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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.

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

Increasing globalisation of the poultry‐meat supply chain has led to consolidation and evolution of transnational companies, whether by vertical or horizontal integration, and the development of business clusters. There are significant benefits in these economies of scale, especially improved purchasing power and greater intellectual, technological and production resources for organizations to draw upon to provide products that meet differentiated customer needs. The consumer has seen the benefit of globalisation in lower commodity food prices, wider product choice and the advent of “convenience” food. Seeks to review the key factors that have led to the globalisation of the poultry supply chain and the impact of these changes. The poultry supply chain was chosen because it is highly integrated and the research includes a literature review and an evaluation to determine how it specifically relates to the poultry supply chain. Identifies the factors that affect current and future developments in food globalisation, including: relative strength of currencies; speed of technology transfer to developing countries; tax and regulatory burden in nation states or trading groups; cost of capital and labour and its effect on competitiveness; continuing production specialization and greater differentiation between domestic and international meat trade; and concerns over production methods, food safety and hygiene standards. Analyses the impact of globalisation of the food supply chain to all sectors and will be of interest to academics and those working in food supply.

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 present a simple model to demonstrate how a trade‐off between incomplete contract distortions and excessive governance costs determine an agricultural firm's organizational choices.

In this paper, it is argued that the perishable nature of products exaggerates the incomplete contract distortion, such that products with a short biological production cycle (e.g. eggs) are likely to be operated under vertical integration, products with a medium cycle (e.g. poultry) are likely to be operated under product contracts, and products with a long cycle (e.g. pork) are likely to be operated under marketing contracts.

This model helps explain why vertical integration dominates the US egg industry, why product contracts are prevalent in the turkey industry, and why marketing contracts have become common in the pork industry. The implications from this model are also applicable to other sectors and other countries, including China's agricultural sectors.

This paper illustrates that perishable products are more vulnerable to opportunism, because the incomplete contract distortion is exaggerated by the perishable nature of the products. However, a local government can reshape firms' choices of vertical coordination by improving its legal infrastructure to reduce the incomplete contract distortions and then weaken the role of the perishable nature of products, so that contracting (product or marketing) may take place. Note that agricultural producers benefit more in selling their products through product/marketing contracts than spot markets.

The organizational structure of the modern poultry industry that developed in the US South has been advanced as the future model of agriculture and agro-industrial globalization. This “Southern Model” characterized by asymmetrical power relationships between the integrating firms and production growers and reliance on informal labor patterns in processing is being diffused to other countries. Research on the diffusion of this model deserves special attention from those concerned with the socio-economic implications of the globalization of the agri-food system. This chapter first provides an overview of the industrialization of the poultry industry in the United States, then documents the diffusion of this model globally and in Mexico through the activities of Tyson Foods, Inc. and Pilgrim's Pride, Inc. The chapter concludes with a discussion of the relationship between neoliberal restructuring in Mexico and the globalization of the poultry industry.

Poultry production supply chains produce substantial wastes that are transformable into favorable environmental outcomes and profitable products. While overwhelming evidence supports this conclusion, scant literature is available on how such transformations are doable. Using systems dynamics, this study addresses this research gap in a national (Bangladesh) context. This study aims to contribute an integrated model for poultry supply chains that incorporate reverse flows of wastes using system dynamics (SD) engineering with empirical simulations.

This study applies SD and simulations of alternative supply chains with versus without reverse loops that transform wastes into viable products in poultry production and downstream marketing operations. This research reports on an in-depth case study of systems thinking and use of the Massachusetts Institute of Technology systems dynamics software. Data for the study are longitudinal and come from written operation records and extensive, repeated, one-on-one Interview from a large poultry plant operation in Bangladesh.

This study finds that several current poultry waste production problems are solvable through an integrated approach that generates viable new marketable products with substantial profitable opportunities that also contributes to reductions in industrial pollution. This study confirms that forward, backward and reverse supply chains need to be under one umbrella system to achieve economic, social and environmental benefits.

This study’s SD model and outputs need additional applications in poultry supply chains in multiple countries. Applying the firm-level model that this study provides is a necessary but insufficient step toward empirical confirmation through replicating.

The purpose of this paper is to analyse the current status of the poultry meat supply chain.

The research included a literature review and evaluation of financial performance data to determine the market conditions that have impacted on both individual organisations and supply chains.

The financial data has demonstrated, for the transnational corporations (TNC) studied, a significant reduction in financial performance over the last 12 months. This is due in part to the influence of avian influenza, but also to the over supply of poultry meat and increased production costs. The ongoing management of risk within this context needs to not only address traditional risk factors, but also in publicly traded organisations address the effective management of investment risk to ensure continued shareholder confidence and organisational viability.

This research is of academic value and of value to those working in the food supply chain.

Following a negative attitude of consumers toward genetically modified organisms (GMOs) and the spaces left by the labeling legislation on GMOs of different countries, some retailers and processors introduced their own non-GMO standards, with the intention of avoiding the presence of GMOs in their products. This paper aims to understand how the implementation of these new retailer-driven standards affects governance structures along the supply chain and the determinants of such change focusing on transaction cost approach (TCA) vs resource-based view (RBV).

The non-GMO introduction is investigated as a case study in the poultry industry of France and Italy. The case relies on data primarily collected from interviews with the main actors at five stages of the supply chain from the retailer up to animal feed and crop production.

Findings indicate that the introduction of non-GMO products had different impacts on the transactions along the supply chain, generally leading to more integrated relationships. Theoretical relevance depends on the observed transaction and the type of governance structure considered. Interestingly, only RBV explains the shift toward hierarchical governance when this is observed.

This paper contributes to the empirical literature highlighting the upstream effects caused by the adoption of new standards. On the theoretical side, building on Conner and Prahalad’s (1996) seminal work and leveraging on the concepts of opportunism, “potential” superior knowledge and strategic importance of an activity, this research suggests a comparative framework for identifying governance structures and their determinants under TCA and RBV.

This study empirically examines the effect of supply chain integration (SCI) on financial performance (FP) and controls for the mediating effects of supply chain agility (SCA), supply chain (SC) innovation and operational performance (OP).

Through a causal research design, structured questionnaires were used for primary data collection from 217 commercial poultry farms (CPFs) operating in the Bono Region of Ghana. Structural equation modeling was reflectively configured to test the formulated hypotheses.

SCI causes a statistically significant moderate positive variance in OP in terms of cost-effectiveness, order fulfillment rate, operating cycle, inventory turns, business process innovation. SCI is an insignificant weak positive predictor of FP (growth in revenue, profit, return on investment, sales growth) of CPFs operating in Ghana. Furthermore, OP significantly and positively mediates the predictive relationship between SCI and FP. Again, SC innovation significantly mediates the predictive relationship between SCI and OP. However, SCA fails to significantly mediate the predictive relationship between SCI and OP.

Focal firms' characteristics were ignored, although they may determine how SCI affects OP and FP in the presence of SCA and SC innovation.

Empirically, SCI has no direct impact on FP of CPFs but does so indirectly through the mediating role of OP.