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Improving the agricultural products market integration is conducive to developing provincial comparative advantage, optimization of agricultural and industrial organization and enhanced competitiveness. The relationship between the emergencies and the agricultural products market integration in the production and consumption provinces is of great significance for stabilizing market prices and improving the efficiency of agricultural resource allocation.

The authors reviewed the literature on the market integration of agricultural products. Then, they adopted a two-way fixed effect model to investigate the impact of emergencies on the poultry market integration in the production and consumption provinces in China.

Highly pathogenic avian influenza (HPAI) caused abnormal fluctuations in the poultry market price and decreased the poultry market integration. The negative impact of HPAI on poultry market integration was strengthened in the main production provinces and weakened in the main consumption provinces.

This is the first study that applies empirical analysis to identify the emergencies’ impact on the poultry market integration considering production and consumption characteristics. The results indicate that the impact of avian influenza is more serious in production provinces than in consumption provinces. Due to the heterogeneity of production and consumption provinces, the government implements precise compensation policies to resume production quickly after the disaster. It can be conductive to market integration and promote the development of agricultural products market.

In 2006 the world global poultry meat market was developing under the influence of shocks caused by the outbreak of the avian influenza which spread to the poultry meat market at the end of 2005. The virus affected the entire world poultry meat industry and thus visibly marked the world trade in poultry meat in 2006. This paper aims to investigate these issues.

The paper concentrates on the results of the primary quantitative research which was carried out by using a method of individual personal interviews in a sample of n=2,452 poultry meat consumers, aged between 18 and 65 years and in the selected countries of Central and Eastern Europe (Slovenia, Bosnia and Herzegovina, Serbia). A positive perception of poultry meat was determined since the consumers in all three analyzed countries perceived it as tasty and healthy. Special attention was devoted to studying the importance of meat origin in a buying‐decision‐making process.

The trends in poultry meat consumption which were determined in the study of the European poultry meat market were thus confirmed with the quantitative research carried out in the selected countries of Central and Eastern Europe.

The positive perception of poultry meat and the importance of its origin in the buying‐decision‐making process are evident in all the analyzed countries of Central and Eastern Europe.

The purpose of this paper is to determine the impact of 2014–2015 highly pathogenic avian influenza (HPAI), the largest animal health emergency in US history to date, on agribusinesses’ market values.

Using the 2014–2015 HPAI outbreaks in US commercial poultry, event study analysis of meat processing and marketing companies is conducted to estimate the effects HPAI had on firm value and how these effects differed across meat marketing firms over distinct disease event dates. The analyses include an overall aggregate event study, chronological outbreak studies, and an analysis that separated firms specifically marketing poultry products from those marketing all other types of meat.

By tracing abnormal stock returns through the event dates, the results show heterogeneity of investors responses based on the nature of the event (i.e. backyard vs commercial flocks affected), timing of the event over the course of the entire HPAI outbreak, and if a firm marketed poultry products. Overall, negative abnormal returns, ranging from 2 to 4 percent of publicly traded meat processors’ equities, are predominant post-disease event. These negative effects are slightly higher, above 5 percent, for firms marketing poultry products.

This study is the first to analyze the effects of an HPAI outbreak on the market value of US agribusiness firms.

On completion of this case study, students will be able to understand collaboration and synergy between farmers and organisations through value creation, like fundraising, based on the comprehension of the resource-based theory; understand the overview and concept of the value chain and supply chain management in the agribusiness to reduce costs of inventories; understand the concept of segmentation and positioning to increase revenue for organisations by leveraging existing resources – human and financial; and understand the branding strategy to create a sustainable competitive advantage for Suguna Foods.

Suguna was started by two brothers, B. Soundararajan and G.B. Sundararajan, to help other farmers. Suguna, with just 200 broilers in 1984, grew to be the number 1 poultry company across India. Soundararajan was a pioneer and innovator who started “contract farming” in India in 1991. This model helped both the farmers and the company to became successful. The farmers always struggled to pay the cost of feed and other materials, as credit was not readily and easily available from financial institutions. Suguna helped farmers by providing feed, medicines, etc., free of cost in return for the good rearing of chickens. Because of the success of this venture, they decided to continue with it. Today, Suguna is a successful company that sells chicken, eggs and processed meat. They modernised the retail chain to supply consumers with fresh, healthy and hygienic meat. Suguna’s vision was to “Energize rural India” by helping farmers succeed. They helped over 40,000 farmers from 15,000+ villages in 18+ Indian states. Although the growth helped both farmers and Suguna, the increased cost of raw materials for Suguna and increased input costs/power costs for farmers had to be tackled on a war footing so that both could have good income despite the increased inflation. Moreover, the retail price of live chicken was more or less stagnant in the past five years, especially after the start of the COVID-19 pandemic.

This case can be used as the basis for a 90-min class discussion. This case study is suitable for use in an master of business administration course module or in an executive education program on developing an understanding of value creation in the business model in a rural market and also how the supply chain works. This case study can also be used to teach pricing, segmentation in marketing and supply chain perspectives and decision-making skills.

Teaching notes are available for educators only.

CSS8: Marketing.

The purpose of this paper is to investigate the profitability of urban chicken production in the medium-sized cities of Kisumu and Thika, Kenya.

Data were collected in 2016 from a sample of 157 indigenous chicken producers in the two cities. Descriptive analyses were used to characterize indigenous chicken production, marketing and profitability. In addition, multivariate regression models were estimated to determine factors influencing profitability of the enterprise.

Urban indigenous chicken production mainly serves a dual role of food provision and income generation. The enterprise is profitable, generating an average gross margin of Ksh. 756/bird. The multivariate regression models show that access to high-value markets, household income level and the type of production system used significantly affect profitability of indigenous chicken farming. However, poultry diseases and high input costs especially feed are the major constraints to poultry farming.

This study has used cross-sectional data that provides information for only one point in time. Future research should be able to capture the seasonality of indigenous chicken production.

This study has shown that indigenous chicken production in urban areas is a viable and profitable enterprise, which could provide an avenue for employment and income generation.

Studies assessing profitability of urban agricultural enterprises are scant. Thus, this study provides insights on the profitability of a common urban agriculture enterprise.

This study explains Indonesian consumers' choice of poultry meat attributes and the willingness to pay (WTP) for these attributes using a discrete choice experiment.

The survey was conducted for the traditional and modern channels and involved a sample of 440 respondents in the Greater Jakarta area. A discrete choice experiment was employed as the study framework and in designing the questionnaire. A multinomial logistic regression analysis was used to evaluate consumers' preference for poultry attributes in modern and traditional channels.

Consumers preferred warm poultry meat, government certification and product information labeling on poultry meat. The WTP for warm poultry meat was the highest, which is indicating that freshness is crucial for consumers to ensure quality. Moreover, consumers had more trust in government certification than private certification for food safety and were willing to pay more for product information labeling on poultry meat.

The government can use the model as a decision support to improve poultry meat quality at sales channels in Indonesia including to close sales channels where sick poultry are sold and thus address food safety concerns caused by the avian influenza outbreak.

This study shows that understanding the WTP for poultry meat attributes enables the government to control the poultry sales channels and stimulates producers to supply the market with a safer poultry meat quality using the price mechanism.

Entrepreneurship, Design thinking and innovation, Strategy, Social entrepreneurship and rural markets, Business at the base of pyramid, Sustainability and leadership.

Undergraduate and Post Graduate Students

Keggfarms Private Ltd was a private company started by Mr Vinod Kapur, a social entrepreneur who wanted to create a scalable social impact with his endeavor, which was the first of its kind outside the developed world. Keggfarms was established in 1967 with the aim of creating a business model which could benefit the rural sector by generating income and also enabling nutritional self-sufficiency. The case study aims to explore the sustainable model which had survived for 48 years without a push strategy and without a sole focus on profit. The business had spread to around 19 states in India, and the enterprise had decided to replicate a similar business model in the African continent. The social enterprise had aimed to touch the lives of millions of people in poverty by providing them with a low cost chicken – Kuroiler, which could survive the harsh weather and environmental conditions of rural India.

The study will help students to understand how social enterprises are born and built from the vision of the founder; how social capital is generated in the economy and how a blue ocean strategy was applied in this case to build a sustainable and financially viable social entrepreneurship model.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 3: Entrepreneurship

The purpose of this paper is to conduct a comparative study on the transatlantic similarities and dissimilarities in the USA's and the EU's poultry trade disputes with China, as a case study of murky protectionism amid the current global financial crisis.

The case history is explored chronologically, supported with relevant legal documents. For comparative purposes, the poultry trade profiles concerning these trade partners are overviewed before the case study.

The paper concludes from the case study that there is a great deal of synchronicity between the murky protectionism and the current global crisis within the current WTO framework, due to both pressures faced by some governments from inside and the inherent limitations of the WTO agreements and dispute settlement mechanism. Comparatively, the EU's approach to poultry dispute with China is more scientific, while the USA's is more political.

As the Sino‐US poultry dispute is still outstanding, pending for the panel's report, the findings are interim, and the implications only tentative. In short, the lessons learnt from this comparative case study is that unilateral capacity building might be the only concrete thing Chinese exporters and authorities can do at present stage under the current WTO legal framework, amid the tidal wave of the current global crisis.

The paper examines trade disputes over the same commodity China involved with two pivotal trade partners, in order to explore underlying differences; and lessons drawn for China.

Improved indigenous chicken is considered a sustainable agricultural practice with social, economic and environmental indicators. Therefore, the analysis of the choice of market channels is of considerable importance to farmers with reference to improved livelihoods and poverty alleviation in developing countries. The purpose of this study is to investigate the factors that influence market channel choices among improved indigenous chicken farmers in Baringo County and to rank the determinants according to their level of importance in influencing farmer's choice of marketing channels.

A multistage sampling technique was employed to collect data from 209 households for the study conducted between April and July 2019, out of which, 198 useful responses were obtained. Multinomial logit regression and neural network models were used to analyze the factors influencing market channel choice based on socioeconomic, demographic and farm characteristics.

It was established that group membership, education, market distance, transport costs, farm size, cost of information and bargain costs were statistically significant in the choice of market channels (wholesaler, brokers, processors and supermarkets). With the direct consumer as the base market choice. The cost of transport had the highest normalized importance in the prediction of a farmer's selection of market channels for both radial basis function (RBF) and multilayer perceptron (MLP) neural networks. However, flock attributes and age of household head had the least normalized importance in MLP and RBF, respectively.

Due to the insufficiency of resources and time, this study only focused on a small part of the country (Baringo County). However, improved indigenous chicken farming is widely practiced in Kenya. Further studies can be carried out in other counties to validate the results of this study.

The outcome can be used in policy implementation involving improved indigenous chicken production in Kenya.

This study suggests the methods aimed at enhancing poultry sector in other counties in Kenya as well as other developing countries.

This study analyzed the state of broiler production in Senegal after nearly two decades of poultry import restrictions. It provides a synopsis of the Senegalese broiler value chain and evaluates the performance and economics of different broiler farm types.

A multi-stakeholder workshop and interviews were conducted with key informants to investigate the structure and activities of the Senegalese broiler value chain. The typical farm approach (TFA) was used to construct and analyze “typical” farms that represent the most common broiler production systems in Senegal.

The current situation in the Senegalese broiler value chain is favorable for hatcheries, feed mills, producers and poultry traders. However, the slaughterhouses are not faring well. The farm economic analysis demonstrates that typical medium-scale broiler farms are performing well, due to the use of high-quality feed, chicks and good husbandry. Additionally, the analysis revealed that feed and day-old chick (DOC) costs are the most significant in conventional broiler production in Senegal. Despite the high costs of feed and DOCs, broiler production is profitable for typical farms.

Athough this study provides detailed insights into broiler farm economics in Senegal, it does not include typical integrated large-scale broiler farm-types. Based on our findings, we can predict that such farm types may be more efficient and have lower production costs due to the use of high-quality inputs (chicks and feed), and economies of scale. However, future studies will need to verify this prediction.

To the best of the authors’ knowledge, only a few unpublished studies on broiler farm economics in Senegal exist. These studies only provide a basic analysis of the cost of production and profitability, with little consideration of various production systems. Contrastingly, this study provides a detailed economic analysis of different types of conventional broiler farms in key production regions.