agrifoodvalue chains: concepts, axes of transformation ... · • rapid growth in delhi’s...

78
Agrifood Value Chains: Concepts, Axes of Transformation, illustrations Thomas Reardon MSU February 20, 2017 ABU, Zaria

Upload: others

Post on 29-Dec-2019

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Agrifood ValueChains:Concepts,AxesofTransformation,

illustrationsThomasReardon

MSUFebruary20,2017

ABU,Zaria

Page 2: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

OverviewofTalks:20Feb1) ConceptoftheValueChain(VC),“fishimage”,as

clusterofVCswithdendriticstructure2) Evolutionofresearchapproaches3) AxesofVCtransformation:structure,

conduct/behavior,performance…presentedinstructureofVCtypology(traditional,transitional,modern)4)ExamplesoftransformationofVCs:fish(Asia/US),chicken(US) potatoes(India,US),dairy(Brazil),chicken(US)

Page 3: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

21Feb.1)“homework”Nigeriapoultry/eggsVC,groupdiscussioncasebasedonanalysisapproach2)Researchquestions(formethodsapplication)…linkingpolicyissues(testingconventionalwisdomassumptions…)withresearchquestions/hypotheses3)Testinghypotheses&Mythbusting…withcerealsexample(fromstackedsurvey)asmotivationforstackedsurveyapproach

Page 4: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

4)Rapidreconnaissance/meso study5)Stackedsurveys/microstudy6)Conclusionsandwayforward

Page 5: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

1.VCconcept

Pictureafishinyourmind.

Page 6: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

a) VCcomposedofprincipal“spine”ofsegmentsb) EachsegmentofwhichsuppliedbyinputVCs

(intermediateinputs&factorinputs)c) Andinputsegmentssuppliedby(1)factor

supplychains/markets;(2)intermediateinputsd) Overall“dendriticstructure”e) Policyissueslinkedtobothoftheabove…examplefromBangladesh

Page 7: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

2.Marchoftheliterature2.1.Generalmarchfrom“meso-economics”to“micro-economics”to“businessstrategyeconomics”a) Meso analysis:“Structure-Conduct-

Performance”…structure:industrialorganizationlikespatiallayoutandconcentrationofVC…conduct:technology,institutions(contracts,standards),organization(procurement,marketingstructures)…performance(incomedistributionoversegmentsandwithinsegments,profitability,efficiency)

Page 8: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

b)Microanalysis…choiceoftechnologiesbyactors…choiceofinstitutionsbyactorstocoordinatemarketingandprocurement…choiceoforganization…“integrativeanalysis”:innovatorchoosinghowto“implement”innovationtostay“middleman”(volume,make/buy,technology/institutions/organization)

Page 9: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

2.2.(Evolutionof)VCAnalysisperspectivescrossedwith“issues”

2.2.1.Traditional:typologyplusmapping costandvalueaddedandcostsacrosssegments,space,actors;linktoPAM

2.2.2.VCManagement:Porter,commodity/”engineering”SCtoVC(productcycle&standards/attributesevolution)…example(is2.2.1.butdifferentiationby“type”ofgivenproduct)

Page 10: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

2.2.3.NIE:choiceofinstitutions&organizationalformsascoordinatingmechanisms;functionofTCsèMicro:choiceofmechanismsbyactors(e.g.)èMeso evolutionofA-system(spot),B-System(spotorVI/hierarchy)orC-system(VI/hierarchyornetworks)(discussednext)EXTENSION:GlobalVC– powerrelations– LeadFirm+standard/VA(rents)+ choiceofcoordinationmechanism(linktoNIE)è rent(profits)distributionalongVCsegments(andintra-segmentstrata)

Page 11: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

2.2.4.Network/netchain analysis:clustering/de-clustering,networks/functionalfragmentationand“flexiblespecialization”…studyofformationofclusters&inter-actorrelations(conditioners)2.2.5.a.Persegment(andoverscaleshenceinter-actordifferentiation)microandmesodeterminantsandevolution:analysisofmicroa) technologychoice,b) marketchannelchoice,c) procurementsystemchoice

Page 12: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

2.2.5.b.UpgradingasInvestmentfunctionsbundlingtechnology+VA/attributechoicesi)(Micro)Investmentfunctionii.(Meso)investmentfunctioniii.LinksofupgradinginVCswithinvestmentfunctions(andpovertytraps,orkinksininvestmentfunctions)…andlinksbacktomicroandmesoconstraints)

Page 13: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

2.2.5a.And2.2.5b(micro)_aggregatetomesostructure/conduct/performance…studyshocksofpolicychange,nonpolicychangeviathosetotestandexplainchangeviamicrofoundationsinter-actorinter-temporal

Page 14: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

2.2.6.Integrative“innovatorbusinessstrategy”microanalysis:ineraofrapidinnovationandcompetition…exampleoffastfoodchainasinnovation…exampleofTyson’swithcutchicken

Page 15: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

3.Structure&Conduct/BehaviorbasedtypologyofVCswithtransformation3.1.ColumnsastypologyofVCsa) “A-System”(local/traditionalandtraditional

rural-urbanVC)b) B-system(transitionalrural-urbanVC)c) C-system(modernruralurbanand

internationalVC)d) SUBCOLUMNSaresegmentsofVCand

“overall”

Page 16: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

3.2.VCtypologybasedonstructure,rows

a)Commercialorientation,distributionofVA&leadership• spatially:shorttolong• ProductCycle/VA:nichetocommoditytodifferentiated(commercial)product

• Productcomposition:typesofproductlinkedtoproductcycle

Page 17: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

• “LeadFirm”(alaGereffi):upstreamormidstreamordownstream“led”

• DistributionofVAoversegmentsandoversub-stratainsegment:upstreamtodownstream, socioeconomic;

• …alsostructural:Shareofpost-farmgate –smalltolarge

• Capitalownership:domestictoregionaltoglobal;investmentdynamics

Page 18: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

b)Structural• Geographiclength:shorttolong• Intermediational length:monotonic:manyhandstofewhands/directsale/directbuy(orUorJcurve);Tanzaniamaizevshortic.

• Shareofpostfarmgate intotalVA• Persegmentconsolidation:fragmentedtoconsolidated

• Netchain/network/clustering:nocluster,clustered,de-clustered,networkedclusters

Page 19: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

c)Conduct:Technological• Scaleoffirm:fromsmalltobig• Capital/laborratiooffirms:fromlowtohigh(andvintage&typechange:hammertorollermill)

• Assetspecificity:fromlowtohigh• Laborskill:fromlowtohigh• Productivecapitalattributes (transferredvsindigenousetc.)

Page 20: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

d)Institutional&Organizational• Marketorganization:spottocoordinatedtoVI

• Verticalintegration(or“functionalfragmentation”):fragmentedtolinked

• Horizontalintegration:individualtohorizontallinkage(coops,clusters)

• d)Procurementsystemchangebybuyingfirms:distributioncenters/centralized,&specialized/dedicatedwholesalers/agents

Page 21: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

• Inter-firminstitution/contracts:spottocontracts(verbaltowritten)

• inter-segmentVCfinance(tied,nottied)• Inter-segmentinstitution/standardsexistence,setter,andtype(e.g.publicstandards;vsGlobalgap horticultureproductstandards)

• Diffusionofbrands(pluspackaging)

Page 22: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

3.3.AxesofVCtransformation:performance(changes)

a) Valueaddeddistributionoversegments(exampleofqualityriceinBangladesh)

b) Distributionofparticipation:Exclusionandinclusionbyassetorzone

c) Variability/riskofsupplyandpricesd) Vulnerability/climate/foodsafetye) Incomeandemploymentimpacton

“producers”(upstreamandmidstream)f) Price/accessandnutritionimpactson

consumers

Page 23: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

4.Illustrationsofrapidchange

Page 24: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

4.1.FishVCtransformation:historicalviewUS,Europe

…andgrowingdemand“shock”toAsiafishsupply

Page 25: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

a)LocalfishcaptureUS&Europe,1400s-1700sb)1400s-1600’s:emergenceofextremelyvaluablenicheintoWesternEurope(dried/salted,“bacalao”)c)1700s/1800s:“CapeCod”:USemergestocompetewithIceland withAtlanticcoastcod(dried/salted,soldinEurope&US/Americas)…commoditizationphase1:mainfishconsumedinUS1800s-mid1900s

Page 26: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

d)Commoditizationphase2:“Industrialization”ofcod…1929inUKwith“platefroster”(firstquickfreezer);foodfrozeninslimrectangleslabs…riseofprocessed“fishsticks/fingers”1950s/1960sUK,US(cocktailsauce/ketchup/tartarsauce)…CHEAP;childrenliked;nobones;justheat(conveniencefood)…incomes,womenenteringworkforce,eatatschool

Page 27: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

…Importantchanneloffoodinnovationisvia“foodservice”sector(fastfoodfish)(incomes,womenenteringworkforce)

Page 28: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

e)2phasesofcommodizationè Extremeover-fishing/neardisappearanceofAtlanticcod:1970s-present

Page 29: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

f)1970s-present,suddenhugeshiftinUSfish/seafoodconsumptionsource:f.1)riseoffish-farming:50%fromaquaculture,50%fromcapturef.2)91%ofUSconsumptionoffish/seafoodisimportedby2011

Page 30: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

f.3)Emergenceof“differentiatedproducts”…firstsafetyofcommodity(HACCPcertified)…quality (“sushigrade”)(consumerswantingtomovebeyondcommoditybreadedproducts)…sustainabilitylabel(consumerreactionagainstover-fishing)…“laborstandards”(consumerreactionagainstfishboatslaveryforexampleinThailand)(socialaudits)…“localcatch”(insomeareas)…issueofscalingup

Page 31: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

g)RisetopreponderanceofAsianaquacultureinUSconsumption:…shrimpranked#1,mostofitfromAsianaquaculture (shrimpwastinyNICHE,nowcheapcommodity)

Page 32: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

…importedAsianshrimppushesoutUSoysters---tomake“shrimpcocktails”(appetizer/dishintroducedbychefsinUSandUK,1960s-1980s)…nowUSpercapitain2010ofshrimp=USpercapitaofoystersin1910

Page 33: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

…cannedtuna(Thailand)&salmon(aquacultureChile(introducedfromNorway;afterover-fishing..)#2,#3(usedtobeAtlanticcod)…PacificPollock/AlaskanWalleye(processedintofilleto’fish)(usedtobeAtlanticcod)

Page 34: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

…Asian(aquaculture)tilapia&catfish(pangasius)#4,#5(usedtobeAtlanticcod)…takesustoAsianaquaculturesupplychaindevelopmentnext

Page 35: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

4.2.AsianSupplyandDemandevolution

a)TwodriversofextremelyfastgrowthofAsianaquaculture(andshiftfromcapture)• HugeUSmarketgrowingfastè exportmarketà spurringinitialtransformationfromtraditionalsupplychain

• ThenhugeAsiandomesticurbanmarket(extremelyfasturbanization(3/4offishindomesticmarketgotourban),income)àsecondphaseoftransformation

Page 36: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

b)Links:exportbasethendomesticmarketexplosion(nichetocommoditytodifferentiated)…GuangdongChinacase(toUS,thentoBeijing)…withfreezing&fastfoodsteps,localinnovations(asinUS)…foodhabitsareCHANGEABLE!

Page 37: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

c)Productcycleinnovation:Shiftfromlocalnichecarp&tigershrimptothe“bigthree”commodityspecies

Page 38: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

à…AsianTilapia(AfricanfishintroducedtoAsia);superfastgrower

Page 39: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

àReplacedalsowithAsianPangasius-catfish(fastgrower&breathesairsocangrowdensely)

Page 40: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

PacificWhiteShrimp:growsdensely(volumetricallynotonbottom)

Page 41: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

c) Asianaquaculturetechnologychange

• fish/shrimpopen-water(andricefields)capture…

• tovastspreadofaquaculture(ponds)…fromtraditional/extensive(nofeed)…tosemi-intensive(feed)…tocapital-intensive(feed,aerators/pumps,hatcheries)…plusmedicinesforgrowingneedfordiseasecontrol

Page 42: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Semi-traditionalShrimpfarmVietnam

Page 43: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

ModernizingtraditionalshrimpfarmJava

Page 44: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Introductionoffeed

Page 45: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Aeratorsforintensification

Page 46: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Fertilizerforponds(forphytoplanktonthenzooplanktongrowth)

Page 47: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Larvaehatcherydevelopment

Page 48: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Vannamei forvolumetricproduction

Page 49: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

IntensivehugeshrimpfarmIndonesia(CPhaslargestinworldthere)

Page 50: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

NettingstockonJava

Page 51: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Gradingshrimpformarket,Java

Page 52: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Investmentiniceplants

Page 53: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Holdingareashrimponice

Page 54: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Loadingiced-shrimpintrucksIndonesia

Page 55: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Rivericed-transportofshrimp/fishtopackersVietnam

Page 56: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Shrimp and Canned Tuna Industries – packing Thailand

Page 57: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Fish wholesale in southern China 60 years ago

Page 58: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Today: Largest shrimp wholesale market in world south

China

Page 59: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

Local supermarket sale Java

Page 60: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

d)RapidriseoffishfeedindustryinAsia• ShiftfromlocalfeedSME• toclustersoflarge-scalemills(oftenextensionofchickenfeedmills)

(Nigeriacase,600%!)• ToFDIinfishfeed(NewHope(China)toBangladesh),regionalmultinational

• Riseofvaluechainfinancingfromfeedmillstofarmersas“newtechnology”

• Bigdemandformaize,soy,peanutcake,fishmealà acceleratesingredientmarketdevelopment(USexportsto)

Page 61: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

e)Verticalintegration(ponds(ownoroutgrowers),feed,marketing)• ForproductionandsupplychaincontrolgiventheUS/Europe/Japanattributedemand(privatestandards,certification

…tomeetcontractswithconsolidateddemandside(largesupermarketsandfoodservicefirms,e.g.Sysco)

Page 62: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

f)“Translation”toourVCanalysisframeworkofAsian(note:Nigeriaastransitionalstage..)fishVC

transformationf.1)Traditional• Structure:short+fragmented+backyard• Technology:capturethenpond+nofeed• Productorientation,productcycle:niche,local• Marketorientation:local,backyard,subsistence

• Performance:seasonal,expensive

Page 63: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

f.2)transitional• Structure:longer,town,fragmented+backyardpluscommercial

• Feedindustryemerging,fragmented• Technology:pond&simpleassembledfeed,sinking

• Productorientation:commodity,exotic(tilapia,catfish)

• Marketorientation:city,semi-subsistencetocommercial

• Performance:cheap,lowseasonal

Page 64: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

f.3)modernizing• Structure:long,countryintegrated,manybackyardbutdominantcommercial

• Feedindustryconsolidating,FDI• Technology:pond&concentrated/differentiatedfeed,floating

• Productorientation:commodityplusnewwavecaptureintroductionpond

• Marketorientation:city,inter-regional,commercial,foodsafety

• Performance:cheap,lowseasonal

Page 65: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

4.3PotatoesinAgraIndia:TheCold-StoredPotatoRevolutioninWesternUttarPradesh,India

CONFLUENCE… urban demand … diet change… Road… electricity… cold storage… farm product and technology change

Page 66: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

a)Firstwaveofpublicinvestment&firstwaveofpotatofarming

developmentinlate1980s-early1990s

• Farmersshiftfromwheattopotato• Publicinvestment:NARSresearch&extensionofnewpotatovariety(higheryield,longerstoragelife,moreresistanttotransport)

• Publicinvestment:waterpumpsubsidies• EncouragedbyinitialgrowthinDelhieconomy

Page 67: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

b)RapidUrbanizationas“demandpull”

• RapidgrowthinDelhi’spopulationandincomesinthe1990s/2000s(linkedtoeconomicliberalizationandpublicinvestmentincityinfrastructure)

• “diffusion”ofurbanizationeffectinruralspace:largepublicinvestmentinruralroads

• Dietdiversificationintohorticulturalproductsinurbanareas

Page 68: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

c)RiseoftheRuralnonfarmsector

• Ruralnonfarmsectordevelopmentespeciallyfastandintenseinthe“market-shed”ofDelhi

• Drivesupfarmandnonfarmwages• Fuelsprivateinvestmentinallsegmentsofthesupplychain

Page 69: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

d)Secondwaveofpublicinvestmentsinruralareas

• Publicinvestmentinenergygrid• Publicinvestmentinlimitedsubsidiesformoderncoldstorages

Page 70: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

e)ModernColdStorageBoomin2000s

• Massiveprivateinvestmentincoldstoragesstartinginmid/late1990s

• …crescendooverthe2000s• b)ShiftingpotatofromseasonalconsumptioninDelhitonearly-yearround(2/3fromcoldstore)

Page 71: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

f)Secondwaveofpotatofarmdevelopment:capital-led

intensificationinsecondhalf2000s• capital-ledintensification• Landconcentration(rentalandpurchase)

Page 72: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

g)UScase• Sameasabove…and• 1920s/30sIndividualQuickFrozentechnologyforsmall

• “atlantic”potatovariety• 1950s/60sdeeppressurefryer(KFCtoo)• Frombakedpotatohome,night• nowtofrench friesviafastfood• Samehappenedfishsticks,chickennuggets• Totallychangedconsumptionhabits

Page 73: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

4.4.Fast-trackingtechnologychange:servicesVCevolution

“outsourced”mobileservicesforriceandmangofarmersa)mobilecombineharvest/threshingservices(US,China,Burma)b)mobile“sprayer-trader”teamsinIndonesia(“onestopshop”formangofarmers);seedlingVCtooc)ChiFarms&FarmSupport(poultryIbadan)

Page 74: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

4.5.USchicken(mirrorsNigeriatraditional&transitional&

emergingmodern)a) Traditional• Structure:short+fragmented+backyard• Technology:capturethenbackyard+nofeed• Productorientation,productcycle:niche,local• Marketorientation:local,backyard,subsistence

• Performance:seasonal,expensive

Page 75: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

b)transitional• Structure:longer,town,fragmented+backyardpluscommercial,PERI-URBAN

• Feedindustryemerging,fragmented• Technology:smallfarm&simpleassembledfeed,nomedicines

• Productorientation:commodity• Marketorientation:city,semi-subsistencetocommercial

• Performance:cheap,lowseasonal

Page 76: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

b)modern• Structure:long,countryintegrated,dominantcommercial,NOTPERI-URBAN

• Feedindustryconsolidated• Technology:outgrower andlarge,concentrated/differentiatedfeed

Page 77: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

• Logisticschange:train,water-logged• Newbreed,contracts• Marketorientation:city,inter-regional,commercial,foodsafety,

• supermarketsupercheapmasspurchasesandsale

• IQF,deepfry,disassembled,frozen(nontraditional)

• Performance:cheap,fastfood

Page 78: AgrifoodValue Chains: Concepts, Axes of Transformation ... · • Rapid growth in Delhi’s population and incomes in the 1990s/2000s (linked to economic liberalization and public

è CONFLUENCE,FASTJUMP

…super-modularityexamplefromUSchicken