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EU Food Safety Standards, Pesticide Use and Farm-level Productivity: The Case of High-value Crops in Kenya

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  • Solomon Asfaw
  • Dagmar Mithöfer
  • Hermann Waibel

Abstract

This article provides an empirical analysis of the impact of European Union (EU) private food safety standards on pesticide use and farm-level productivity among small-scale vegetable producers in Kenya. We apply an extended three-stage damage control production framework, accounting for multiple endogeneity problems, to farm-level data collected from a random cross-sectional sample of 539 small-scale producers. Estimation results show that farmers producing vegetables for the domestic market use significantly lower quantities of pesticides than do export farmers. However, contrary to findings elsewhere, the econometric evidence here shows that both domestic and export-oriented vegetable farmers in Kenya use pesticides at levels below the economic optimum. The results also show that the adoption of standards by export farmers does not have any significant impact on total pesticide use. However, adopter categories are distinguishable in terms of types of pesticide used, i.e. adopters use safer pesticides based on World Health Organization (WHO) classification. The third-stage structural revenue model results demonstrate that adoption of standards has a positive and significant impact on revenue raised in vegetable production. Nevertheless, farmers producing for the export market are indistinguishable from those producing for the domestic farmers in terms of the total revenue earned from producing vegetables during the rainy season, on a 'per acre' basis. Although standards can potentially prevent resource-poor smallholders from maintaining their position in the lucrative export markets, they can also result in positive changes in the production systems of those small-scale farmers who adopt it, as shown by these results. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

Suggested Citation

  • Solomon Asfaw & Dagmar Mithöfer & Hermann Waibel, 2009. "EU Food Safety Standards, Pesticide Use and Farm-level Productivity: The Case of High-value Crops in Kenya," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 645-667.
  • Handle: RePEc:bla:jageco:v:60:y:2009:i:3:p:645-667
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    Cited by:

    1. Jana Schwarz & Monica Schuster & Bernd Annaert & Miet Maertens & Erik Mathijs, 2016. "Sustainability of Global and Local Food Value Chains: An Empirical Comparison of Peruvian and Belgian Asparagus," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-22, April.
    2. M. Maertens & J. Swinnen, 2012. "Private Standards, the Organization of Global Supply Chains, and their Impact on Developing Countries," Chapters,in: Private Standards and Global Governance, chapter 6 Edward Elgar Publishing.
    3. Van den Broeck, Goedele & Swinnen, Johan & Maertens, Miet, 2017. "Global value chains, large-scale farming, and poverty: Long-term effects in Senegal," Food Policy, Elsevier, vol. 66(C), pages 97-107.
    4. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    5. Parvathi, Priyanka & Waibel, Hermann, 0. "Adoption and Impact of Black Pepper Certification in India," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 54.
    6. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    7. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Rao, Elizaphan J.O. & Qaim, Matin, 2011. "Supermarkets, Farm Household Income, and Poverty: Insights from Kenya," World Development, Elsevier, vol. 39(5), pages 784-796, May.
    9. Pierluigi Montalbano & Rebecca Pietrelli & Luca Salvatici, 2017. "Market chain participation and food security: the case of the Ugandan maize farmers," Working Papers 2/17, Sapienza University of Rome, DISS.
    10. Handschuch, Christina & Wollni, Meike & Villalobos, Pablo, 2013. "Adoption of food safety and quality standards among Chilean raspberry producers – Do smallholders benefit?," Food Policy, Elsevier, vol. 40(C), pages 64-73.
    11. Jara-Rojas, Roberto & Bravo-Ureta, Boris & Solis, Daniel & Martinez, Daniela, 2016. "Production efficiency and commercialization channels among small-scale farmers: Evidence for raspberry production in Central Chile," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229330, Southern Agricultural Economics Association.
    12. Maertens, Miet & Verhofstadt, Ellen, 2013. "Horticultural exports, female wage employment and primary school enrolment: Theory and evidence from Senegal," Food Policy, Elsevier, vol. 43(C), pages 118-131.
    13. Fateh Mamine, 2016. "The incentives to adopt food safety standards: the example of approval and health certificate in the dairy cattle farming sector in Souk Ahras, Algeria," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 12(1), pages 93-112.
    14. Unnevehr, Laurian J. & Ronchi, Loraine, 2014. "Food safety and developing markets: Research findings and research gaps:," IFPRI discussion papers 1376, International Food Policy Research Institute (IFPRI).
    15. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    16. Maertens, Miet & Verhofstadt, Ellen, 2012. "Horticultural exports, female wage employment and primary school enrolment: Theory and evidence from a natural quasi-experiment in Senegal," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126856, International Association of Agricultural Economists.
    17. 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.
    18. repec:oup:erevae:v:44:y:2017:i:4:p:592-633. is not listed on IDEAS
    19. Jean-Christophe Bureau & Thorsten Rogall, 2017. "EU Policies and Global Food Security," LICOS Discussion Papers 39217, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    20. Sarah, Kersting & Meike, Wollni, 2012. "New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123537, International Association of Agricultural Economists.
    21. repec:gam:jsusta:v:8:y:2016:i:4:p:344:d:67774 is not listed on IDEAS
    22. Mitiku, Fikadu & de Mey, Yann & Nyssen, Jan & Maertens, Miet, 2017. "Do Private Sustainability Standards Contribute to Poverty Alleviation? A Comparison of Different Coffee Certification Schemes in Ethiopia," Working Papers 253589, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.

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