of out-grower schemes. While there would seem to be high potential in developing business linkages between small-scale growers and largescale exporters, the exporters are confronted with a high rate of
default among smallholders, and produce being diverted to competitors, and are therefore reluctant to work with smallholders. This article describes the background of the Zimbabwean horticultural industry,
and particularly the experience of the exporter Hortico, in order to identify new approaches that would reduce the risks inherent in outgrower schemes. The case of Hortico suggests that these barriers can
be overcome if the exporter takes on the role of 'benign dictator', setting up a strict supervisory system and assuming responsibility for the rigid enforcement of standards. This may mean, however, that
the exporter will only be able to offer the smallholder a small proportion (30 per cent) of the price achieved by commercial farmers who do not require external supervision. Suggestions are made as to how
to maximize the returns to smallholders, including involving intermediary NGOs, working with farmers' groups, improving infrastructure, and adapting supermarkets' ethical trade criteria to the needs of
Compliance with International Food Safety Standards in Kenya's Green Bean Industry: Comparison of a Small- and a Large-scale Farm Producing for Export
Okello, Julius J.
Swinton, Scott M.
Review of Agricultural Economics, Vol. 29 (2007), Iss. 2 P.269https://doi.org/10.1111/j.1467-9353.2006.00342.x [Citations: 46]
- Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa
- What is cocoa sustainability? Mapping stakeholders’ socio-economic, environmental, and commercial constellations of priorities
- Impact assessment of commodity standards: towards inclusive value chains
- Development impact bonds: learning from the Asháninka cocoa and coffee case in Peru
- Value chain development for rural poverty reduction: A reality check and a warning