THE SUPPLY CHAIN FOR ASIAN VEGETABLE RETAILERS: A …

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THE SUPPLY CHAIN FOR ASIAN VEGETABLE RETAILERS:

A CASE STUDY OF MICHIGAN

By

Shriniwas Gautam

A Plan B Paper

Submitted to Michigan State University

in partial fulfillment of requirements

for the degree of

MASTER OF SCIENCE

Department of Agricultural Economics

Michigan State University

2005

Abstract

The Supply Chain for Asian Vegetable Retailers:

A Case Study of Michigan

By

Shriniwas Gautam

The demand for fresh vegetables including specialty vegetables such as Asian

vegetables is increasing in the US. In addition to broad-line food retailers Asian grocery

stores and restaurants cater to this demand. However, the supply chain for these Asian

vegetable retailers has not yet been documented while supply chain research has focused

on the broad-line vegetable retailers. This study traces the supply chain of the Asian

vegetable retailers, both groceries and restaurants, based on a case study of Michigan. It

also analyzes the potential to grow vegetables in Michigan that are common to the supply

chain of Asian vegetable retailer¡¯s in Michigan and evaluates the potential of Michigan

produced vegetables to access the supply chain.

This study shows that the Asian grocery stores cater to a niche market that relies

heavily on Asian customers. These Asian customers demand Asian specialty vegetables

that are not common to broad-line grocery retailers and thus have a supply chain that is

distinctive with ethnic ties. The variables such as ethnic presence, predominance of exotic

Asian varieties and Asian customers, limited use of technology, fragmented businesses

selling limited produce items and limited value addition make the supply chain

distinctive. The study findings indicate that Michigan has potential to grow some general

vegetables and limited Asian vegetables which gives Michigan producers a limited

potential access to the supply chain of Asian vegetable retailers.

ii

To my beloved parents for being my strength

iii

Acknowledgements

It is indeed a very happy moment for a student from a country like Nepal to earn a

degree at a prestigious academic institution like Michigan State University. This happy

ending was primarily because of the constant support and superior academic and research

guidance of my advisor Dr. Christopher Peterson. I am also indebted to him for providing

with financial support for this research work. I highly acknowledge the other two

members of my research committee, Dr. Murari Suvedi and Dr. Susan Thornsbury, for

their invaluable time and guidance in the research process.

My admission and this successful completion of my master¡¯s degree is also the

outcome of the generous support of Fulbright Scholarship of the US Government, faculty

members, staff members and fellow students of the Department of Agricultural

Economic. I am especially grateful to Dr. Eric Crowford, Dr. Sandra Batie among the

faculty and Debbie Conway and Marianne Triponi among the staff.

I wish to mention the names of few friends, Krishna Mohan Shrestha, Orlando

Mejia and Lourdes Martinez, for their help during the survey. I also want to thank the

Asian vegetable retailers and their suppliers who agreed to participate in my research

survey.

At last, but most, I thank my beloved wife, Amrita, for her love and patience. My

son, Srivats, needs special mention as his innocent smiles always inspired me for hard

work.

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