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Tomato Farmers and Modern Markets in Nicaragua: A Duration Analysis

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  • Hernandez, Ricardo
  • Reardon, Thomas

Abstract

This paper explores whether farm land and non-land assets determine the participation of tomato growers in modern markets in Nicaragua, and how farmers’ duration as supermarket suppliers affects the farm technology they use. The methodology is based on a survival analysis approach. We use data from a stratified random sample of tomato farmers in Nicaragua over a 10-year period. Our results show that participation in supermarket supply chains as supermarket supplier is not determined by farm size, contrary to a common hypothesis, and thus small farmers can be supermarket suppliers. However, non-land assets are important determinants of being in the modern channel: these assets include irrigation, nonfarm assets (linked to nonfarm employment) and education. Duration as a supermarket supplier is positively correlated with farm asset accumulation and the use of modern technology (mainly in the form of capital-led intensification) of tomato farming – but negatively correlated with the share of highly toxic pesticides in overall pesticide use.

Suggested Citation

  • Hernandez, Ricardo & Reardon, Thomas, 2012. "Tomato Farmers and Modern Markets in Nicaragua: A Duration Analysis," Staff Paper Series 121802, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:121802
    DOI: 10.22004/ag.econ.121802
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    More about this item

    Keywords

    Agribusiness; International Development; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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