Assessing the trade and welfare effects of certification schemes: The case of GlobalGAP in Ghana's mango sector

Abstract

The study analyzes the trade and welfare effects of GlobalGAP certification using primary data collected from 224 mango farmers in Southern Ghana. The multivariate probit model and an endogenous switching regression (ESR) model were used to estimate the effects of certification on the choice of marketing channels, quantity sold and income, respectively. The results show that certified farmers are less likely to supply to local traders and more likely to sell to industrial processors and the export market. The study found that certification increased quantity sold to high-value markets by 12% for certified farmers. GlobalGAP certification also has the potential to increase income by 20% more for farmers who opt to be certified. It is, therefore recommended that government and development partners shouldcontribute to the development of the technical and financial capacities of farmers in order to enhance farmers’ participation in certification schemes.