Guillermo Zúñiga‐Arias, Ruerd Ruben, Ruud Verkerk and Martinus van Boekel
The purpose of the paper is to present an integrated methodology for identifying effective economic incentives to enhance quality performance by mango producers in Costa Rica.
Abstract
Purpose
The purpose of the paper is to present an integrated methodology for identifying effective economic incentives to enhance quality performance by mango producers in Costa Rica.
Design/methodology/approach
The study analyses the relationship between intrinsic product quality attributes and socio‐economic characteristics of mango producers in the Central Pacific zone of Costa Rica. Data are derived from a representative sample of 35 mango producers. A mango quality index for local and export market outlet is constructed and quality performance is subsequently related to farm‐household characteristics and contractual delivery parameters. Categorical regression methods are used to identify the relationships between farm‐household characteristics, production system features, marketing relationships and quality attributes weighted by consumers' preferences.
Findings
Key attributes of the quality index – related to dimensions of ripeness, appearance and variability – appear to be strongly related to farm‐household characteristics like the producers' age and experience, input use intensity and family labour availability. Preferences for certain contractual regimes and marketing arrangements give rise to differentiation in quality performance. Long‐term delivery relationships and non‐price attributes appear as key factors for quality improvement in mango.
Research limitation/implications
Although the study is based on a modest sample, the significant relationships between the constructs in the model are found to be sufficiently robust.
Originality/value
The research approach enables the estimation of a model where quality performance is related to technical and institutional aspects related to the organisation of mango delivery chain.
Details
Keywords
Ruerd Ruben and Guillermo Zuniga
Smallholder farmers are increasingly subject to different types of standards that offer specific conditions for their market incorporation. The proliferation of private and…
Abstract
Purpose
Smallholder farmers are increasingly subject to different types of standards that offer specific conditions for their market incorporation. The proliferation of private and voluntary (civic) standards raises questions regarding their impact on farmers' welfare and their role in the upgrading of value chains. This paper aims to address this issue.
Design/methodology/approach
Based on extensive fieldwork and careful matching of 315 farmers in Northern Nicaragua who produce coffee under Fair Trade, Rainforest Alliance and Café Practices labels or deliver to independent traders, the effects on income, production and investments are compared. Moreover, the implications of different contract conditions for risk behaviour, organizational force, loyalty and gender attitudes are assessed.
Findings
The paper finds that Fair Trade provides better prices compared with independent producers, but private labels out‐compete Fair Trade in terms of yield and quality performance. While Fair Trade can be helpful to support initial market incorporation, private labels offer more suitable incentives for quality upgrading.
Research limitations/implications
Civic standards exhibit major effects on local institutions' and farmers' behaviour, while B2B standards are more effective for improving production and management practices. Dynamic improvement standards may bridge the gap between both.
Practical implications
Fair Trade standards are useful to provide initial market access to small‐holders, but private standards offer better prospects for subsequent quality upgrading.
Originality/value
This is the first large‐scale comparative impact assessment of coffee standards that delivers unbiased empirical results.