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Modelling the impact of private quality standards on the fresh fruit and vegetable supply chains in developing countries

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Author Info
Fontaine, Damien
Gaspart, Frederic
Henry de Frahan, Bruno
Abstract

Stricter quality requirements and greater uses of private quality standards have a considerable impact on the fresh fruit and vegetable supply chain in developing countries. In particular, the future of small-scale production is in doubt. This paper presents a theoretical game theory model to study the impact of quality requirements on producer and consumer welfare within certified supply chains. The model shows that total producer welfare is maximized at higher quality levels where farmers who are efficient in the production of quality products participate, whilst less efficient producers are excluded. In addition, the model provides useful insights on welfare and poverty impact of increased competition and changes in private standard certification costs.

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Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44378.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44378

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Keywords: Fruit and vegetables; private quality standards; game theory; Crop Production/Industries;

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  1. Berdegue, Julio A. & Balsevich, Fernando & Flores, Luis & Reardon, Thomas, 2005. "Central American supermarkets' private standards of quality and safety in procurement of fresh fruits and vegetables," Food Policy, Elsevier, vol. 30(3), pages 254-269, June. [Downloadable!] (restricted)
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  3. Jean-Christophe Bureau & Estelle Gozlan & Stephan Marette, 2001. "Quality Signaling and International Trade in Food Products," Food and Agricultural Policy Research Institute (FAPRI) Publications 01-wp283, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
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  4. Weinberger, Katinka & Lumpkin, Thomas A., 2007. "Diversification into Horticulture and Poverty Reduction: A Research Agenda," World Development, Elsevier, vol. 35(8), pages 1464-1480, August. [Downloadable!] (restricted)
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  6. John Humphrey & Neil McCulloch & Masako Ota, 2004. "The impact of European market changes on employment in the Kenyan horticulture sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 63-80. [Downloadable!]
  7. Swinnen, Johan F.M. & Vandeplas, Anneleen, 2007. "Contracting, Competition, and Rent Distribution Theory and Empirical Evidence from Developing and Transition Countries," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9413, European Association of Agricultural Economists. [Downloadable!]
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  11. Jaffee, Steve & Masakure, Oliver, 2005. "Strategic use of private standards to enhance international competitiveness: Vegetable exports from Kenya and elsewhere," Food Policy, Elsevier, vol. 30(3), pages 316-333, June. [Downloadable!] (restricted)
  12. Fulponi, Linda, 2006. "Private voluntary standards in the food system: The perspective of major food retailers in OECD countries," Food Policy, Elsevier, vol. 31(1), pages 1-13, February. [Downloadable!] (restricted)
  13. Miet Maertens & Johan F.M. Swinnen, 2006. "Trade, Standards, and Poverty: Evidence from Senegal," LICOS Discussion Papers 17706, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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  14. Kleinwechter, Uli & Grethe, Harald, 2006. "The adoption of the Eurepgap Standard by Mango Exporters in Piura, Peru," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25521, International Association of Agricultural Economists. [Downloadable!]
  15. Neven, David & Reardon, Thomas, 2006. "Kenyan Supermarkets and Horticultural Farm Sector Development," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25759, International Association of Agricultural Economists. [Downloadable!]
  16. C. Dolan & J. Humphrey, 2000. "Governance and Trade in Fresh Vegetables: The Impact of UK Supermarkets on the African Horticulture Industry," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(2), pages 147-176, December. [Downloadable!] (restricted)
  17. Codron, Jean-Marie & Giraud-Heraud, Eric & Soler, Louis-Georges, 2005. "Minimum quality standards, premium private labels, and European meat and fresh produce retailing," Food Policy, Elsevier, vol. 30(3), pages 270-283, June. [Downloadable!] (restricted)
  18. Hatanaka, Maki & Bain, Carmen & Busch, Lawrence, 2005. "Third-party certification in the global agrifood system," Food Policy, Elsevier, vol. 30(3), pages 354-369, June. [Downloadable!] (restricted)
  19. Bart Minten & Lalaina Randrianarison & Johan Swinnen, 2007. "Spillovers from high-value agriculture for exports on land use in developing countries: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 265-275, 09. [Downloadable!] (restricted)
  20. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October. [Downloadable!] (restricted)
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