How Labourers Fare in Fresh Fruit Export Industries: Lemon Production in Northern Argentina

Abstract

Horticultural export industries have been acclaimed as promoting employment and growth. Critics, however, contend that most of the jobs created are low wage jobs. This article examines whether field labourers fared better than previously in a well positioned, producer‐driven, innovative horticultural export industry. Our findings indicate that workers initially fared badly and we identify the strategies used to cap wages. Real wages and seasonal incomes increased significantly from 2002, but only after producers were pressured by government and the union regained political power. Contrary to expectation, escalating consumer demands for high‐quality healthy fruit and responsible agronomic practices contributed to producers’ response to the union's demands. We argue that the monitoring technologies and practices required by buyers allowed large producers to gain greater information about the role of field labourers in the production process and the transaction costs associated with unreliable, poorly trained occasional harvesters. Nevertheless, even after real wages rose, only few harvesting families managed to escape poverty at the height of the season.