The dynamics of the global fruit and vegetable chains: export-oriented agriculture as a pro-poor strategy?

Item does not contain fulltextExports of high-value fruits and vegetables are increasingly considered a key strategy for economic development. While favorable climate conditions and low labor costs provide promising opportunities for subcontracting production to developing countries, stable access to markets also depends on options for quality upgrading that determine dynamic comparative advantage. This article addresses the question whether fruit and vegetable exports also have potential as a sustainable pro-poor development strategy. We analyze the trade and valueadded structure within global fruit and vegetable chains, focusing attention on the governance regimes and the role of smallholders. After initial growth in market shares, the participation of the least-developed countries decreased in recent years. The replacement of outgrowing arrangements by supply chain coordination with integrated quality management poses major constraints to smallholder involvement, unless specific arrangements are in place. In such more integrated supply chains, cost motives are less relevant while strategic sourcing and functional upgrading become increasingly important