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Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector

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  • Schuster, Monica
  • Maertens, Miet

Abstract

Developing countries are increasingly exporting fresh horticulture products to high-income countries. These exports increasingly have to comply with stringent public and private standards, as well as other quality and safety issues. There is an ongoing debate on the effect of private standards on the inclusion of small-scale farmers in export supply chains. With this paper, we contribute to this debate by providing robust evidence from the Peruvian asparagus export sector, and thereby addressing several important methodological shortcomings and gaps in the existing literature. We use a unique firm level dataset on 567 asparagus export firms from 1993 – 2011 and several methods, including fixed effects and GMM estimators, to estimate the causal impact of certification to private standards on companies sourcing strategy. We find that certification leads to vertical integration and significantly reduces the share of product that is sourced from external producers, with a larger effect for small-scale producers. When distinguishing between production and processing standards, and between low-level and high-level standards, we find that especially high-level production standards have a negative impact on sourcing from (small-scale) producers.

Suggested Citation

  • Schuster, Monica & Maertens, Miet, 2013. "Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector," Working Papers 146557, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
  • Handle: RePEc:ags:kucawp:146557
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    File URL: http://ageconsearch.umn.edu/record/146557/files/BioeconWP_2013_1_updated.pdf
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    References listed on IDEAS

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    Cited by:

    1. Schwarz, Jana & Schuster, Monica & Annaert, Bernd & Maertens, Miet & Mathijs, Erik, 2016. "Sustainability of global and local food value chains. An empirical comparison of Peruvian and Belgian asparagus," Working Papers 232594, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    2. Van den Broeck, Goedele & Swinnen, Johan & Maertens, Miet, 2017. "Global value chains, large-scale farming, and poverty: Long-term effects in Senegal," Food Policy, Elsevier, vol. 66(C), pages 97-107.
    3. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    4. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. repec:gam:jsusta:v:10:y:2018:i:5:p:1573-:d:146394 is not listed on IDEAS
    6. Jana Schwarz & Monica Schuster & Bernd Annaert & Miet Maertens & Erik Mathijs, 2016. "Sustainability of Global and Local Food Value Chains: An Empirical Comparison of Peruvian and Belgian Asparagus," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-22, April.
    7. Unnevehr, Laurian J. & Ronchi, Loraine, 2014. "Food safety and developing markets: Research findings and research gaps:," IFPRI discussion papers 1376, International Food Policy Research Institute (IFPRI).
    8. 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.
    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.
    10. Johan Swinnen, 2014. "Global Agricultural Value Chains, Standards, and Development," RSCAS Working Papers 2014/30, European University Institute.
    11. Schuster, Monica & Maertens, Miet, 2013. "Food Standards, Heterogeneous Firms and Developing Countries’ Export Performance," Working Papers 152084, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    12. repec:gam:jsusta:v:8:y:2016:i:4:p:344:d:67774 is not listed on IDEAS
    13. Kleemann, Linda, 2015. "The relevance of certifications and business practices in linking smallholders and large agro-businesses in Sub-Sahara Africa," Kiel Working Papers 1997, Kiel Institute for the World Economy (IfW).
    14. Cuffaro, Nadia & Di Giacinto, Marina, 2015. "Credence goods, consumers’ trust in regulation and high quality exports," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 0(Issue 2), pages 1-19, August.
    15. Mitiku, Fikadu & de Mey, Yann & Nyssen, Jan & Maertens, Miet, 2017. "Do Private Sustainability Standards Contribute to Poverty Alleviation? A Comparison of Different Coffee Certification Schemes in Ethiopia," Working Papers 253589, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.

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    Agribusiness; Agricultural and Food Policy; International Relations/Trade;

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