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Changing asset endowments and smallholder participation in higher value markets: Evidence from certified coffee producers in Nicaragua

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  • Donovan, Jason
  • Poole, Nigel

Abstract

This paper examines the capacities of smallholders in Nicaragua to exploit new linkages to certified coffee markets following the coffee crisis. Data on livelihood assets were collected from 292 households, which were clustered to test how differences in outcomes (asset building) reflect variations in initial asset endowments. The results suggest that most households built particular elements of their asset base and increased their resilience to future shocks. However, households struggled to make effective use of the gains for intensifying their livelihoods. Of the least-endowed households, few made investments in the scale or productivity of coffee, and most continued to depend heavily on subsistence production and seasonal off-farm income for survival. In conclusion, improved market access alone, even under relatively favorable market conditions and with considerable external support, will have uncertain impacts on rural poverty if the underlying constraints on household assets and investments are not addressed concurrently.

Suggested Citation

  • Donovan, Jason & Poole, Nigel, 2014. "Changing asset endowments and smallholder participation in higher value markets: Evidence from certified coffee producers in Nicaragua," Food Policy, Elsevier, vol. 44(C), pages 1-13.
  • Handle: RePEc:eee:jfpoli:v:44:y:2014:i:c:p:1-13
    DOI: 10.1016/j.foodpol.2013.09.010
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    References listed on IDEAS

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    Cited by:

    1. Ayuya, Oscar I. & Gido, Eric O. & Bett, Hillary K. & Lagat, Job K. & Kahi, Alexander K. & Bauer, Siegfried, 2015. "Effect of Certified Organic Production Systems on Poverty among Smallholder Farmers: Empirical Evidence from Kenya," World Development, Elsevier, vol. 67(C), pages 27-37.
    2. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    3. repec:gam:jsusta:v:10:y:2018:i:3:p:786-:d:135975 is not listed on IDEAS
    4. repec:gam:jsusta:v:10:y:2018:i:11:p:4034-:d:180348 is not listed on IDEAS
    5. Pallante, Giacomo & Drucker, Adam G. & Sthapit, Sajal, 2016. "Assessing the potential for niche market development to contribute to farmers' livelihoods and agrobiodiversity conservation: Insights from the finger millet case study in Nepal," Ecological Economics, Elsevier, vol. 130(C), pages 92-105.
    6. repec:spr:endesu:v:21:y:2019:i:2:d:10.1007_s10668-017-0066-y is not listed on IDEAS
    7. Hou, Jianyun & Huo, Xuexi, 2015. "Transaction Costs and Farm-to-Market Linkages: Empirical Evidence from China Apple Producers," 2015 Conference, August 9-14, 2015, Milan, Italy 211746, International Association of Agricultural Economists.
    8. repec:gam:jsusta:v:11:y:2019:i:3:p:743-:d:202330 is not listed on IDEAS
    9. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    10. repec:eee:wdevel:v:112:y:2018:i:c:p:282-312 is not listed on IDEAS

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