Smallholder compliance with private standard certification: the case of GlobalGAP adoption by mango producers in Peru
The prevalence of food quality standards in international trade is constantly increasing and has a growing influence on developing countries. A wide range of literature in development economics has focused on the debate of whether international standards exclude small-scale farmers from high-value food markets. In fact, the evidence is mixed. New debates arise on what conditions small farmers can really comply with, pointing out both threshold capital requirements, on the one hand, and industry structure and institutional environment, on the other hand. Drawing on a microeconomic approach, our paper is a contribution to the literature exploring the patterns and determinants of smallholders’ adoption of the food standard. We focus our case study on GlobalGAP adoption by small-scale fresh mango producers in Peru. Based on an analysis of primary data collected on the Peruvian mango sector, we show empirically that a few smallholders are engaged in GlobalGAP certification for a maximum of 3 years. They comply with the standard thanks to the support of exporting companies. Exporters offer the farmers contract farming, which includes technical advice and the annual certification cost. Nonetheless, farmers who are integrating into this high value-added supply chain seem to be selected on the basis of their proximity to the exporter plant (reducing transaction costs) and their ability to become reliable suppliers over the long term (experienced, specialized, and used to respecting contracts). These farms also must demonstrate their ability to deliver with short lead times (presence of mobile phone, distance to the plant). Finally, the paper underlines the key role of exporters in Peru as intermediaries and organizers in the way smallholders may participate in private standards in agrifood value chains.
|Date of creation:||19 Aug 2012|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henson, Spencer & Masakure, Oliver & Cranfield, John, 2011. "Do Fresh Produce Exporters in Sub-Saharan Africa Benefit from GlobalGAP Certification?," World Development, Elsevier, vol. 39(3), pages 375-386, March.
- Souza, Roberta de Castro & Neto, JoÃ£o Amato, 2010. "The Entry of Brazilian Fresh Fruit Small and Medium Producers Into the Global Market," Brazilian Journal of Rural Economy and Sociology (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 48(3), September.
- repec:ner:leuven:urn:hdl:123456789/335950 is not listed on IDEAS
- Chemnitz, Christine & Grethe, Harald & Kleinwechter, Ulrich, 2007.
"Quality Standards for Food Products - A Particular Burden for Small Producers in Developing Countries?,"
106th Seminar, October 25-27, 2007, Montpellier, France
7926, European Association of Agricultural Economists.
- Chemnitz, Christine & Grethe, Harald & Kleinwechter, Ulrich, 2007. "Quality Standards for Food Products - A Particular Burden for Small Producers in Developing Countries?," Working Paper Series 10010, Humboldt University Berlin, Department Agricultural Economics.
- Suzuki, Aya & Jarvis, Lovell S. & Sexton, Richard J., 2011. "Partial Vertical Integration, Risk Shifting, and Product Rejection in the High-Value Export Supply Chain: The Ghana Pineapple Sector," World Development, Elsevier, vol. 39(9), pages 1611-1623, September.
- Liesbeth Colen & Miet Maertens & Johan Swinnen, 2012. "Private Standards, Trade and Poverty: GlobalGAP and Horticultural Employment in Senegal," The World Economy, Wiley Blackwell, vol. 35(8), pages 1073-1088, August.
- Reardon, Thomas & Codron, Jean-Marie & Busch, Lawrence & Bingen, R. James & Harris, Craig, 1999. "Global Change In Agrifood Grades And Standards: Agribusiness Strategic Responses In Developing Countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 2(03/04).
- Patricia Augier & Michael Gasiorek & Charles Lai Tong, 2005.
"The impact of rules of origin on trade flows,"
CEPR;CES;MSH, vol. 20(43), pages 567-624, July.
- AUGIER Patricia & GAZIOREK Michael & LAITONG Charles, 2004. "The Impact of Rules of Origin On Trade Flows," International Trade 0404001, EconWPA.
- Solomon Asfaw & Dagmar Mithöfer & Hermann Waibel, 2010. "Agrifood supply chain, private-sector standards, and farmers' health: evidence from Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 251-263, May.
- Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
- Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
- Miet Maertens & Johan F.M. Swinnen, 2006. "Trade, Standards, and Poverty: Evidence from Senegal," LICOS Discussion Papers 17706, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Maertens, Miet & Swinnen, Johan F.M., 2007. "Trade, Standards and Poverty. Evidence from Senegal," 106th Seminar, October 25-27, 2007, Montpellier, France 7924, European Association of Agricultural Economists.
- Escobal, Javier & Agreda, Victor & Reardon, Thomas, 2000. "Endogenous institutional innovation and agroindustrialization on the Peruvian coast," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
- Escobal, Javier & Agreda, Victor & Reardon, Thomas, 2000. "Endogenous institutional innovation and agroindustrialization on the Peruvian coast," Agricultural Economics, Blackwell, vol. 23(3), pages 267-277, September.
- Minten, Bart & Reardon, Thomas & Vandeplas, Anneleen, 2009. "Linking urban consumers and rural farmers in India: A comparison of traditional and modern food supply chains," IFPRI discussion papers 883, International Food Policy Research Institute (IFPRI).
- Chemnitz, Christine, 2007. "The Compliance Process of Food Quality Standards on Primary Producer Level: A Case Study of the EUREPGAP Standard in the Moroccan Tomato Sector," Working Paper Series 10286, Humboldt University Berlin, Department Agricultural Economics.
- Hatanaka, Maki & Bain, Carmen & Busch, Lawrence, 2005. "Third-party certification in the global agrifood system," Food Policy, Elsevier, vol. 30(3), pages 354-369, June.
- Jaffee, Steven & Henson, Spencer, 2004. "Standards and agro-food exports from developing countries: rebalancing the debate," Policy Research Working Paper Series 3348, The World Bank.
- 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.
- 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.
- Belton, Ben & Haque, Mohammad Mahfujul & Little, David C. & Sinh, Le Xuan, 2011. "Certifying catfish in Vietnam and Bangladesh: Who will make the grade and will it matter?," Food Policy, Elsevier, vol. 36(2), pages 289-299, April.
- 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.
- Abdelhakim Hammoudi & Ruben Hoffmann & Yves Surry, 2009. "Food safety standards and agri-food supply chains: an introductory overview," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(4), pages 469-478, December.
- Henson, Spencer & Caswell, Julie, 1999. "Food safety regulation: an overview of contemporary issues," Food Policy, Elsevier, vol. 24(6), pages 589-603, December.
- Doris Fuchs & Agni Kalfagianni & Tetty Havinga, 2011. "Actors in private food governance: the legitimacy of retail standards and multistakeholder initiatives with civil society participation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(3), pages 353-367, September.
- Kleinwechter, Ulrich & Grethe, Harald, 2006. "The adoption of the Eurepgap Standard by Mango Exporters in Piura, Peru," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25521, International Association of Agricultural Economists.
- Tamás Bartus, 2005. "Estimation of marginal effects using margeff," Stata Journal, StataCorp LP, vol. 5(3), pages 309-329, September.
- Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
- Spencer Henson & Steven Jaffee, 2008. "Understanding Developing Country Strategic Responses to the Enhancement of Food Safety Standards," The World Economy, Wiley Blackwell, vol. 31(4), pages 548-568, April.
- Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
- Reardon, Thomas & Farina, Elizabeth Maria Mercier Querido, 2001. "The Rise Of Private Food Quality And Safety Standards: Illustrations From Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 4(04). Full references (including those not matched with items on IDEAS)