EU Food Safety Standards, Pesticide Use and Farm-level Productivity: The Case of High-value Crops in Kenya
AbstractThis article provides an empirical analysis of the impact of European Union (EU) private food safety standards on pesticide use and farm-level productivity among small-scale vegetable producers in Kenya. We apply an extended three-stage damage control production framework, accounting for multiple endogeneity problems, to farm-level data collected from a random cross-sectional sample of 539 small-scale producers. Estimation results show that farmers producing vegetables for the domestic market use significantly lower quantities of pesticides than do export farmers. However, contrary to findings elsewhere, the econometric evidence here shows that both domestic and export-oriented vegetable farmers in Kenya use pesticides at levels below the economic optimum. The results also show that the adoption of standards by export farmers does not have any significant impact on total pesticide use. However, adopter categories are distinguishable in terms of types of pesticide used, i.e. adopters use safer pesticides based on World Health Organization (WHO) classification. The third-stage structural revenue model results demonstrate that adoption of standards has a positive and significant impact on revenue raised in vegetable production. Nevertheless, farmers producing for the export market are indistinguishable from those producing for the domestic farmers in terms of the total revenue earned from producing vegetables during the rainy season, on a 'per acre' basis. Although standards can potentially prevent resource-poor smallholders from maintaining their position in the lucrative export markets, they can also result in positive changes in the production systems of those small-scale farmers who adopt it, as shown by these results. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Agricultural Economics.
Volume (Year): 60 (2009)
Issue (Month): 3 ()
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X
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- Rao, Elizaphan J.O. & Qaim, Matin, 2011. "Supermarkets, Farm Household Income, and Poverty: Insights from Kenya," World Development, Elsevier, vol. 39(5), pages 784-796, May.
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- Sarah, Kersting & Meike, Wollni, 2012. "New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123537, International Association of Agricultural Economists.
- Handschuch, Christina & Wollni, Meike & Villalobos, Pablo, 2013. "Adoption of food safety and quality standards among Chilean raspberry producers – Do smallholders benefit?," Food Policy, Elsevier, vol. 40(C), pages 64-73.
- Maertens, Miet & Verhofstadt, Ellen, 2012. "Horticultural exports, female wage employment and primary school enrolment: Theory and evidence from a natural quasi-experiment in Senegal," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126856, International Association of Agricultural Economists.
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