Search results

Farmers in Colombia have faced economic instability due to a long-lasting armed conflict. An attempt to support the rural community has been through the creation of productive alliances – a strategic association between small-scale producers and anchor companies with the assistance of the private and public sectors. By closely examining the Association of Guarupay Palm Growers (ASOPAY)'s financial cash flows, this study investigates the challenges faced by small-scale agribusinesses in an emerging economy.

This study addresses the situation of ASOPAY, an oil palm productive alliance formed by families displaced by the Colombian armed conflict and relocated in the eastern foothills of the Andes Mountains. By closely examining ASOPAY's financial flows, the article sheds light on the economic incentives enhancing the cohesion of the small-farmers’ association.

A key finding is the critical role played by institutional efforts focused by promoting policies to enhance producers income. In addition, technological transfers made through technical assistance programs may improve the association's profitability by enhancing agronomic practices, while decreasing palm mortality and disease incidence.

The relatively small sample used in the study might rise concerns regarding the generalization of the outcomes. However, the authors implemented strategies to overcome these limitations by incorporating the inputs from experts on the oil palm supply chain in Colombia and from experts in rural development.

To the authors' knowledge, this is the first study analyzing the financial success of small farmers in post-conflict zones.

This study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased export growth, and the fragility of the credence-based export model. Much of the growth in value of yerba mate exports from Paraguay is due to positioning of the good within the universe of products where consumption is driven by perceptions of sustainable production and health benefits to consumers. Credence claims for yerba mate—benefits to indigenous producing communities, environmental sustainability under certain production processes, healthful alternatives to energy drinks—are now widely known, but the growth of this awareness came via a new entrepreneurial strategy of a single firm.

Primary information was collected through interviews of actors in the Paraguayan yerba mate value chain during spring/summer 2020. These included representatives from three exporting companies, processors, public institutions and indigenous producers.

The Paraguayan yerba mate export boom was stimulated through the careful cultivation of an image of healthful consumption and sustainable production processes. The cost of this cultivation was borne mainly by a single firm. Findings suggest that future marketing efforts will need to reinforce credence claims, highlighting the benefits to indigenous producers.

This case study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased growth, and the fragility of the credence-based model.

Findings are supported by field interviews with value chain participants and detailed analysis of extant data. The paper is the first to discuss the fragility of relying on credence attributes for long-term demand growth.