Agriculture Reference
In-Depth Information
infrastructure and service base for the companies, who, in turn, make concomitant
investment in packing plants and logistics facilities.
The general concept of the new approach is reminiscent of the “integrated rural devel-
opmentprograms”ofthe1970s/1980s,andthe“processingexportplatforms”ofthe
1990s.7 An important difference is that the integrated programs were usually govern-
ment investments in particular areas, and the earlier platforms tended to be focused
only on exports. The integrated programs ended up in large measure failing due to
coordinationandmanagementproblems—andperhapsbecausetherewasnototenan
explicit and established link to dynamic sources of market demand and/or the requisite
steps were not taken to meet the market requirements. This new wave of private-public
hubs and parks may meet the challenges bequeathed by these earlier programs and serve
asdynamiclinksforsmallfarmers.Itisearlyoninthenewapproachtoevaluatetheir
functioning and impacts.
Notes
1. heurbanizationratesinthesecountrieswereextraordinary: whereas40 percentofthe
U.S. populationwasincitiesin1900and75 percentninedecadeslater,by1990—thatsame
shitofsharesoccurred,forexample,inSouthKoreainthetwodecadesupto1990andin
Brazilthethreedecadesupto1990(Henderson2002).
2. The calculations are based on sales data for leading chains from
www.planetretail.net
3. Forexample,in“third-wave”China,GoldmanandVanhonacker(2006)foundthatmod-
ern retailers already have a retail market share of 79 percent in packaged and processed
goods,55 percentinbakedgoods,46 percentinmeat,37 percentinfruit,35 percentin
poultry,33 percentinish,and22 percentinvegetablesinlargecities.Comparethattothe
moreadvanced(“irst-wave”)caseofHongKong,whichmayrepresenttheaverageAsian
consumersometimeinthemedium-termfuture.HongKongsupermarketshavea59 per-
centshareinfruitretailanda55 percentshareinvegetables(thus,asharesimilartosuper-
marketpenetrationofproduceretailinBrazil),52 percentinmeat,39 percentinpoultry,
and33 percentinish(Coca-ColaRetailingResearchCouncilAsia2005).SeeHo(2005)
on modern retail penetration of rice retail in Hong Kong.
4. For cases of partnering between modern logistics firms and modern processors or retail
chains,see,forexample,Hanet al.2009forporkprocessinginChina,andhorticulture
productsinIndia(Reardonet al.2010).
5. SeeKeyandRunsten(1999),andSchejtman(1998),ingeneral,andBivingsandRunsten
(1992)forMexicoandvonBraunet al.(1989)forGuatemalaandMintenet al.2009for
Madagascarforvegetables,GowandSwinnen(1998)forSlovakiaforsugar,Driesand
Swinnen(2004)forPolandfordairy;thereareanumberofotherexamples.
6. SeeHernandezet al.(2007)forGuatemala,withsimilarresultsinIndonesia,Nicaragua,
China,Mexico,Mozambique.Studiesonthelattertendtobeeconometricstudies;how-
evermanytendtobecross-section(givenlimitedaccesstopaneldata)andsometimesto
not adequately establish causality because asset observations were not lagged. The cited
studies do not suffer from the latter.
7. Foranexampleofmany,seeCling,Razaindrakoto,andFranc(2005),forMadagascar.
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