AN ANALYSIS OF THE IMPACT AGRICULTURAL CERTIFICATIONS HAVE ON FARMER INCOMES – THE CASE OF COLOMBIA AVOCADO GROWERS

Abstract

Avocados have taken the world by storm, and Colombia is right in the middle of it. With avocado production area and volumes growing non-stop over the past decade, the government and producers face the challenge of managing the inherent risks of a large agricultural expansion. One of these methods of risk management has been to promote international certifications among growers. To examine the rol of certifications, we interviewed actors along the avocado value chain and gathered data from growers. We then specify a mixed linear-effects model to address the effects of GAP certifications in income generation. The results of our model point at a positive impact on price for export-quality fruit, but our qualitative data suggests these premiums may not be enough to generate a real impact in total income for small and middle-sized growers. Our results shed light on the discussion of policy design for future public efforts to support the Colombian agricultural sector.