Adoption and income effects of public GAP standards

Evidence from the horticultural sector in Thailand

authored by

Henning Krause, Rattiya Suddeephong Lippe, Ulrike Grote

Abstract

To reduce potential food hazards and increase the image of Thai horticultural products abroad, the Thai government introduced public standards of Good Agricultural Practices (Q-GAP). What makes orchid and mango producers in Thailand adopt Q-GAP standards and how do these affect their income and export shares? Primary data from 400 certified and non-certified orchid and mango producers was collected from main exporting provinces in Thailand. The binary probit model estimations show that it is the orchid and mango producers with higher education, and more physical and social capital who tend to comply with Q-GAP standards. Results from the Propensity Score Matching approach reveal that adoption of public GAP standards results in positive income effects for mango producers, but not for orchid producers. This can be explained by the fact that certified mango producers can sell their products to high-value retail chains which offer higher prices for their products, while certified and non-certified orchid producers cooperate with traders from the same value chain.

Organisation(s)

Institute of Environmental Economics and World Trade
Institute of Development and Agricultural Economics

Type

Article

Journal

Horticulturae

Volume

2

Publication date

12.2016

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Plant Science, Horticulture

Sustainable Development Goals

SDG 2 - Zero Hunger

Electronic version(s)

https://doi.org/10.3390/horticulturae2040018 (Access: Open)
https://doi.org/10.15488/1550 (Access: Open)