The relevance of business practices in linking smallholders and large agro-businesses in Sub-Sahara Africa
In: International Food and Agribusiness Management ReviewSearch for other papers by Linda Kleemann in
Current site
Google Scholar
Smallholders often have to certify according to international standards and produce under contract for large agro-businesses to access export markets. While mostly positive effects for the farmers have been found for contracts and certifications, often these effects do not persist because contracts fail and certifications are not renewed. We suggest that individual firm behavior is crucial for the long-term success of farmer-agro-business relationships. In this article, we use data of 386 smallholders in the pineapple export sector in Ghana, analyze them quantitatively and enrich it by a detailed case study of a large-scale agro-business in Ghana. The results show that, in an environment with weak contract enforcement, certification is an agent of change in farmer-agro-business relations and that building trust and aligning expectations of farmers and firms largely determine success. We conclude that individual firm behavior matters more than taken into account in previous research. Our case study shows that three ‘R’ – reliability, reputation and respect – constitute the basis for contract relationships that benefit all.
-
Barrett, C., M. Bachke, M. Bellemare, H. Michelson, S. Narayanan and T. Walker. 2012. Smallholder participation in contract farming: comparative evidence from five countries. World Development 40: 715-730.
'Smallholder participation in contract farming: comparative evidence from five countries ' () 40 World Development : 715 -730.
-
Bellemare, M.F. 2012. As you sow, so shall you reap: the welfare impacts of contract farming. World Development 40: 1418-1434.
'As you sow, so shall you reap: the welfare impacts of contract farming ' () 40 World Development : 1418 -1434.
-
Beuchelt, T. and M. Zeller 2011. Profits and poverty: certification’s troubled link for Nicaragua’s organic and Fairtrade coffee producers. Ecological Economics 70: 1316-1324.
'Profits and poverty: certification’s troubled link for Nicaragua’s organic and Fairtrade coffee producers ' () 70 Ecological Economics : 1316 -1324.
-
Bolwig, S., P. Gibbon and S. Jones. 2009. The economics of smallholder organic contract farming in tropical Africa. World Development 37: 1094-1104.
'The economics of smallholder organic contract farming in tropical Africa ' () 37 World Development : 1094 -1104.
-
GlobalGAP. 2016. GlobalGAP Database. Available at: http://tinyurl.com/kpada2c.
-
Henson, S., O. Masakure and J. Crandfield. 2011. Do fresh produce exporters in Sub-Saharan Africa benefit from GlobalGAP certification? World Development 39: 375-386.
'Do fresh produce exporters in Sub-Saharan Africa benefit from GlobalGAP certification? ' () 39 World Development : 375 -386.
-
Hidayat, N.K., P. Glasbergen and A. Offermans. 2015. Sustainability certification and palm oil smallholders’ livelihood: a comparison between scheme smallholders and independent smallholders in Indonesia. International Food and Agribusiness Management Review 18: 25-48.
'Sustainability certification and palm oil smallholders’ livelihood: a comparison between scheme smallholders and independent smallholders in Indonesia ' () 18 International Food and Agribusiness Management Review : 25 -48.
-
International Trade Centre (ITC). 2011. The impacts of private standards on producers in developing countries. International Trade Centre literature review series on the impacts of private standards, part II, Geneva, Switzerland.
-
International Trade Centre (ITC). 2013. Key features of the sustainability standard. Available at: http://tinyurl.com/j7fah5z.
-
Kersting, S. and M. Wollni. 2012. New institutional arrangements and standard adoption: evidence from small-scale fruit and vegetable farmers in Thailand. Food Policy 37: 452-462.
'New institutional arrangements and standard adoption: evidence from small-scale fruit and vegetable farmers in Thailand ' () 37 Food Policy : 452 -462.
-
Kleemann, L. and A. Abdulai. 2013. Organic certification, agro-ecological practices and return on investment: evidence from pineapple producers in Ghana. Ecological Economics 93: 330-341.
'Organic certification, agro-ecological practices and return on investment: evidence from pineapple producers in Ghana ' () 93 Ecological Economics : 330 -341.
-
Kleemann, L., A. Abdulai and M. Buss. 2014. Is organic farming worth its investment? The adoption and impact of certified pineapple farming in Ghana. World Development 64: 79-92.
'Is organic farming worth its investment? ' () 64 World Development : 79 -92.
-
Lemeilleur, S. 2013. Smallholder Compliance with private standard certification: the case of GlobalGAP adoption by mango producers in Peru. International Food and Agribusiness Management Review 16: 159-180.
'Smallholder Compliance with private standard certification: the case of GlobalGAP adoption by mango producers in Peru ' () 16 International Food and Agribusiness Management Review : 159 -180.
-
Maertens, M. and J.F.M. Swinnen. 2009. Trade, standards, and poverty: evidence from Senegal. World Development 37: 161-178.
'Trade, standards, and poverty: evidence from Senegal ' () 37 World Development : 161 -178.
-
Manski, C.F. 2004. Measuring Expectations. Econometrica 72: 1329-1376.
'Measuring Expectations ' () 72 Econometrica : 1329 -1376.
-
Masood, A. and B. Brümmer. 2014. Determinants of worldwide diffusion of GlobalGAP certification. GlobalFood Discussion Papers No. 48, Georg-August-University, Göttingen, Germany.
'Determinants of worldwide diffusion of GlobalGAP certification', ().
-
Miyata, S., M. Nicholas and H. Dinghuan. 2009. Impact of contract farming on income: linking small farmers, packers, and supermarkets in China. World Development 37: 1781-1790.
'Impact of contract farming on income: linking small farmers, packers, and supermarkets in China ' () 37 World Development : 1781 -1790.
-
Schuster, M. and M. Maertens. 2013. Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector. Bioeconomics working paper series working paper 2013/1. Department of Earth and Environmental Sciences, Division of Bioeconmics, University of Leuven, Leuven, Belgium.
'Do private standards create exclusive supply chains?', ().
-
Steen, M. and W. Maijers. 2014. Key success factors for Ethiopian agribusiness development. International Food and Agribusiness Management Review 17: 83-88.
'Key success factors for Ethiopian agribusiness development ' () 17 International Food and Agribusiness Management Review : 83 -88.
-
Subervie, J. and I. Vagneron. 2013. A drop of water in the Indian ocean? The impact of GlobalGap certification on lychee farmers in Madagascar. World Development 50: 57-73.
'A drop of water in the Indian ocean? ' () 50 World Development : 57 -73.
-
Suzuki, A., S.J. Lovell and R.J. Sexton. 2011. Partial Vertical integration, risk shifting, and product rejection in the high value export supply chain: the Ghana pineapple sector. World Development 39: 1611-1623.
'Partial Vertical integration, risk shifting, and product rejection in the high value export supply chain: the Ghana pineapple sector ' () 39 World Development : 1611 -1623.
-
Swinnen, J., K. Deconinck, T. Vandemoortele and A. Vandeplas. 2015. Quality standards, value chains, and international development. Cambridge University Press, New York, USA.
Quality standards, value chains, and international development , ().
-
Warning, M. and N. Key. 2002. The social performance and distributional consequences of contract farming: an equilibrium analysis of the arachide de bouche program in Senegal. World Development 30: 255-263.
'The social performance and distributional consequences of contract farming: an equilibrium analysis of the arachide de bouche program in Senegal ' () 30 World Development : 255 -263.
-
Willer, H. and J. Lernoud (eds.). 2016. The world of organic agriculture – statistics and emerging trends. 2016. Research Institute of Organic Agriculture, Frick, Switzerland.
'The world of organic agriculture – statistics and emerging trends', ().
Supplementary Materials
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 193 | 130 | 14 |
| PDF Views & Downloads | 106 | 60 | 3 |
The relevance of business practices in linking smallholders and large agro-businesses in Sub-Sahara Africa
In: International Food and Agribusiness Management ReviewSearch for other papers by Linda Kleemann in
Current site
Google Scholar
PubMed
Smallholders often have to certify according to international standards and produce under contract for large agro-businesses to access export markets. While mostly positive effects for the farmers have been found for contracts and certifications, often these effects do not persist because contracts fail and certifications are not renewed. We suggest that individual firm behavior is crucial for the long-term success of farmer-agro-business relationships. In this article, we use data of 386 smallholders in the pineapple export sector in Ghana, analyze them quantitatively and enrich it by a detailed case study of a large-scale agro-business in Ghana. The results show that, in an environment with weak contract enforcement, certification is an agent of change in farmer-agro-business relations and that building trust and aligning expectations of farmers and firms largely determine success. We conclude that individual firm behavior matters more than taken into account in previous research. Our case study shows that three ‘R’ – reliability, reputation and respect – constitute the basis for contract relationships that benefit all.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 193 | 130 | 14 |
| PDF Views & Downloads | 106 | 60 | 3 |
