Public Policy Issues in Supply-Chain Management

摘要

In this paper, the organisation of agricultural markets is explained from the perspective of economic interdependence between agents in the supply chain. The high transactions' costs associated with conveying information about quality, monitoring and testing quality of inputs in the supply chain, and the high degree of financial risk associated with investing in specialised agri-food enterprises, has led to a move away from spot markets to integrated supply chains. Various forms of vertical organisation, including contracting and vertical ownership, have evolved as solutions to information and incentive problems associated with this economic interdependence. The experience of contract farming as a means of providing opportunities to smallholders to participate in agri-food supply chains of developing countries is presented in this context. While the private sector has an increased role in the development of agricultural marketing services that were traditionally provided by the public sector, there is still an important facilitative and regulatory role for government. The public policy issues surrounding the vertical organisation of supply chains, particularly contract farming, are discussed.