Heterogeneous impacts of GlobalGAP adoption on net income in small‐scale pineapple farming in Ghana: Does farm size matter?

Prince B. Annor, Simeon Kaitibie and Michael C. Lyne

Agribusiness, 2023, vol. 39, issue 4, 1199-1216

Abstract: Adoption of Global Good Agricultural Practices (GlobalGAP) improves food quality and safety along fresh produce value chains. However, adoption rates have been low among small‐scale pineapple farmers in Ghana, but with possible heterogeneous responses due to farm size economies. This study estimates the impact of GlobalGAP adoption on net incomes earned by small‐scale pineapple farmers in Ghana's main producing region, and examines size‐induced heterogeneous effects of adoption on income. Household and farm‐level data gathered from 546 small‐scale farmers were analyzed using a two‐stage regression model to estimate the impact of GlobalGAP adoption on per hectare pineapple net income. Robustness of the results was checked by re‐estimating the two‐stage model using a maximum likelihood extended regression model. GlobalGAP adoption reduced net income on small farms growing less than 1 ha of pineapples, but increased net income on small farms growing more than 1 ha of pineapples. We conclude that GlobalGAP adoption and farm size are not independent determinants of profitability, and recommend that extension and other interventions intended to promote GlobalGAP adoption among pineapple farmers in Ghana should be targeted at those who are willing and able to grow more than 1 ha of pineapples [EconLit Citations: Q16, Q13].

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:39:y:2023:i:4:p:1199-1216

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