Course:FRE521E/Syllabus

COURSE INFORMATION

Session and term: 2023-24W2

Class location: MCML 154

Class times: Mon and Wed 10:00 – 11:30 am

Lab times: N/A

Course duration: Feb 26/24 – Apr 10/24

Credits: 1.5

COURSE DESCRIPTION

Over the last 40 years, agri-food supply chains have become increasingly complex and integrated. Traditional spot markets have been replaced with contractual relationships, supermarkets have emerged as key players in food retailing worldwide, food products have become more and more differentiated, the various stages of the supply chain have become increasingly concentrated and vertically integrated, and certain strategically important countries (e.g., China, Brazil, Ukraine) have become major buyers and sellers. Using a set of conceptual tools and empirical examples, this course examines the economics of agri-food supply chains and the significant transformations they have undergone.

INSTRUCTOR

Instructor: Murray Fulton, PhD, Professor Emeritus, University of Saskatchewan

Email: Murray.Fulton@usask.ca

Office hours: Mon 2-3:30 pm

LEARNING OUTCOMES

By the end of this course, students will be able to:

Understand the reasons for and estimate the extent of market power in agri-food supply chains;
Explain the pricing strategies used in agri-food supply chains;
Explain the increased vertical integration in agri-food supply chains and analyze its impact;
Explain the rise of private labels and standards in agri-food supply chains and analyze their impact; and
Describe and analyze the technological changes that have transformed and are transforming agri-food supply chains.

ASSESSMENTS

Market Power Assignment (50% Individual; 50% Team)	30
Food Price Project & Presentation (Team)	30
Participation (Individual)	10
Final Exam (Individual)	30
TOTAL	100

READINGS

Online journal articles and access to R.

COURSE SPECIFIC POLICIES

Writing Exams

All exams will be in-person and will follow MFRE exam protocol (See Student Portal). Exams may be online, e.g., in Canvas, but students must be physically present, use the lock-down browser, and invigilated. If a student is unable to write an exam, they must have a verifiable doctor’s note and must contact the Course Instructor, Course Assistant, and MFRE Program Manager before the scheduled exam date/time. If the documentation is considered legitimate, the student will be informed of the how to proceed.

Exam Policies

Students must complete the final exam. If you are unable to make the final exam, please contact the instructor to make alternative arrangements.

Late and/or Substandard Format Assignments:

Students must complete all assignments. If you are unable to complete an assignment, please contact the instructor to make alternative arrangements.

Group Work and Peer Review

Students will choose their own groups for the two assignments, with a maximum of three students per group. The groups for the two assignments may differ.

COURSE SCHEDULE

Background Reading for the Course:

Barrett, C. B., Reardon, T., Swinnen, J., & Zilberman, D. (2022). Agri-food Value Chain Revolutions in Low- and

Middle-Income Countries. Journal of Economic Literature, 60(4), 1316–1377. https://doi.org/10.1257/jel.20201539

Nuño-Ledesma, J. G., & Von Massow, M. (2023). Canadian food inflation: International dynamics and local agency. Canadian Journal of Agricultural Economics/Revue Canadienne d’agroeconomie, cjag.12341. https://doi.org/10.1111/cjag.12341

Week 1: Determinants of Market Power in Agri-Food Supply Chains

Date: February 26 & 28

Conceptualization:

White, L.J. (2013). Market Power: How Does It Arise? How Is It Measured? In C. R. Thomas & W. F. Shughart (Eds.), The Oxford Handbook in Managerial Economics. Oxford University Press. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2056708

Swinnen, J.F.M., & Vandeplas, A. (2010). Market power and rents in global supply chains. Agricultural Economics, 41(s1), 109–120. https://doi.org/10.1111/j.1574-0862.2010.00493.x

Empirical:

Elshiewy, O., Guhl, D., & Boztug, Y. (2017). Multinomial Logit Models in Marketing—From Fundamentals to State-of-the-Art. Marketing ZFP, 39(3), 32–49. https://doi.org/10.15358/0344-1369-2017-3-32

Class Assignment (Data is in R): Estimating demand elasticities with discrete choice analysis—cracker case study

Web Appendix: Multinomial Logit Models in Marketing

https://rsw.beck.de/docs/librariesprovider54/default-document-library/web-appendix-elshiewy-etal_02.pdf?sfvrsn=8d26f25c_0

Week 2: Supply Chain Transformation: Contracting and Vertical Integration

Date: March 4 & 6

Conceptualization:

Sexton, R.J. (2013). Market Power, Misconceptions, and Modern Agricultural Markets. American Journal of Agricultural Economics, 95(2), 209–219. https://doi.org/10.1093/ajae/aas102

Pindyck, R.S. (2022). Lecture Notes on Vertical Structure. Sloan School of Management. Massachusetts Institute of Technology. Cambridge MA. http://web.mit.edu/rpindyck/www/Courses/VS_22.pdf

Kwoka, J.E., & Slade, M. (2020). Second Thoughts on Double Marginalization. Antitrust, 34(2), 51–56. https://heinonline.org/HOL/LandingPage?handle=hein.journals/antitruma34&div=31&id=&page

Empirical:

Villas-Boas, S. (2007). Vertical Relationships between Manufacturers and Retailers: Inference with Limited Data. The Review of Economic Studies, 74(2), 625–652. https://doi.org/10.1111/j.1467- 937X.2007.00433.x or https://escholarship.org/content/qt6gz1t778/qt6gz1t778.pdf

MacDonald, J. M., & Key, N. (2012). Market Power in Poultry Production Contracting? Evidence from a Farm Survey. Journal of Agricultural and Applied Economics, 44(4), 477–490. https://doi.org/10.1017/S1074070800024056 or https://pubag.nal.usda.gov/download/57041/pdf.

Supplemental Reading:

Hamilton, S. F., Liaukonyte, J., & Richards, T. J. (2020). Pricing Strategies of Food Retailers. Annual Review of Resource Economics, 12(1), 87-110. https://doi.org/10.1146/annurev-resource-101619-094219

Week 3: Supply Chain Transformation: Supermarkets and Product Differentiation

Date: March 11 & 13

Conceptualization:

Saitone, T. L., & Sexton, R. J. (2010). Product Differentiation and Quality in Food Markets: Industrial Organization Implications. Annual Review of Resource Economics, 2(1), 341–368. https://doi.org/10.1146/annurev.resource.050708.144154

Fulton, M. E., & Giannakas, K. (2004). Inserting GM Products into the Food Chain: The Market and Welfare Impacts of Different Labelling and Regulatory Regimes. American Journal of Agricultural Economics, 86(1), 42–60.

Empirical:

Reardon, T., & Gulati, A. (2008). The Supermarket Revolution in Developing Countries: Policies for Competitiveness with Inclusiveness (IFPRI Policy Brief 2; p. 2). International Food Policy Research Institute.

Boselie, D., Henson, S., & Weatherspoon, D. (2003). Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors. American Journal of Agricultural Economics, 85(5), 1155–1161. https://doi.org/10.1111/j.0092-5853.2003.00522.x

Ma, M., & Siebert, R. (2021). The Impact of Private Label Introductions on Assortment, Prices, and Profits of Retailers. 57.

Supplemental Reading:

Wu, L., Yang, W., & Wu, J. (2021). Private label management: A literature review. Journal of Business Research, 125, 368–384. https://doi.org/10.1016/j.jbusres.2020.12.032

Week 4: Supply Chain Transformation: Structure and Coordination

Date: March 18 & 20

Conceptualization:

Allen, D. W., & Lueck, D. (1998). The Nature of the Farm. The Journal of Law and Economics, 41(2), 343–386. https://doi.org/10.1086/467393

Cachon, G. P. (2003). Supply Chain Coordination with Contracts. In S. C. Graves & A. G. de Kok (Eds.), Handbooks in Operations Research and Management Science (Vol. 11, pp. 227–339). Elsevier. https://doi.org/10.1016/S0927-0507(03)11006-7.

Week 5: Supply Chain Transformation: Traceability and Standards

Date: March 25 & 27

Conceptualization:

Verbeke, W. (2005). Agriculture and the food industry in the information age. European Review of Agricultural Economics, 32(3), 347–368. https://doi.org/10.1093/eurrag/jbi017

McCluskey, J. J. (2007). Public and private food quality standards: Recent trends and strategic incentives. In J. F. M. Swinnen (Ed.), Global supply chains, standards and the poor: How the globalization of food systems and standards affects rural development and poverty (1st ed., pp. 19–25). CABI. https://doi.org/10.1079/9781845931858.0000 or http://sherekashmir.informaticspublishing.com/670/1/9781845931858.pdf.

Empirical:

Banterle, A., & Stranieri, S. (2008). The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics. Food Policy, 33(6), 560–569. https://doi.org/10.1016/j.foodpol.2008.06.002

Alvarez, G., & von Hagen, O. (2011). The Impacts of Private Standards on Producers in Developing Countries: Literature Review Series on the Impacts of Private Standards, Part II. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2184273

Supplemental Reading:

Golan, E., Krissoff, B., Kuchler, F., Calvin, L., Nelson, K., & Price, G. (2004). Traceability in the U.S. Food Supply: Economic Theory and Industry Studies (Agricultural Economic Report No. 830). Economic Research Service, United States Department of Agriculture. https://www.ers.usda.gov/webdocs/publications/41623/28673_aer830_1_.pdf?v=0

Pouliot, S., & Sumner, D. A. (2008). Traceability, Liability, and Incentives for Food Safety and Quality. American Journal of Agricultural Economics, 90(1), 15–27. https://doi.org/10.1111/j.1467-8276.2007.01061.x

Souza-Monteiro, D. M., & Caswell, J. A. (2010). The Economics of Voluntary Traceability in Multi-Ingredient Food Chains. Agribusiness, 26(1), 122–142. https://doi.org/10.1002/agr.20233

Week 6: Supply Chain Transformation: Circular Economy

Date: April 1 & 3

Conceptualization:

Chennak, A., Giannakas, K., & Awada, T. (2023). On the Economics of the Transition to a Circular Economy. Circular Economy and Sustainability. https://doi.org/10.1007/s43615-023-00297-8

Empirical:Ellen MacArthur Foundation. (2023). Examples of circular economy in the food industry. https://www.ellenmacarthurfoundation.org/topics/food/examples

Esposito, B., Sessa, M. R., Sica, D., & Malandrino, O. (2020). Towards Circular Economy in the Agri-Food Sector. A Systematic Literature Review. Sustainability, 12(18), 7401. https://doi.org/10.3390/su12187401

Week 7: Presentations and Review

Date: April 8 & 10

Participation Rubric

Category	Exceptional 4	Proficient 3	Satisfactory/Fair 2	Unacceptable 1
Frequency of participation (as listed above)	Student initiates contributions regularly during class /online platforms.	Student initiates contribution semi regularly during class /online platforms.	Student makes occasional contribution.	Student does not attend many lectures or does not initiate any contributions.
Quality of comments	Contributions are always insightful & constructive; uses appropriate terminology. Contributions balanced between general impressions, opinions and specific, thoughtful criticisms or questions.	Contributions mostly insightful & constructive; mostly uses appropriate terminology. Occasionally comments are too general or not relevant to the discussion.	Contributions are sometimes. constructive, with occasional signs of insight. Student does not use appropriate terminology; comments not always relevant to the discussion.	Contributions are uninformative, lacking in appropriate terminology. Heavy reliance on opinion & personal taste versus critical use of course content.

MFRE PROGRAM - COURSE PROTOCOL POLICIES

Recordings

There is no required distribution of recordings of class. Recording will be provided based upon on the decision of the course instructor. Classes are designed as and are intended to be in-person.

Copyright

All materials of this course (course handouts, lecture slides, assessments, course readings, etc.) are the intellectual property of the instructor or licensed to be used in this course by the copyright owner. Redistribution of these materials by any means without permission of the copyright holder(s) constitutes a breach of copyright and may lead to academic discipline and could be subject to legal action. Further, audio or video recording of classes are not permitted without the prior consent of the instructor.

Missing Classes/Labs

Students are expected to attend all classes, labs, or workshops. If you cannot make it to a class, lab, or workshop due to a medical or personal emergency, email your Instructor, your Course Assistant, and Olivier Ntwali, MFRE Program Coordinator ahead of time to let them know.

Respectfulness in the Classroom

Students are expected to be respectful of their colleagues at all times, including faculty, staff and peers. This means being attentive and conscious of words and actions and their impact on others, listening to people with an open mind, treating all MFRE community members equally and understanding diversity.

Respect for Equity, Diversity, and Inclusion

The MFRE Program strives to promote an intellectual community that is enhanced by diversity along various dimensions including status as a First Nation, Métis, Inuit, or Indigenous person, race, ethnicity, gender identity, sexual orientation, religion, political beliefs, social class, and/or disability. It is expected that all students and members of our community conduct themselves with empathy and respect for others.

Centre for Accessibility

The Centre for Accessibility (CfA) facilitates disability-related accommodations and programming initiatives designed to remove barriers for students with disabilities and ongoing medical conditions. If you are registered with the CfA and are eligible for exam accommodations, it is your responsibility to let Olivier Ntwali, Academic Program Coordinator, and each of your Course Instructors know. You should book your exam writing with the CFA using its exam reservation system: for midterm exams or quizzes, at least 7 days in advance; and final exams, 7 days before the start of the formal exam period.

MFRE PROGRAM - ACADEMIC HONESTY POLICIES

Plagiarism and Academic Dishonesty

Academic dishonesty and plagiarism are taken very seriously in the MFRE program. All incidences of plagiarism will be escalated to the MFRE Academic Director with penalties ranging from a mark of zero on the assignment, exam or course to being required to withdraw from the program. Note: If a student needs to extend his/her program due to a failed course or unsatisfactory progress, they will have to pay the full MFRE tuition fees for that term/s.

Academic misconduct that is subject to disciplinary measures includes, but is not limited, to the following:

Plagiarism, which is intellectual theft, occurs where an individual submits or presents the oral or written work of another person as his or her own. In many UBC courses, you will be required to submit material in electronic form. The electronic material will be submitted to a service which UBC subscribes, called TurnItIn. This service checks textual material for originality. It is increasingly used in North American universities. For more information, review TurnItIn website online.
Using Generative Artificial Intelligence (AI) tools like ChatGPT, Bard, or other Generative AI models to generate content or conduct analysis for evaluations, without proper citation and or if asked not to use AI, is considered plagiarism and academic misconduct. If students use AI in their submissions, they must cite the AI generator using citations consistent with the UBC Academic Honesty Standards.
Cheating, which may include, but is not limited to falsification of any material subject to academic evaluation, unauthorized collaborative work; or use of unauthorized means to complete an examination.
Working with Others on an Assignment: You are encouraged to work with other students, but you must turn in your own individual assignment. If you have an answer that is too close to another student’s answer, this will be considered academic dishonesty and this will be handled according to the MFRE and UBC policies.
Resubmission of Material, submitting the same, or substantially the same, essay, presentation, or assignment more than once (whether the earlier submission was at this or another institution) unless prior approval has been obtained from the instructor(s) to whom the assignment is to be submitted.
Use of academic ghostwriting services, including hiring of writing or research services and submitting papers or assignments as his or her own.

Student Responsibility: Students are responsible for informing themselves of the guidelines of acceptable and non‐acceptable conduct for examinations and graded assignments as presented via MFRE Code of Conduct; MFRE Turn it in, Course Syllabus, MFRE Instructors; Canvas and UBC academic misconduct policies.

Penalties for Academic Dishonesty: Penalties for academic dishonesty are applied at the discretion of the MFRE program. Incidences of academic misconduct may result in a mark of zero on the assignment, examination, or course, required withdrawal from the program, and/or the matter being is referred to UBC Graduate Studies.