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Are local market relationships undermining organic fruit and vegetable certification? A bivariate probit analysis

Author:
Torres, Ariana P., Marshall, Maria I., Alexander, Corinne E., Delgado, Michael S.
Source:
Agricultural economics 2017 v.48 no.2 pp. 197-205
ISSN:
0169-5150
Subject:
certification, farmers, farmers' attitudes, marketing channels, models, organic foods, probability, probit analysis, vegetables
Abstract:
This article investigates how an organic fruit and vegetable farmer's choice to use direct‐to‐consumer market channels impacts his/her decision to be certified organic. First, we model the decision to be certified organic as a conditionally independent decision from the farmer's chosen market channels. Second, we estimate the probability of certifying organic as an endogenously determined marketing decision to the choice of market channels, and use a bivariate probit specification to model this decision. Empirical evidence indicates that the decision to certify is endogenous to the chosen market channels. We show that farmers selling direct to consumers are less likely to certify organic.
Agid:
5716526