Lessons from the development of certified coffee suppliers promoted by an international trader in Veracruz, Mexico.
DOI:
https://doi.org/10.22231/asyd.v21i2.1584Keywords:
economic impact, trailblazing company, sustainabilityAbstract
This study specifies the lessons from a development program for suppliers implemented for more than 10 years by an international coffee trader with small-scale producers in Mexico, to fulfill the voluntary sustainability standards (VSS) required by their most demanding markets. The information was obtained in the year 2021, through semi-structured surveys, with a random sample of coffee growers (n=54), interviews with technical advisers (n=8), and operating staff (n=6) of the company. The information was analyzed with a mixed approach, to characterize the program and estimate the differential costs and benefits for the company and its suppliers. Results show that the implementation of the program required investing to develop a more complex and costly grocer’s structure than purchases in the open market; however, the yields per hectare increased with the technical advice and better prices were attained from complying with the VSS. Thus, the trader stockpiled close to 2,400 additional tons of green coffee annually and managed to increase its profit in close to $7.4 million USD per year, with an estimated differential annual cost of $1.1 million USD. Likewise, coffee growers increased their income 1.7 times compared to a scenario without the program. The defining factor of these results is the presence of a “trailblazing company” with access to dynamic and solvent markets, which designed a mutual profit scheme with the small-scale producers and financed it with a vision in the medium term.
References
Borodin V, Bourtembourg J, Hnaien F, y Labadie N. 2016. Manejo de la incertidumbre en la gestión de la cadena de suministro agrícola : un estado del arte. Revista Europea de Investigación Operativa, 254(2). 348–359. https://doi.org/10.1016/j.ejor.2016.03.057 DOI: https://doi.org/10.1016/j.ejor.2016.03.057
CONAPO (Consejo Nacional de Población). 2022. Índice de marginación (carencias poblacionales) por localidad, municipio y entidad. https://datos.gob.mx/busca/organization/conapo
de Marchi V, y di Maria E. 2019. Environmental upgrading and suppliers’ agency in the leather global value chain. Sustainability (Switzerland), 11(23). https://doi.org/10.3390/su11236530 DOI: https://doi.org/10.3390/su11236530
FAO (Organización de las Naciones Unidas para la Alimentación y la Agricultura). 2015. Desarrollo de cadenas de valor alimentarias sostenibles: Principios rectores. In: FAO. http://www.fao.org/3/a-i3953s. pdf%0A http://www.fao.org/home/es/
Ferreira-Guimarães A, De Alencar SM, Aparecida J, Istvan F. 2021a. Estruturas de governançã e inovação em sistemas agroalimentares diferenciados (SADs): Um estudo na cadeia de carne bovina no Paraná. Revista Alcance, 28(1). 1–19. https://doi.org/10.14210/alcance.v28n1(jan/abr). DOI: https://doi.org/10.14210/alcance.v28n1(Jan/Abr).p1-19
Ferreira-Guimarães A, Raucan M, Bouroullec-Machado M, De Alencar SM, Aparecida J. 2021b. Governance mechanisms and certification in specialty beef production: The case of Aveyron and Ségala Veal (ASV) in France. Custos e Agronegocio, 17(3). 322–342.
FIRA (Fideicomisos Institucionales en Relación con la Agricultura), SAGARPA (Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación). 2010. El sector agroalimentario: Retos y oportunida¬des del mercado de servicios profesionales. Ciudad de México, México.
Gereffi G. 2018. The Organization of Buyer-Driven Global Commodity Chains: How US Retailers Shape Overseas Production Networks. Global Value Chains and Development, September, 43–71. https://doi.org/10.1017/9781108559423.003. DOI: https://doi.org/10.1017/9781108559423.003
Ghezzi P, Hallak JC, Stein E, Salazar L. 2022. Competir en la agroindustria. Estrategias empresariales y políticas públicas para los desafíos del siglo XXI (BID (ed)). BID.
González-Ramírez MG, Santoyo-Cortés VH, Aguilar-Ávila J, Aguilar-Gallegos N. 2019. Development of natural rubber suppliers in the Papaloapan River basin, Mexico: Progress and limitations. Ciencia Tecnologia Agropecuaria, 20(2). 259–276. https://doi.org/10.21930/rcta.vol20_num2_art1459. DOI: https://doi.org/10.21930/rcta.vol20_num2_art:1459
Goulet F, Vinck D. 2013. La innovación por sustracción, contribución a una sociología del desapego. REDES, 19(31). 13–49. https://www.redalyc.org/pdf/907/90731083001.pdf.
Guimarães ER, Montagnana PH, Carvalho D, Parreiras S, Dos Santos AC. 2019. The brand new Brazilian specialty coffee market. Journal of Food Products Marketing, 25(1). 49–71. https://doi.org/10.1080/10454446.2018.1478757. DOI: https://doi.org/10.1080/10454446.2018.1478757
Hernández V, Pedersen T. 2017. Global value chain configuration: A review and research agenda. BRQ Business Research Quarterly, 20(2). 137–150. https://doi.org/10.1016/j.brq.2016.11.001 DOI: https://doi.org/10.1016/j.brq.2016.11.001
Liker JK, Choi TY. 2004. Building Deep Supplier Relationships.: find articles, books, and more. Harvard Business Review, 5. 1–11. https://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?sid=4624b09a-10fa-4b51- 896b-b84d0ff238d8%40sessionmgr4010&vid=6&hid=4213.
Maciejewski G, Mokrysz S. 2019. New Trends in Consumption on the Coffee Market. Zeszyty Naukowe SGGW, Polityki Europejskie, Finanse i Marketing, 22(71). 132–144. https://doi.org/10.22630/pefim.2019.22.71.31. DOI: https://doi.org/10.22630/PEFIM.2019.22.71.31
Maush K, Hall A, Hambloch C. 2020. Colliding paradigms and trade-offs: Agri-food systems and value chain interventions. Global Food Security, 26. 100439. https://doi.org/10.1016/j.gfs.2020.100439. DOI: https://doi.org/10.1016/j.gfs.2020.100439
Molenaar JW, Dallinger J, Gorter J, Heilbron L, Simons L, Blackmore E. Vorley B. 2015. The role of voluntary sustainability standards in scaling up sustainability in smallholder-dominated agricultural sectors. White Paper 4. comisioned by International Finance Corporation.
Moreno-Miranda C, Dries L. 2022. Integrating coordination mechanisms in the sustainability assessment of agri-food chains: From a structured literature review to a comprehensive framework. Ecological Economics, 192, 107265. https://doi.org/10.1016/j.ecolecon.2021.107265. DOI: https://doi.org/10.1016/j.ecolecon.2021.107265
Mugwagwa I, Bijman J, Trienekens J. 2020. Typology of contract farming arrangements: a transaction cost perspective. Agrekon, 59(2). 169–187. https://doi.org/10.1080/03031853.2020.1731561. DOI: https://doi.org/10.1080/03031853.2020.1731561
Mukucha P, Chari F. 2021. The influence of supplier development, in the form of contract farming, on performance in Zimbabwean tobacco industry. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1968732. DOI: https://doi.org/10.1080/23311975.2021.1968732
Muñoz-Rodríguez M, Gómez D, Santoyo-Cortés VH, Rosales R. 2019. Los negocios del café ¿Cómo innovar en el contexto de la paradoja del café, en pro de una erd de valor más inclusiva y accesible? 53(9). Universidad Autónoma Chapingo, CIESTAAM. https://doi.org/10.1017/CBO9781107415324.004. DOI: https://doi.org/10.1017/CBO9781107415324.004
NYSE (New York Stock Exchange). 2021. Precios C de café verde. https://www.nyse.com/index.
Parente-Laverde AM. 2020. Value chain and economic development: The case of the Colombian coffee industry. Organizations and Markets in Emerging Economies, 11(1). 173–188. https://doi.org/10.15388/omee.2020.11.29. DOI: https://doi.org/10.15388/omee.2020.11.29
Pereira F, Cadoso LK, Alves ME. 2021. Chuchu’s agro-chain: its configuration, network formation and coordination based on the Time-Driven Activity-Based Costing system ( TDABC ). Custos e Agronegocio, 16(4). 492–518.
Ponte S, Gereffi G, Raj-Reichert G, Fernandez-Stark K, Gereffi G. 2019. Global value chain analysis: a primer (second edition). Handbook on Global Value Chains, 54–76. https://doi.org/10.4337/9781788113779.00008 DOI: https://doi.org/10.4337/9781788113779
Potts J, Lynch M, Wilkings A, Huppe G, Cunningham M, Voora V. 2014. The State of sustainability initiatives review 2014. En ENTWINED IDH IED FAST IISD 10(1). International Institute for Sustainable Development.
Randmaa M, Mougaard K, Howard T, McAloone TC. 2011. Rethinking value: A value-centric model of product, service and business development. ICED 11 - 18th International Conference on Engineering Design - Impacting Society Through Engineering Design, 3(August). 387–396.
SADER (Secretaría de Agricultura). 2020. El café una producción en manos sabias. https://www.gob.mx/agricultura/articulos/el-cafe-una-produccion-en-manos-sabias?idiom=es.
Saghiri S, Wilding R. 2021. On the effectiveness of supplier development programs: The role of supply-side moderators. Technovation, 103. 102234. https://doi.org/10.1016/j.technovation.2021.102234. DOI: https://doi.org/10.1016/j.technovation.2021.102234
SCA (Specialty Coffee Association). 2022. Specialty Coffee Transaction Guide (Número January). https://www.transactionguide.coffee/es-version-1-0.
Sharma R, Shishodia A, Kamble S, Gunasekaran A, Belhadi A. 2020. Agriculture supply chain risks and COVID-19: mitigation strategies and implications for the practitioners. International Journal of Logistics Research and Applications, 0(0). 1–27. https://doi.org/10.1080/13675567.2020.1830049. DOI: https://doi.org/10.1080/13675567.2020.1830049
SIAP (Servicio de Información Agroalimentaria y Pesquera). 2022. Café cereza. Escenario mensual de productos agroalimetarios. https://www.gob.mx/cms/uploads/attachment/file/759464/Caf__Agosto_2022.pdf.
Silva EC, Gusmão AKH, Barros M, Azevedo AS, Guimarães ER, Castro LG. 2019. Governança privada e sustentabilidade na indústria do café. Agroalimentária, 25(48). 35–51.
Swinnen J, Kuijpers R. 2020. Inclusive Value Chains to Accelerate Poverty Reduction in Africa. Inclusive Value Chains to Accelerate Poverty Reduction in Africa, February. https://doi.org/10.1596/33397. DOI: https://doi.org/10.1596/33397
Thu-Tran PN, Gorton M, Lemke F. 2021. When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes. Journal of Business Research, 127. 277–289. https://doi.org/10.1016/j.jbusres.2021.01.009. DOI: https://doi.org/10.1016/j.jbusres.2021.01.009
Vargas-Moreno ÓA. 2014. Gestión de compras eficientes y sostenibles: modelo para la gestión de la cadena de suministro y para romper paradigmas. Punto de vista, 5(8). 41–54. https://doi.org/10.15765/pdv.v5i8.491. DOI: https://doi.org/10.15765/pdv.v5i8.491
Watson M, Browne A, Evans D, Foden M, Hoolohan C, Sharp L. 2020. Challenges and opportunities for re-framing resource use policy with practice theories: The change points approach. Global Environmental Change, 62. 102072. https://doi.org/https://doi.org/10.1016/j.gloenvcha.2020.102072. DOI: https://doi.org/10.1016/j.gloenvcha.2020.102072
Widadie F, Bijman J, Trienekens J. 2020. Farmer preferences in contracting with modern retail in Indonesia: A choice experiment. Agribusiness, July 2019, 1–22. https://doi.org/10.1002/agr.21652. DOI: https://doi.org/10.1002/agr.21652
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Maria Guadalupe Alarcón Márquez, Vinicio Horacio Santoyo Cortés, J. Reyes Altamirano Cárdenas, Manrrubio Muñoz Rodríguez
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish in this journal accept the following conditions:
- The authors retain the copyright and transfer to the magazine the right of the first publication, with the work registered with the Creative Commons attribution license, which allows third parties to use what is published as long as they mention the authorship of the work and the first publication in this magazine.
- Authors may make other independent and additional contractual arrangements for non-exclusive distribution of the version of the article published in this journal (e.g., including it in an institutional repository or publishing it in a book) as long as they clearly indicate that the work It was first published in this magazine.
- Authors are permitted and encouraged to publish their work on the Internet (for example on institutional or personal pages) before and during the review and publication process, as it can lead to productive exchanges and greater and faster dissemination of the work. published (see The Effect of Open Access).
