Understanding the Complexities of Private Standards in Global Agri-Food Chains as They Impact Developing Countries

Henson, Spencer; Humphrey, John

doi:10.1080/00220381003706494

Cited by 295 publications

(257 citation statements)

References 24 publications

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“…It may also highlight some of the potential geopolitical issues confronting the region and the steps that China is taking to help illustrate any grievances it may have. In contrast to this, the stipulated measures have had a positive and statistically-significant impact on Korean agricultural exports to China, a finding that supports previous efforts by Maertens and Swinnen (2009) and Henson and Humphrey (2010). As Korea faces the lowest level of SPS measure coverage among the targeted countries, this result may reflect a perception that Korean agricultural products present little immediate threat to Chinese domestic producers.…”

Section: Policy Implicationscontrasting

confidence: 55%

“…For example, if a standard certifies a product as being safe, healthy, of a certain quality standard, etc., it can help to raise consumer demand for the import, which could possibly result in increased profits for foreign firms, in spite of the higher costs they may initially face. Studies by Jaffee (2003), Maertens and Swinnen (2009) and Henson and Humphrey (2010) have concluded that because demand for quality products has increased, SPS regulations have forced producers/exporters to invest in product upgrading, which has ultimately enhanced their ability to gain greater market access for their agricultural products. These findings suggest that although they may initially face some compliance costs, in the long run, exporters are able to stabilize these costs and thereby improve their export levels to overseas markets.…”

mentioning

confidence: 99%

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The Economic Impact of SPS Measures on Agricultural Exports to China: An Empirical Analysis Using the PPML Method

Wood

et al. 2017

Social Sciences

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Abstract:Since China first joined the World Trade Organization (WTO) in 2001, many countries around the world have sought to capitalize on lower tariff rates and China's increasing demand for high quality agricultural products. However, as competitive pressures in its agricultural sector have intensified, the Chinese government has implemented other forms of protectionist measures. Known as non-tariff measures (NTMs), these policy initiatives have added another dimension to international trade activities that needs to be better understood. Using a set of variables clearly identified in academic literature, our paper analyzes the effect that sanitary and phytosanitary measures (SPS) have on New Zealand, U.S., Korean, and Japanese agricultural exports to China. To measure the effect that NTMs have on exports, we use an adapted version of the gravity model and the Poisson pseudo maximum likelihood method. The key findings from the empirical projection show that Chinese SPS measures have a negative, albeit insignificant effect on the sample as a whole. However, when looking at the individual countries, the SPS measures were seen to have a negative effect on Japan and the U.S., while from a Korean perspective, their impact was positive and significant. As part of a secondary analysis, it was interesting to note that the SPS measures had a positive effect on New Zealand's exports before its free trade agreements (FTA) with China came into force. However, in the years since then, they were seen to have a negative impact.

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Section: Policy Implicationscontrasting

confidence: 55%

mentioning

confidence: 99%

The Economic Impact of SPS Measures on Agricultural Exports to China: An Empirical Analysis Using the PPML Method

Wood

et al. 2017

Social Sciences

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“…Firstly, the growth of market-oriented CS. Buyers have been imposing an ever-expanding range of conditions to enter markets in buyer-driven global value chains, precisely as a way of creating product differentiation and enforcing certain minimum standards expected by a growing consumer base (Gibbon and Ponte 2005;Henson and Humphrey 2010;Maertens and Swinnen 2009). Secondly, since the 1990s, ethical trade social movements have successfully lobbied for 'fair' market conditions to counteract the possible negative effects of 'free' markets on vulnerable producers and workers in L&MICs (Barrientos 2000;Raynolds 2009;Dragusanu et al 2014).…”

Section: Agricultural Certificationmentioning

confidence: 99%

Effectiveness of agricultural certification schemes for improving socio-economic outcomes in low- and middle-income countries

Oya¹,

Schaefer²,

Skalidou³

et al. 2017

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The International Initiative for Impact Evaluation (3ie) is an international grant-making NGO promoting evidence-informed development policies and programmes. We are the global leader in funding, producing and synthesising high-quality evidence of what works, how, why and at what cost. We believe that better and policy-relevant evidence will make development more effective and improve people's lives. 3ie systematic reviews 3ie systematic reviews examine available high-quality evidence on the effects of social and economic development interventions in low-and middle-income countries. These reviews follow scientifically recognised review methods, and are peer reviewed and quality assured according to internationally accepted standards. 3ie is providing leadership in demonstrating rigorous review methodologies, such as using theory-based designs, for combining different types of evidence suited to respond to the complex and dynamic contexts and challenges of development. 3ie also publishes summary reports based on the full reviews that are designed for use by policymakers and programme managers. About this summary reportThis summary report, Effectiveness of agricultural certification schemes for improving socioeconomic outcomes in low and middle-income countries, 3ie Systematic Review Summary 9, is based on a full review that is available on the 3ie website. Funding for this report was provided by 3ie's core donors, which include UK aid, the Bill & Melinda Gates Foundation and the Hewlett Foundation. All content is the sole responsibility of the authors and does not represent the opinions of 3ie, its donors or the 3ie Board of Commissioners. Any errors are the sole responsibility of the authors. Questions or comments about this review should be directed to the corresponding author, Carlos Oya, at co2@soas.ac.uk. The main function of certification schemes (CS) in agriculture is to set voluntary standards with specific requirements, monitor their compliance (through independent auditors) and support producers to meet them, with the goal of making agricultural production economically, socially and environmentally more sustainable and agricultural trade fairer for producers and workers. The rise of voluntary standards and their respective CS has been an important aspect of the process of globalisation of agriculture over the past three decades.The growth of certified production networks has accelerated in recent years, by expanding the range of products and the number of countries, producers and workers on a global scale. There is now a large number of standards and CS for agricultural production. Yet, the proportion of total agricultural trade that carries some certification of social sustainability remains small for most CS and products.What do certification schemes aim to achieve, and how?There are various objectives associated with CS. The range of activities they engage in is also significant. Standard-setting and monitoring and associated interventions are expected to contribute to a wide range of socio-economic ...

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“…Social pressure to ensure food safety has resulted in an increasing set of sanitary and phytosanitary (henceforth SPS) regulations, especially from developed countries (Engler et al, 2012), but also in the emergence of private voluntary standards implemented by retail chains in response to public regulation on retailers as well as certification bodies in North America and the European Union (Ouma, 2010). As argued by Henson & Humphrey (2010), private standards have de facto become mandatory.…”

Section: Introductionmentioning

confidence: 99%

“…Farmers in developed and developing nations must respond to the new challenges imposed by such regulations and standards (Henson & Loader, 2001;Woods et al, 2006;Blazy et al, 2009;Henson & Humphrey, 2010), which are more pressing for farmers attempting to integrate into food export chains. The literature has highlighted the factors that make it difficult for smallholder farmers to comply with such regulations, which include the high costs of compliance, the lack of technical capacity and knowledge, and sometimes the requirements that are difficult to implement within the local context.…”

Section: Introductionmentioning

confidence: 99%

Heterogeneity of farms entering export supply chains: the case of fruit growers from central-south Chile

Ruiz

Muñoz

Palma

et al. 2013

Span. j. agric. res.

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The increasing stringency of world food markets requires farmers to adjust farm structure and commercial strategies to remain integrated in export supply chains. The goal of this study was to identify and characterize different types of fresh fruit farms with regard to farm structural and commercial strategies for a representative sample of fresh fruit growers from central-south Chile exporting to world markets. A typology of farms was constructed based on multivariate analysis, according to which five types of farms were differentiated from five distinct factors. Cluster I comprised the smallest and uncertified farms (14.3% of the sample). The remaining four clusters comprised certified farms, but with different farm structural and commercial characteristics. Cluster II (15.1%) was composed of farms located further from market connections. Cluster III (23.9%) comprised farms with the highest number of fruit species, and consequently, more diversified in fruit production. Cluster IV (8.8%) was the smallest group, and comprised the largest firms. Finally, Cluster V (37.8%) was composed of highly specialized fruit farms, with the highest proportion of hectares dedicated to the production of a single fruit species. The results show the heterogeneity among fresh fruit farms and support the need for differentiated incentives and technological transfer schemes from the public sector and fruit companies in order to successfully keep farmers within export supply chains.Additional key words: cluster analysis; commercial strategies; farm structure; farm typology; food chain; fresh fruit. * Corresponding author: lauranahuel@uach.cl Received: 27-08-12. Accepted: 14-03-13Abbreviations used: GAP (good agricultural practices); PCA (principal component analysis); SPS (sanitary and phytosanitary standards).

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Understanding the Complexities of Private Standards in Global Agri-Food Chains as They Impact Developing Countries

Cited by 295 publications

References 24 publications

The Economic Impact of SPS Measures on Agricultural Exports to China: An Empirical Analysis Using the PPML Method

The Economic Impact of SPS Measures on Agricultural Exports to China: An Empirical Analysis Using the PPML Method

Effectiveness of agricultural certification schemes for improving socio-economic outcomes in low- and middle-income countries

Heterogeneity of farms entering export supply chains: the case of fruit growers from central-south Chile

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