Kiel Working Papers, Kiel Institute for World Economics
No 1671:
Organic Pineapple Farming in Ghana - A Good Choice for Smallholders?
Linda Kleemann
Abstract: As consumer demand for organic food grows, organic
certification is increasingly promoted in many developing countries.
Organic products earn a premium price on the market compared to
conventional varieties. Hence, organic production is often seen as a
valuable alternative for developing countries with many smallholders. Using
value chain analysis for the case of the pineapple sector in Ghana and
extensive data from the European market, this paper tries to shed light on
the feasibility and profitability of organic small-scale production. Even
though smallholders tend to have quality problems with their fruit and
large farms benefit from economies of scale, production for the export
market is a realistic option for both organic and conventional
smallholders. The results indicate that organic production is more
profitable for smallholders than conventional production and farmers
collect a fair share of the price premium on the retail level. Even more,
from a theoretical perspective, organic farmers should also be more likely
to get into contractual relations with exporters. The results are set into
perspective with relation to the debates on small versus large farms,
environmental impact, and the selection effect of standards
Keywords: private voluntary standards, organic agriculture, trade in organic products, GLOBALGAP, value chain analysis; (follow links to similar papers)
JEL-Codes: F14,; L11,; L15,; O13,; Q13,; Q17; (follow links to similar papers)
38 pages, January 2011
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