The role of household physical, human, network and environmental assets in small farmer access to markets: Guatemalan lettuce growers' experiences with modern market channels

There is no consensus on how increased globalized trade supports poverty reduction in developing countries. Central to this developing debate is whether modern market channels favor small farmer inclusion or exclusion from higher income opportunities. In Guatemala, the increased importance of modern markets has been studied with particular attention to multinational foodservice companies such as McDonalds and supermarkets such as Wal-Mart. These new market channels are characterized by high procurement standards in product quality, safety and delivery. Unlike the experiences in other regions in the world, these high-standard supply chains (HSSCs) have favored the participation of small-scale farmers who happen to be producing fresh lettuce. The aim of this study is to develop a better understanding of the evolution and operation of high-standard supply networks that favor small farmer inclusion as well as develop an understanding the organizational and individual characteristics of small farmers able to successfully participate in HSSCs. The study is based on primary data collected in six villages of the Guatemala central highlands during the summer and fall of 2008.;The study's results reveal important insights concerning how successful small farmers manage their organizations to compete and how they are able to emulate' practices of privately-owned, larger companies. The estimated empirical model also underlines the critical role of physical, human and network assets of the individual farm, but also highlights the increasing importance of environmental characteristics of farmer households for farmers' access to more profitable market opportunities such as HSSCs.