Linking farmers to markets: Assessing small-scale farmers' preferences for an official phytosanitary regime in the Kyrgyz Republic

Abstract

Small-scale farmers are integral to Kyrgyz agriculture, contending with challenges such as low productivity, market entry barriers, and financial constraints. Most of these farmers are hindered by phytosanitary restrictions preventing direct exports of their products. Granting smallholders direct access to regional markets could significantly enhance their economic prospects. However, the specific policy measures that can encourage smallholders to participate in the official phytosanitary regime remain unclear. This study employs a randomized conjoint experiment, creating a hypothetical policy to measure the preferences of Kyrgyz fruit farmers regarding an official phytosanitary regime. Presenting choice sets with two randomly generated policy alternatives and an opt-out option, we collect data from 378 farmers across five villages. Each policy alternative comprises six attributes: (1) type of service provision, (2) provision of production inputs, (3) provision of interest-free loans, (4) provision of market information, (5) provision of phytosanitary inspection frequency, and (6) annual fees. The results reveal that attributes such as market information, interest-free loans, and production inputs—particularly virus-free seedlings—significantly increase farmers’ participation probability in systematization. However, farmers prefer the private sector as service provider over the government. Additionally, higher annual fees negatively impact the favorability of systematization. Overall, farmers express a preference for the hypothetical policy and are willing to pay at least 14,000 Kyrgyz som to participate in systematization. This study addresses the practical challenges faced by Kyrgyz farmers in meeting stringent phytosanitary standards, indicating the potential of a systematization policy to enhance market access. It lays the groundwork for future research investigating the economic impacts of specific policy attributes for Kyrgyz farmers.