Linking smallholder producers to high-value markets through producer cooperatives : a case study of vegetable producer cooperatives in Cambodia : a thesis presented in partial fulfilment of the requirements for the degree of Master of AgriCommerce at Massey University, School of Agriculture and Environment, Palmerston North, New Zealand
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Date
2019
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Massey University
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Abstract
The emergence of supermarkets and high-value markets (HVMs) in developing countries
has implications for producers and whole agri-food markets. To bring benefits of this
development to smallholder producers, governments and development agencies have paid
great attention to the essential roles of producer cooperatives (PCs). Many studies show
that PCs succeeded in linking producers to HVMs, but numerous cases indicated that PCs
did not achieve their goal. Modern retail markets and supermarkets have grown in
Cambodia, but vegetable growers were unlikely to gain benefits from this HVMs. PCs
play critical roles in assisting smallholder producers in strengthening market competition,
but only a very few PCs achieved their business goals. The purpose of this research is 1)
to examine the role of producer cooperatives (PCs) in linking vegetable producers to
(HVMs) and 2) analyse the factors affecting successful participation in (HVMs).
This study applied mixed research methods by integrating qualitative and quantitative
approaches to examine vegetable value chains, the roles of PCs, and factor affecting
smallholder producers’ participation in HVMs. With this study, the primary data was
collected by using a face-to-face interview with PCs’ managers and a survey interview
with PCs’ members. This study used Qualitative Data Analysis, descriptive statistics,
binary logistic regression, chi-square test, and independent samples T-Test to address
research objectives.
The research indicated that the vegetable value chain in Cambodia consisted of two main
marketing channels, such as traditional markets (TMs) and high-value markets (HVMs).
The value chain of TMs was long and complicated with a number of chain actors, while
the value chain of HVMs was short and high integration of the intermediaries. The
research suggested that the value chain of HVMs provided a better price for producers,
but volume supplied to supermarkets remains relatively small. In terms of the roles of
PCs, all selected PCs provided agricultural input support, financial support, extension
services, and market support to their members. However, PC-HVMs focused on both
production and markets, while PC-TMs paid great attention to production. Based on these
results, governments, and development agencies, and PCs should assist producers in both
production technologies and business skills.
The study examined factors that influenced smallholder producer groups’ participation in
HVMs. The results indicate that the majority of respondents considered external factors,
such as political, economic, social, environmental, and technological factors, as important
factors affecting their participation in HVMs. This study suggested that wide ranges of
supports provided to producers may help them to participate in HVMs. However, there is
a need for favourite supporting policies and a macroeconomic environment from the
government in the country. These could open up broader market opportunities for
smallholder vegetable producers. The binary logistic regression results indicate that some
internal factors, such as a vegetable farming experience, volume of vegetables, and
average vegetable prices had a statistical significance with a positive sign. However, a
vegetable farm size showed a negative sign.
Description
Figures 3-1 & 4-2 were removed for copyright reasons but may be accessed via their respective sources: Lee et al., 2012 Fig 1 & Taherdoost, 2016 Fig 2.
Keywords
Producer cooperatives, Vegetable trade, Cambodia, Case studies, Vegetables, Marketing, Business logistics, smallholder producers, high-value markets