@article{Muriithi:117712,
      recid = {117712},
      author = {Muriithi, Beatrice Wambui},
      title = {COMPLIANCE WITH EUREPGAP STANDARDS: DETERMINANTS, COSTS  AND IMPLICATIONS ON PROFITABILITY AMONG SMALLHOLDER FRENCH  BEANS EXPORTERS IN KIRINYAGA DISTRICT, KENYA},
      address = {2008-08},
      number = {634-2016-41498},
      pages = {80},
      year = {2008},
      abstract = {Horticulture provides many developing countries with  opportunities for export
diversification, poverty  alleviation and rural development. However, stringent  public and private-sector food-safety standards, for  example EurepGap, pose a challenge especially to small  export farmers. Compliance with these standards entails  costly investments that may be a burden to smallholder  farmers, failure to which might lead to their exclusion in  the global
market. A number of questions which require  empirical research arise to confirm or refute
these  concerns. The study assesses awareness of the EurepGap  standards among smallholder
farmers and analyzes the  critical factors influencing their compliance. It also  identifies the costs of complying with these standards and  their implications on profitability of smallholder French  bean farming business in Kirinyaga District in Kenya. The  study uses simple random
sampling technique to collect  primary data from 103 respondents. Descriptive statistics,  costbenefit accounting (partial budgeting) and binomial  probit model are used to analyze the data. The results show  that an information gap exits as regards to awareness of  EurepGap standards especially among the non-compliant  farmers. Compliance with the standards requires high costs  of investment and this is a major constraint to the  smallholder farmers. Strategies such
as contract farming  and collective action through group membership were found  to enhance compliance among smallholder farmers. Further,  empirical analysis shows that compliance with the standards  is positively influenced by socio-economic and farm  characteristics such as area under French beans production,  and availability of external support from extension  services, but negatively influenced by access to off-farm  income. In addition to high cost of
compliance, farmers  face other constraints such as high cost of recommended  chemicals and that of hiring extra personnel. Results also  show that compliance is not for profit enhancement but may  be for market assurance. However, farmers are enjoying  non-financial benefits from compliance such as skills on  good farm management and record keeping. Since the  standards require high cost of compliance with EurepGap  standards, the study suggests that the government and other  stakeholders in this sub-sector should assist the  smallholder farmers to ensure their continued access to the  lucrative markets. The government should lead  in
disseminating information about the standards through  extension training, besides
encouraging farmers to form  groups to share the cost of compliance. A policy to ensure  the right prices translate to the farmers should be put in  place. It is also worth exploring less strict market where  Kenyan products can be channeled to.},
      url = {http://ageconsearch.umn.edu/record/117712},
      doi = {https://doi.org/10.22004/ag.econ.117712},
}