IDEAS home Printed from https://ideas.repec.org/p/ags/eaa105/7870.html
   My bibliography  Save this paper

What Impact Are EU Supermarket Standards Having on Developing Countries Export of High-Value Horticultural Products? Evidence from Kenya

Author

Listed:
  • Asfaw, Solomon
  • Mithofer, Dagmar
  • Waibel, Hermann

Abstract

European Union (EU) retailers are setting global benchmarks for the production of fresh food, and are asking their suppliers for produce to be certified according to food safety and quality standards. Compliance to these standards for developing countries small-scale producers entail costly investment in variable inputs and long term structures. Limited empirical evidence exists either to refute or confirm the concern that the proliferation and enhanced stringency of these standards marginalize smallholders from global market. This article therefore explores the costs of compliance, factors explaining the smallholder decision to adopt EU private quality standard and the impacts of the standard on farm financial performance. We develop a two-stage standard treatment effect model to account for self-selection as a source of endogeneity. Analysis is based on a random cross section sample of 439 small-scale export vegetable producers in Kenya whose production was monitored in 2005/2006. We demonstrate that adopters and non-adopters are distinguishable by their asset holding and household wealth, access to services, labor endowment and level of education. Once we control for endogeneity problem, we found that small-scale producers can benefit substantially from adopting the standard at the farm level.

Suggested Citation

  • Asfaw, Solomon & Mithofer, Dagmar & Waibel, Hermann, 2007. "What Impact Are EU Supermarket Standards Having on Developing Countries Export of High-Value Horticultural Products? Evidence from Kenya," 105th Seminar, March 8-10, 2007, Bologna, Italy 7870, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa105:7870
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/7870
    Download Restriction: no

    References listed on IDEAS

    as
    1. Fernandez-Cornejo, Jorge & Hendricks, Chad & Mishra, Ashok K., 2005. "Technology Adoption and Off-Farm Household Income: The Case of Herbicide-Tolerant Soybeans," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(03), December.
    2. Huffman, Wallace E., 1991. "Agricultural Household Models: Survey and Critique," Staff General Research Papers Archive 11008, Iowa State University, Department of Economics.
    3. Patricia Augier & Michael Gasiorek & Charles Lai Tong, 2005. "The impact of rules of origin on trade flows," Economic Policy, CEPR;CES;MSH, vol. 20(43), pages 567-624, July.
    4. Elizabeth M. M. Q. Farina & Thomas Reardon, 2000. "Agrifood Grades and Standards in the Extended Mercosur: Their Role in the Changing Agrifood System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1170-1176.
    5. Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 1999. "Is knowledge shared within households?," Policy Research Working Paper Series 2261, The World Bank.
    6. Maertens, Miet, 2006. "Trade, Food Standards and Poverty: The Case of High-Value Vegetable Exports from Senegal," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25614, International Association of Agricultural Economists.
    7. Asfaw, Abay & Admassie, Assefa, 2004. "The role of education on the adoption of chemical fertiliser under different socioeconomic environments in Ethiopia," Agricultural Economics, Blackwell, vol. 30(3), pages 215-228, May.
    8. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    9. 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.
    10. Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261 Elsevier.
    11. Maertens, Miet & Swinnen, Johan F.M., 2006. "Standards as Barriers and Catalysts for Trade and Poverty Reduction," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25772, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kareem, Olayinka Idowu, 2016. "Food safety regulations and fish trade: Evidence from European Union-Africa trade relations," Journal of Commodity Markets, Elsevier, vol. 2(1), pages 18-25.
    2. Fontaine, Damien & Gaspart, Frederic & Frahan, Bruno Henry de, 2008. "Modelling the impact of private quality standards on the fresh fruit and vegetable supply chains in developing countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44378, European Association of Agricultural Economists.
    3. 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.
    4. Stefan Ouma, 2010. "Global Standards, Local Realities: Private Agrifood Governance and the Restructuring of the Kenyan Horticulture Industry," Economic Geography, Clark University, vol. 86(2), pages 197-222, April.
    5. Olayinka Idowu Kareem, 2016. "The High-Value Commodity Export Effects of Standards in Africa," The International Trade Journal, Taylor & Francis Journals, vol. 30(3), pages 237-259, May.
    6. Shimon, Otieno Peter & Ogutu, Chris Ackello & Mburu, John & Nyikal, Rose Adhiambo, 2016. "Does Global-GAP policy reduce smallholder greenhouse gas emissions from French bean production in Central and Eastern regions of Kenya?," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246437, African Association of Agricultural Economists (AAAE).
    7. 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.
    8. Olayinka Idowu Kareem, 2014. "The European Union Sanitary and Phytosanitary Measures and Africa’s Exports," RSCAS Working Papers 2014/98, European University Institute.
    9. Kersting, Sarah & Wollni, Meike, 2011. "Public-private partnerships and GLOBALGAP standard adoption: evidence from small-scale fruit and vegetable farmers in Thailand," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114761, European Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaa105:7870. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/eaaeeea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.