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Institutional Innovations for Smallholder Compliance with International Food Safety Standards: Experiences from Kenya, Ethiopian and Zambian Green Bean Growers

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  • Okello, Julius Juma
  • Narrod, Clare A.
  • Roy, Devesh

Abstract

Many African countries have moved into the production of non-traditional agricultural products to diversify their exports and increase foreign currency earnings. Accessing developed country markets requires meeting food safety standards brought about by several demand and supply side factors. Food retailers in the EU, the major destination market, have developed protocols relating to pesticide residue limits, field and packinghouse hygiene, and traceability. In this changing scenario where food safety requirements are getting increasingly stringent, there are worries that companies that establish production centers in LDCs might exclude smallholder farmers. In this paper, we study the cases of green beans production in Ethiopia, Kenya and Zambia for export to high value European markets. Though the immediate effect of the imposition of stringent food safety standards has been to screen away smallholders, there has been continued participation of smallholders in some cases. This paper finds that emergence of new institutional arrangements have enabled the smallholders to maintain their participation in high value European markets. In particular, public-private partnerships have played a key role in helping smallholder farmers acquire training on and certification against European food safety standards. Collective action in form of producer organizations has enabled smallholders to jointly invest in costly facilities and take advantage of economies of scale to remain competitive. Producer organizations also allow for cheaper means for buyers to ensure traceability and are critical in reducing transaction costs of linking up with smallholders.

Suggested Citation

  • Okello, Julius Juma & Narrod, Clare A. & Roy, Devesh, 2008. "Institutional Innovations for Smallholder Compliance with International Food Safety Standards: Experiences from Kenya, Ethiopian and Zambian Green Bean Growers," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52183, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae07:52183
    DOI: 10.22004/ag.econ.52183
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    References listed on IDEAS

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    1. Regmi, Anita & Gehlhar, Mark J., 2012. "Processed Food Trade Pressured by Evolving Global Supply Chains," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8, August.
    2. C. Dolan & J. Humphrey, 2000. "Governance and Trade in Fresh Vegetables: The Impact of UK Supermarkets on the African Horticulture Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 147-176.
    3. Catherine Dolan & John Humphrey, 2004. "Changing Governance Patterns in the Trade in Fresh Vegetables between Africa and the United Kingdom," Environment and Planning A, , vol. 36(3), pages 491-509, March.
    4. World Bank, 2005. "Food Safety and Agricultural Health Standards : Challenges and Opportunities for Developing Country Exports," World Bank Publications - Reports 8491, The World Bank Group.
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