Impact of certification on fruit producers in the Sao Francisco Valley in Brazil

Abstract

Producers and exporters of fresh fruits and vegetables from developingcountries like Brazil are increasingly required to demonstrate the safety andtraceability of their produce up to the consumption stage. In fact, the Brazilianexport market is still relatively underdeveloped, with an export share of only2.4% of the total produced volume. However, certification may also have theeffect of a non-tariff trade barrier, undermining the capability and financialability of especially small-scale farmers in exporting to international markets.This study, therefore, aims at providing an economic analysis of certification onmango and grapes producers. A survey of 303 grapes and mango farmers wasconducted in 2006 in the Juazeiro and Petrolina regions of the Sao FranciscoValley in Brazil. Certified and non-certified farmers as well as those in processto obtain certification were included in the sample. Empirical analysis using alogit model shows that grapes farmers have higher probability to certify thanmango growers. There are two variables which have a positive and significanteffect: education and experience. However, small-scale farms, the dependencyon non-agricultural income and a trust-based arrangement have a negative butsignificant effect.

Keywords

• Certification
• fruits
• logit model