The Influence Of Global Good Agricultural Practice Compliance On The Performance Of Snap Bean Production And Marketing

Agricultural growth has been identified as a critical pillar in economic growth and development in developing countries.However,in the last decade,there has been an increasing demand for safe and quality food by consumers in developed countries.Production certification standards such as Global Good Agricultural Practices(hereafter be referred as GLOBAL GAP)oversee farmers compliance to food production regulations in perishable products at the advance global markets.The increase in stringent food production regulations,risk excluding more smallholder farmers in Sub-Saharan Africa from accessing the global market.Kenya is the second largest exporter of horticultural products to the European Union(EU),and the leading in Sub-Saharan Africa.Over the years Kenya horticultural export sector has been used as a success benchmark by countries in SSA.Also,the sector is considered to be lucrative and vital for economic growth in the region.However,in 2013 more than 25%of Kenya's vegetable exports to the European market were declared as not complying with Maximum Residue Limits(MRLs)standards.In the quest of reclaiming its market share at the European Union,government agencies have to put policies to revive the ailing sector.Therefore,understanding and identifying factors that influence smallholder farmers producing horticultural produce under food certification standards for the export market can provide significant evidence for enhancing sustainable agricultural development and improving rural welfare.However,there exists a limited empirical literature on the impact of GLOBAL GAP standards certification and the performance of horticultural production in Kenya.Therefore,this dissertation aims to examine the farm level effectiveness of GLOBAL GAP standards compliance on the performance of snap bean production and marketing in Kenya.The study also provides a comprehensive understanding of how smallholder farmer's household wealth influence GLOBAL GAP compliance.The empirical analyses are based on a cross-sectional survey dataset of 429 households.Data was collected in Kirinyaga,Muranga and Embu Counties Kenya between June 2016 and September 2016.The regions are the leading producers of snap beans in Kenya.First,the study examines the impact of household wealth on adoption of GLOBAL GAP certification standards.Double hurdle model and principal component analysis were employed in the analysis.Second,we examine GLOBAL GAP factors that influence on profit efficiency between GLOBAL GAP certified farms and None-certified farms by applying a stochastic profit frontier model.The study also investigated GLOBAL GAP factors that influence snap bean farmer's choices of marketing contracts and snap beans net returns.While also examining the relationship between marketing contracts on net returns from snap bean production BFG model,propensity score matching(PSM)model to account for selection bias.In general,the study findings revealed that wealth of a farming households was a significant factor that influenced GLOBAL GAP adoption certification standards.While social capital aspects such as membership to GLOBAL GAP farmers groups positively and significantly impacted on wealthier farmers to attain GLOBAL GAP certification.An indication that through collective action,farmers groups can facilitate joint investments hence reducing the cost of investing in GLOBAL GAP assets.Also,poor endowed farmers were not likely to attain GAP certification and were not keen to comply with GLOBAL GAP production standards.The study noted that attaining food production and certification would not explicitly imply that smallholder farmers adhered to the set food production standards.The estimates also reveal that the general cost of GLOBAL GAP compliance is expected to marginally decrease snap beans profit efficiency for snap bean production.The study also established that snap bean higher profit margins are realized when farmers have GLOBAL GAP certification.Further empirical results show that GLOBAL GAP factors such as GLOBAL GAP subsidy,membership to GLOBAL GAP farmer's groups significantly influenced farmer's preference for written contracts.However,we noted GAP certified buyers would influence farmers to choose a written or oral contract.Generally,the study established that farmers selling snap beans with written contract had better returns than farmers with the preference for oral or selling at the farm gate.To promote snap bean production,agencies engaged in policy making should help mobilize and setup more farmers group to facilitate in the production of safe quality beans.In this way,the groups can easily monitor and assess the performance of markets and provide extension services to farmers.Also increasing the support given to small-scale farmers,for instance,by facilitating access to credit,reduce the costs of compliance by providing subsidy inputs especially to the poor households.The study recommends policies related to increase in support given to small-scale farmers,especially on facilitating access to credit,reduction in the costs of compliance by providing subsidy inputs,especially to the poor endowed households.