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Cross-border coordination in the Madagascar-EU lychee chain: the role of GlobalGAP

Author

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  • Bignebat, C.
  • Vagneron, I.

Abstract

Madagascar has a tradition of agricultural trade (coffee, vanilla, cloves). In the 90s, the country started developing non-traditional exports, such as lychees, to the European Union (EU), thereby generating substantial cash revenues for small producers. In 2005, access to the EU market became more difficult, due to more stringent quality requirements and to the growing use of the private retailer standard GlobalGAP. Whereas the empirical literature on private standards presents GlobalGAP either as a success story or a threat for small producers, the case of Madagascar exhibits a specific dynamics: after booming in 2007, GlobalGAP is actually collapsing. The aim of this article is to disentangle the mechanisms of this evolution and to draw some conclusions regarding market access enhancement through private standards. This work is based on semi-structured interviews carried out with all stakeholders of the export chain, government agencies and programs supporting lychee production and on weekly data on lychee trade flows (2001-2010). Using a global value chain approach, we first show the importance of the chain structure: importers are identified as lead-firms (conversely to most studies dealing with private certification) in an environment characterized by low competition at the international level. We then evaluate the role of donors and trade facilitators as actors of the chain. After giving evidence for the collapse of GlobalGAP, we assess what is left of the GlobalGAP procurement system once it has been abandoned: stabilization of the relationship between exporters and producers and thus enhanced traceability, upgrading of private marketing infrastructures, improved management discipline. We conclude that in the Madagascar lychee chain, although GlobalGAP had little impact on market access.

Suggested Citation

  • Bignebat, C. & Vagneron, I., 2011. "Cross-border coordination in the Madagascar-EU lychee chain: the role of GlobalGAP," Working Papers MoISA 201106, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
  • Handle: RePEc:umr:wpaper:201106
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    File URL: http://www1.montpellier.inra.fr/bartoli/moisa/bartoli/download/moisa2011_pdf/WP_6_2011.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ebata, Ayako & Hernandez, Manuel A., 2017. "Linking smallholder farmers to markets on extensive and intensive margins: Evidence from Nicaragua☆," Food Policy, Elsevier, vol. 73(C), pages 34-44.
    2. Ebata, Ayako & Hernandez, Manuel A., 2016. "Linking smallholder farmers to commercial markets: Evidence from nongovernmental organization training in Nicaragua:," IFPRI discussion papers 1539, International Food Policy Research Institute (IFPRI).
    3. Ebata, Ayako & Hüttel, Silke, 2015. "Do development projects link smallholders to markets?," GlobalFood Discussion Papers 204326, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. 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.
    5. Schuster, Monica & Maertens, Miet, 2013. "Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector," Food Policy, Elsevier, vol. 43(C), pages 291-305.
    6. Ebata, Ayako & Huttel, Silke, 2015. "Do development projects link smallholdrs to markets?," 2015 Conference, August 9-14, 2015, Milan, Italy 211583, International Association of Agricultural Economists.
    7. 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.

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    More about this item

    Keywords

    PRIVATE CERTIFICATION; GLOBAL CHAINS; NON-TARIFF MEASURES; FOREIGN AID; NON-TRADITIONAL EXPORTS;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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