How to boost the local trade of participatory guarantee system (PGS)-certified produce? A value chain perspective in Huánuco, Peru

Abstract

To address issues of synthetic pesticides misuse, participatory guarantee systems (PGS) have been promoted as an inclusive certification mechanism in local value chains in many emerging economies. Most scientific studies and development programmes on PGS focus on operational aspects or supply side issues. On the contrary, demand side and the buying of PGS-certified produce have received far less attention. Our study contributes to this gap by applying a value chain perspective to identify potential incentives and obstacles to boost the trade of PGS-certified vegetables in Huánuco, central Peru. Using a mixed methods research approach, we map the value chain and describe actors' social practices and perceptions of synthetic pesticides. Our results show that the vegetable value chain is strongly dominated by local food and traditional (i.e. non-modern) distribution channels. We find that farmers, traders and consumers are aware of the health risks associated with synthetic pesticides, but note important mismatches between their perceptions on pesticide-free vegetables. Better collaboration and coordination among value chain actors, for instance under the form of a farmer cooperative and/or contracts with traders, may boost the trade of PGS-certified produce, but care should be paid to ensure regular supply of high-quality vegetables at a fair price.