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DocumentImpact of international voluntary standards on smallholder market participation in developing countries
A review of the literature
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No results found.Over the past twenty years, international voluntary standards have gained prominence in global trade. These standards are developed and used by both private and public actors to ensure quality, food safety, social protection and environmental conservation that go beyond mandatory regulation. Concerns have been consistently raised about the ability of international voluntary standards to increase the market access of small-scale producers and exporters in developing countries. This publication pr esents the results of a literature review conducted by FAO in 2012 on the impact of voluntary standards on smallholders’ ability to participate in markets. The results are based on an analysis of 101 studies containing 123 cases. Cumulatively, these cases presented evidence for 19 voluntary standards that were implemented in 14 commodity sectors and in 40 countries. Despite this broad scope, the authors find that the majority of the empirical evidence for impacts comes from studies of just three standards: GlobalGAP, Fairtrade and organic. Moreover, most studies focus on two commodities: coffee and horticulture products. While there is a decent range of geographic cover, the majority of studies focus on a handful of countries: Mexico, Kenya, Peru, Costa Rica and Uganda. This study adopts an impacts pathway model to organize and analyse the trends found in the empirical evidence. The results can be summarized as follows: first, equitable and sustainable supply chain linkages, increased access to assets, and support for cooperative development are incentives for complying with standards. Second, both public and private actors have comparative advantages for supporting voluntary standards and are most effective when combined. Finally, governments can provide services, for example infrastructure and proper legislation, which facilitate the inclusion of smallholders in certified value chains. The study concludes by making policy recommendations on how the public sector can mediate the effects of voluntary standards. -
Book (series)The impact of voluntary sustainability standards on banana exports 2025
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With the growing use of voluntary sustainability standards (VSS) covering agricultural production processes, there is also increasing interest in understanding the impact that these standards have on trade. Empirical evidence is needed because a priori there are theoretical reasons why VSS may promote or hinder trade. This paper analyses banana trade data using a gravity model and adds to the available evidence that VSS increase the likelihood of exporting bananas and the value of banana exports. The impact is larger depending on the quantity exported. The estimated elasticity of the value of banana exports to VSS ranges from 0.2 to 0.5 for certified producers, 0.4 to 0.7 for certificate holders and 0.2 to 0.3 for certified areas. The findings are very similar to those generated by earlier studies. This study adds value in that it provides estimates of the elasticity of banana exports to a variety of VSS. The results show that the estimates for GlobalGAP, Fairtrade and Rainforest Alliance certificate holders are all quite similar. In addition, the estimates are also relatively close for the different indicators for VSS used, i.e. certificate holders, certified producers and area certified. With regard to GlobalGAP certification, the results show a stronger impact for middle-income countries than for high- or low-income countries. -
Book (stand-alone)Smallholder agriculture and market participation: lessons from Africa, the Caribbean and the Pacific 2017
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No results found.Smallholder Agriculture and Market Participation discusses the evolution of policies for smallholder development, including the role of value chains, and the linkages that exist with the Sustainable Development Goals. New, innovative financial mechanisms and linked initiatives are outlined, and their potential to improve the availability of financial services and reduce market transaction costs. Risk management for agricultural smallholders is covered, together with the increasing role of insura nce as a mechanism for risk management among smallholders. Empirical data are used to illustrate the more conceptual work. The last part of the book provides case studies of selected commodity value chain investments involving smallholders in Africa (Ethiopia, Tanzania and Zimbabwe) and South America (Peru), implemented by FAO. The lessons concern project design and targeting, product and market analysis, regulatory issues, sustainability and improved natural resources management.
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