Price risk perceptions and management strategies in selected European food supply chains

An exploratory approach

Tsion T. Assefa*, Miranda P.M. Meuwissen, Alfons G.J.M. Oude Lansink

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

9 Citations (Scopus)

Abstract

Agricultural prices in European food markets have become more volatile over the past decade exposing agribusinesses to risk and uncertainty. This study goes beyond the farm stage and explores through interviews the price risk perceptions and management strategies in multiple stages of the food supply chain. Respondents were farmers, wholesalers, processors, and retailers in six European food supply chains. Results show that price risk management strategies in EU food chains are diverse and well beyond traditional instruments such as futures and forward contracts. We further find that deviations of prices by more than 10–15% from expected levels were perceived as price volatility by a majority of the chain actors. This study provides new insights on price risk management, a deeper understanding of price risk perceptions and highlights the interrelation of price risk management decisions with other business decisions.

Original languageEnglish
Pages (from-to)15-26
JournalNJAS Wageningen Journal of Life Sciences
Volume80
DOIs
Publication statusPublished - 2017

Fingerprint

risk perception
Food Chain
Food Supply
food supply
risk management
Risk Management
food supply chain
management
agricultural price
food market
agroindustry
food
price
agribusiness
management decision
food chain
Volatilization
Contracts
interviews
farm

Keywords

  • European union
  • Exploratory
  • Food supply chains
  • Interviews
  • Management strategies
  • Perceptions
  • Price risk

Cite this

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title = "Price risk perceptions and management strategies in selected European food supply chains: An exploratory approach",
abstract = "Agricultural prices in European food markets have become more volatile over the past decade exposing agribusinesses to risk and uncertainty. This study goes beyond the farm stage and explores through interviews the price risk perceptions and management strategies in multiple stages of the food supply chain. Respondents were farmers, wholesalers, processors, and retailers in six European food supply chains. Results show that price risk management strategies in EU food chains are diverse and well beyond traditional instruments such as futures and forward contracts. We further find that deviations of prices by more than 10–15{\%} from expected levels were perceived as price volatility by a majority of the chain actors. This study provides new insights on price risk management, a deeper understanding of price risk perceptions and highlights the interrelation of price risk management decisions with other business decisions.",
keywords = "European union, Exploratory, Food supply chains, Interviews, Management strategies, Perceptions, Price risk",
author = "Assefa, {Tsion T.} and Meuwissen, {Miranda P.M.} and {Oude Lansink}, {Alfons G.J.M.}",
year = "2017",
doi = "10.1016/j.njas.2016.11.002",
language = "English",
volume = "80",
pages = "15--26",
journal = "NJAS Wageningen Journal of Life Sciences",
issn = "1573-5214",
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}

TY - JOUR

T1 - Price risk perceptions and management strategies in selected European food supply chains

T2 - An exploratory approach

AU - Assefa, Tsion T.

AU - Meuwissen, Miranda P.M.

AU - Oude Lansink, Alfons G.J.M.

PY - 2017

Y1 - 2017

N2 - Agricultural prices in European food markets have become more volatile over the past decade exposing agribusinesses to risk and uncertainty. This study goes beyond the farm stage and explores through interviews the price risk perceptions and management strategies in multiple stages of the food supply chain. Respondents were farmers, wholesalers, processors, and retailers in six European food supply chains. Results show that price risk management strategies in EU food chains are diverse and well beyond traditional instruments such as futures and forward contracts. We further find that deviations of prices by more than 10–15% from expected levels were perceived as price volatility by a majority of the chain actors. This study provides new insights on price risk management, a deeper understanding of price risk perceptions and highlights the interrelation of price risk management decisions with other business decisions.

AB - Agricultural prices in European food markets have become more volatile over the past decade exposing agribusinesses to risk and uncertainty. This study goes beyond the farm stage and explores through interviews the price risk perceptions and management strategies in multiple stages of the food supply chain. Respondents were farmers, wholesalers, processors, and retailers in six European food supply chains. Results show that price risk management strategies in EU food chains are diverse and well beyond traditional instruments such as futures and forward contracts. We further find that deviations of prices by more than 10–15% from expected levels were perceived as price volatility by a majority of the chain actors. This study provides new insights on price risk management, a deeper understanding of price risk perceptions and highlights the interrelation of price risk management decisions with other business decisions.

KW - European union

KW - Exploratory

KW - Food supply chains

KW - Interviews

KW - Management strategies

KW - Perceptions

KW - Price risk

U2 - 10.1016/j.njas.2016.11.002

DO - 10.1016/j.njas.2016.11.002

M3 - Article

VL - 80

SP - 15

EP - 26

JO - NJAS Wageningen Journal of Life Sciences

JF - NJAS Wageningen Journal of Life Sciences

SN - 1573-5214

ER -