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A wide range of empirical studies show the extent to which the rise of supermarkets in developing countries transforms domestic marketing channels. In many countries, the exclusion of small producers from so-called dynamic marketing channels (that is, remunerative ones) has become a concern. Based on data collected in Turkey in 2007 at the producer and the wholesale market levels, we show that intermediaries are important to understanding the impact of downstream restructuring (supermarkets) on upstream decisions (producers). Results show first that producers are not aware of the final buyer of their produce, because intermediaries hinder the visibility of the marketing channel, thereby restricting a producer's choice to that of the first intermediary. Econometric results show that producers who are indirectly linked to the supermarkets are more sensitive to their requirements in terms of quality and packaging than to the price premia compensating the effort made to meet standards. Therefore, the results lead us to question the role of the wholesale market agents who act as a buffer in the chain and protect small producers from negative shocks, but who stop positive shocks as well, and thereby reduce incentives. Copyright (c) 2009 International Association of Agricultural Economists.

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PurposeThis paper investigates the incentives to coffee farmers to participate in certification schemes that require improved agricultural practices.Design/methodology/approachThe authors ran a choice experiment among 250 Brazilian coffee farmers in the state of Minas Gerais, Brazil.FindingsThe authors’ findings show that both cash and non-cash payments are likely to incentive farmers' participation in a certification scheme. Besides price premium, incentives as long-term contracts and provision of technical would encourage producers to adopt eco-certification schemes. Our results also suggest that non-cash payments may be appropriate substitutes to a price premium to some extent.Research limitations/implicationsThe large coffee producers are over-represented in our sample compared to the population of Brazilian coffee farms. However, it seems reasonable to focus on these producers, as they are usually the ones who individually adopt strategies, since small farmers are induced by collective strategies (e.g. cooperatives).Social implicationsThe result regarding technical assistance makes sense given that Brazilian farmers generally have poor access to rural extension services.Originality/valueWe contributed in the literature about adoption of sustainable agriculture practices analyzing the requirements and motivations for farmer participation in certification schemes. We also contribute private and public strategies to encourage the adoption of sustainable practices.

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