New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand

GlobalGAP is the most important private standard for producers in the Thai horticultural sector concerning access to high-value markets, especially to Europe. This paper presents an analysis of GlobalGAP adoption by small-scale fruit and vegetable farmers in Thailand focusing on GlobalGAP group certification, the costs and perceived benefits of GlobalGAP adoption, and the factors influencing standard adoption. In our research area, GlobalGAP group certification has encouraged the formation of new institutional arrangements between farmers, exporters and donors. Farmers participating in a development program were organized in certification groups where the Quality Management System (QMS) was either run by the donor, by the exporter, or by farmers themselves. Results of our adoption model suggest that support by donors, exporters and public-private partnerships are vital to enable small-scale farmers to adopt the standard. Furthermore, farmers are more likely to adopt if they are better educated and more experienced, and if they have access to female family labor, improved farming technology, and information and extension services.

► We employ a probit model to analyze GlobalGAP adoption by smallholders in Thailand. ► We analyze the costs and benefits of GlobalGAP adoption for exporters and farmers. ► We compare institutional arrangements under GlobalGAP group certification. ► Support by donors and exporters are vital to enable small-scale farmers to adopt.