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Global Change In Agrifood Grades And Standards: Agribusiness Strategic Responses In Developing Countries

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  • Reardon, Thomas
  • Codron, Jean-Marie
  • Busch, Lawrence
  • Bingen, R. James
  • Harris, Craig

Abstract

The role of G&S has shifted from a technical instrument to reduce transaction costs in homogeneous commodity markets to a strategic instrument of competition in differentiated product markets. The nature of G&S has shifted from performance (realized characteristics of the product) to process standards. In developing countries, these changes have tended to exclude small firms and farms from participating in market growth, because of the implied investments. The three strategic responses to G&S change by agribusiness firms and farms include: (1) by large firms and multinationals, to create private G&S and private certification, labeling, and branding systems; (2) by medium-large domestic firms, to lobby governments to adopt public G&S similar to those in export markets in developed regions; (3) by small firms and farms, to ally with public and nonprofit sectors to form G&S and certification systems to access export markets and to bring institutional change to nontradable product markets. Governments should build the capacity of the poor to invest to “make the grade” implied by the new G&S.

Suggested Citation

  • 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 (IFAMA), vol. 2(03/04).
  • Handle: RePEc:ags:ifaamr:34227
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    References listed on IDEAS

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    1. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    2. Michael A. Mazzocco, 1996. "HACCP as a Business Management Tool," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 770-774.
    3. Salay, Elisabete & Caswell, Julie A., 1998. "Developments In Brazilian Food Safety Policy," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 1(02).
    4. Unnevehr, Laurian J. & Jensen, Helen H., 1999. "The economic implications of using HACCP as a food safety regulatory standard," Food Policy, Elsevier, vol. 24(6), pages 625-635, December.
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    Keywords

    Agribusiness;

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