Grape supply chain: Vertical coordination in Ningxia, China

Li, Shuo; Bitsch, Linda; Hanf, Jon Henrich

doi:10.13057/asianjagric/g050103

Cited by 7 publications

(17 citation statements)

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“…play essential roles in the decisions of supply chain management and contractual relationship. For emerging wine regions some results confirm earlier findings of other studies such as firm size, product quality and the level of specialised investments matter for coordination decisions (Bitsch et al, 2019;Chaddad et al, 2017;Hanf et al, 2016;Li et al, 2021). Goodhue et al (2003) find that more formal coordination is associated with higher product quality.…”

Section: Value Chain Coordination In the Global Agribusiness And Wine...supporting

confidence: 85%

Too much power or no power: when does intermediary’s power result into better wine and happier farmers?

Xhoxhi

Imami

Hanf

et al. 2022

IFAM

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The study analyzes the trading relationship performance between farmers and intermediaries and the factors shaping it, with a focus on intermediary’s power, based on a structured survey of vineyard farmers in Kosovo. Confirmatory factor analysis is employed to develop measures for the study latent variables, and ordinary least squares regression is used to test the hypothesis. To further validate the results, machine learning (i.e. random forest) is used to model the factors affecting the relationship performance between farmer and intermediary. The results show that when the intermediary has considerable (excessive) power, it leads to low trading relationship performance with farmers. Also, when the intermediary has little power, the relationship performance with farmers behaves in a similar way. The main contribution of this paper is to further illuminate the debate on the role of power in business-to-business relationships, in that it points out an alternative explanation; stating that there is an optimal level zone that power needs to exist, in order to achieve above average trading relationship performance. Outside this zone, either low or excessive/high intermediary’s power results in poor relationship performance.

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Section: Value Chain Coordination In the Global Agribusiness And Wine...supporting

confidence: 85%

Too much power or no power: when does intermediary’s power result into better wine and happier farmers?

Xhoxhi

Imami

Hanf

et al. 2022

IFAM

Self Cite

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“…In line with the findings of Li et al (2021), Changyu procures grapes in different manners. On the one hand, it uses spot market transactions; on the other hand, it procures grapes from the integrated cooperative (vertically integrated).…”

Section: Structure Of Changyu-led Cooperative and Coordination Mechan...supporting

confidence: 79%

“…As the local government in Ningxia also promotes the production of high-quality wines (Wang et al, 2012), the production concept applied by Changyu is assumed to differ in both regions. Li et al (2021) examined the structure and mechanisms of grape supply models and degree of vertical coordination in Ningxia (Ningxia Helan Mountain's Eastern Foothill wine region). They have shown that most wine producers apply "multi-supply models".…”

Section: Jadee 132mentioning

confidence: 99%

“…The decrease of the total production volume from 2012 until now – especially considering the decrease in 2016, 2017 and 2018 – can be explained by changes in the regulations on wine production and labelling, and the efforts made to increase the overall wine quality. The growing quality awareness in wine production spreads amongst producers and consumers (Li et al , 2021). Producers, for example, can reduce yields to produce higher quality wines.…”

Section: China's Grape and Wine Market – An Overviewmentioning

confidence: 99%

“…Due to the rising demand for quality wines, a development from spot market transactions towards hybrid forms of vertical coordination (contracting) occurs. Quality can be seen as the driving motivation for the adoption of tighter vertical coordination (Li et al , 2021). The trend is assumed to go further towards vertical integration, which is mirrored in the development of DHEs.…”

Section: China's Grape and Wine Market – An Overviewmentioning

confidence: 99%

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Dragon head enterprises in China's wine production – case study results

Richter

Yang

Hanf

2021

JADEE

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PurposeIn 1998, the Chinese Communist Party introduced the strategy for modernizing agriculture with large-scale production and launching large commercial enterprises known as dragon head enterprises (DHEs) to process and market agricultural products. Although scholars have raised awareness of the development of DHEs in China, there has been little investigation on DHEs in the Chinese wine business. Based on the existing theoretical background on the concept of DHEs, this study aims to identify the structure and operating system of a DHE in the Chinese wine business. Changyu is chosen as an example because it is the oldest and largest wine company in China, operating in various grape-growing regions.Design/methodology/approachDue to the research's explorative character, the qualitative approach and case study focus were considered adequate. In-depth interviews have been conducted with the employees of the company. The authors analysed data with a qualitative content approach of Gläser and Laudel (2010).FindingsResults show that the grape procurement of Changyu is organized in an integrated system, which consists of the DHE (Changyu), the Changyu-led cooperative, and the grape producers who have a contract with the cooperative. The company takes different measures in terms of intra-organizational coordination to secure the required quantities and qualities of its grape supply base.Research limitations/implicationsIn this research, the authors could only access three interview partners of Changyu's grape procurement department, and it was not possible to conduct interviews with the management of Changyu. Another limitation is that it is difficult to collect adequate data in the Chinese wine industry.Originality/valueThere has been little investigation on DHEs in the Chinese wine business. This research contributes to the existing literature as it takes a closer look at the structure and operating system of a DHE in the Chinese wine business. The case study and chosen example (Changyu) allow a better understanding of DHEs and provide first insights into their operating principle.

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Metagenomic analysis of the relationship between the microorganisms and the volatiles' development in the wines during spontaneous fermentation from the eastern foothills of the Ningxia Helan mountains in China

Yang

et al. 2023

J Sci Food Agric

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BACKGROUNDThe natural fermentation of multispecies microbial communities is responsible for unique flavors of winery regions of the eastern foothills of the Ningxia Helan Mountains in China. However, the participation of different microorganisms in the metabolic network for the development of important flavor substances is not clearly defined. Microbial population and diversity on different fermentation phases of Ningxia wine were analyzed by metagenomic sequencing approach.RESULTSGas chromatography–mass spectrometry and ion chromatography were used to identify flavor components, and 13 esters, 13 alcohols, nine aldehydes and seven ketones were detected in volatile substances with odor activity values > 1, and eight organic acids were detected as important flavor components in young wine. Thus, 52 238 predicted protein‐coding genes from 24 genera were identified in the Kyoto Encyclopedia of Genes and Genomes level 2 pathways of global and overview maps, and the genes were primarily involved in amino acid metabolism and carbohydrate metabolism. Major microbial genera (Saccharomyces, Tatumella, Hanseniaspora, Lactobacillus, and Lachancea) were closely related to self‐characteristic compound metabolism and further contributed to wine flavor.CONCLUSIONThis study clarifies the different metabolic roles of microorganisms in flavor formation during Ningxia wine spontaneous fermentation. Saccharomyces, dominant fungi involved in glycolysis and pyruvate metabolism, produces not only ethanol but also two important precursors, pyruvate and acetyl‐CoA, which are necessary for the tricarboxylic acid cycle, fatty acid metabolism, amino acid metabolism, and flavor formation. Lactobacillus and Lachancea, dominant bacteria involved in lactic acid metabolism. Tatumella, dominant bacteria involved in amino acid metabolism, fatty acid metabolism, and acetic acid metabolism to produce esters in the Shizuishan City region samples. These findings provide insights into the use of local functional strains to generate unique flavor formation, as well as improved stability and quality, in wine production. © 2023 Society of Chemical Industry.

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Grape supply chain: Vertical coordination in Ningxia, China

Cited by 7 publications

References 0 publications

Too much power or no power: when does intermediary’s power result into better wine and happier farmers?

Too much power or no power: when does intermediary’s power result into better wine and happier farmers?

Dragon head enterprises in China's wine production – case study results

Metagenomic analysis of the relationship between the microorganisms and the volatiles' development in the wines during spontaneous fermentation from the eastern foothills of the Ningxia Helan mountains in China

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