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Farmgate Private Standards and Price Premium: Evidence From the GlobalGAP Scheme in Kenya's French Beans Marketing

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  • Isaac Maina Kariuki
  • Jens‐Peter Loy
  • Thomas Herzfeld

Abstract

The proliferation of private quality and assurance schemes in international trade is defining market access in high value chains. The prime concern for small-scale producers is whether price premiums are realizable due to compliance. Using French beans marketing, the authors find that GlobalGAP certification, produce traceability, number of suppliers, competition for supplies, direct procurement, a good road network, and supply contracts have positive farmgate price effects for smallholders. Potential policy implications are drawn.
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  • Isaac Maina Kariuki & Jens‐Peter Loy & Thomas Herzfeld, 2012. "Farmgate Private Standards and Price Premium: Evidence From the GlobalGAP Scheme in Kenya's French Beans Marketing," Agribusiness, John Wiley & Sons, Ltd., vol. 28(1), pages 42-53, January.
    • Handle: RePEc:wly:agribz:v:28:y:2012:i:1:p:42-53
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    Cited by:

    1. Subervie, Julie & Vagneron, Isabelle, 2013. "A Drop of Water in the Indian Ocean? The Impact of GlobalGap Certification on Lychee Farmers in Madagascar," World Development, Elsevier, vol. 50(C), pages 57-73.
    2. Dela-Dem Doe Fiankor & Insa Flachsbarth & Amjad Masood & Bernhard Brümmer, 2020. "Does GlobalGAP certification promote agrifood exports? [Standards as barriers versus standards as catalysts: assessing the impact of HACCP implementation on US seafood imports]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 247-272.
    3. Lijiao Hu & Yuqing Zheng & Timothy A. Woods & Yoko Kusunose & Steven Buck, 2023. "The market for private food safety certifications: Conceptual framework, review, and future research directions," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 197-220, March.
    4. Yuichiro Amekawa & Sara Bumrungsri & Kanuengnit Wayo & Girma Gezimu Gebre & Surat Hongsibsong, 2022. "Pesticide Use under Public Good Agricultural Practices Standard: A Comparative Study in Thailand," Agriculture, MDPI, vol. 12(5), pages 1-21, April.
    5. Isaac Maina Kariuki & Jens‐Peter Loy, 2016. "Contractual Farming Arrangements, Quality Control, Incentives, and Distribution Failure in Kenya's Smallholder Horticulture: A Multivariate Probit Analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 547-562, November.
    6. Caprice, Stéphane & von Schlippenbach, Vanessa & Wey, Christian, 2014. "Supplier Fixed costs and Retail Market Monopolization," TSE Working Papers 14-524, Toulouse School of Economics (TSE).
    7. Yuichiro Amekawa & Surat Hongsibsong & Nootchakarn Sawarng & Sumeth Yadoung & Girma Gezimu Gebre, 2021. "Producers’ Perceptions of Public Good Agricultural Practices Standard and Their Pesticide Use: The Case of Q-GAP for Cabbage Farming in Chiang Mai Province, Thailand," Sustainability, MDPI, vol. 13(11), pages 1-25, June.
    8. Russo, Carlo & Perito, Maria Angel & Di Fonzo, Antonella, 2014. "The Strategic Use of Private Food Safety Standards to Manage Complexity: a Moral Hazard Perspective," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182795, European Association of Agricultural Economists.
    9. Eric Giraud-Héraud & Cristina Grazia & Abdelhakim Hammoudi, 2012. "Explaining the Emergence of Private Standards in Food Supply Chains," Working Papers hal-00749345, HAL.
    10. Skidmore, Marin & Baylis, Kathy & Arends-Kuenning, Mary P. & Michelson, Hope C., 2017. "The Effect of Intermediary Market Power on Grain Quality in India," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259174, Agricultural and Applied Economics Association.
    11. Russo, Carlo & Perito, Maria Angela & Di Fonzo, Antonella, 2014. "Using Private Food Safety Standards to Manage Complexity: A Moral Hazard Perspective," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-15.
    12. Unnevehr, Laurian J. & Ronchi, Loraine, 2014. "Food safety and developing markets: Research findings and research gaps:," IFPRI discussion papers 1376, International Food Policy Research Institute (IFPRI).
    13. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).
    14. Bac Ho & Teruaki Nanseki & Yosuke Chomei, 2019. "Profit efficiency of tea farmers: case study of safe and conventional farms in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(4), pages 1695-1713, August.

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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