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Farmers’ self-reported bargaining power and price heterogeneity: evidence from the dairy supply chain

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cris.lastimport.scopus2024-02-12T19:46:02Z
dc.abstract.enPurpose: While it is commonly argued that food supply chains are characterized by severe imbalances of power between contracting parties, there is an insufficient understanding of the factors affecting the negotiating position of farmers. The purpose of this paper is to provide quantitative evidence documenting the position of farmers and to explain variation in farm gate prices in the dairy supply chain by using unique micro-survey data from Poland. Design/methodology/approach: The bargaining power of farmers is elicited from their self-reported assessment about how confident they feel in their relationships with both the processing industry and input suppliers. Findings: Using econometric modelling, it is shown that farmers who perceive themselves as having a relatively “strong position” in the food chain receive a higher milk price from dairy companies. Research limitations/implications: While this result comes with some caveats, it suggests that the self-reported beliefs farmers hold about relations with their contractors may reveal additional insights into the distribution of power throughout the food chain. Originality/value: Compared to the existing studies, the paper offers two innovations. First, to construct a proxy for farmers’ bargaining power, their subjective opinion on how easy they could be substituted for by their contractors is used. In effect, the paper goes beyond the standard measures which focus on farm size or its location. Second, it investigates farmers’ relationships vis-à-vis both processing industry and input suppliers. Consequently, this paper is the first to analyze power relationships by explicitly taking into account three stages of the supply chain.
dc.affiliationUniwersytet Warszawski
dc.contributor.authorMilczarek-Andrzejewska, Dominika
dc.contributor.authorFałkowski, Jan
dc.contributor.authorMalak-Rawlikowska, Agata
dc.date.accessioned2024-01-25T00:16:17Z
dc.date.available2024-01-25T00:16:17Z
dc.date.issued2017
dc.description.financeNie dotyczy
dc.description.number8
dc.description.volume119
dc.identifier.doi10.1108/BFJ-11-2016-0570
dc.identifier.issn0007-070X
dc.identifier.urihttps://repozytorium.uw.edu.pl//handle/item/106983
dc.identifier.weblinkhttps://doi.org/10.1108/BFJ-11-2016-0570
dc.languageeng
dc.pbn.affiliationeconomics and finance
dc.relation.ispartofBritish Food Journal
dc.relation.pages1672-1686
dc.rightsClosedAccess
dc.sciencecloudnosend
dc.subject.enPoland
dc.subject.enPower relations
dc.subject.enFood supply chain
dc.subject.enDairy sector
dc.titleFarmers’ self-reported bargaining power and price heterogeneity: evidence from the dairy supply chain
dc.typeJournalArticle
dspace.entity.typePublication