EconPapers    
Economics at your fingertips  
 

The Rise of Supermarkets and Vertical Relationships in the Indonesian Food Value Chain: Causes and Consequences

Shyamal Chowdhury (), Ashok Gulati and Gumbira-Sa’id, E.

Asian Journal of Agriculture and Development, 2005, vol. 02, issue 01-2, 10

Abstract: This paper reviews the causes of the emergence of modern retailing and the vertical relationships in the Indonesian food value chain, and the consequences of these changes on market organization and value distribution. The findings of this paper suggest that there are both demand- and supply-side factors that contribute to the emergence of modern retailing. The evolution of vertical relationships between farmers and modern retailers observed in Indonesia is a direct response to risks and quality uncertainty. In the vertical relation, large-scale retailers may earn a monopsonistic rent, and there are risks of exclusion of small-scale farmers from the emerging food value chain. However, there are alternative channels through which farmers may sell their products, albeit at a lower price compared to the modern channels, and measures can be instituted to protect them against monopsonistic rents. The findings have important policy implications for developing countries.

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://ageconsearch.umn.edu/record/165779/files/AJAD_2005_2_1_2_4Chowdhury.pdf (application/pdf)

Related works:
Journal Article: The Rise of Supermarkets and Vertical Relationships in the Indonesian Food Value Chain: Causes and Consequences (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:phajad:165779

DOI: 10.22004/ag.econ.165779

Access Statistics for this article

More articles in Asian Journal of Agriculture and Development from Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2025-03-19
Handle: RePEc:ags:phajad:165779