IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v27y2018i2p215-229.html
   My bibliography  Save this article

Smallholders at a Crossroad: Intensify or Fall behind? Exploring Alternative Livelihood Strategies in a Globalized World

Author

Listed:
  • Ximena Rueda
  • Andrea Paz
  • Theodora Gibbs‐Plessl
  • Ronald Leon
  • Byron Moyano
  • Eric F Lambin

Abstract

The chocolate market is experiencing a wave of market differentiation thanks to the emergence of the bean‐to‐bar movement. Cacao is seeing both a rise in demand for mass markets and a process of market bifurcation into more specialized, high‐quality products for wealthy urban consumers. For the specialized market, the quality and origin of the beans are important attributes. Direct trading between chocolate makers and famers seeks to promote the conservation of rare cultivars and traditional agroforestry systems, while lifting farmers out of poverty. Here we assess whether these alternative configurations of the global value chain truly offer smallholders new opportunities, beyond the traditional intensification or marginalization pathways that are generally offered to them. We conducted detailed socio‐economic and biophysical surveys with a sample of farms in three of the largest cacao producing provinces of Ecuador. Our results show that, even though smallholders lack the assets needed to join mainstream commodity markets, they have been able to capitalize on the qualities of their traditional varieties to access niche markets. Through strong cooperatives, the knowledge held by buyers about what constitutes a high‐quality bean has been transferred to farmers. A unique natural capital may provide smallholders with rewarding pathways to develop their agriculture, exploiting new market opportunities offered by globalization. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Ximena Rueda & Andrea Paz & Theodora Gibbs‐Plessl & Ronald Leon & Byron Moyano & Eric F Lambin, 2018. "Smallholders at a Crossroad: Intensify or Fall behind? Exploring Alternative Livelihood Strategies in a Globalized World," Business Strategy and the Environment, Wiley Blackwell, vol. 27(2), pages 215-229, February.
    • Handle: RePEc:bla:bstrat:v:27:y:2018:i:2:p:215-229
    DOI: 10.1002/bse.2011
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2011
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.2011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gockowski, James & Afari-Sefa, Victor & Sarpong, Daniel Bruce & Osei-Asare, Yaw B. & Dziwornu, Ambrose K., 2011. "Increasing Income of Ghanaian Cocoa Farmers: Is Introduction of Fine Flavour Cocoa a Viable Alternative," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 50(2), pages 1-26.
    2. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    3. Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261, Elsevier.
    4. Raynolds, Laura T., 2009. "Mainstreaming Fair Trade Coffee: From Partnership to Traceability," World Development, Elsevier, vol. 37(6), pages 1083-1093, June.
    5. Rauniyar, Ganesh P. & Goode, Frank M., 1992. "Technology adoption on small farms," World Development, Elsevier, vol. 20(2), pages 275-282, February.
    6. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.
    7. Michael K Goodman & Damian Maye & Lewis Holloway, 2010. "Ethical Foodscapes?: Premises, Promises, and Possibilities," Environment and Planning A, , vol. 42(8), pages 1782-1796, August.
    8. Rico Kongsager & Jonas Napier & Ole Mertz, 2013. "The carbon sequestration potential of tree crop plantations," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 18(8), pages 1197-1213, December.
    9. C. Peter Timmer, 2009. "A World Without Agriculture: The Structural Transformation in Historical Perspective," Books, American Enterprise Institute, number 43120, September.
    10. Ricardo A. Rojas Quiroga & Tracey Li & Gonzalo Lora & Lykke Andersen, 2013. "A Measurement of the Carbon Sequestration Potential of Guadua Angustifolia in the Carrasco National Park, Bolivia," Development Research Working Paper Series 04/2013, Institute for Advanced Development Studies.
    11. Angelsen, Arild & Jagger, Pamela & Babigumira, Ronnie & Belcher, Brian & Hogarth, Nicholas J. & Bauch, Simone & Börner, Jan & Smith-Hall, Carsten & Wunder, Sven, 2014. "Environmental Income and Rural Livelihoods: A Global-Comparative Analysis," World Development, Elsevier, vol. 64(S1), pages 12-28.
    12. Rosamond L. Naylor & Walter P. Falcon, 2010. "Food Security in an Era of Economic Volatility," Population and Development Review, The Population Council, Inc., vol. 36(4), pages 693-723, December.
    13. Foster, Andrew D & Rosenzweig, Mark R, 1996. "Technical Change and Human-Capital Returns and Investments: Evidence from the Green Revolution," American Economic Review, American Economic Association, vol. 86(4), pages 931-953, September.
    14. Emil Holland & Chris Kjeldsen & Søren Kerndrup, 2016. "Coordinating quality practices in Direct Trade coffee," Journal of Cultural Economy, Taylor & Francis Journals, vol. 9(2), pages 186-196, April.
    15. repec:bla:devpol:v:28:y:2010:i:2:p:173-194 is not listed on IDEAS
    16. Feleke, Shiferaw & Zegeye, Tesfaye, 2006. "Adoption of improved maize varieties in Southern Ethiopia: Factors and strategy options," Food Policy, Elsevier, vol. 31(5), pages 442-457, October.
    17. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    18. repec:aei:rpbook:24862 is not listed on IDEAS
    19. Laura Raynolds, 2000. "Re-embedding global agriculture: The international organic and fair trade movements," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 17(3), pages 297-309, September.
    20. Collier, Paul & Dercon, Stefan, 2014. "African Agriculture in 50Years: Smallholders in a Rapidly Changing World?," World Development, Elsevier, vol. 63(C), pages 92-101.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Magdalena Rzemieniak & Monika Wawer, 2021. "Employer Branding in the Context of the Company’s Sustainable Development Strategy from the Perspective of Gender Diversity of Generation Z," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    2. Tennhardt, Lina & Lazzarini, Gianna & Weisshaidinger, Rainer & Schader, Christian, 2022. "Do environmentally-friendly cocoa farms yield social and economic co-benefits?," Ecological Economics, Elsevier, vol. 197(C).
    3. Alicia Ramírez-Orellana & Daniel Ruiz-Palomo & Alfonso Rojo-Ramírez & John E. Burgos-Burgos, 2021. "The Ecuadorian Banana Farms Managers’ Perceptions: Innovation as a Driver of Environmental Sustainability Practices," Agriculture, MDPI, vol. 11(3), pages 1-18, March.
    4. Simon L. Bager & Eric F. Lambin, 2020. "Sustainability strategies by companies in the global coffee sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3555-3570, December.
    5. Claudia Dias & Ricardo Gouveia Rodrigues & João J. Ferreira, 2021. "Small agricultural businesses' performance—What is the role of dynamic capabilities, entrepreneurial orientation, and environmental sustainability commitment?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1898-1912, May.
    6. Theodora MV Nainggolan & Ulina Catarina Jenni Simatupang & Mei Linda Sipayung & Tiurmaida Nainggolan, 2024. "Economic Analysis And Marketing Strategy In Agricultural Supply Chain: A Case Study On W2k Organic Fertilizer," International Journal of Agriculture and Environmental Research, Malwa International Journals Publication, vol. 10(1), February.
    7. Jilmar Castañeda-Ccori & Anne-Gaël Bilhaut & Armelle Mazé & Juan Fernández-Manjarrés, 2020. "Unveiling Cacao Agroforestry Sustainability through the Socio-Ecological Systems Diagnostic Framework: The Case of Four Amazonian Rural Communities in Ecuador," Sustainability, MDPI, vol. 12(15), pages 1-17, July.
    8. Ghori, Shakil & Lund-Thomsen, Peter & Gallemore, Caleb & Singh, Sukhpal & Riisgaard, Lone, 2022. "Compliance and cooperation in global value chains: The effects of the better cotton initiative in Pakistan and India," Ecological Economics, Elsevier, vol. 193(C).
    9. Claudia Dias & Ricardo Gouveia Rodrigues & João J. Ferreira, 2022. "Linking natural resources and performance of small agricultural businesses: Do entrepreneurial orientation and environmental sustainability orientation matter?," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 713-725, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    2. Raju Ghimire & Wen-Chi Huang, 2015. "Household wealth and adoption of improved maize varieties in Nepal: a double-hurdle approach," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1321-1335, December.
    3. Elaine M. Liu, 2013. "Time to Change What to Sow: Risk Preferences and Technology Adoption Decisions of Cotton Farmers in China," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1386-1403, October.
    4. Lim, Krisha & Wichmann, Bruno & Luckert, Martin, 2021. "Adaptation, spatial effects, and targeting: Evidence from Africa and Asia," World Development, Elsevier, vol. 139(C).
    5. Satadru Mukherjee, 2020. "Access to Formal Banks and New Technology Adoption: Evidence from India," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1532-1556, October.
    6. Asfaw, Solomon & Cattaneo, Andrea & Pallante, Giacomo & Palma, Alessandro, 2017. "Improving the efficiency targeting of Malawi's farm input subsidy programme: Big pain, small gain?," Food Policy, Elsevier, vol. 73(C), pages 104-118.
    7. Elaine Meichen Liu, 2008. "Time to Change What to Sow: Risk Preferences and Technology Adoption Decisions of Cotton Farmers in China," Working Papers 1064, Princeton University, Department of Economics, Industrial Relations Section..
    8. Andrew Gerard & Maria Claudia Lopez & Aaron M. McCright, 2019. "Coffee Roasters’ Sustainable Sourcing Decisions and Use of the Direct Trade Label," Sustainability, MDPI, vol. 11(19), pages 1-19, September.
    9. Feng, Yao, 2011. "Local spillovers and learning from neighbors: Evidence from durable adoptions in rural China," MPRA Paper 33924, University Library of Munich, Germany.
    10. Awudu Abdulai, 2023. "Information acquisition and the adoption of improved crop varieties," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1049-1062, August.
    11. Ghadir Asadi & Mohammad H. Mostafavi-Dehzooei, 2022. "The Role of Learning in Adaptation to Technology: The Case of Groundwater Extraction," Sustainability, MDPI, vol. 14(12), pages 1-37, June.
    12. Glover, Steven & Jones, Sam, 2019. "Can commercial farming promote rural dynamism in sub-Saharan Africa? Evidence from Mozambique," World Development, Elsevier, vol. 114(C), pages 110-121.
    13. Chen, Shuo & Lan, Xiaohuan, 2020. "Tractor vs. animal: Rural reforms and technology adoption in China," Journal of Development Economics, Elsevier, vol. 147(C).
    14. Maitra, Pushkar & Mitra, Sandip & Mookherjee, Dilip & Motta, Alberto & Visaria, Sujata, 2017. "Financing smallholder agriculture: An experiment with agent-intermediated microloans in India," Journal of Development Economics, Elsevier, vol. 127(C), pages 306-337.
    15. Alobo Loison, Sarah & Hillbom, Ellen, 2020. "Regional evidence of smallholder-based growth in Zambia’s livestock sector," World Development Perspectives, Elsevier, vol. 19(C).
    16. Aker, Jenny C. & Dillon, Brian & Welch, C. Jamilah, 2023. "Demand, supply and long-term adoption: Evidence from a storage technology in West Africa," Journal of Development Economics, Elsevier, vol. 165(C).
    17. Wollni, Meike & Andersson, Camilla, 2014. "Spatial patterns of organic agriculture adoption: Evidence from Honduras," Ecological Economics, Elsevier, vol. 97(C), pages 120-128.
    18. Yamauchi, Futoshi, 2007. "Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India," Journal of Development Economics, Elsevier, vol. 83(1), pages 37-62, May.
    19. Lindsay Naylor, 2014. "“Some are more fair than others”: fair trade certification, development, and North–South subjects," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(2), pages 273-284, June.
    20. repec:zbw:rwirep:0365 is not listed on IDEAS
    21. Coronese, Matteo & Occelli, Martina & Lamperti, Francesco & Roventini, Andrea, 2023. "AgriLOVE: Agriculture, land-use and technical change in an evolutionary, agent-based model," Ecological Economics, Elsevier, vol. 208(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:27:y:2018:i:2:p:215-229. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.