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Certification and Access to Export Markets: Adoption and Return on Investment of Organic-Certified Pineapple Farming in Ghana

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  • Kleemann, Linda
  • Abdulai, Awudu
  • Buss, Mareike

Abstract

Global food markets demand adherence to food standards by farmers in developing countries, such as GlobalGAP and organic certifications. This paper analyzes the adoption and profitability of certified farming, using farm-level data of 386 Ghanaian small-scale pineapple farmers. We employ an endogenous switching regression model to examine the adoption and impact of organic certification on the return on investment (ROI) in pineapple farming. The empirical results indicate that both organic and GlobalGAP certification achieve a positive ROI. However, organic-certified farming yields a significantly higher ROI than GlobalGAP-certified farmers, mainly due to the price premium on the organic market.

Suggested Citation

  • Kleemann, Linda & Abdulai, Awudu & Buss, Mareike, 2014. "Certification and Access to Export Markets: Adoption and Return on Investment of Organic-Certified Pineapple Farming in Ghana," World Development, Elsevier, vol. 64(C), pages 79-92.
  • Handle: RePEc:eee:wdevel:v:64:y:2014:i:c:p:79-92
    DOI: 10.1016/j.worlddev.2014.05.005
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    References listed on IDEAS

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    2. Minten, Bart J. & Dereje, Mekdim & Engeda, Ermias & Tamru, Seneshaw, 2015. "Who benefits from the rapidly increasing Voluntary Sustainability Standards? Evidence from Fairtrade and Organic coffee in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 212708, International Association of Agricultural Economists.
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    6. Lifen Huang & Jie Yang & Xiaoyi Cui & Huozhong Yang & Shouhong Wang & Hengyang Zhuang, 2016. "Synergy and Transition of Recovery Efficiency of Nitrogen Fertilizer in Various Rice Genotypes under Organic Farming," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-14, August.
    7. 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.
    8. Meemken, Eva-Marie & Veettil, Prakashan Chellattan & Qaim, Matin, 2016. "Small farmers’ preferences for the design of certification schemes: Does gender matter?," GlobalFood Discussion Papers 235484, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    9. Schuster, Monica & Maertens, Miet, 2015. "The Impact of Private Food Standards on Developing Countries’ Export Performance: An Analysis of Asparagus Firms in Peru," World Development, Elsevier, vol. 66(C), pages 208-221.
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    11. Wendimu, Mengistu Assefa & Henningsen, Arne & Gibbon, Peter, 2016. "Sugarcane Outgrowers in Ethiopia: “Forced” to Remain Poor?," World Development, Elsevier, vol. 83(C), pages 84-97.
    12. Ma, Wanglin & Abdulai, Awudu, 2016. "Does cooperative membership improve household welfare? Evidence from apple farmers in China," Food Policy, Elsevier, vol. 58(C), pages 94-102.
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    14. Seok, Jun Ho & Reed, Michael Robert & Saghaian, Sayed, 2016. "The Impact Of Sqf Certification On U.S. Agri-Food Exports," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 0(Number 3), pages 1-16, July.
    15. Parvathi, Priyanka & Waibel, Hermann, 2016. "Organic Agriculture and Fair Trade: A Happy Marriage? A Case Study of Certified Smallholder Black Pepper Farmers in India," World Development, Elsevier, vol. 77(C), pages 206-220.
    16. Pradyot Ranjan Jena & Till Stellmacher & Ulrike Grote, 2017. "Can coffee certification schemes increase incomes of smallholder farmers? Evidence from Jinotega, Nicaragua," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(1), pages 45-66, February.
    17. Meemken, Eva-Marie & Spielman, David J. & Qaim, Matin, 2017. "Trading off nutrition and education? A panel data analysis of the dissimilar welfare effects of Organic and Fairtrade standards," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261267, European Association of Agricultural Economists.
    18. Nabeshima, Kaoru & Michida, Etsuyo & Vu, Hoang Nam & Suzuki, Aya, 2015. "Emergence of Asian GAPs and its relationship to global G.A.P," IDE Discussion Papers 507, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    19. Meemken, Eva-Marie & Spielman, David J. & Qaim, Matin, 2017. "Trading off nutrition and education? A panel data analysis of the dissimilar welfare effects of Organic and Fairtrade standards," Food Policy, Elsevier, vol. 71(C), pages 74-85.
    20. Chiputwa, Brian & Qaim, Matin, 2014. "Sustainability standards, gender, and nutrition among smallholder farmers in Uganda," GlobalFood Discussion Papers 191001, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    21. Parvathi, Priyanka & Waibel, Hermann, 2015. "Is Organic Agriculture and Fair Trade Certification a way out of Crisis? Evidence from Black Pepper Farmers in India," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209209, German Association of Agricultural Economists (GEWISOLA).
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    23. Krumbiegel, Katharina & Maertens, Miet & Wollni, Meike, 2018. "The Role of Fairtrade Certification for Wages and Job Satisfaction of Plantation Workers," World Development, Elsevier, vol. 102(C), pages 195-212.

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