Global Value Chain Governance and Relation between Local Actors in the Burundian Tea Sector

Pierre Claver Bitama, Philippe Lebailly, Patrice Ndimanya and Philippe Burny
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Pierre Claver Bitama: Economics and Rural Development Unit, University of Liege-Gembloux Agro-Bio Tech, Belgium,
Philippe Lebailly: Economics and Rural Development Unit, University of Liege-Gembloux Agro-Bio Tech, Belgium,
Patrice Ndimanya: Rural Economics Unit, University of Burundi, Burundi.
Philippe Burny: Economics and Rural Development Unit, University of Liege-Gembloux Agro-Bio Tech, Belgium,

International Review of Management and Marketing, 2019, vol. 9, issue 6, 105-111

Abstract: In the context of globalization, the success of a firm to sell its products on international and regional markets depends on the type of governance exercised in a given sector. This article mobilizes a theoretical framework of global value chain governance to analyze the type of governance exercised in the tea sector in Burundi. A qualitative analysis of data from a survey of 120 small tea farmers in the Ijenda and Teza areas reveals that control and coordination in the sector is ensured by captive governance. In addition, a stagnation of the price of the green leaf tea over a decade generates a lack of interest in the tea farming out on small farming areas. Only 25% of small tea farmers in Ijenda and 36% in Teza want an extension.

Keywords: captive governance; market governance; global value chain; Tea. (search for similar items in EconPapers)
JEL-codes: O13 O21 P32 P42 (search for similar items in EconPapers)
Date: 2019
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