Constraints and Challenges in
Governance and Channel Choice in
Tropical Agri-Food Chains: the Case of
Pineapple Supply Chains in Benin
Arinloyé A.A.D; Hagelaar, G.; Linnemann, A.R.;
Coulibaly, O. and Royer, A.
WECARD Cotonou, 24 - 27 May 2010
Outline
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Problem statement and objectives
Background on pineapple chains
Theoretical framework
Methodology
Results and conclusion
Problem statement

Important issues in the pineapple supply chain:
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High transaction costs: cheating, opportunism behavior,
corruption, weak logistic facilities, etc.
Limited collective action: lack of organized governance
structure
Irregular and scattered supply by smallholders
Thin assembly markets
Poor and variable product quality
Understanding chains’ coordination and organization is
needed for a co-innovative quality performance of Beninese
pineapple supply chains
Research objective
 Analyze the organization and structure of
pineapple supply chains in Benin with a
focus on chain governance and channel
choice for quality improvement
Key Questions
Answering the following questions leads to reach the research
objective :
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Which actors are directly and indirectly involved in pineapple
activities?
What kind of linkages and flows exist in the cooperative networks
and how do they affect pineapple quality and chain
performance?
What are the pineapple quality issues that are hampering actors’
access to more profitable markets?
Which conflicts or synergies occur between chain actors and who
are involved in managing and resolving these conflicts ?
Background
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In 2007 government selected
pineapple (among others) as a
spearhead to counterbalance
dependence on cotton
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Pineapple production zones
With 90% from Atlantique department
Guineo
Congolian
Zone
Background
In one decade,
pineapple production
increased threefold from
44,836 tonnes in 1998
to 136,123 tonnes in
2008
Production(kg)
Yield (kg/ha)
Tonne
160000
140000
120000
100000
80000
60000
40000
20000
0
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
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figure 1: Pineapple production and yield
Source: INSAE, 2005 and FAOSTAT, 2010
Tonne/ha
70
60
50
40
30
20
10
0
Theoretical framework
Firm
characteristics
Market choice
Quality
management
Institutional
environment
Chain Governance
Performance
Research methodology
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Case study approach most indicated in responding to:
• which ?
• what ?
• How to understand ?
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Information gathering
• literature review, questionnaires
• interviews and focus group discussions
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Sampling
•
•
•
•
•
•
Input suppliers (2)
Producers (20)
Traders (12)
Processors (5)
Exporter (2)
Research institutes , extension and quality control services (12)
Design tests and employed tactics
Design test
Theoretical explanation of
construct
Table1. Design teststhe
and tactics
employed during the case study
Case study tactics
Construct
validity
Construct validity is to ensure that
correct operational measures have
been established for the concepts that
are being studied
- Multiple sources of evidence Chain
- Interview respondents
- Reviewing draft of case study report
Internal
validity
Internal validity is to make sure that a
causal relationship - i.e., certain
conditions lead to other conditions has been established.
- Pattern matching
- Explanation building
External
validity
External validity is to prove that the
domain to which a case study’s
findings belong can be generalized.
- Specification of the population of interest
- Replication logic in multiple with
different chain actors in different areas
- Interview protocol
Reliability
Reliability involves demonstrating
that the findings from a case study
can be repeated if the case study
procedures are followed.
- Clearly conceptualized constructs
- Multiple indicators
- Execution of pilot tests
- Case study data base and records
Firm Characteristics
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Pineapple chains are characterized by large and
heterogeneous group of producers;
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Differences in farm size, scale of production,
technical and financial capacities, access to
input, land and labour
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Current debate for international market: MRL <=
0.5ppm (mg/kg) instead of 2ppm
Institutional Environment
Mismatch
between producers requirements and observed
interventions
Low
public sectors intervention and supports along the chains
High
transaction cost (police/gendarme harassment & rural
roads conditions)
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Subsidized fertilizers sold on the black market
Inappropriate
existing credits/loan (2M fcfa for 1ha)
 Loans from IMF (36 and 47% APR)
 Loans from informal sectors (as high as 20% a day)
 Personal savings and relationship based financial supports
 Pre-financing in cash or in kind from pineapple trader or exporters
Channel choice
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Choice of a specific chain is affected by:
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Price attribute (fixed vs varying)
Temporary specificity
Socio-cultural condition
Product attributes (size)
competition with other fruits
5 main chains targeted
But no quantitative data available
Local process
to Juice, 15%
Fresh Export
to EU, 2%
Regional Fresh
Export, 40%
Local Fresh
consumption,
35%
Dried
pineapple
Export, 8%
Pineapple chains map
Chain governance mechanisms
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Governance structures mainly consist of:
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spot market relations
relational contracts
collective action
combination of contracts and collective action
Outgrowing schemes
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Relying on exporter to get advice and inputs support
Benefit for both involved parties
Formalizing the trading with Nigeria
Quality Management and control
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ILO; HACCP; EurepGAP; ISO, etc.
Stringent norms and quality standards  Reduction of
export possibilities (2%)
Consumer’s quality requirements on local and border
markets are generally low
Quality affected by :
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Less qualified labour and qualified competences with adapted
equipments
Farming systems
Access to inputs (planting & fertilizers)
Need of tractability system (accreditation and certification)
Constraints and Challenges in
Governance and Channel Choice in
Tropical Agri-Food Chains: the Case of
Pineapple Supply Chains in Benin
Arinloyé A.A.D; Hagelaar, G.; Linnemann, A.R.;
Coulibaly, O. and Royer, A.
WECARD Cotonou, 24 - 27 May 2010