Organic Pineapple Farming in Ghana - A Good Choice for Smallholders?
AbstractAs consumer demand for organic food grows, organic certification is increasingly promoted in many developing countries. Organic products earn a premium price on the market compared to conventional varieties. Hence, organic production is often seen as a valuable alternative for developing countries with many smallholders. Using value chain analysis for the case of the pineapple sector in Ghana and extensive data from the European market, this paper tries to shed light on the feasibility and profitability of organic small-scale production. Even though smallholders tend to have quality problems with their fruit and large farms benefit from economies of scale, production for the export market is a realistic option for both organic and conventional smallholders. The results indicate that organic production is more profitable for smallholders than conventional production and farmers collect a fair share of the price premium on the retail level. Even more, from a theoretical perspective, organic farmers should also be more likely to get into contractual relations with exporters. The results are set into perspective with relation to the debates on small versus large farms, environmental impact, and the selection effect of standards
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1671.
Length: 38 pages
Date of creation: Jan 2011
Date of revision:
private voluntary standards; organic agriculture; trade in organic products; GLOBALGAP; value chain analysis;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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- Linda Kleemann & Awudu Abdulai, 2012. "Organic Certification, Agro-Ecological Practices and Return on Investment: Farm Level Evidence from Ghana," Kiel Working Papers 1816, Kiel Institute for the World Economy.
- Linda Kleemann & Awudu Abdulai & Mareike Buss, 2013. "Is Organic Farming Worth its Investment? The Adoption and Impact of Certified Pineapple Farming in Ghana," Kiel Working Papers 1856, Kiel Institute for the World Economy.
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