallholders. However, understanding and acknowledging the emergence of modern dairy farms is very important in understanding the development of value chains not only in the dairy sector in India, but in domestic food sectors in developing countries in general. This qualitative data analysis is a necessary first step if more large-scale representative information is to be collected in the future.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 26 June 2023

Tita Flores, Verónica Greis Andía Flores, Efrain Chura Zea and Javier Mamani Paredes

This article examines the dairy value chain in Southern Peru and identifies four critical success factors that can enhance the local situation.

Abstract

Purpose

This article examines the dairy value chain in Southern Peru and identifies four critical success factors that can enhance the local situation.

Design/methodology/approach

The study employed descriptive research using semi-structured interviews with entrepreneurs from 17 cheese factories across eight districts, namely Azángaro, Ayaviri, Pucara, Lampa, Cabana, Acora, Pomata and Puno. Quantitative market data were also gathered and analyzed alongside qualitative views.

Findings

The study identified four critical issues: quality concerns in milk production, suboptimal managerial practices of cheese-processing plants, lack of compliance to regulations, particularly hygiene and environmental ones, and inadequate access to finance. The findings reveal a gap between the practices of the Puno region's dairy industry and world-class standards for cheese production. Urgent actions are required to improve product quality, increase access to finance, enhance managerial education and ensure compliance with regulations.

Research limitations/implications

Results suggest critical issues to be prioritized, but the article does not propose how to solve the problems identified. External factors, such as economic changes, were also not considered. Interviews were conducted exclusively with cheese processing entrepreneurs, not milk producers.

Originality/value

This case study provides an insight into the interior of Peru, an under-researched region facing several development challenges. The findings have significant implications for dairy value chain stakeholders in Peru and other similar contexts.

Details

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

Keywords

Article
Publication date: 4 December 2017

Aries Susanty, Arfan Bakhtiar, Ferry Jie and Mustofa Muthi

The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and…

1679

Abstract

Purpose

The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and business performance.

Design/methodology/approach

Data used in this study were primary data which were collected through personal interviews and closed questionnaires using a five-point Likert scale ranging from 1 to 5. The sample consisted of 170 individual dairy farmer and several dairy cooperatives, which were located in Central Java Province (Boyolali and Semarang Districts) and West Java Province (West Bandung District). The study used partial least squares with the aid of the SmartPLS software program to analyze the hypothesis.

Findings

The results of hypothesis testing indicate that collaborative communication and price satisfaction had a significant positive effect on trust for Central Java and West Java Province. Meanwhile, power dependence had a significant negative effect on trust only for West Java Province. Trust had a significant positive effect on supplier loyalty for both of the two provinces. Significant positive effect of supplier loyalty on business performance was supported in Central Java Province, whereas in West Java Province, supplier loyalty had a positive but not significant effect on business performance.

Research limitations/implications

The limitation of this study is related to the number of samples, the type of scale used to measure a business performance, and the focus that is only on the relationship between the fargmers and cooperative to improve the performance of cooperative without considering the role of management. So, the future research may replicate this study in another region or in the other contexts of agribusiness sector that usually depends on farmer as a producer of the raw material. It may also enhance the measurement of business performance of dairy cooperative by using a direct measure of financial performance and non-financial performance and broaden the scope of research into the role of management of dairy cooperative.

Practical implications

It is recommended that managers of dairy cooperatives always involve the farmers when making marketing decisions especially concerning prices, products, market, and promotion. As organizational stakeholders, their involvement is vital in determining the ability of the dairy to achieve its goals. The other recommendation is the managers of cooperatives must have a clear policy on the price of milk, and this policy should indicate the transparency and accountability. Then, regarding the long-term benefit of dairy cooperative, it is recommended for dairy cooperatives to add the value of the milk so they can access wider markets, which, in turn, will maximize returns to the members. Based on this recommendation, it is better if the dairy cooperative in Indonesia not only serves as a marketing cooperative, but also serves as a farm supply cooperative which may process or formulate the milk into a more valuable product.

Social implications

The research confirms that individual dairy farmer’s loyalty can benefit the business of dairy cooperative. It may encourage more dairy cooperative to tap the good relationship with the individual dairy farmer at the initial stage of the economic growth of their business. Intensifying competition between dairy cooperatives would potentially bring even better quality and quantity of milk from the loyal dairy farmer.

Originality/value

Although this research used the conceptual model from the previous study, this research will make some improvement. First, it used more indicators to measure each dimension of the construct, and the investigation was slightly more complex and broader since the object of the research was represented by two regions, namely, Central Java Province and West Java Province.

Details

British Food Journal, vol. 119 no. 12
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 24 February 2022

Lamisse Khairallah, Mabelle Chedid, Lina Jaber, Giuliano Martiniello and Shady K. Hamadeh

Small-scale goat farming and dairy goat productions are significant constituents in the livelihoods of marginal Lebanese rural communities. Reviving and supporting that sector is…

Abstract

Purpose

Small-scale goat farming and dairy goat productions are significant constituents in the livelihoods of marginal Lebanese rural communities. Reviving and supporting that sector is instrumental in creating value for rural communities to build sustainable livelihoods and safeguard climate-adapted value chains (VCs). The paper aims to describe the dairy goat VC in the Shouf and West Bekaa (WB) areas of Lebanon, which are traditionally popular for caprine production.

Design/methodology/approach

A socio-economic approach was employed to determine the perceived challenges, opportunities and context of goat farmers and dairy processor in the Shouf and WB casas as case studies, using the Heifer International's toolkit for goat value chains. Questionnaires were developed for the five actors of the VC: farmer, milk collector, processor, retailer and consumer. The data were analyzed quantitatively, using simple statistical analysis, and qualitatively through observation, gathering, coding and thematically organizing the responses.

Findings

In the Shouf, the chain is shorter, consisting of a farmer, processor and consumer, while in the WB the VC includes a milk collector and larger dairy factories. The value is unequally and unfairly distributed among the actors putting the small-scale farmers and processors in subordinate positions. In terms of enabling environment, the role of the state, authorities and organizations remains minimal in supporting the sector. The challenges facing this sector are economic, regulatory, operational, social and hygienic as perceived by the participants.

Research limitations/implications

The economic, political and social instability of the country hinders the performance of the sector.

Originality/value

Limited research is available on the small ruminants' VC in Lebanon, addressing the socio-economic status of goat farmers and opportunities available in the sector. On the other hand, the demand for traditional dairy products is increasing amid rising concerns related to intensive livestock systems and negative association of livestock systems with climate change. Accordingly, basic assessment and research on the existing small ruminant dairy chains is important as a first step for the sustainable development of the sector.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 4
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 10 October 2023

Mohammad Asif, Mohd Sarim, Waseem Khan and Shahbaz Khan

This study aims at modelling the enablers of dairy supply chain (DSC) in Indian context.

Abstract

Purpose

This study aims at modelling the enablers of dairy supply chain (DSC) in Indian context.

Design/methodology/approach

Interpretive structural modelling (ISM) approach has been used to model the enabler of dairy supply chain. The opinion has been taken from the industry experts and experienced academicians. Further, Matrix Cross-Reference Multiplication Applied to a Classification (MICMAC) used to classify the enablers based on driving and dependence power.

Findings

Findings show that stakeholder trust and top management support/leadership are the very crucial enablers in dairy supply chain; they are at a lower level of hierarchical structure and work as primary enablers to development of DSC. While customer satisfaction and financial performance are at top of the digraph, it shows these enablers are the outcome of a smooth supply chain. The MICMAC analysis suggests that the identified enablers are largely classified into dependent and independent enablers; there are no autonomous enablers in the dairy supply chain.

Practical implications

The study can aid businesses in the dairy processing industry in managing demand fluctuations, enhancing product quality, implementing effective information systems and adapting procedures, thereby enhancing supply chain performance.

Originality/value

There is very limited study on enablers of the dairy supply chain in general, while in the Indian context, there is no specific study on modelling the enablers of dairy supply chain.

Details

British Food Journal, vol. 126 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

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