Barriers to the Efficiency of the Olive Value Chain in Rural Areas of Tarom County, Iran

Document Type : Original Article

Authors

1 Kharazmi University, Iran

2 Kharazmi University, Iran.

Abstract

Purpose- Value chain development is an approach to rural economic development, which promotes the development of businesses and farmers' access to the market, reduces poverty, increases income and sustains food security in rural areas.
Design/Methodology/Approach- This study is mixed qualitative-quantitative research, and applied research and in terms of purpose. A non-probability sampling method was used in the research. The main method of collecting research data was semi-structured interviews with the selected sample. The interviews were continued until the theoretical saturation. At the end, 38 individuals participated in the interviews. Interview notes were classified and analyzed in three stages: open, central and selective coding. Ultimately, 20 respondents were selected to answer the questionnaires after reviewing the content. The data of the questionnaires were collected and combined as a direct input matrix in MICMAC
Findings- Barriers to olive value chain efficiency were identified: 30 criteria, 10 subcategories and 5 main categories. The efficiency of the olive value chain in Tarom County depends on a proper marketing management, providing infrastructure, policymaking, planning and also the organizations and trade unions. These factors were the most important and influential factors that had high cohesion and influence among other factors. In contrast, variability of the purchase and sale price, taking advantage of buying the product below the price by the middlemen, pre-sale of the product by farmers, more product waste during storage, transferring the olives to processing factories in the county are the dependence criteria.
Practical implications- Given that the olive value chain in Tarom County is not efficient, its efficiency depends on a proper marketing management, providing infrastructure, policymaking, planning and also the organizations and trade unions. Most of the mentioned factors are dependent on the institutional actors and agricultural managers, and indicates their important role in enhancing the productivity of the olive value chain.
Originality/Value- The results of this research can be a good way to solve problems and obstacles to agricultural development in rural areas.

Keywords


  1. Abdullahzadeh, G., Sharifzadeh, M. (2018). Development of entrepreneurship in agriculture (1nd ed.,). Gorgan: Gorgan University press. [in Persian] https://www.gisoom.com/book/11438502.
  2. Agricultural Jahad Organization of Zanjan Province. (2020). Horticultural crop cultivation statistics. [in Persian] https://portal-zn.ir.
  3. Ashfaq, M., Hassan, S., Abbas, A., Razzaq, A., Mehdi, M., Ariyawardana, A., & Anwar, M. (2019). Critical issues at the upstream level in sustainable supply chain management of agri-food industries: Evidence from Pakistan’s citrus industry. Sustainability, 11(5), 1326. https://doi.org/10.3390/su11051326.
  4. Bammann, H. (2019). Participatory value chain analysis for improved farmer incomes, employment opportunities and food security. https://openresearch-repository.anu.edu.au/bitstream/1885/157876/1/223.
  5. Bhajantri, S. (2011). Production, Processing and Marketing of potato in Karnataka, India-An Economic Analysis. Retrieved from. https://doi.org/10.22004/ag.econ.113945.
  6. Brence, I., & Upeniece, L. (2018). Challenges for improving marketing on Latvian farms. Paper presented at the Proceedings of the International Scientific Conference (Vol. 6, pp. 97-104). https://doi.org/10.17770/sie2018vol6.3424.
  7. Chaarband, Y., & Jafari, N. (2016). Organizational Performance Improvement through Value Chain and Knowledge Sharing. Journal of Value Chain Management, 1(1), 17-31. [in Persian]. http://www.Modiriatzanjireharzesh.irarticle_650410.html.
  8. Chamcham, J., Mirakzade, A., & Rostami Ghobadi, F. (2021). Explaining the Effective Factors and Challenges in the Development of the Value Chain of Sheep Meat in Lorestan Province. Journal of Rural Research, 12(2), 404- 417. [in Persian] https://jrur.ut.ac.ir/article_82300.
  9. Chowdhury, T. A., & Chowdhury, S. S. (2011). Performance evaluation of agricultural banks in Bangladesh. International Journal of Business and Management, 6(4), 75. https://doi:10.5539/ijbm.v6n4p75.
  10. Cooperatives Labor and Social Welfare Organization of Zanjan Province. (2019). Statistics of labor indicators in the province and its cities. [in Persian] https://zanjan.mcls.gov.ir/fa/moavenatha/arzyabi.
  11. Cucagna, M. E., & Goldsmith, P.D. (2018). Value adding in the agri-food value chain. International food and agribusiness management review, 21, 293–316. https://doi:10.22004/ag.econ.269674.
  12. Donovan, J., Franzel, S., Cunha, M., Gyau, A., & Mithöfer, D. (2015). Guides for value chain development: a comparative review. Journal of Agribusiness in Developing and Emerging Economies, 5(1), 2-23. https://www.emerald.com/insight/content/doi/10.1108/JADEE-07-2013-0025/full/www.fao.org&.
  13. Fanzo, J. C., Downs, S., Marshall, Q. E., de Pee, S., & Bloem, M. W. (2017). Value chain focus on food and nutrition security Nutrition and health in a developing world (pp. 753-770). Humana Press, Cham. https://doi:10.1007/978-3-319-43739-2_34.
  14. FAO, I. (2016). WFP (2015), The State of Food Insecurity in the World 2015. Meeting the 2015 international hunger targets: taking stock of uneven progress. Food and Agriculture Organization Publications, Rome. https://www.fao.org/publications/sofi/2015/en/.
  15. Godet, M. (2008). Strategic Foresight La Prospective, Cahiers du LIPSOR: 143. http://www.laprospective.fr/.
  16. Gong, J., & Lin, H. (2000). Sustainable development for agricultural region in China: case studies. Forest Ecology and Management, 128(1-2), 27-38. https://doi.org/10.1016/S0378-1127(99)00269-8.
  17. Halwart, M., Funge-Smith, S., & Moehl, J. (2003). The role of aquaculture in rural development. Review of the State of World Aquaculture, FAO, Rome, 47-58. https://www.fao.org/3/y4490e/y4490e04.
  18. Jayaratne, P. (2011). Sustainable supply and supply chain Mapping-Sri Lankan tea supply chain. https://ro.uow.edu.au/sbshdr/2011/papers/21/.
  19. Kabiri, A., & Barzandeh, M. (2003). Reforming the Market Structure as a New Approach for Iranian Agricultural Sector (Case Study: Launching an Agricultural Commodity Exchange in Iran). The first conference on agriculture and national development (pp. 598- 621). [in Persian] https://elmnet.ir/article/20368013-14333.
  20. Kaplinsky, R., & Morris, M. (2001). A Handbook for Value Chain Research, (Vol. 113). Brighton: University of Sussex, Institute of Development Studies.
  21. Kissoly, L., Faße, A., & Grote, U. (2017). The integration of smallholders in agricultural value chain activities and food security: Evidence from rural Tanzania. Food security, 9(6), 1219- 1235. https://link.springer.com/article/10.1007/s12571-016-0642-2.
  22. KPMG International. (2013). The agricultural and food value chain: entering a new era of cooperation. London, UK. https://assets.kpmg/content/dam/kpmg/pdf/2013/06/agricultural-and-food-value-chain-v2.
  23. Kumar, S., & Sharma, A. (2016). Agricultural value chains in India: prospects and challenges. CUTS (Consumer Unity and Trust Society) International, Jaipur 19. https://cuts-citee.org/pdf/ Agricultural_ Value_ Chains_ in_India_Prospects_and_Challenges.
  24. Mariyono, J., Dewi, H. A., Daroini, P. B., Latifah, E., Zakariya, A. Z., & Afari-Sefa, V. (2018). Marketing aspects of vegetables: Comparative study of four regions in East Java and Bali. Agriekonomika, 7(1), 46-56. https://journal.trunojoyo.ac.id/agriekonomika/article/view/3410.
  25. Mirlotfi, M. R., Shayan, H., & Alavizadeh, S. M. (2012). The Evolution of the Level of Agricultural Development and its Effective Indicators in Hirmand. Journal of Geography and Development, 28, 31-95. [in Persian] https://www.sid.ir/fa/journal/ViewPaper.aspx?ID=174477.
  26. Momeni, F., Dashnbani, S., & Banooii, A. (2017). The importance of the agriculture sector in maintaining the socio-economic balance of Iran's urban and rural structure. Journal of Space Economy & Rural Development, 1(1)17-31. [in Persian]. http://serd.khu.ac.ir/article-2976-1-fa.html.
  27. Muthini, N. (2015). An assessment of mango farmers’ choice of marketing channels in Makueni, Kenya. Retrieved from. https://doi:10.22004/ag.econ.204866.
  28. O’Farrell, C. (2001). Information flows in rural and urban communities: Access, processes and people. Paper presented at the UDRSA Conference.
  29. Ommani, A., Chizari, M., Salmanzadeh, C., & Hosaini, J. F. A. (2009). Predicting adoption behavior of farmers regarding on-farm sustainable water resources management (SWRM): Comparison of models. Journal of Sustainable Agriculture, 33(5), 595- 616. [in Persian]. https://doi.org/10.1080/10440040902997827.
  30. Orr, A., Donovan, J., & Stoian, D. (2018). Smallholder value chains as complex adaptive systems: a conceptual framework. Journal of Agribusiness in Developing and Emerging Economies, 8(1), 14- 33. https://www.emerald.com/insight/content/doi/10.1108/JADEE-03-2017-0031/full/html.
  31. Riahi, V., & Nasire Zare, S. (2021). Evaluation of environmental capabilities and abilities of Tarom County for olive production and cultivation. Journal of Applied researches in Geographical Sciences, 22(66), 375-394 [in Persian]. https://doi.org/20.1001.1.22287736.1401.22.66.7.2.
  32. Ros-Tonen, M. A., Van Leynseele, Y.-P. B., Laven, A., & Sunderland, T. (2015). Landscapes of social inclusion: Inclusive value-chain collaboration through the lenses of food sovereignty and landscape governance. The European Journal of Development Research, 27(4): 523- 540. https://doi.org/10.1057/ejdr.2015.50.
  33. Sapkota, B., Dutta, J., Chaulagain, T., & Subedi, S. (2018). Production and marketing of rice in Naghlebhare Rice Block, Kathmandu: an economic analysis. Nepalese Journal of Agricultural Sciences, 16, 138-148. URL://www.hicast.edu.np/.
  34. Shahroudi, S. M. (2011). Giving priority to agricultural productions which are effective in economic development of Shahrood, Iran. Far East Journal of Psychology and Business, 5(4), 78-84. http://www.fareastjournals.com/archive_detail.aspx?jid=18&aid=16.
  35. Shakoori, A. (2013). Agricultural development policies in Iran (Sixth Edition), SAMT publication. [in Persian]. https://www.gisoom.com/book/11024060.
  36. Smit, M. J., van Leeuwen, E. S., Florax, R. J., & de Groot, H. L. (2015). Rural development funding and agricultural labour productivity: A spatial analysis of the European Union at the NUTS2 level. Ecological Indicators, 59, 6- 18. https://doi.org/10.1016/j.ecolind.2015.05.061.
  37. (2000). Strategies for Diversification and Adding Value to Food Exports: A Value Chain Perspective. UNCTAD/DITC/COM/TM/I. Geneva, United Nations. https://digitallibrary.un.org/record/427518.
  38. Upite, I., & Pilvere, I. (2011). The EU Common Agricultural Policy for agricultural and rural development. Management Theory and Studies for Rural Business and Infrastructure Development, 27(3), 183- 190. http://mts.asu.lt/mtsrbid/article/view/287.
  39. Zdanovskis, K., & Pilvere, I. (2015). Engagement of agricultural nongovernmental organisations in making the common agricultural policy. Economic Science for Rural Development, 239. https://d1wqtxts1xzle7.cloudfront.net/37466907/getfile-with-cover-page.
  40. Zhao, G., Liu, S., Lopez, C., Lu, H., Elgueta, S., Chen, H., & Boshkoska, B. M. (2019). Blockchain technology in agri-food value chain management: A synthesis of applications, challenges and future research directions. Computers in Industry, 109: 83-99. https://doi.org/10.1016/j.compind.2019.04.002.
CAPTCHA Image