Dynamics of Trust and Cooperation in the Dairy Value Chain: A Game Simulation Approach

Msaddak, Meriem; Nasr, Jamel Ben; Zaïbet, Lokman

doi:10.1080/08974438.2020.1805387

Cited by 6 publications

(4 citation statements)

References 43 publications

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“…The moral hazard is observed on credit markets [ 84 ], including preferential loan in agriculture in CEE. The lack of trust is the most important reason why relationship between farmers do not work well [ 85 ]. Poor management of agribusiness establishments can lead to moral hazards that can affect investments in agriculture [ 86 ].…”

Section: Discussionmentioning

confidence: 99%

Overinvestment in selected Central and Eastern European countries: Production and economic effects

et al. 2021

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Farms need to invest in order to earn incomes and maintain their competitive edge. However, the scale and extent of investments must be aligned with resources of other productive inputs, primarily including land, because otherwise there is risk of overinvestment. Since 2004, Central and Eastern European countries have been provided with access to investment support programs; these are non-repayable aid funds which can potentially lead to overinvestment issues. Therefore, this paper attempts to answer the question on the scale of overinvestment in the countries covered. This is all the more important since that problem has rarely been addressed in economic and agricultural research. The study presented in this paper is unique in that the research tasks are based on unpublished Farm Accountancy Data Network (FADN) microdata for 5839 selected Central and Eastern European farms provided by the European Commission’s Directorate-General for Agriculture and Rural Development (DG AGRI). Based on variables relating to the amount of productive inputs and production volumes, the authors developed their own typology of farms which includes the following categories: optimum investment levels (the growth rate of labor productivity is greater than growth in the assets-to-land ratio); relative overinvestment (while labor productivity grows, it does so at a slower rate than the assets-to-land ratio); absolute overinvestment (labor productivity declines while the assets-to-land ratio grows); underinvestment (decline in both labor productivity and the assets-to-land ratio). The authors demonstrated that members of the ‘absolute overinvestment’ group made flagrant mistakes in investment planning and implementation, whereas members of the ‘relative overinvestment’ group did record an improvement in labor productivity which ultimately can be considered a positive outcome. Underinvested farms were a very small minority in each country. In addition to filling a gap in the methodology for determining agricultural overinvestment, this paper also indicates the scale of that issue in Central and Eastern European countries. This study may be of importance both to farms (as guidelines for investment planning) and to agricultural policymakers who develop investment support programs.

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Section: Discussionmentioning

confidence: 99%

Overinvestment in selected Central and Eastern European countries: Production and economic effects

et al. 2021

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“…In [34], the authors used the Nash equilibrium in a game simulation to demonstrate the value of cooperation between different farmers in increasing their milk production and its quality in Tunisia. The same authors demonstrated in [35] the interest of the creation of cooperatives and a healthy mutual aid between the different producers through a Nash equilibrium which showed the increase of the production of the cooperating group of producers.…”

Section: Literature Reviewmentioning

confidence: 92%

A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco

Labriji

Foutayeni

Rachik

2021

Journal of Applied Mathematics

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The dairy sector in Morocco is a sector that struggles to develop by facing several difficulties. Therefore, a significant gap has emerged between the main national producers and small farmers, while in the economy, the development of small economic actors presents an important lever of growth. If we assume that the consumer’s milk demand function is linear, that it depends only on the consumer’s price, and that production costs follow a decreasing return, and finally, by considering only two actors representing the different types of producers, we will show in this paper that a competitive production subsidy of 0.5 MAD can triple the market share of small farmers while being in a situation of Nash-Cournot’s equilibrium. In addition, the addition of a subsidy to production costs will reduce the price of milk and, thus, increase the annual milk consumption of Moroccans from 59 liters, which is below the world average consumption, to 94 liters annually, thus benefiting the consumer in addition to small farmers.

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“…Resolving challenges that limit smallholders' integration in value chains Implied positive impacts on performance of CCAFs [141] Promoting communication, trust, common understanding, knowledge exchanged [138,142,143,145] Collaborate with government agencies for innovation Implied positive impacts on performance of CCAFs [144] Enhancing managerial competencies and capabilities of dairy farm managers Increase control and efficiency along the supply chain [78] Table 4. Cont.…”

Section: Cold Food Supply Chainsmentioning

confidence: 99%

Impacts of Collaborative Partnership on the Performance of Cold Supply Chains of Agriculture and Foods: Literature Review

Nguyen

Hong

et al. 2022

Sustainability

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Collaboration in a supply chain continuously proves its role in increasing the performance of supply chains, which attracts the attention of both academia and practitioners, specifically, how to generate higher impacts of collaborative partnership on the performance of supply chains and measure them. In cold supply chains of agriculture and foods, the vital need for collaboration becomes even more significant to improve the performance. Therefore, this paper reviews relevant articles derived from the Web of Science and Scopus databases. Via the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA), the research team classifies the types of collaborative partnership in cold agriculture and food supply chains, issues of the literature when analyzing collaboration impacts on the performance of CSCs of agriculture and foods, and finally, the opportunities for the future research to boost the collaboration practices in these cold chains. Following this sequence, 102 articles were eventually extracted for the systematic review to identify themes for not only addressing the review questions but also highlighting future research opportunities for both development of partnership integration and performance of the cold chains of agriculture and foods.

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Dynamics of Trust and Cooperation in the Dairy Value Chain: A Game Simulation Approach

Cited by 6 publications

References 43 publications

Overinvestment in selected Central and Eastern European countries: Production and economic effects

Overinvestment in selected Central and Eastern European countries: Production and economic effects

A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco

Impacts of Collaborative Partnership on the Performance of Cold Supply Chains of Agriculture and Foods: Literature Review

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