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Accepted Paper:

The subjective return on investment of small-scale pineapple farming in Ghana, and the role of standards, contracts and farmer-trader relations  
Linda Kleemann (Kiel Institute for the World Economy)

Paper short abstract:

This article analyses the differential impact of different types of food standards on farmer-trader relations for smallholders in Ghana. Certification is an agent of change in farmer-trader relations.

Paper long abstract:

This article analyses the differential impact of different types of food standards on farmer-processor/exporter relations. We also explore the perceptions about the impacts and essences of these standards. Data of 386 either GlobalGAP or organic certified small-scale farmers in the pineapple export sector in Ghana is used.

The main results are:

• First, farmers quite accurately describe the quantitative impacts in terms of costs, sales and income

• Second, farmers' perceptions and beliefs are dependent on how and by whom information is provided and are likely to be crucial for the long-term success of certifications.

• Third, certification is an agent of change in farmer-trader relations.

Certification alters not only prices and costs; it seems to be a driver of change in farmer-trader relationship and contract specification to a much larger extent than FBO membership or the specific buyer the farmer sells to. Self-reported changes include a more intense relation (farmer and buyer talk more often to each other) and an improved overall relationship following certification. In addition, written contracts are more frequent among certified farmers. In addition longer relationships (a larger number of years selling to the same buyer) correlates strongly with a better and closer relationship. We conclude that certification could speed up this process, i.e. be a structure that shapes strategy.

Panel P073
Large-scale agro-business meets African smallholder farmers: how can they enter happy marriages?
  Session 1