Farmer preferences in contracting with modern retail in Indonesia: A choice experiment

Understanding the preferences of smallholder farmers for contracting can help in making contracts more sustainable. This paper presents the results of a choice experiment (CE) among smallholder farmers in Indonesia to assess their preferences for accepting contracts with modern retail. The CE was ba...

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Bibliographic Details
Main Authors: Bijman, J. (Author), Trienekens, J. (Author), Widadie, F. (Author)
Format: Article
Language:English
Published: John Wiley and Sons Inc 2021
Subjects:
Online Access:View Fulltext in Publisher
LEADER 02025nam a2200217Ia 4500
001 10.1002-agr.21652
008 220427s2021 CNT 000 0 und d
020 |a 07424477 (ISSN) 
245 1 0 |a Farmer preferences in contracting with modern retail in Indonesia: A choice experiment 
260 0 |b John Wiley and Sons Inc  |c 2021 
856 |z View Fulltext in Publisher  |u https://doi.org/10.1002/agr.21652 
520 3 |a Understanding the preferences of smallholder farmers for contracting can help in making contracts more sustainable. This paper presents the results of a choice experiment (CE) among smallholder farmers in Indonesia to assess their preferences for accepting contracts with modern retail. The CE was based on attributes of actual sales transactions in modern retail and traditional retail channels. A total of 301 vegetable smallholder farmers participated, consisting of 173 farmers participating in traditional markets and 128 in modern retail markets. A random parameter logit model estimates that, in general, smallholders do not prefer contracting with modern retail over spot market selling in traditional retail channels. Most contract attributes are perceived as negative by smallholders. A willingness-to-accept analysis shows that farmers are critical of most contract attributes, particularly those related to quality requirements. Producer organizations (POs) reduce transaction costs and increase smallholders' preference toward contracts. Contract designs that reduce transaction cost, mitigate risks for farmers, provide fair prices, and involve POs are more likely to attract smallholders to modern retail channels. [EconLit Citations: D23, O13, Q13]. © 2020 The Authors. Agribusiness published by Wiley Periodicals LLC 
650 0 4 |a choice experiment 
650 0 4 |a contract preferences 
650 0 4 |a modern retail 
650 0 4 |a producer organization 
650 0 4 |a smallholder 
700 1 |a Bijman, J.  |e author 
700 1 |a Trienekens, J.  |e author 
700 1 |a Widadie, F.  |e author 
773 |t Agribusiness