Path dependencies in Turkish olive production: production arrangements of smallholders, middlemen and cooperatives

Abstract

ABSTRACT Given the relatively low productivity in the Turkish table olive sector, this article characterizes different production arrangements and interrelationships between smallholders, middlemen (komisyoncus and stockus) and cooperatives to explain existing path-dependences of smallholders. It then identifies barriers for smallholders to upgrade their production methods to achieve higher income. The conceptual backdrop of the article are aspects of global value chains (GVC), which characterize the current organization of olive production and explain their implications for smallholders. The article argues that the combination of weak enforcement of standards as well as strong, one-sided dependencies of smallholders to middlemen (in particular komisyoncus) lead to development paths of high fragmentation, low productivity and low smallholder incomes. These development lock-ins are reinforced by state regulations and existing social networks based on established trust. Farmers’ cooperatives are one option to integrate value chains and improve the bargaining position of smallholders.