TY - JOUR

T1 - Adoption and income effects of public GAP standards

T2 - Evidence from the horticultural sector in Thailand

AU - Krause, Henning

AU - Lippe, Rattiya Suddeephong

AU - Grote, Ulrike

N1 - Funding Information: Acknowledgments: The authors would like to thank the Federal Ministry of Education and Research (BMBF) and the Federal State Ministries: Lower Saxony Ministry of Science and Culture, Brandenburg Ministry of Infrastructure and Agriculture and Bavarian Ministry of State of Science, Research and Art for financial support through the research program “Network of Excellence in Horticulture (WEGA)”.

PY - 2016/12

Y1 - 2016/12

N2 - 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.

AB - 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.

KW - Good Agricultural Practice

KW - Heckman model

KW - Income impacts

KW - Mango

KW - Orchid

KW - Propensity Score Matching

KW - Thailand

UR - http://www.scopus.com/inward/record.url?scp=85071605908&partnerID=8YFLogxK

U2 - 10.3390/horticulturae2040018

DO - 10.3390/horticulturae2040018

M3 - Article

AN - SCOPUS:85071605908

VL - 2

JO - Horticulturae

JF - Horticulturae

IS - 4

M1 - 18

ER -