A Review of Marketing Channel Implications in Agribusiness
DOI:
https://doi.org/10.47134/jbea.v3i1.940Keywords:
Buyer Power, E-commerce, Digitalization, Inclusivity, Supermarket RevolutionAbstract
This review analyzes the impacts of transformations in agribusiness marketing channels, specifically supermarket expansion, value-chain governance, and digitalization on value distribution, smallholder inclusion, and overall system competitiveness. Using an integrative qualitative review, the study synthesizes evidence from recent academic literature, institutional reports, and policy analyses published over the last two decades. Findings show that modern retail growth enhances quality control and procurement efficiency but often excludes smallholders unable to meet stringent standards and capital requirements. Governance dynamics further shape distributional outcomes, as concentrated buyer power allows lead firms to influence pricing, compliance costs, and coordination structures, reinforcing asymmetries unless counterbalanced by supportive policies, transparent contracting, and stronger farmer organizations. Digitalization offers new pathways for efficiency and market access through e-commerce platforms, traceability systems, and data-driven coordination, yet its benefits remain uneven due to digital divides, limited infrastructure, and unclear data governance frameworks. The results highlight that modernization alone does not guarantee inclusivity. Building resilient and equitable agrifood systems requires integrated strategies that combine technological innovation with fair governance arrangements, institutional support, and targeted policies that enable smallholders to upgrade and participate in evolving market channels.
References
Abdulai, A. R., Quarshie, P. T., Duncan, E., & Fraser, E. (2023). Is agricultural digitization a reality among smallholder farmers in Africa? Unpacking farmers’ lived realities of engagement with digital tools and services in rural Northern Ghana. Agriculture & Food Security, 12, 11.
Barrett, C. B., Christiaensen, L., & Headey, D. D. (2022). The state of agri-food systems and agri-food value chains in 2020. In C. B. Barrett, L. Christiaensen, & D. D. Headey (Eds.), The economics of sustainable food systems: Transforming agri-food value chains (pp. 15–44).
Bellemare, M. F., & Bloem, J. R. (2018). Does contract farming improve welfare? A review. World Development, 112, 259–271.
Berti, G., & Mulligan, C. (2016). The role of food hubs in creating sustainable regional food systems. Sustainability, 8(7), 616.
Boateng, A. O., Bannor, R. K., Bold, E., & Oppong-Kyeremeh, H. (2023). A systematic review of the supply of agriproducts to supermarkets in emerging markets of Africa and Asia. Cogent Food & Agriculture, 9(1), 224769.
Bonanno, A., Russo, C., & Menapace, L. (2017). Market power and bargaining in agrifood markets: A review of emerging topics and tools. Agribusiness, 34(1), 6–23.
Charlebois, S., Latif, N., Ilahi, I., Sarker, B., Music, J., & Vezeau, J. (2024). Digital traceability in agri-food supply chains: A comparative analysis of OECD member countries. Foods, 13(7), 1075.
Choruma, D., Dirwai, T., Mutenje, M., Mustafa, M., Chimonyo, V., Jacobs-Mata, I., & Mabhaudhi, T. (2024). Digitalisation in agriculture: A scoping review of technologies in practice, challenges, and opportunities for smallholder farmers in sub-Saharan Africa. Journal of Agriculture and Food Research, 18.
Das Nair, R., Chisoro, S., & Ziba, F. (2018). The implications for suppliers of the spread of supermarkets in southern Africa. Development Southern Africa, 35.
De Vries, J. R., Turner, J. A., Finlay-Smits, S., Ryan, A., & Klerkx, L. (2023). Trust in agri-food value chains: A systematic review. International Food and Agribusiness Management Review, 26(2), 175–197.
Emediegwu, L., & Rogna, M. (2024). Agricultural commodities’ price transmission from international to local markets in developing countries. Food Policy, 126(C).
Gereffi, G., & Lee, J. (2016). Economic and social upgrading in global value chains and industrial clusters: Why governance matters. Journal of Business Ethics, 133(1), 25–38.
Grohmann, P., Dietze, V., Krämer, C., & Feindt, P. H. (2023). Governance and trust in sustainability-based agri-food value chains: A comparative analysis of five cases in Germany. Frontiers in Sustainable Food Systems, 7.
Guimarães, A. F., Malanski, P. D., Schiavi, S., & Bouroullec, J. (2023). Governance in agrifood global value chain: The scientific field in the recent 15 years. Revista de Economia e Sociologia Rural, 61(3).
Hartmann-Boyce, J., Bianchi, F., Piernas, C., Payne Riches, S., Frie, K., Nourse, R., & Jebb, S. A. (2018). Grocery store interventions to change food purchasing: A systematic review of randomized controlled trials. American Journal of Clinical Nutrition, 107(6), 1004–1016.
Hidayati, D. R., Garnevska, E., & Childerhouse, P. (2023). Enabling sustainable agrifood value chain transformation in developing countries. Journal of Cleaner Production, 395, 136300.
Hobbs, J. E. (2020). Food supply chains during the COVID-19 pandemic. Canadian Journal of Agricultural Economics / Revue canadienne d’agroeconomie, 68(2), 171–176.
Hollis-Hansen, K., Vermont, L., Zafron, M. L., Seidman, J., & Leone, L. (2019). The introduction of new food retail opportunities in lower-income communities and the impact on fruit and vegetable intake: A systematic review. Translational Behavioral Medicine, 9(5), 837–846.
Ichikawa, M., Natawidjaja, R. S., & Suryaningrat, I. (2017). Small-scale vegetable farmers’ participation in modern retail market channels in Indonesia: The determinants and effects on their income. Agriculture, 7(2), 11.
Jouanjean, M. A., Casalini, F., Wiseman, L., & Gray, E. (2020). Issues around data governance in the digital transformation of agriculture: The farmers’ perspective. OECD Food, Agriculture and Fisheries Papers, No. 146, OECD Publishing, Paris.
Macaumbao, W. B., & Bandera, A. D. (2025). A review on financial management practices and their implications. American Journal of Economics and Business Innovation, 4(3), 80–95.
Magakwe, N. (2024). A systematic review of the trends, effects, and deterrents of collective marketing participation among smallholder farmers. Sustainability, 16(21), 9578.
Martens, K., & Zscheischler, J. (2022). The digital transformation of the agricultural value chain: Discourses on opportunities, challenges and controversial perspectives on governance approaches. Sustainability, 14(7), 3905.
Minten, B., Reardon, T., & Timmer, C. P. (2017). Supermarket revolution in Asia and emerging development strategies to include small farmers. Food Policy, 47, 1–10.
Mishra, P. K., & Dey, K. (2018). Governance of agricultural value chains: Coordination, control and safeguarding. Journal of Rural Studies, 64, 135–147.
Morepje, M. T., Sithole, M. Z., Msweli, N. S., & Agholor, A. I. (2024). The influence of e-commerce platforms on sustainable agriculture practices among smallholder farmers in sub-Saharan Africa. Sustainability, 16, 6496.
Ochieng, D., & Wu, E. (2020). Supermarket contracts boost incomes and reduce multidimensional poverty for smallholders in Kenya. International Food Policy Research Institute.
Ogutu, S. O., Ochieng, D. O., & Qaim, M. (2019). Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty. GlobalFood Discussion Papers, No. 133. Georg-August-Universität Göttingen.
Ørtenblad, S. B., Larsen, M. N., & Bruun, T. B. (2023). Smallholder participation in modernising agri-food value chains in Thailand: The role of traditional markets. European Journal of Development Research, 35, 1419–1439.
Reardon, T., & Timmer, C. P. (2015). The economics of the food system revolution. Annual Review of Resource Economics, 7, 313–336.
Reardon, T., Echeverria, R., Berdegué, J., Minten, B., Liverpool-Tasie, L. S. O., Tschirley, D., & Zilberman, D. (2019). Rapid transformation of food systems in developing regions: Highlighting the role of the hidden middle. Food Security, 11, 1099–1122.
Richards, T. J., & Pasirayi, S. (2024). Food retailing in developing economies: Review of empirical insights and new directions. Agribusiness, 40(4), 926–949.
Sauvagerd, M., Mayer, M., & Hartmann, M. (2024). Digital platforms in the agricultural sector: Oligopolistic platformisation and data governance. Big Data & Society, 11.
Ton, G., Vellema, W., Desiere, S., Weituschat, S., & D’Haese, M. (2018). Contract farming for improving smallholder incomes: What can we learn from effectiveness studies? World Development, 104, 46–64.
Utomo, R. P., Kuleh, Y., & Darma, D. C. (2023). Conventional vs modern: Which approach is better for the success of agricultural cooperatives? Agricultural and Resource Economics: International Scientific E-Journal, 9(4), 26–49.
Uyar, H., Karvelas, I., Rizou, S., & Fountas, S. (2024). Data value creation in agriculture: A review. Computers and Electronics in Agriculture, 227(Part 2), 109602.
Vishnu, K., & Kumar, P. (2019). Dynamics of procurement of modern food retail chains: Evidence from Karnataka (Working Paper No. 461). Bengaluru: Institute for Social and Economic Change.
World Bank. (2021). A roadmap for building the digital future of food and agriculture. World Bank.
Zhang, M., & Berghäll, S. (2021). E-Commerce in Agri-Food Sector: A Systematic Literature Review Based on Service-Dominant Logic. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3356–3374.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Saliha G Hanafie, Abdani D. Bandera

This work is licensed under a Creative Commons Attribution 4.0 International License.

