Specialty products, rural livelihoods and agricultural marketing reforms in China

Author:

Brown Colin,Waldron Scott,Longworth John

Abstract

PurposeThe purpose of this paper is to apply a market efficiency theoretical framework to analyse and postulate solutions to the challenges confronting China in engaging smallholders in higher value, specialty, agricultural product markets. A marketing experiment/trial to test these ideas is evaluated.Design/methodology/approachThe case of fine‐wool marketing is used to illustrate issues associated with specialty product marketing. The market efficiency approach highlights the difficulties involved in relaying accurate product prices and values (exchange efficiency) while aligning the logistical requirements of higher value market segments with the small, dispersed and locationally remote smallholders (operational efficiency). The marketing experiment/trial was conducted in three fine‐wool‐growing counties in Western China in 2008.FindingsThe fine‐wool case study highlights that modernization of the marketing system is required not only so that smallholders can access the premium prices potentially available but also to improve international competitiveness.Originality/valueEngaging smallholders in specialty agricultural product markets poses significant challenges for China. The market efficiency approach (exchange efficiency versus operational efficiency) provides a new perspective on these challenges and offers new insights about appropriate policy settings both at a macro‐ and micro‐level.

Publisher

Emerald

Subject

Economics and Econometrics,Agricultural and Biological Sciences (miscellaneous)

Reference20 articles.

1. Brown, C.G. (1997), “Chinese wool auctions: failed agribusiness reform or future marketing channel?”, China Economic Review, Vol. 8 No. 2, pp. 175‐90.

2. Brown, C.G. and Longworth, J.W. (1992), “Reconciling national economic reforms and local investment decisions: fiscal decentralization and first‐stage wool processing in Northern China”, Development Policy Review, Vol. 10 No. 4, pp. 389‐402.

3. Brown, C.G., Longworth, J.W. and Waldron, S.A. (2002), Regionalisation and Integration in China: Lessons from the Transformation of the Beef Industry, Ashgate, Aldershot.

4. Brown, C.G., Waldron, S.A. and Longworth, J.W. (2005), Modernizing China's Industries: Lessons from Wool and Wool Textiles, Edward Elgar, Cheltenham.

5. Brown, C.G., Waldron, S.A. and Longworth, J.W. (2008), Sustainable Development in Western China: Managing People, Livestock and Grasslands in Pastoral Areas, Edward Elgar, Cheltenham.

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