The role of food standards in trade and development

Abstract

Food standards are increasingly impacting developing countries’ trade and development. Over the past two decades, both public and private standards have proliferated in global food supply chains. Standards alter the structure and governance of these supply chains and affect the in- or exclusion of smallholder farmers and the distribution of benefits along the chain. Several authors have argued that increasing standards act as barriers to developing countries’ integration in global markets and lead to the exclusion or reduced bargaining power of small farmers. On the other hand, there is evidence that standards can generate important benefits for poor rural households in developing countries, either in the form of contracts with processing or exporting companies, or as employees. Hence, the rapid rise of food standards does not necessarily lead to new barriers to trade and more inequitable distribution of the gains, but can also enhance developing countries’ participation in high-value global food markets and generate benefits for the poor.