Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector
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.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Celestijnenlaan 200 E - box 2411, 3001 Leuven (Heverlee)|
Phone: +32-16-32 29 80
Fax: +32-16-32 78 00
Web page: http://www.agr.kuleuven.ac.be/aee/clo/clohomee.htm
More information through EDIRC
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.:
- Unnevehr, Laurian J., 2000.
"Food safety issues and fresh food product exports from LDCs,"
Blackwell, vol. 23(3), pages 231-240, September.
- Unnevehr, Laurian J., 2000. "Food safety issues and fresh food product exports from LDCs," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
- Lemeilleur, Sylvaine, 2013.
"Smallholder Compliance with Private Standard Certification: The Case of GlobalGAP Adoption by Mango Producers in Peru,"
International Food and Agribusiness Management Review,
International Food and Agribusiness Management Association (IFAMA), vol. 16(4).
- Lemeilleur, Sylvaine, 2012. "Smallholder compliance with private standard certification: the case of GlobalGAP adoption by mango producers in Peru," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123457, International Association of Agricultural Economists.
- Chemnitz, Christine, 2007. "The Compliance Decision with Food Quality Standards on Primary Producer Level; A Case Study of the EUREPGAP Standard in the Moroccan Tomato Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9440, European Association of Agricultural Economists.
- 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.
- Miet Maertens & Bart Minten & Johan Swinnen, 2012. "Modern Food Supply Chains and Development: Evidence from Horticulture Export Sectors in Sub-Saharan Africa," Development Policy Review, Overseas Development Institute, vol. 30(4), pages 473-497, 07.
- Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
- 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.
- 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., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
- 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.
- Jongwanich, Juthathip, 2009. "The impact of food safety standards on processed food exports from developing countries," Food Policy, Elsevier, vol. 34(5), pages 447-457, October.
- Subervie, Julie & Vagneron, Isabelle, 2012. "Can Fresh Produce Farmers Benefit from Global Gap Certification? The case of lychee producers in Madagascar," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126704, International Association of Agricultural Economists.
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993.
"Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates,"
NBER Technical Working Papers
0147, National Bureau of Economic Research, Inc.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
- 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.
- Axel Marx & Miet Maertens & Johan Swinnen & Jan Wouters (ed.), 2012. "Private Standards and Global Governance," Books, Edward Elgar Publishing, number 14250.
- Thijs Vandemoortele & Scott Rozelle & Johan Swinnen & Tao Xiang, 2012.
"Quality and Inclusion of Producers in Value Chains: A Theoretical Note,"
Review of Development Economics,
Wiley Blackwell, vol. 16(1), pages 122-136, 02.
- Thijs Vandemoortele & Scott Rozelle & Johan F.M. Swinnen & Tao Xiang, 2009. "Quality and Inclusion of Producers in Value Chains: A Theoretical Note," LICOS Discussion Papers 24609, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Herzfeld, Thomas & Drescher, Larissa S. & Grebitus, Carola, 2011. "Cross-national adoption of private food quality standards," Food Policy, Elsevier, vol. 36(3), pages 401-411, June.
- Swinnen Johan & Vandeplas Anneleen, 2012.
"Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains,"
Journal of Globalization and Development,
De Gruyter, vol. 2(2), pages 1-30, January.
- Swinnen, Johan F.M. & Vandeplas, Anneleen, 2009. "Rich consumers and poor producers: Quality and rent distribution in global value chains," IFPRI discussion papers 932, International Food Policy Research Institute (IFPRI).
- Spencer Henson & John Humphrey, 2010. "Understanding the Complexities of Private Standards in Global Agri-Food Chains as They Impact Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1628-1646.
- Peter Gibbon, 2003. "Value-chain Governance, Public Regulation and Entry Barriers in the Global Fresh Fruit and Vegetable Chain into the EU," Development Policy Review, Overseas Development Institute, vol. 21(5-6), pages 615-625, December.
- Wilson, John S. & Otsuki, Tsunehiro & Majumdar, Baishali, 2003.
"Balancing Food Safety And Risk: Do Drug Residue Limits Affect International Trade In Beef?,"
2003 Annual meeting, July 27-30, Montreal, Canada
21971, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- John Wilson & Tsunehiro Otsuki & Baishali Majumdsar, 2003. "Balancing food safety and risk: do drug residue limits affect international trade in beef?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 12(4), pages 377-402.
- Bignebat, C. & Vagneron, I., 2011. "Cross-border coordination in the Madagascar-EU lychee chain: the role of GlobalGAP," Working Papers MOISA 201106, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro - Montpellier, France.
- Beghin, John C., 2012.
"Non Tariff Measures with Market Imperfections: Trade and Welfare Implications,"
2012: New Rules of Trade?, December 2012, San Diego, California
142787, International Agricultural Trade Research Consortium.
- Beghin, John C., 2013. "Non-Tariff Measures with Market Imperfections: Trade and Welfare Implications," Staff General Research Papers Archive 35923, Iowa State University, Department of Economics.
- Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Sven M. Anders & Julie A. Caswell, 2007.
"Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 91(2), pages 310-321.
- Sven Anders & Julie Caswell, 2007. "Standards-as-Barriers versus Standards-as-Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," Working Papers 2007-7, University of Massachusetts Amherst, Department of Resource Economics.
- William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, 06.
- Jose Blandon & Spencer Henson & Towhidul Islam, 2009. "Marketing preferences of small-scale farmers in the context of new agrifood systems: a stated choice model," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 251-267.
- David Boselie & Spencer Henson & Dave Weatherspoon, 2003. "Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1155-1161.
- Subervie, Julie & Vagneron, Isabelle, 2013. "A Drop of Water in the Indian Ocean? The Impact of GlobalGap Certification on Lychee Farmers in Madagascar," World Development, Elsevier, vol. 50(C), pages 57-73.
- Shimizu, Tatsuya, 2006. "Expansion of Asparagus Production and Exports in Peru," IDE Discussion Papers 73, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Henson, Spencer & Reardon, Thomas, 2005. "Private agri-food standards: Implications for food policy and the agri-food system," Food Policy, Elsevier, vol. 30(3), pages 241-253, June.
- 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).
- Mausch, Kai & Mithofer, Dagmar & Asfaw, Solomon & Waibel, Hermann, 2009. "Export Vegetable Production in Kenya under the EurepGAP Standard: Is Large â€œMore Beautifulâ€ than Small?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(3), November.
- Henson, Spencer & Masakure, Oliver & Boselie, David, 2005. "Private food safety and quality standards for fresh produce exporters: The case of Hortico Agrisystems, Zimbabwe," Food Policy, Elsevier, vol. 30(4), pages 371-384, August.
- 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, 05.
- Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
- 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.
- Jaffee, Steve & Masakure, Oliver, 2005. "Strategic use of private standards to enhance international competitiveness: Vegetable exports from Kenya and elsewhere," Food Policy, Elsevier, vol. 30(3), pages 316-333, June.
- Otsuki, Tsunehiro & S. Wilson, John, 2003. "Food Safety and Trade: Winners and Losers in a Non-Harmonized World," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 266-287.
- Codron, Jean-Marie & Giraud-Heraud, Eric & Soler, Louis-Georges, 2005. "Minimum quality standards, premium private labels, and European meat and fresh produce retailing," Food Policy, Elsevier, vol. 30(3), pages 270-283, June.
When requesting a correction, please mention this item's handle: RePEc:ags:kucawp:146557. 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)
If references are entirely missing, you can add them using this form.