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Small-scale farmer participation in new agri-food supply chains: Case of the supermarket supply chain for fruit and vegetables in Honduras

  • Jose Blandon

    (University of Guelph, Ontario, Canada)

  • Spencer Henson

    (University of Guelph, Ontario, Canada)

  • John Cranfield

    (University of Guelph, Ontario, Canada)

This paper explores the role of transaction costs and collective action in shaping small-scale farmer participation in the fresh fruit and vegetable (FFV) supply chain to supermarkets (SSC) in Honduras. Transaction costs and collective action are found to be significant in determining farmer participation in the SSC. Contrary to the findings of other studies, human capital and farm characteristic variables are not significant, suggesting that small-scale farmers can be included in new supply chains under certain conditions, especially if incentives to farmers, trust-based relationships between buyers and sellers, risk reduction practices and new forms of collective action are put in place. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1490
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 21 (2009)
Issue (Month): 7 ()
Pages: 971-984

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Handle: RePEc:wly:jintdv:v:21:y:2009:i:7:p:971-984
Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Bellemare, Marc F. & Barrett, Christopher B., 2005. "An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia," Working Papers 14748, Cornell University, Department of Applied Economics and Management.
  2. Peterson, H. Christopher & Wysocki, Allen F. & Harsh, Stephen B., 2001. "Strategic Choice Along The Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 4(02).
  3. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
  4. Stanton, Julie V., 2000. "The Role Of Agribusiness In Development: Replacing The Diminished Role Of The Government In Raising Rural Incomes," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(2).
  5. Colin Poulton & Jonathan Kydd & Andrew Dorward, 2006. "Overcoming Market Constraints on Pro-Poor Agricultural Growth in Sub-Saharan Africa," Development Policy Review, Overseas Development Institute, vol. 24(3), pages 243-277, 05.
  6. Per Pinstrup-Andersen, 2002. "Food and Agricultural Policy for a Globalizing World: Preparing for the Future," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1201-1214.
  7. Wilson, Paul N. & Kennedy, Ana M., 1999. "Trustworthiness As An Economic Asset," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 2(02).
  8. Fairbairn, Brett, 2003. "The Role Of Farmers In The Future Economy," Miscellaneous Publications 31752, University of Saskatchewan, Centre for the Study of Co-operatives.
  9. Masakure, Oliver & Henson, Spencer, 2005. "Why do small-scale producers choose to produce under contract? Lessons from nontraditional vegetable exports from Zimbabwe," World Development, Elsevier, vol. 33(10), pages 1721-1733, October.
  10. Sukhpal Singh, 2002. "Multi-national corporations and agricultural development: a study of contract farming in the Indian Punjab," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(2), pages 181-194.
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