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International standards and small-scale farmer behaviors: evidence from Peru

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  • Lemeilleur, S.

Abstract

The prevalence of food quality standards in international trade is constantly increasing and has a growing influence on developing countries. A wide range of literature in development economics focused on the determinants of the standard adoption and on the debate of whether international standards exclude small-scale farmers from high-value food markets. Otherwise, when exclusion is pointed out, very little is said on how problematic such forms of exclusion are. In this paper, we use the Hirschman’s (1970) conceptual framework to examine which behaviors small-scale farmers adopt face to the incontrovertible standards, what happens to the farmers that are excluded from a specific certified market, and to what extent small farmers are affected to not be certified. Based on an analysis of primary data collected to examine the implication of GlobalGAP on the mango sector in Peru, we consider three main options for the small-scale farmers: “loyalty” (implementation of the standard under specific conditions), “switch” of market segment, and “exit” from the market. The last option leads farmers to sell all their production to small and volatile exporters, called golondrinos (swallows). We show empirically that some small-scale farmers (8% of the sample) comply with GlobalGAP standard thanks to the support from exporters (farming contracts which include the certification cost), while others switch of market segment by complying with the organic certification (12,5%). Organic certification substitutes for the GlobalGAP requirement in the EU market. Finally, we find a significant level of exit option (24%), especially among smaller farms, less specialized, and furthest from exporter plants. The latter seem very affected by the changes related to the GlobalGAP standard requirements: price risk on their production has increased and their bargaining power and agricultural income have decreased. They are particularly vulnerable because their level of investment (mango trees) impedes to radically change of farm activity. ...French Abstract : L’importance grandissante des standards durables pour les produits agricoles dans le commerce international a un impact de plus en plus important dans les pays en développement. Dans ce papier, nous nous intéressons aux implications de la mise en place du standard Globalgap dans la filière mangue au Pérou pour les petits producteurs locaux.

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Bibliographic Info

Paper provided by UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France in its series Working Papers MOISA with number 201204.

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Date of creation: 2012
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Handle: RePEc:umr:wpaper:201204

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Keywords: STANDARDS; CERTIFICATION; SMALL-SCALE FARMER BEHAVIORS; MANGO; PERU;

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  1. AUGIER Patricia & GAZIOREK Michael & LAITONG Charles, 2004. "The Impact of Rules of Origin On Trade Flows," International Trade 0404001, EconWPA.
  2. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
  3. Chemnitz, Christine & Grethe, Harald & Kleinwechter, Ulrich, 2007. "Quality Standards for Food Products - A Particular Burden for Small Producers in Developing Countries?," Working Paper Series 10010, Humboldt University Berlin, Department Agricultural Economics.
  4. 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.
  5. Escobal, Javier & Agreda, Victor & Reardon, Thomas, 2000. "Endogenous institutional innovation and agroindustrialization on the Peruvian coast," Agricultural Economics, Blackwell, vol. 23(3), pages 267-277, September.
  6. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
  7. Abdelhakim Hammoudi & Ruben Hoffmann & Yves Surry, 2009. "Food safety standards and agri-food supply chains: an introductory overview," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(4), pages 469-478, December.
  8. 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.
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Cited by:
  1. Ngokkuen, Chuthaporn & Grote, Ulrike, 0. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 51.

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