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

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  • Ingrid Fromm

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

Abstract

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.

Suggested Citation

  • Ingrid Fromm, 2007. "Upgrading in Agricultural Value Chains: The Case of Small Producers in Honduras," GIGA Working Paper Series 64, GIGA German Institute of Global and Area Studies.
  • Handle: RePEc:gig:wpaper:64
    as

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    File URL: http://repec.giga-hamburg.de/pdf/giga_07_wp64_fromm.pdf
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    References listed on IDEAS

    as
    1. 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 233-261, October.
    2. Humphrey, John. & Chen, Martha., 2004. "Upgrading in global value chains," ILO Working Papers 993698523402676, International Labour Organization.
    3. 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.
    4. repec:ilo:ilowps:359966 is not listed on IDEAS
    5. repec:ilo:ilowps:369852 is not listed on IDEAS
    6. 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.
    7. Humphrey, John., 2003. "Opportunities for SMEs in developing countries to upgrade in a global economy," ILO Working Papers 993599663402676, International Labour Organization.
    8. 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).
    9. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Coordination; governance; standards; upgrading; value chain analysis; Honduras;

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