Supplier dynamics in horticultural export chains – evidence from Ecuador

Cristina Romero and Meike Wollni

No 188653, GlobalFood Discussion Papers from Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development

Abstract: In this paper we study the dynamics of smallholder participation in export value chains focusing on the example of small-scale broccoli producers in the highlands of Ecuador. A double hurdle model and a multi-spell cox duration model are used to explain the extent of participation and the hazards of dropping out of the export chain. The empirical results suggest that small farmers´ withdrawal from the export sector is in fact accelerated by hold-ups experienced in the past and that family ties play an important role in farmers’ marketing decisions. Negative external shocks – such as the bankruptcy of the main buyer in our case study – represent a major threat towards the sustainability of smallholder farmer inclusion in high-value chains, because farmer organizations often possess low resilience towards such events.

Keywords: Agribusiness; Consumer/Household Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 28
Date: 2014-10
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gagfdp:188653

DOI: 10.22004/ag.econ.188653

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