European Union retailers are setting global benchmarks for the production of fresh food and are asking their suppliers for produce to be certified according to food safety and quality standards. Compliance with these standards for developing countries' small-scale producers entails costly investment in variable inputs and long- term structures. Limited empirical evidence exists either to refute or confirm the concern that the proliferation and enhanced stringency of these standards marginalize smallholders from the global market. This paper therefore explores the costs of compliance, factors explaining the smallholder decision to adopt EU private quality standards, and the impacts of the standards on farm financial performance. We develop a 2-stage standard treatment effect model to account for self-selection as a source of endogeneity. Analysis is based on a random cross section sample of 439 small-scale export vegetable producers in Kenya whose production was monitored in 2005-2006. We demonstrate that adopters and nonadopters are distinguishable by their asset holding and household wealth, access to services, labor endowment, and level of education. Once we control for the endogeneity problem, we find that small-scale producers can benefit substantially from adopting the standards at the farm level.
DOI:
https://doi.org/10.1080/08974431003641398Altmetric score:
Dimensions Citation Count:
Export citation:
RIS (.ris)
TI - What impacts are EU supermarket standards having on developing countries' export of high-value horticultural products? Evidence from Kenya
AU - Asfaw, S.
AU - Mithöfer, D.
AU - Waibel, H.
AB - European Union retailers are setting global benchmarks for the production of fresh food and are asking their suppliers for produce to be certified according to food safety and quality standards. Compliance with these standards for developing countries' small-scale producers entails costly investment in variable inputs and long- term structures. Limited empirical evidence exists either to refute or confirm the concern that the proliferation and enhanced stringency of these standards marginalize smallholders from the global market. This paper therefore explores the costs of compliance, factors explaining the smallholder decision to adopt EU private quality standards, and the impacts of the standards on farm financial performance. We develop a 2-stage standard treatment effect model to account for self-selection as a source of endogeneity. Analysis is based on a random cross section sample of 439 small-scale export vegetable producers in Kenya whose production was monitored in 2005-2006. We demonstrate that adopters and nonadopters are distinguishable by their asset holding and household wealth, access to services, labor endowment, and level of education. Once we control for the endogeneity problem, we find that small-scale producers can benefit substantially from adopting the standards at the farm level.
PY - 2010
UR - https://www.cifor-icraf.org/knowledge/publication/32346/
DO - https://doi.org/10.1080/08974431003641398
KW - adoption, economic, eurepgap standards, export vegetables, household, impact assessment, kenya, sub-saharan, vegetables
ER -Endnote (.ciw)
%T What impacts are EU supermarket standards having on developing countries' export of high-value horticultural products? Evidence from Kenya
%A Asfaw, S.
%A Mithöfer, D.
%A Waibel, H.
%D 2010
%U https://www.cifor-icraf.org/knowledge/publication/32346/
%R https://doi.org/10.1080/08974431003641398
%X European Union retailers are setting global benchmarks for the production of fresh food and are asking their suppliers for produce to be certified according to food safety and quality standards. Compliance with these standards for developing countries' small-scale producers entails costly investment in variable inputs and long- term structures. Limited empirical evidence exists either to refute or confirm the concern that the proliferation and enhanced stringency of these standards marginalize smallholders from the global market. This paper therefore explores the costs of compliance, factors explaining the smallholder decision to adopt EU private quality standards, and the impacts of the standards on farm financial performance. We develop a 2-stage standard treatment effect model to account for self-selection as a source of endogeneity. Analysis is based on a random cross section sample of 439 small-scale export vegetable producers in Kenya whose production was monitored in 2005-2006. We demonstrate that adopters and nonadopters are distinguishable by their asset holding and household wealth, access to services, labor endowment, and level of education. Once we control for the endogeneity problem, we find that small-scale producers can benefit substantially from adopting the standards at the farm level.
%K adoption
%K economic
%K eurepgap standards
%K export vegetables
%K household
%K impact assessment
%K kenya
%K sub-saharan
%K vegetables
Publication year
2010
ISSN
0897-4438
Authors
Asfaw, S.; Mithöfer, D.; Waibel, H.
Language
English
Keywords
adoption, economic, eurepgap standards, export vegetables, household, impact assessment, kenya, sub-saharan, vegetables
Source
Journal of International Food and Agribusiness Marketing. 22(3-4): 252-276
Geographic
Kenya
