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Library Rich consumers and poor producers

Rich consumers and poor producers

Rich consumers and poor producers
Quality and rent distribution in global value chains

Resource information

Date of publication
декабря 2009
Resource Language
ISBN / Resource ID
IFPRI-p15738coll2-28444
Pages
22 pages

In recent years, quality standards have become crucial for developing countries’ agricultural production systems in gaining access to high-value markets abroad or at home. High-value supply chains offer opportunities for high profits, but in order to comply with the required standards, suppliers in developing countries often need extensive support from agrifood companies. We use a theoretical model to investigate under which conditions such synergies between suppliers and agrifood companies are sustainable, and how created rents are distributed, in a context of factor market imperfections and weak contract enforcement. We also derive the implications of development.

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