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Short supply chain participation and market performance for vegetable farmers in China
Author(s) -
Zhang Xiaoheng,
Qing Ping,
Yu Xiaohua
Publication year - 2019
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.12299
Subject(s) - supply chain , business , profit (economics) , productivity , sustainability , intermediary , china , agricultural economics , production (economics) , industrial organization , promotion (chess) , economics , microeconomics , marketing , economic growth , ecology , politics , political science , law , biology
The fresh food supply chain in China has begun to reduce the number of intermediaries that connect producers and consumers. Using farm‐level data, this paper investigates the impacts of short supply chain participation on vegetable farmers’ market performance, including profits, productivity, production cost, price and price risk. The results show that the participation in a short supply chain is a profit‐maximising strategy and risk management tool for farmers. The increase in profit is attributed to productivity advantages, farm size expansion, and risk reduction rather than because of price premiums or cost savings. A policy implication is that short supply chain promotion has many benefits, but the government should be more concerned about the sustainability of short supply chains.