Ongoing Research

Towards Measuring Agribusiness Value Chain Performance in Canada

Funded by: “The Structure and Performance of Agriculture and Agri-products Industries (SPAA) research network, pill supported by Agriculture and Agri-Food Canada (AAFC) Enabling Research for
Competitive Agriculture (ERCA) program”

The past two decades have seen radical changes in the competitive landscape of the global agri-food sector. Industry consolidation has left many firms, check particularly producers, viagra 100mg searching for
new ways to strengthen their individual bargaining power (MacDonald et al., 2004). Stricter coordination requirements over price, traceability and process attributes have led to new challenges for industry participants (Sparling et al. 2006), spurring the rise of new types of strategic alliances (value chains) in agribusiness. Government policies, for example in the form of public standards, have interfered with private standards, while the successful management of information has become a key issue for alliances. Some evidence suggests that alliance performance is driven by how effectively alliance members can use both price and non-price information (e.g. information on quality
consistency, monitoring) between farm and plate (e.g. George Morris Centre 2009). However, we have little firm-level evidence on how agribusiness firms use this information strategically, as part of their challenge to manage tangible and intangible aspects of value-chain coordination.

Keywords: value chain performance metrics, Canada, supply-chain coordination, survey

Key participating researchers: B. Steiner (PI); Co-Investigators: D. Sparling & J. Unterschultz (University of Alberta)

Benefits to poultry value chain participants of providing new producer incentives for improved quality

Research on novel quality traits in poultry and on identifying new ways of producing value-added poultry products has recently advanced significantly. However, question marks remain with regard to the implementation of these innovations on the producer side, particularly in supply-managed industries. The proposed project complements ongoing research and commercialization efforts in Canada in significant ways, by focusing on the design of an improved system of compensation measures that explicitly reward Canadian poultry producers for the supply of novel chick quality traits.

Keywords: chicken quality traits, quality measurement, price risks, production risks, supply arrangements, contracts

Key participating researchers: B. Steiner (Principal Investigator) and M. Zuidhof (Co-Investigator;

Formal beef alliances and alignment challenges – Issues in Contracting, Pricing and Quality: A Canadian – U.S. comparative study

Vertical coordination throughout North America’s beef supply chain is imperfect on several accounts. We observe failures in the established pricing system, the established grading system, a lack of appropriate incentives for investments to promote adding value, and apparent misalignments due to the increasing industry concentration at the processor level. At the heart of our comparative study is a firm-level analysis of alignment and risk-management problems. This analysis aims to investigate economic benefits from both innovative pricing schemes in cow-calf producer contracts, as well as benefits from new risk-management tools that may help to improve supply chain coordination.

Keywords: beef value chains, adoption of contracts, risk management, producer survey

Key participating researchers: B. Steiner (Principal Investigator), J. Unterschultz (Co-Investigator; and R. Tronstad (Co-Investigator;