Compliance with International Food Safety Standards in Kenya's Green Bean Industry: Comparison of a Small- and a Large-scale Farm Producing for Export
AbstractEuropean food safety standards have increased the fixed and transactions costs of Kenyan green bean farmers while requiring more stringent quality monitoring by exporting firms. This paired case study finds that large farms use owner equity to invest in improved facilities. Small farms attain scale economies by joining a marketing group that spreads facility investment costs and reduces the transaction cost to buyers of monitoring small farm performance. Green bean buyers meet the asymmetric information problem by close monitoring, the threat of contract termination, and variable product pricing to induce compliance with the standards. Copyright 2007, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.
Volume (Year): 29 (2007)
Issue (Month): 2 ()
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- Hansen, Henrik & Trifković, Neda, 2014.
"Food Standards are Good – For Middle-Class Farmers,"
Elsevier, vol. 56(C), pages 226-242.
- Henrik Hansen & Neda Trifković, 2013. "Food Standards are Good – for Middle-Class Farmers," IFRO Working Paper 2013/19, University of Copenhagen, Department of Food and Resource Economics.
- Martha McMahon, 2013. "What Food is to be Kept Safe and for Whom? Food-Safety Governance in an Unsafe Food System," Laws, MDPI, Open Access Journal, vol. 2(4), pages 401-427, October.
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