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Management response to the demands of global fresh fruit markets: Rewarding harvesters with financial incentives

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  • Sutti Ortiz
  • Susana Aparicio
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    Abstract

    Competition in global fresh fruit markets is now much more intense than a decade ago. Producers and exporters face an increasing number of quality requirements and regulations that are costly and challenge established practices: paying harvesters by the amount they harvest and trying to control quality with sanctions. Based on a field study, this article discusses how lemon producers in northern Argentina are responding to these challenges; why some have responded only by introducing non-contractual innovations, while others by rewarding harvesters for careful performance to insure fruit quality. The findings elucidate arguments about the instrumentality of transaction costs on the choice of both managerial practices and forms of remunerating labourers. It also illustrates that added quality demands of foreign markets eased the task of harvesters, but had a varying effect on labourers' income.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

    Volume (Year): 42 (2006)
    Issue (Month): 3 ()
    Pages: 446-468

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    Handle: RePEc:taf:jdevst:v:42:y:2006:i:3:p:446-468

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    1. James A. Roumasset, 1993. "The Nature of the Agricultural Firm," Working Papers 199317, University of Hawaii at Manoa, Department of Economics.
    2. Roumasset, James & Uy, Marilou, 1980. "Piece rates, time rates, and teams : Explaining patterns in the employment relation," Journal of Economic Behavior & Organization, Elsevier, vol. 1(4), pages 343-360, December.
    3. Williamson, Oliver E., 1980. "The organization of work a comparative institutional assessment," Journal of Economic Behavior & Organization, Elsevier, vol. 1(1), pages 5-38, March.
    4. Charles Brown, 1990. "Firms' choice of method of pay," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(3), pages 165-182, February.
    5. James Roumasset & Marilou Uy, 1987. "Agency Costs and the Agricultural Firm," Land Economics, University of Wisconsin Press, vol. 63(3), pages 290-302.
    6. Akerlof, George A, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 543-69, November.
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