ABSTRACT The recent empirical literature on economic sustainability of certified export crops sho... more ABSTRACT The recent empirical literature on economic sustainability of certified export crops shows that certification standards that enhance yields are important for improving farm revenues and household welfare. However, limited evidence exists on the impact of organic certification on the adoption of agro-ecological practices. In this study, we use unique farm-level data from pineapple producers in Ghana to examine the impact of organic certification on the use of agro-ecological practices such as organic fertilizers, organic pest and weed control, crop rotation, and soil and water conservation, as well as how using these measures affect farm outcomes such as return on investment. Our empirical results reveal that organic certification increases agro-ecological practice use, although from a very low starting point. Using a generalized propensity score approach, we show that there is a positive, but nonlinear relationship between the intensity of agro-ecological practice use and return on investment.
ABSTRACT Global food markets demand adherence to food standards by farmers in developing countrie... more ABSTRACT Global food markets demand adherence to food standards by farmers in developing countries, such as GlobalGAP and organic certifications. This paper analyzes the adoption and profitability of certified farming, using farm-level data of 386 Ghanaian small-scale pineapple farmers. We employ an endogenous switching regression model to examine the adoption and impact of organic certification on the return on investment (ROI) in pineapple farming. The empirical results indicate that both organic and GlobalGAP certification achieve a positive ROI. However, organic-certified farming yields a significantly higher ROI than GlobalGAP-certified farmers, mainly due to the price premium on the organic market.
As consumers’ demand for organic products and especially organic food grows, organic certificatio... more As consumers’ demand for organic products and especially organic food grows, organic certification for tropical fruit is increasingly promoted in many developing countries. Certified organic pineapple exports only started taking off after 2005 and are rapidly increasing. The organic and conventional fresh pineapple value chains are dominated by certification standards and large multinational companies respectively. The two markets, however, still differ greatly in size. We analyze if this influences the price structure in these markets. Specifically, the paper attempts to single out the existence and direction of causality between the conventional and organic pineapple price using the European pineapple market as an example. We study spatial price transmission, i.e. the difference in prices between the markets for organic and conventional pineapple. The results indicate the dependence of organic market price movements on conventional ones. On the contrary, the conventional market is...
This paper explores the interrelations between economic growth, international trade and environme... more This paper explores the interrelations between economic growth, international trade and environmental degradation both theoretically and empirically. Panel data from developed and developing countries for the period of 1980 to 2003 is used and previous critique, especially on the econometric specification, is embedded. In particular, it is not assumed that there is a single link for all countries. Several environmental factors and one sustainability indicator are analyzed for the full sample, regions and income groups.
ABSTRACT The recent empirical literature on economic sustainability of certified export crops sho... more ABSTRACT The recent empirical literature on economic sustainability of certified export crops shows that certification standards that enhance yields are important for improving farm revenues and household welfare. However, limited evidence exists on the impact of organic certification on the adoption of agro-ecological practices. In this study, we use unique farm-level data from pineapple producers in Ghana to examine the impact of organic certification on the use of agro-ecological practices such as organic fertilizers, organic pest and weed control, crop rotation, and soil and water conservation, as well as how using these measures affect farm outcomes such as return on investment. Our empirical results reveal that organic certification increases agro-ecological practice use, although from a very low starting point. Using a generalized propensity score approach, we show that there is a positive, but nonlinear relationship between the intensity of agro-ecological practice use and return on investment.
For local people in sub-Saharan Africa, large land investment projects currently imply many risks... more For local people in sub-Saharan Africa, large land investment projects currently imply many risks and few benefits. Drawing on own ethical and economic research and using evidence from the authors' case studies in Kenya, Mali and Zambia and a new database of large-scale land acquisitions worldwide, this brief offers policy recommendations for host governments, investors and the international community so as to achieve a more favourable balance of risks and benefits in land investment projects. Our research suggests that the land governance systems of sub-Saharan African countries, comprising a multitude of sometimes contradictory laws derived from colonial and customary systems, privilege powerful actors and lead to violation of human rights. Legal uncertainty and an acquisition process that gives no voice to local land users can lead to displacements of farmers without compensation. Poorly enforced formal laws, neglect of built-in checks and balances, and power and information asymmetries between investors and local people can give rise to coalitions of investors and powerful rent-seekers. Displaced farmers and those unable to find jobs on the land investment projects migrate to other rural areas or the cities, and few and only low-skilled jobs are available to those who remain. We found limited evidence of positive spillovers from improved infrastructure and knowledge and technology transfer. Local food prices are likely to rise, as most of the production on investment farms is for export. Overall, when many farmers are displaced and investment projects are capital intensive the net welfare effect for the local population can be expected to be negative. Against this background, we propose a set of policy changes for promoting benefits for the local population and avoiding human rights violations. In contrast to proposals made by international guidelines and codes of conduct, we emphasize in particular the responsibilities of host country governments. * This policy brief is an outcome of the interdisciplinary research project "Large-Scale Land Acquisitions and Sustainable Development". We gratefully acknowledge financial support by the German Ministry for Education and Research. Kiel Policy Brief 67 2 / 15
ABSTRACT The recent empirical literature on economic sustainability of certified export crops sho... more ABSTRACT The recent empirical literature on economic sustainability of certified export crops shows that certification standards that enhance yields are important for improving farm revenues and household welfare. However, limited evidence exists on the impact of organic certification on the adoption of agro-ecological practices. In this study, we use unique farm-level data from pineapple producers in Ghana to examine the impact of organic certification on the use of agro-ecological practices such as organic fertilizers, organic pest and weed control, crop rotation, and soil and water conservation, as well as how using these measures affect farm outcomes such as return on investment. Our empirical results reveal that organic certification increases agro-ecological practice use, although from a very low starting point. Using a generalized propensity score approach, we show that there is a positive, but nonlinear relationship between the intensity of agro-ecological practice use and return on investment.
ABSTRACT Global food markets demand adherence to food standards by farmers in developing countrie... more ABSTRACT Global food markets demand adherence to food standards by farmers in developing countries, such as GlobalGAP and organic certifications. This paper analyzes the adoption and profitability of certified farming, using farm-level data of 386 Ghanaian small-scale pineapple farmers. We employ an endogenous switching regression model to examine the adoption and impact of organic certification on the return on investment (ROI) in pineapple farming. The empirical results indicate that both organic and GlobalGAP certification achieve a positive ROI. However, organic-certified farming yields a significantly higher ROI than GlobalGAP-certified farmers, mainly due to the price premium on the organic market.
As consumers’ demand for organic products and especially organic food grows, organic certificatio... more As consumers’ demand for organic products and especially organic food grows, organic certification for tropical fruit is increasingly promoted in many developing countries. Certified organic pineapple exports only started taking off after 2005 and are rapidly increasing. The organic and conventional fresh pineapple value chains are dominated by certification standards and large multinational companies respectively. The two markets, however, still differ greatly in size. We analyze if this influences the price structure in these markets. Specifically, the paper attempts to single out the existence and direction of causality between the conventional and organic pineapple price using the European pineapple market as an example. We study spatial price transmission, i.e. the difference in prices between the markets for organic and conventional pineapple. The results indicate the dependence of organic market price movements on conventional ones. On the contrary, the conventional market is...
This paper explores the interrelations between economic growth, international trade and environme... more This paper explores the interrelations between economic growth, international trade and environmental degradation both theoretically and empirically. Panel data from developed and developing countries for the period of 1980 to 2003 is used and previous critique, especially on the econometric specification, is embedded. In particular, it is not assumed that there is a single link for all countries. Several environmental factors and one sustainability indicator are analyzed for the full sample, regions and income groups.
ABSTRACT The recent empirical literature on economic sustainability of certified export crops sho... more ABSTRACT The recent empirical literature on economic sustainability of certified export crops shows that certification standards that enhance yields are important for improving farm revenues and household welfare. However, limited evidence exists on the impact of organic certification on the adoption of agro-ecological practices. In this study, we use unique farm-level data from pineapple producers in Ghana to examine the impact of organic certification on the use of agro-ecological practices such as organic fertilizers, organic pest and weed control, crop rotation, and soil and water conservation, as well as how using these measures affect farm outcomes such as return on investment. Our empirical results reveal that organic certification increases agro-ecological practice use, although from a very low starting point. Using a generalized propensity score approach, we show that there is a positive, but nonlinear relationship between the intensity of agro-ecological practice use and return on investment.
For local people in sub-Saharan Africa, large land investment projects currently imply many risks... more For local people in sub-Saharan Africa, large land investment projects currently imply many risks and few benefits. Drawing on own ethical and economic research and using evidence from the authors' case studies in Kenya, Mali and Zambia and a new database of large-scale land acquisitions worldwide, this brief offers policy recommendations for host governments, investors and the international community so as to achieve a more favourable balance of risks and benefits in land investment projects. Our research suggests that the land governance systems of sub-Saharan African countries, comprising a multitude of sometimes contradictory laws derived from colonial and customary systems, privilege powerful actors and lead to violation of human rights. Legal uncertainty and an acquisition process that gives no voice to local land users can lead to displacements of farmers without compensation. Poorly enforced formal laws, neglect of built-in checks and balances, and power and information asymmetries between investors and local people can give rise to coalitions of investors and powerful rent-seekers. Displaced farmers and those unable to find jobs on the land investment projects migrate to other rural areas or the cities, and few and only low-skilled jobs are available to those who remain. We found limited evidence of positive spillovers from improved infrastructure and knowledge and technology transfer. Local food prices are likely to rise, as most of the production on investment farms is for export. Overall, when many farmers are displaced and investment projects are capital intensive the net welfare effect for the local population can be expected to be negative. Against this background, we propose a set of policy changes for promoting benefits for the local population and avoiding human rights violations. In contrast to proposals made by international guidelines and codes of conduct, we emphasize in particular the responsibilities of host country governments. * This policy brief is an outcome of the interdisciplinary research project "Large-Scale Land Acquisitions and Sustainable Development". We gratefully acknowledge financial support by the German Ministry for Education and Research. Kiel Policy Brief 67 2 / 15
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Papers by Linda Kleemann