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Changing asset endowments and smallholder participation in higher value markets: Evidence from certified coffee producers in Nicaragua

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  • Donovan, Jason
  • Poole, Nigel

Abstract

This paper examines the capacities of smallholders in Nicaragua to exploit new linkages to certified coffee markets following the coffee crisis. Data on livelihood assets were collected from 292 households, which were clustered to test how differences in outcomes (asset building) reflect variations in initial asset endowments. The results suggest that most households built particular elements of their asset base and increased their resilience to future shocks. However, households struggled to make effective use of the gains for intensifying their livelihoods. Of the least-endowed households, few made investments in the scale or productivity of coffee, and most continued to depend heavily on subsistence production and seasonal off-farm income for survival. In conclusion, improved market access alone, even under relatively favorable market conditions and with considerable external support, will have uncertain impacts on rural poverty if the underlying constraints on household assets and investments are not addressed concurrently.

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  • Donovan, Jason & Poole, Nigel, 2014. "Changing asset endowments and smallholder participation in higher value markets: Evidence from certified coffee producers in Nicaragua," Food Policy, Elsevier, vol. 44(C), pages 1-13.
    • Handle: RePEc:eee:jfpoli:v:44:y:2014:i:c:p:1-13
    DOI: 10.1016/j.foodpol.2013.09.010
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    10. Zou, Baoling & Mishra, Ashok K., 2024. "Modernizing Smallholder Agriculture and Achieving Food Security: An Exploration in Machinery Services and Labor Reallocation in China," IZA Discussion Papers 17008, Institute of Labor Economics (IZA).
    11. Abebaw, Lijalem & Tuffa, Worku & Alemu, Dawit, 2021. "Determinants of Smallholder Farmers' Market Orientation for Small-Scale Crop Commercialization in West Gojjam Zone, Amhara Region, Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 30(01), April.
    12. Hou, Jianyun & Huo, Xuexi, 2015. "Transaction Costs and Farm-to-Market Linkages: Empirical Evidence from China Apple Producers," 2015 Conference, August 9-14, 2015, Milan, Italy 211746, International Association of Agricultural Economists.
    13. Busch, Christian & Barkema, Harry, 2022. "Align or perish: Social enterprise network orchestration in Sub-Saharan Africa," Journal of Business Venturing, Elsevier, vol. 37(2).
    14. Oya, Carlos & Schaefer, Florian & Skalidou, Dafni, 2018. "The effectiveness of agricultural certification in developing countries: A systematic review," World Development, Elsevier, vol. 112(C), pages 282-312.
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    16. Oscar Meza Palma & José M. Díaz-Puente & José L. Yagüe, 2020. "The Role of Coffee Organizations as Agents of Rural Governance: Evidence from Western Honduras," Land, MDPI, vol. 9(11), pages 1-17, November.
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    18. Pallante, Giacomo & Drucker, Adam G. & Sthapit, Sajal, 2016. "Assessing the potential for niche market development to contribute to farmers' livelihoods and agrobiodiversity conservation: Insights from the finger millet case study in Nepal," Ecological Economics, Elsevier, vol. 130(C), pages 92-105.
    19. Aniseh S. Bro & Daniel C. Clay & David L. Ortega & Maria C. Lopez, 2019. "Determinants of adoption of sustainable production practices among smallholder coffee producers in Nicaragua," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(2), pages 895-915, April.
    20. Liu, Moucheng & Yang, Lun & Bai, Yanying & Min, Qingwen, 2018. "The impacts of farmers’ livelihood endowments on their participation in eco-compensation policies: Globally important agricultural heritage systems case studies from China," Land Use Policy, Elsevier, vol. 77(C), pages 231-239.
    21. Kebede Manjur Gebru & Maggi Leung & Crelis Rammelt & Annelies Zoomers & Guus van Westen, 2019. "Vegetable Business and Smallholders’ Food Security: Empirical Findings from Northern Ethiopia," Sustainability, MDPI, vol. 11(3), pages 1-28, January.
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    23. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.

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