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Upgrading in Agricultural Value Chains: The Case of Small Producers in Honduras

  • Ingrid Fromm

    ()

    (the Small Enterprise Promotion and Training Program, University of Leipzig)

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    Local producers, in their interaction with local processors or exporters and international retailers have the possibility to acquire new skills and knowledge. The type of trust relationship and coordination pattern can determine how information flows and how firms upgrade. In addition, the implementation and compliance with standards provides opportunities for learning and acquiring skills and knowledge. Focusing on this kind of interactions, the study explains how local producers in Honduras engage in upgrading and whether this had an impact on the sales of those firms. The majority of the producers in the sample upgraded their products and internal processes. A limited number of producers engaged in functional upgrading. Most of the producers were aware of the important role of standards. They affirmed that in the process of implementing and complying with standards, they have gained new knowledge and were convinced that they succeeded in securing at better position in the value chain.

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    File URL: http://repec.giga-hamburg.de/pdf/giga_07_wp64_fromm.pdf
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    Paper provided by GIGA German Institute of Global and Area Studies in its series GIGA Working Paper Series with number 64.

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    Length: 32 pages
    Date of creation: Dec 2007
    Date of revision:
    Handle: RePEc:gig:wpaper:64
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    1. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    2. 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 (IAMA), vol. 2(03/04).
    3. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-61, October.
    4. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
    5. Berdegue, Julio A. & Balsevich, Fernando & Flores, Luis & Reardon, Thomas, 2005. "Central American supermarkets' private standards of quality and safety in procurement of fresh fruits and vegetables," Food Policy, Elsevier, vol. 30(3), pages 254-269, June.
    6. Humphrey, John, 2003. "Opportunities for SMEs in developing countries to upgrade in a global economy," ILO Working Papers 359966, International Labour Organization.
    7. Humphrey, John & Chen, Martha, 2004. "Upgrading in global value chains," ILO Working Papers 369852, International Labour Organization.
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