IDEAS home Printed from https://ideas.repec.org/p/umr/wpaper/201204.html
   My bibliography  Save this paper

International standards and small-scale farmer behaviors: evidence from Peru

Author

Listed:
  • Lemeilleur, S.

Abstract

The prevalence of food quality standards in international trade is constantly increasing and has a growing influence on developing countries. A wide range of literature in development economics focused on the determinants of the standard adoption and on the debate of whether international standards exclude small-scale farmers from high-value food markets. Otherwise, when exclusion is pointed out, very little is said on how problematic such forms of exclusion are. In this paper, we use the Hirschman’s (1970) conceptual framework to examine which behaviors small-scale farmers adopt face to the incontrovertible standards, what happens to the farmers that are excluded from a specific certified market, and to what extent small farmers are affected to not be certified. Based on an analysis of primary data collected to examine the implication of GlobalGAP on the mango sector in Peru, we consider three main options for the small-scale farmers: “loyalty” (implementation of the standard under specific conditions), “switch” of market segment, and “exit” from the market. The last option leads farmers to sell all their production to small and volatile exporters, called golondrinos (swallows). We show empirically that some small-scale farmers (8% of the sample) comply with GlobalGAP standard thanks to the support from exporters (farming contracts which include the certification cost), while others switch of market segment by complying with the organic certification (12,5%). Organic certification substitutes for the GlobalGAP requirement in the EU market. Finally, we find a significant level of exit option (24%), especially among smaller farms, less specialized, and furthest from exporter plants. The latter seem very affected by the changes related to the GlobalGAP standard requirements: price risk on their production has increased and their bargaining power and agricultural income have decreased. They are particularly vulnerable because their level of investment (mango trees) impedes to radically change of farm activity. ...French Abstract : L’importance grandissante des standards durables pour les produits agricoles dans le commerce international a un impact de plus en plus important dans les pays en développement. Dans ce papier, nous nous intéressons aux implications de la mise en place du standard Globalgap dans la filière mangue au Pérou pour les petits producteurs locaux.

Suggested Citation

  • Lemeilleur, S., 2012. "International standards and small-scale farmer behaviors: evidence from Peru," Working Papers MOISA 201204, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro - Montpellier, France.
  • Handle: RePEc:umr:wpaper:201204
    as

    Download full text from publisher

    File URL: http://www1.montpellier.inra.fr/bartoli/moisa/bartoli/download/moisa2012_pdf/WP_4_2012.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Chemnitz, Christine & Grethe, Harald & Kleinwechter, Ulrich, 2007. "Quality Standards for Food Products - A Particular Burden for Small Producers in Developing Countries?," 106th Seminar, October 25-27, 2007, Montpellier, France 7926, European Association of Agricultural Economists.
    2. Patricia Augier & Michael Gasiorek & Charles Lai Tong, 2005. "The impact of rules of origin on trade flows," Economic Policy, CEPR;CES;MSH, vol. 20(43), pages 567-624, July.
    3. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
    4. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    5. 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.
    6. 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, May.
    7. Escobal, Javier & Agreda, Victor & Reardon, Thomas, 2000. "Endogenous institutional innovation and agroindustrialization on the Peruvian coast," Agricultural Economics, Blackwell, vol. 23(3), pages 267-277, September.
    8. Abdelhakim Hammoudi & Ruben Hoffmann & Yves Surry, 2009. "Food safety standards and agri-food supply chains: an introductory overview," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(4), pages 469-478, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ngokkuen, Chuthaporn & Grote, Ulrike, 0. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 51.

    More about this item

    Keywords

    STANDARDS; CERTIFICATION; SMALL-SCALE FARMER BEHAVIORS; MANGO; PERU;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:umr:wpaper:201204. 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: (Isabelle Perez). General contact details of provider: http://edirc.repec.org/data/moisafr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.