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The reflection of competition and coordination on organic agribusiness supply chains
Transportation Research Part E: Logistics and Transportation Review ( IF 8.3 ) Pub Date : 2021-09-06 , DOI: 10.1016/j.tre.2021.102462
Mohammadreza Nematollahi , Alireza Tajbakhsh , Bahareh Mosadegh Sedghy

Given the social, environmental, and economic advantages of organic products compared to their conventional counterparts, there has been a growing interest in improving agribusiness sustainability through organic farming technology. However, less attention has been paid to developing analytical models to resolve challenges observed in organic supply chains. This study analytically explores competition- and coordination-based scenarios driving conventional and organic markets under contract farming mechanisms. Motivated by real-world practices, we investigate a three-party agricultural supply chain consisting of an agribusiness enterprise, an organic farmer, and a conventional farmer, where the farmers’ products are imperfect substitutes. First, we develop analytical models to derive closed-form optimal solutions under the traditional contract farming, where the agribusiness enterprise as the Stackelberg leader offers the guaranteed wholesale price and the farmers, as the followers, set their production quantity. We examine the problem by incorporating the specific features of organic farming, including organic price premium, crop yield gap, and organic cost factor into the model. We also conduct sensitivity analyses to explore the effects of competition and main characteristics of organic farming on the farmers’ and agribusiness enterprise’s optimal strategies. Meanwhile, we analytically compare and contrast the optimal traditional contract farming strategies with those under the centralized setting as a benchmark. Finally, we propose a coordinated version of contract farming named synergistic trilateral contract farming to convince the members to move towards centralization. The proposed contract not only benefits all the members by resolving both horizontal and vertical channel conflicts but also motivates the consumption of organic produce in the market. The societal measures in the investigated framework, including consumer surplus and social welfare, also improve when the supply chain members move towards coordination. Additionally, our results highlight the impact of organic farming parameters on quantity- and pricing-based decisions across the network.



中文翻译:

有机农业企业供应链竞争与协调的反思

鉴于有机产品与传统产品相比具有社会、环境和经济优势,人们越来越关注通过有机农业技术提高农业企业的可持续性。然而,很少有人关注开发分析模型来解决有机供应链中观察到的挑战。本研究分析性地探讨了基于竞争和协调的情景,在合同农业机制下推动传统和有机市场。受现实世界实践的启发,我们调查了由农业综合企业、有机农民和传统农民组成的三方农业供应链,其中农民的产品是不完全替代品。第一的,我们开发分析模型来推导出传统合同农业下的封闭式最优解决方案,在这种情况下,作为 Stackelberg 领导者的农业企业提供有保证的批发价格,而作为追随者的农民则设定他们的产量。我们通过将有机农业的具体特征(包括有机价格溢价、作物产量差距和有机成本因素)纳入模型来研究这个问题。我们还进行了敏感性分析,以探讨有机农业的竞争和主要特征对农民和农业企业最优策略的影响。同时,我们将最优的传统合同农业策略与集中设置下的最优策略进行了分析比较和对比。最后,我们提出了一个名为协同三边合同农业的协调版本的合同农业,以说服成员走向集中化。拟议的合同不仅通过解决横向和纵向渠道冲突使所有成员受益,而且还刺激了市场上有机产品的消费。当供应链成员走向协调时,调查框架中的社会措施,包括消费者剩余和社会福利,也会得到改善。此外,我们的结果强调了有机农业参数对整个网络中基于数量和定价的决策的影响。拟议的合同不仅通过解决横向和纵向渠道冲突使所有成员受益,而且还刺激了市场上有机产品的消费。当供应链成员走向协调时,调查框架中的社会措施,包括消费者剩余和社会福利,也会得到改善。此外,我们的结果强调了有机农业参数对整个网络中基于数量和定价的决策的影响。拟议的合同不仅通过解决横向和纵向渠道冲突使所有成员受益,而且还刺激了市场上有机产品的消费。当供应链成员走向协调时,调查框架中的社会措施,包括消费者剩余和社会福利,也会得到改善。此外,我们的结果强调了有机农业参数对整个网络中基于数量和定价的决策的影响。

更新日期:2021-09-07
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