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Competing for the Future in the Agricultural and Food Channel
Abstract
As in many other sectors, major changes are taking place in all parts of agribusiness. On the demand side consumers play the leading part. Consumers are changing their life styles, eating habits, shopping preferences, and attitudes. The consumer wants tasty products that: have built-in convenience; come in small portions; offer a lot of variation; meet ever higher health, safety, and animal welfare standards; and can be bought at places and times that suit her, and increasingly him, best.
... REVIEW OF LITERATURE Understanding consumer behavior towards electronic devices in the agriculture domain is crucial for several reasons [3]. By synthesizing previous research, this review of the available literature seeks to investigate the various factors impacting consumer behavior toward electronic devices in agriculture. ...
This research paper investigates consumer behavior towards electronic devices in the agriculture domain, aiming to understand the factors influencing the adoption of technology in farming practices. The primary objective is to identify the key drivers and barriers that shape farmers' decisions regarding the integration of electronic devices in agriculture. The study employs a mixed-methods research design, quantitative surveys, and qualitative interviews to gather comprehensive insights from a diverse sample of farmers across different regions of Maharashtra. Key findings reveal that perceived benefits, technological literacy, and social influence significantly impact the adoption of electronic devices, while challenges such as cost and concerns about technology's practicality act as notable barriers. Implications of this research extend to enhance technology literacy, reduce implementation costs, and foster a supportive social environment. Through this study, a nuanced understanding of the dynamics surrounding electronic device adoption in agriculture emerges, offering valuable insights for stakeholders aiming to promote sustainable and effective technology integration in the farming sector.
... The majority of respondents purchased rice one a month at five kilograms per time. The respondents preferred ordinary and organic rice sold in supermarkets due to convenience and accessibility, which concurred with the place-related marketing factors affecting consumer decisions [13]. The consumers gave the highest priority to convenience. ...
The present research was aimed at studying the behavior and factors affecting decisions to purchase rice and awareness about organic rice in order to provide guidelines for organic rice entrepreneurs in meeting consumer demands. Data was collected randomly by E-survey (Google form), while field data was collected from 433 individuals in supermarkets and organic product exhibitions in urban Bangkok Metropolitan Area, Thailand. χ 2 test (at 5% level of significance) was used to test the differences between types of respondents, decisions to purchase rice, and awareness about organic rice. On the decision behavior in choosing rice, the study found that consumers generally prefer the same type of rice without changes (37%). The top consideration affecting decisions to purchase rice was flavor (46%), followed by nutritional value (30%). In addition, 230 samples (53.1%) were aware of organic rice. Among these, 52% supported organic rice due to health concern, and 16% favoured organic rice for environmental reason. Those without awareness of organic rice indicated that it was due to inadequate public information (77.8%). Further data are discussed in the article. This information is useful for providing knowledge on urban rice consumption and attitude in order to promote better understanding among rice producers/ traders in meeting consumer demand.
... Partly this is due to an increasing distrust in conventional agriculture (Wood et al., 2000). These changes offer possibilities for creative solutions, where local customers motivate to innovate (Wierenga, 1997). ...
Preface
Nowadays it is generally recognized that the post World War II industrial agriculture and food in Western countries was succesful with regard to profit, but unsuccesful with respect to people and planet. The underlying structure was a linear economy and a poor interpretation of the sustainability paradigm. All efforts aimed at increasing production volumes and profits. The circular economy tries to reach a more efficient use of natural resources and less waste. In itself this is good, it possibly will pay attention to the planet, but people remain suffering. It will never result in a full interpretation of the sustainability paradigm. Social aspects, including food sovereignty and food safety, will not come into their own. What we need is a new economy with explicit naming of the sustainability aspects relevant to food: the paradigm of ‘sustainable food security’. Such a tailored paradigm is close to people. The base for it is in the local and regional economy. All peope are involved and nothing can be passed.
In this book four of my earlier published articles are used and combined with new research. The Chapters 2, 3 and 4 deal with the drawbacks of the current industrial system of agriculture and food, the new paradigm of sustainable food security that is urgently needed and the potential of local and regional food systems to give this paradigm content. These three chapters are based on my article ‘Sustainable food security, A paradigm for local and regional food systems’, published in 2014 in International Journal of Humanities and Social Science. The Chapters 5 and 6 relate to practical examples. Chapter 5 highlights a case of regional agriculture at work in The Netherlands, derived from my article ‘Vechtdal Food Community, a Case of regional Agriculture in the Netherlands’, in 2008 published in Journal of Rural Development NIRD, Hyderabad, India. Chapter 6 focuses on family farming in Russia, which was published in 2014 in my article ‘Family Farming in Russian Regions, Small-scale agriculture and food supporting Russia’s food self-sufficiency’ in Small Business and Entrepreneurship Development. Chapters 7 and 8 relate to the classification and governance of local and regional food systems and are based on my article ‘Governance for local and regional food systems, in 2013 published in Journal of Rural and Community Development. Currently this is the top 2013 article of the Journals article ranking by hit rate. The content of Chapter 9 is based on new research, not published before.
The author thanks many people who helped in producing this book. In particular I am indebted to Jill Crofton, Petra Crofton, Greet Goverde, Lout Jonkers, Marijke van Schendelen, Tatjana Vavilova, Joost Visser and Marc Wegerif.
Harry Donkers
Waalwijk, The Netherlands
... However, it may also be perceived as cooperation with the purpose of developing new products aimed at the subsequent parts of the value chain e what we called a type III innovation above. Such types of innovation are of increasing importance in the food sector (Royers & Rogers, 1998;Wierenga, 1997). It is a development driven by differentiated end user demands, which have to be dealt with at different levels of the value chain. ...
New product development (NPD) is a necessary activity for a company’s competitiveness, profitability, and growth. However, NPD is a risky activity as a large percentage of new product introductions fail to achieve their commercial targets. The present article reviews the existing evidence on new product success and failure factors. From that it introduces the perspective of consumer-oriented NPD as a way to balance new technological opportunity against identified consumer needs and desires.
... However, it may also be perceived as cooperation with the purpose of developing new products aimed at the subsequent parts of the value chain e what we called a type III innovation above. Such types of innovation are of increasing importance in the food sector (Royers & Rogers, 1998;Wierenga, 1997). It is a development driven by differentiated end user demands, which have to be dealt with at different levels of the value chain. ...
In this chapter, we clarify the concept of consumer-oriented innovation in the food and personal products sectors and define it as a process towards the development of a new product or service in which an integrated analysis and understanding of consumers' wants, needs and preference formation play a key role. We then outline relevant streams of research that may promote the implementation of consumer-oriented innovation in these sectors. We first review research on understanding consumers, notably on quality perception, associated methods, and their application in innovation processes. We then review research on innovation management, emphasizing the use of consumer insight information in innovation processes. We conclude that a better integration of consumer research and research on innovation management would benefit the innovation process.
... However, it may also be perceived as cooperation with the purpose of developing new products aimed at the subsequent parts of the value chain e what we called a type III innovation above. Such types of innovation are of increasing importance in the food sector (Royers & Rogers, 1998; Wierenga, 1997). It is a development driven by differentiated end user demands, which have to be dealt with at different levels of the value chain. ...
... The unit of analysis has been the individual company. To an increasing degree the food marketing literature recognizes the importance of supply chains or partnerships (Mohr and Spekman, 1994;Skinner et al., 1992;Wierenga, 1997). In this research we have tried to take this development into account by including a number of questions on channel structure and influence on innovation activities. ...
In the more recent product development literature the interplay between R&D skills and competencies and market skills and competencies is seen as a major determinant of successful innovation. The study reported in this article was done in order to cast more light on these two constructs in an industry with low R&D expenditures, but where product development is nevertheless considered to be strategically important. That industry is the food processing industry. The results of a series of case studies indicate that constructs other than R&D and market orientation may be more appropriate for understanding innovation and explaining innovation success in the case material. A new set of constructs focusing on what causes specific innovation activities to occur is proposed and a revised framework is developed.
... However, it may also be perceived as cooperation with the purpose of developing new products aimed at the subsequent parts of the value chain e what we called a type III innovation above. Such types of innovation are of increasing importance in the food sector (Royers & Rogers, 1998;Wierenga, 1997). It is a development driven by differentiated end user demands, which have to be dealt with at different levels of the value chain. ...
The aim of this paper was to give an overview of relevant streams of research that can form a basis for research on user-oriented innovation in the food sector. We define user-oriented innovation as a process towards the development of a new product or service in which an integrated analysis and understanding of the users' wants, needs and preference formation play a key role. We distinguish three relevant streams of research that may provide a basis for research on user-oriented innovation in the food sector: research on the formation of user preferences, research on innovation management, and research on interactive innovation. We show that the relevance of these three streams of research for the food sector depends on which type of innovation we are dealing with, and we propose a distinction of three types of food innovations depending on which actors in the food chain are involved in the innovation process. We conclude that while much relevant material exists, little has been specifically developed for or applied to the food sector, and we present five topic areas where food-related research is urgently needed.
... Las actuaciones propuestas, fundamentadas en una alteración de los parámetros de competitividad del sector, inciden en señalar la necesidad de incrementar la importancia de los factores y dimensiones comerciales, en detrimento de las puramente productivas (ARCAS, et al. 1997;BELLO, et al. 1996). Se plantea, la importancia de la diferenciación del producto a través del diseño, la calidad, la innovación y la consideración de elementos de seguridad y medioambiente (MINE, 1999;PENNINGS, et al. 1997;WIERENGA, 1997). Lo que implica que la preocupación de la empresa no ha de ser tanto producir en grandes cantidades, sino más bien introducir en la oferta, o mejorar e incrementar si ya existen, aquellos atributos o beneficios, que valorados por el consumidor, favorezcan la diferenciación frente a los competidores (AUDENAERT, et al. 1997). ...
The global development of recreation has lead to global brands and standardised products. Standardised recreation products neither capitalise on the uniqueness of place, nor the ‘mass-customisation’ market trend. This paper analyses the peculiarities of the recreation and tourism sector. It suggests the value- chain/network approach as a means of regional co-operation and investment in innovation in order to achieve three objectives: product differentiation, integrated quality and chain optimisation. And proposes that for the theoretical design to be realised, various critical success factors must be met at the aforementioned three levels.
The present paper examines the potential application of the recreation chain approach in rural regions. Specifically, the focus will be on Brabant, one of the provinces in the Netherlands. It concludes with the observation that the implementation of the design is only feasible if one possesses the required knowledge about chains and knowledge in chains.
In the European Union (EU) its Common Agricultural Policy was aimed at increasing agricultural productivity, price and income stabilization and security of food supplies. For Dutch agriculture, as for agriculture in other European regions, until recently emphasis has been put on sustained growth and efficiency. However, nowadays most markets have become saturated. Referring to the product lifecycle a developing market can be considered as a ‘sellers’ market concentrating on cost competition, while at the maturity stage it tends to shift to a ‘buyers’ market concentrating on differentiation strategies (Den Ouden et al., 1996a).
Gefördert vom Bundesministerium für Verbraucherschutz, Ernährung und Landwirtschaft im Rahmen des Bundesprogramms Ökologischer Landbau Dieses Dokument ist über http://forschung.oekolandbau.de verfügbar.
In order to gain competitive advantage of food supply chains specific market and production characteristics are motives for vertical coordination. Although quality assurance systems will contribute as a facilitating factor, the actual competitiveness of the food supply chain will be determined by the ability to develop vertical coordination partnerships. The implications for food supply chains will be a diversity of partnerships characterized by an enhanced asset specificity and higher exit and entry barriers.
This study investigates consumer attitudes to and associations with quality labels for beef. Beef quality labels were introduced as part of the marketing response strategy by the beef industry aiming at restoring the declining beef image and regaining consumer confidence in Europe. The objective of this paper is to add insights to the discussion about the potential role of quality labels in meat marketing, based on empirical research in Belgium. The research methodology focuses on consumer surveys with two representative samples: 157 respondents in 1996 and 303 respondents in 1998. Significant differences in consumer attitude towards and associations and beliefs with beef quality labels across time and across age, gender, education level, buyer status and claimed television impact are discovered. The research indicates that quality labels are a valuable and promising part of response strategies by the beef sector to negative media coverage. Important hurdles to overcome include establishing a waterproof traceability and control system, as well as setting up effective marketing communication aiming at correctly informing consumers.
The Dutch potato sector went through a process of considerable concentration during the past two decades. The number of firms decreased substantially while production levels increased. The process of restructuring was triggered by a combination of shifting consumer demands, internationalisation of markets, and concentration among food retailers. Many potato firms were unable to adjust to these developments and found themselves either for sale or bankrupt. Others engaged in mergers or strategic alliances to meet the changing demands. The resulting concentration process led to higher levels of both vertical and horizontal interdependence between the remaining firms. The rules of competition have changed: opposed to competing individually, successful potato firms achieve substantial competitive advantages through co-operative inter-firm arrangements that gain access to high-quality raw materials, production capacity, and large customers. Consequently, managing inter-firm co-operation has become a strategic issue for firms in the potato supply chain.
Purpose
The purpose of this paper is to provide a structured demand chain design framework that can be linked with gateway and corridor management practices.
Design/methodology/approach
The model in this paper presents supply and demand thrusts that could leverage Canada's position in international food trade.
Findings
Since a direct correlation exists between the wealth of a nation and how it consumes food, the paper first presents five utilities and several factors that are perceived differently by customers once a nation becomes affluent. Then it presents supply and demand thrusts that could leverage Canada's position in international food trade. Finally, a demand chain design framework is suggested.
Research limitations/implications
The framework is meant to be organically generic and not applied to one specific commodity or market, as all commodities and targeted markets necessitate an idiosyncratic approach. Although it is met to be applicable to topographies that offer logistical challenges such as Canada.
Practical implications
It has been recognized that agriculture and food companies have a long tradition of being commodity‐driven, with an emphasis on production technology, high volumes, and quality consistency. In the context of global hyper‐competitivity, the ability to understand customer needs and adapt to a wider variety of customer situations will become crucial.
Originality/value
Without being specific to a targeted market or commodity, a demand chain management framework for food products is presented which provides an integrative approach for demand chain design based on food marketing practices, and which requires continuous evaluation of perceived utilities by customers.
Purpose
This paper extends the concept of market orientation from the firm to the value chain level and seeks to develop empirically founded propositions on determinants of different levels of market orientation of value chains.
Design/methodology/approach
Four case studies on value chains within the areas of agribusiness and fisheries are conducted. For each value chain, desk research is combined with interviews with decision‐makers of all types of value chain members. Interview guidelines were derived from a conceptual model of potential determinants of value chain market orientation.
Findings
Degree of market orientation of value chains is found to be related to degree of heterogeneity and dynamism of end‐users served, nature of chain relationships, regulations and prevailing mental models of decision‐makers. Short and balanced chains are believed to further upstream market orientation.
Research limitations/implications
The results point at two areas, where additional research on market orientation is called for: a better conceptualization of market intelligence and theorizing on most cost effective ways of being market oriented, including implications for the distribution of market oriented activities among value chain members.
Practical implications
The paper underlines the importance of managing channel relationships, up to and including vertical integration, when serving markets with high degrees of end‐user volatility.
Originality/value
This paper is the first empirical contribution to the market orientation literature employing a perspective encompassing the whole value chain.
The analysis of the allocation of decision rights in Hendrikse and Veerman (2001) is extended to allow for the distinction between formal and real authority. The incomplete contracts in their article can be viewed as simple long-term contracts, i.e. it is not allowed to make the allocation of authority contingent on the circumstances. Contingent long-term contracts are considered in this article. This makes it possible to address various issues regarding the internal restructuring of agricultural co-operatives.
This article addresses two observations regarding the board of directors in agricultural cooperatives. First, it is sometimes
stated that cooperatives seem to behave like ordinary enterprises. Second, it is argued that cooperatives may have advantages
compared to corporations with publicly exchanged shares. These observations are analyzed from complete as well as incomplete
contracting theory.
Specific market and production characteristics of food supply chains are motives for vertical coordination in order to gain competitive advantage. Quality assurance systems will only contribute as a facilitating factor. The actual competitiveness of the food supply chain will be determined by the ability to develop successful partnerships. The implications for food supply chains will be a diversity of partnerships characterized by an enhanced asset specificity and higher exit and entry barriers.
This study analyses the degree in which second level co-operatives contribute to their member co-operatives’ market orientation and achievement of their business objectives. To do this, a theoretic framework is proposed enabling us to evaluate this contribution and an empirical study is carried out with the information obtained from a survey of 190 Spanish fruit producer co-operatives who market all or a part of their products through a second level co-operative. In the study, we conclude that the relationship with a second level co-operative facilitates first level co-operatives’ market orientation, which in turn favours the second level contribution to achievement of the first level objectives. These findings are of great interest as they help explain the motives leading agricultural co-operatives to become involved in mergers, as well as the determinant factors for successful merger.
In business-to-business settings, dyadic relationships between firms are of paramount interest. Recent developments in business practice strongly suggest that to understand these business relationships, greater attention must be directed to the embedded context within which dyadic business relationships take place. The authors provide a means for understanding the connectedness of these relationships. They then conduct a substantive validity assessment to furnish some empirical support that the constructs they propose are sufficiently well delineated and to generate some suggested measures for them. They conclude with a prospectus for research on business relationships within business networks.
The competitive market is eroding. To an increasing degree, transactions are occurring in internal markets within the framework of long-term relationships. The emerging domesticated markets call for more attention to the management of interorganizational systems and to the political aspects of economic decision making.
With the publication of his best-selling books "Competitive Strategy (1980) and "Competitive Advantage (1985), Michael E. Porter of the Harvard Business School established himself as the world's leading authority on competitive advantage. Now, at a time when economic performance rather than military might will be the index of national strength, Porter builds on the seminal ideas of his earlier works to explore what makes a nation's firms and industries competitive in global markets and propels a whole nation's economy. In so doing, he presents a brilliant new paradigm which, in addition to its practical applications, may well supplant the 200-year-old concept of "comparative advantage" in economic analysis of international competitiveness. To write this important new work, Porter and his associates conducted in-country research in ten leading nations, closely studying the patterns of industry success as well as the company strategies and national policies that achieved it. The nations are Britain, Denmark, Germany, Italy, Japan, Korea, Singapore, Sweden, Switzerland, and the United States. The three leading industrial powers are included, as well as other nations intentionally varied in size, government policy toward industry, social philosophy, and geography. Porter's research identifies the fundamental determinants of national competitive advantage in an industry, and how they work together as a system. He explains the important phenomenon of "clustering," in which related groups of successful firms and industries emerge in one nation to gain leading positions in the world market. Among the over 100 industries examined are the German chemical and printing industries, Swisstextile equipment and pharmaceuticals, Swedish mining equipment and truck manufacturing, Italian fabric and home appliances, and American computer software and movies. Building on his theory of national advantage in industries and clusters, Porter identifies the stages of competitive development through which entire national economies advance and decline. Porter's finding are rich in implications for both firms and governments. He describes how a company can tap and extend its nation's advantages in international competition. He provides a blueprint for government policy to enhance national competitive advantage and also outlines the agendas in the years ahead for the nations studied. This is a work which will become the standard for all further discussions of global competition and the sources of the new wealth of nations.
A model of distributor firm and manufacturer firm working partnerships is presented and is assessed empirically on a sample of distributor firms and a sample of manufacturer firms. A multiple-informant research method is employed. Support is found for a number of the hypothesized construct relations and, in both manufacturer firm and distributor firm models, for the respecification of cooperation as an antecedent rather than a consequence of trust. Some implications for marketing practice are discussed briefly.
New organization forms, including strategic partnerships and networks, are replacing simple market-based transactions and traditional bureaucratic hierarchical organizations. The historical marketing management function, based on the microeconomic maximization paradigm, must be critically examined for its relevance to marketing theory and practice in the 1990s. A new conception of marketing will focus on managing strategic partnerships and positioning the firm between vendors and customers in the value chain with the aim of delivering superior value to customers. Customer relationships will be seen as the key strategic resource of the business.
This article presents an institutional, political economy paradigm in marketing as a complement to the presently prevailing microeconomic/marketing management concept. The latter framework provides insufficient tools for analyzing exchange structures and processes within and between organizations. Political economy is proposed as a more appropriate paradigm, as it focuses on authority and control patterns, conflict and conflict management procedures, and external and internal determinants of institutional change.
Strategic market planning -- Industrial marketing -- Research for marketing decisions -- Global marketing management -- Marketing management -- Strategic marketing for nonprofit organizations -- Principles of marketing -- Services marketing -- Marketing research and knowledge development -- The strategy and tactics of pricing -- Kleppner's advertising procedure -- Marketing channels -- Legal aspects of marketing strategy -- Design and marketing of new products
The thesis of this paper is that in agricultural marketing theory the basic approach to marketing problems should be the 'marketing management' approach. In order to substantiate this thesis, the developments in agricultural marketing and general marketing theory are concisely reviewed. The elaboration of marketing management in agricultural marketing is discussed in relation to the properties of the marketing environment and to the marketing capacities of an agricultural marketing system. (Abstract retrieved from CAB Abstracts by CABI’s permission)
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