Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector
AbstractDeveloping countries are increasingly exporting fresh horticulture products to high-income countries. These exports increasingly have to comply with stringent public and private standards, as well as other quality and safety issues. There is an ongoing debate on the effect of private standards on the inclusion of small-scale farmers in export supply chains. With this paper, we contribute to this debate by providing robust evidence from the Peruvian asparagus export sector, and thereby addressing several important methodological shortcomings and gaps in the existing literature. We use a unique firm level dataset on 567 asparagus export firms from 1993 – 2011 and several methods, including fixed effects and GMM estimators, to estimate the causal impact of certification to private standards on companies sourcing strategy. We find that certification leads to vertical integration and significantly reduces the share of product that is sourced from external producers, with a larger effect for small-scale producers. When distinguishing between production and processing standards, and between low-level and high-level standards, we find that especially high-level production standards have a negative impact on sourcing from (small-scale) producers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics in its series Working Papers with number 146557.
Date of creation: 2013
Date of revision:
Contact details of provider:
Postal: Celestijnenlaan 200 E - box 2411, 3001 Leuven (Heverlee)
Phone: +32-16-32 29 80
Fax: +32-16-32 78 00
Web page: http://www.agr.kuleuven.ac.be/aee/clo/clohomee.htm
More information through EDIRC
Private standards; Global supply chains; Small-scale farming; Horticultural exports; Peru; Agribusiness; Agricultural and Food Policy; International Relations/Trade; D22; F14; L15; L22; O13;
Find related papers by JEL classification:
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reardon, Thomas & Codron, Jean-Marie & Busch, Lawrence & Bingen, R. James & Harris, Craig, 1999. "Global Change In Agrifood Grades And Standards: Agribusiness Strategic Responses In Developing Countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 2(03/04).
- Henson, Spencer & Masakure, Oliver & Cranfield, John, 2011. "Do Fresh Produce Exporters in Sub-Saharan Africa Benefit from GlobalGAP Certification?," World Development, Elsevier, vol. 39(3), pages 375-386, March.
- Solomon Asfaw & Dagmar Mithöfer & Hermann Waibel, 2010. "Agrifood supply chain, private-sector standards, and farmers' health: evidence from Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 251-263, 05.
- Mausch, Kai & Mithofer, Dagmar & Asfaw, Solomon & Waibel, Hermann, 2009. "Export Vegetable Production in Kenya under the EurepGAP Standard: Is Large â€œMore Beautifulâ€ than Small?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(3), November.
- Julie Subervie & Isabelle Vagneron, 2012.
"Can fresh produce farmers benefit from global gap certification? The case of lychee producers in Madagascar,"
172039, Institut National de la Recherche Agronomique, France.
- Subervie, Julie & Vagneron, Isabelle, 2012. "Can Fresh Produce Farmers Benefit from Global Gap Certification? The case of lychee producers in Madagascar," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126704, International Association of Agricultural Economists.
- Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
- Wilson, John S. & Otsuki, Tsunehiro & Majumdar, Baishali, 2003.
"Balancing Food Safety And Risk: Do Drug Residue Limits Affect International Trade In Beef?,"
2003 Annual meeting, July 27-30, Montreal, Canada
21971, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- John Wilson & Tsunehiro Otsuki & Baishali Majumdsar, 2003. "Balancing food safety and risk: do drug residue limits affect international trade in beef?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 12(4), pages 377-402.
- Henson, Spencer & Masakure, Oliver & Boselie, David, 2005. "Private food safety and quality standards for fresh produce exporters: The case of Hortico Agrisystems, Zimbabwe," Food Policy, Elsevier, vol. 30(4), pages 371-384, August.
- Sven Anders & Julie Caswell, 2007.
"Standards-as-Barriers versus Standards-as-Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports,"
2007-7, University of Massachusetts Amherst, Department of Resource Economics.
- Sven M. Anders & Julie A. Caswell, 2007. "Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 310-321.
- Kersting, Sarah & Wollni, Meike, 2012. "New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand," Food Policy, Elsevier, vol. 37(4), pages 452-462.
- Shimizu, Tatsuya, 2006. "Expansion of Asparagus Production and Exports in Peru," IDE Discussion Papers 73, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Otsuki, Tsunehiro & S. Wilson, John, 2003. "Food Safety and Trade: Winners and Losers in a Non-Harmonized World," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 266-287.
- Swinnen Johan & Vandeplas Anneleen, 2012.
"Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains,"
Journal of Globalization and Development,
De Gruyter, vol. 2(2), pages 1-30, January.
- Swinnen, Johan F.M. & Vandeplas, Anneleen, 2009. "Rich consumers and poor producers: Quality and rent distribution in global value chains," IFPRI discussion papers 932, International Food Policy Research Institute (IFPRI).
- Beghin, John C., 2012.
"Non Tariff Measures with Market Imperfections: Trade and Welfare Implications,"
2012: New Rules of Trade?, December 2012, San Diego, California
142787, International Agricultural Trade Research Consortium.
- Beghin, John C., 2013. "Non-Tariff Measures with Market Imperfections: Trade and Welfare Implications," Staff General Research Papers 35923, Iowa State University, Department of Economics.
- Thijs Vandemoortele & Scott Rozelle & Johan F.M. Swinnen & Tao Xiang, 2009.
"Quality and Inclusion of Producers in Value Chains: A Theoretical Note,"
LICOS Discussion Papers
24609, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Thijs Vandemoortele & Scott Rozelle & Johan Swinnen & Tao Xiang, 2012. "Quality and Inclusion of Producers in Value Chains: A Theoretical Note," Review of Development Economics, Wiley Blackwell, vol. 16(1), pages 122-136, 02.
- Unnevehr, Laurian J., 2000. "Food safety issues and fresh food product exports from LDCs," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
- Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
- Jose Blandon & Spencer Henson & Towhidul Islam, 2009. "Marketing preferences of small-scale farmers in the context of new agrifood systems: a stated choice model," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 251-267.
- Maertens, Miet & Swinnen, Johan F.M., 2009.
"Trade, Standards, and Poverty: Evidence from Senegal,"
Elsevier, vol. 37(1), pages 161-178, January.
- Maertens, Miet & Swinnen, Johan F.M., 2007. "Trade, Standards and Poverty. Evidence from Senegal," 106th Seminar, October 25-27, 2007, Montpellier, France 7924, European Association of Agricultural Economists.
- 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, KU Leuven.
- Unnevehr, Laurian J., 2000. "Food safety issues and fresh food product exports from LDCs," Agricultural Economics, Blackwell, vol. 23(3), pages 231-240, September.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996.
"Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993. "Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates," NBER Technical Working Papers 0147, National Bureau of Economic Research, Inc.
- Chemnitz, Christine, 2007. "The Compliance Decision with Food Quality Standards on Primary Producer Level; A Case Study of the EUREPGAP Standard in the Moroccan Tomato Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9440, European Association of Agricultural Economists.
- Lemeilleur, Sylvaine, 2013.
"Smallholder Compliance with Private Standard Certification: The Case of GlobalGAP Adoption by Mango Producers in Peru,"
International Food and Agribusiness Management Review,
International Food and Agribusiness Management Association (IAMA), vol. 16(4).
- Lemeilleur, Sylvaine, 2012. "Smallholder compliance with private standard certification: the case of GlobalGAP adoption by mango producers in Peru," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123457, International Association of Agricultural Economists.
- David Boselie & Spencer Henson & Dave Weatherspoon, 2003. "Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1155-1161.
- Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
- 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.
- Kleinwechter, Ulrich & 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.
- 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.
- Herzfeld, Thomas & Drescher, Larissa S. & Grebitus, Carola, 2011. "Cross-national adoption of private food quality standards," Food Policy, Elsevier, vol. 36(3), pages 401-411, June.
- William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, 06.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.