Smallholder farmer’s preferences for sustained participation in high –value markets for black pepper in Kerala, India
DOI:
https://doi.org/10.14719/pst.4894Keywords:
High Value Markets (HVMs), logistic regression, transactional attributes, vertical integration, willingness to participateAbstract
The sustainability concerns of the developed world together with increased tourism activities and migration have stimulated the growth and expansion of domestic and international High Value Markets (HVMs) of black pepper. This study is an attempt to identify the transactional attributes and farmer capabilities that influence the smallholder farmers’ willingness to participate in black pepper HVMs and to examine the novel vertical integration mechanisms that connect them to HVMs. The study is based on primary data from randomly selected 198 smallholder farmers from eight prominent black pepper growing Agro-ecological Units (AEUs) in Kerala. The factors influencing the smallholder farmers’ willingness to participate in black pepper HVMs were analysed in logistic regression framework. The trend analysis revealed the growth in black pepper cultivation area as well as export at national level, while a stagnation trend in area was observed at state level. A negative trend was observed in production as well as productivity at national and state levels. The results of percentage analysis of willingness of small holder farmers to participate in HVMs shows that 32.83% of smallholder farmers were willing to participate in black pepper HVMs . The farmer capabilities such as number of international linkages and digital literacy and transactional attributes such as asset specificity and number of verticals integrated were found to be significantly influencing smallholder farmers’ willingness to participate in HVMs. The study suggest that change agents may implement interventions to enhance the existing co-ordination mechanisms by exploiting the possibilities of digitisation and digital transformation. Also, efficient measures are required to protect farmers’ rights on the asset specific resources and to mitigate unfavourable agroecological transformations that hinder the production of site-specific assets that ensures sustainable value chain for black pepper high value products.
Downloads
References
Parthasarathy VA, Chempakam B, Zachariah TJ. Chemistry of spices. CABI; 2008. p. 21?40. https://doi.org/10.1079/9781845934057.0000
Meghwal M, Goswami TK. Thermal properties of black pepper and its volatile oil. Int J Adv Biotechnol Res. 2011;2(3):334?44.
Sandesh HJ, Lakshmana SM, Chaitanya HS. Performance of single node cutting on propagation of black pepper. J Pharm Innov. 2021;10(10):293?94.
Takooree H, Aumeeruddy MZ, Rengasamy KR, Venugopala KN, Jeewon R, Zengin G, Mahomoodally MF. A systematic review on black pepper (Piper nigrum L.): from folk uses to pharmacological applications. Crit Revi Food Sci Nutri. 2019;59(sup1):S210?43. https://doi/abs/10.1080/10408398.2019.1565489
Ravindran PN, Kallupurackal JA. Black pepper. In: Handbook of herbs and spices. 2nd ed. Woodhead Publishing; 2012.p. 86?115. https://doi.org/10.1533/9780857095671.86
Gorgani L, Mohammadi M, Najafpour GD, Nikzad M. Piperine-the bioactive compound of black pepper: from isolation to medicinal formulations. Comprehensive Rev Food Sci Food Safety. 2017;16 (1):124?40. https://onlinelibrary.wiley.com/doi/full/10.1111/1541- 4337.12246
IPC [International Pepper Community]. 2022. Pepper statistical yearbook 2022. International pepper community, Jakartha, Indonesia, 184p. Available: https://www.ipcnet.org/n/psy2022/ html/pdf/PSYEBOOK.pdf
Sabu SS, Kuruvila A. Price instability in black pepper: A comparative analysis of pre-liberalisation and post-liberalisation periods. J Trop Agric. 2016;54(1):41?41.
Spices Board. Spice wise area and production. 2023. [Online]
Government of Kerala. Agricultural Statistics 2022-23 [Online].
Gupta N, Bhattacharjee M, Saha AR. Role of health orientation in the consumption of high value agriculture products: an exploration of urban Indian consumers. J Int Food Agribus Market. 2024;36(4):573? 92. https://doi/abs/10.1080/08974438.2023.2180471
D'Amico A, De Boni A, Palmisano GO, Morea E, Acciani C, Roma R. Consumers’ perception and willingness to pay for hydroponic tomatoes: the effects of sustainability and quality attributes. Br Food J. 2024;126(13):573?92. https://doi/10.1108/BFJ-04-2024-0353
Parvathi P, Waibel H. Organic agriculture and fair trade: A happy marriage? a case study of certified smallholder black pepper farmers in India. World Dev. 2016;77:206–20. https://doi.org/10.1016/ j.worlddev.2015.08.027
Parvathi P, Waibel H. Fair trade and organic agriculture in developing countries: a review. J Int Food Agribus Market. 2013;25 (4):311–23. https://doi.org/10.1080/08974438.2013.736043
Willer H, Trávní?ek J, Meier C, Schlatter B. The world of organic agriculture 2021-statistics and emerging trends. 2021;1?336. http://aims.fao.org/aos/agrovoc/c_15911
Busthanul N, Salman D, Syafiuddin M, Lumoindong Y, Amir A, Saadah S, Ali D. Comparative cost analysis of pepper farming income under certification and non-certification seeds implementation (Case in Towuti District, East Luwu Regency, South Sulawesi Province, Indonesia). In: IOP Conference Series: Earth and Environmental Science; 2020 Oct 1. 575(1):p. 012051. IOP Publishing. https:// iopscience.iop.org/article/10.1088/1755-1315/575/1/012051
Dekens J, Bagamba F. Promoting an integrated approach to climate adaptation: lessons from the coffee value chain in Uganda. Winnipeg, MB, Canada: International Institute for Sustainable Development. 2014;p. 12.
Sharma RP, Singh RS, Verma TP, Tailor BL, Sharma SS, Singh SK. Coriander the taste of vegetables: present and future prospectus for coriander seed production in Southeast Rajasthan. Econ Aff. 2014;59(3):345. http://dx.doi.org/10.5958/0976-4666.2014.00003.5
Kunhamu TK, Aneesh S, Mohan Kumar B, Jamaludheen V, Raj AK, Niyas P. Biomass production, carbon sequestration and nutrient characteristics of 22-year-old support trees in black pepper (Piper nigrum. L) production systems in Kerala, India. Agrofor Sys. 2018;92(5):1171–83. https://doi.org/10.1007/s10457-016-0054-5
Kandiannan K, Krishnamurthy KS, Ankegowda SJ, Anandaraj M. Climate change and black pepper production. Indian J Arecanut Spice Med Plants. 2014;16(4):23.
Chengappa PG, Devika CM, Rudragouda CS. Climate variability and mitigation: perceptions and strategies adopted by traditional coffee growers in India. Clim Dev. 2017;9(7):593 593–604. https:// doi.org/10.1080/17565529.2017.1318740
Kumar BM, Sasikumar B, Kunhamu TK. Agroecological aspects of black pepper ( Piper nigrum L.) cultivation in Kerala: A review. AGRIVITA J Agric Sci . 2021;43(3):648 648–64. https://doi.org/10.17503/ agrivita.v43i3.3005
Holka M, Kowalska J, Jakubowska M. Reducing carbon footprint of agriculture-can organic farming help to mitigate climate change? Agriculture. 2022;12(9):1383. https://doi.org/10.3390/agriculture12091383
Kumar S, Gupta SK. Structural and functional insight of knowledge management models in agriculture. Agric Int. 2019;6(2):9?15.
Jayathilake C, Dissanayeke U, Jayasinghe-Mudalige UK, Edirisinghe J, Herath K, Lindara J. Exploratory analysis on the management of agricultural knowledge and information by smallholder farmers in Kandy and Kurunegala districts in Sri Lanka. J Food Agric. 2019;12(I):7–16. http://doi.org/10.4038/jfa.v12i1.5216
Alabi OO, Anekwe CE. Gender differences and profitability analysis of pepper (Capsicum species) production, Kaduna State, Nigeria. J Agric Sci Belgrade. 2023;68(2):237?52. https://doi.org/10.2298/JAS2302237A
High Value Markets. Center for rural affairs - building a better rural future [Internet]. Available from: https://www.cfra.org/farm-foodfarm-finances/high-value-markets https://www.cfra.org/#off-canvas
Tan Y, Nie Y, Yuan X, Yang H, Pan Y, Zhang Z. Black pepper essential oil nanoemulsion inhibits Colletotrichum gloeosporioides by regulating respiratory metabolism. Food Sci Biotechnol. 2024;23:1?8. https://doi.org/10.1007/s10068-024-01697-8
Spices Board [Internet]. Available from: https://indianspices.com/
Lambrecht IB, Ragasa C. Do development projects crowd-out private sector activities? Evidence from contract farming participation in Northern Ghana. Food Policy. 2018;74:9–22. https://doi.org/10.1016/j.foodpol.2017.11.001
Granja CR, Wollni M. Dynamics of smallholder participation in horticultural export chains: evidence from Ecuador. Agric Econ. 2018;49(2):225–35. https://doi/full/10.1111/agec.12411
Ola O, Menapace L. Smallholders’ perceptions and preferences for market attributes promoting sustained participation in modern agricultural value chains. Food Policy. 2020;97. https://doi.org/10.1016/j.foodpol.2020.101962
Le Pape N, Wang Y. Can product differentiation mitigate conflicts of interest between principal stakeholders? A cournot-bertrand comparison. Econ Model. 2020;91:341–46. https://doi.org/10.1016/j.econmod.2020.06.016
Masakure O, Henson S. Why do small-scale producers choose to produce under contract? Lessons from nontraditional vegetable exports from Zimbabwe. World Dev. 2005;33(10):1721–33. https://doi.org/10.1016/j.worlddev.2005.04.016
Altenburg T. Governance patterns in value chains and their development impact. Eur J Dev Res. 2006;18(4):498–521. https://doi/10.1080/0957881060107079
Reardon T, Barrett CB, Berdegué JA, Swinnen JFM. Agrifood industry transformation and small farmers in developing countries. World Dev. 2009;37(11):1717–27. https://doi.org/10.1016/j.worlddev.2008.08.023
Minten B, Randrianarison L, Swinnen JFM. Global retail chains and poor farmers: evidence from Madagascar. World Dev. 2009;37(11):1728–41. https://doi.org/10.1016/j.worlddev.2008.08.023
Barrett CB, Bachke ME, Bellemare MF, Michelson HC, Narayanan S, Walker TF. Smallholder participation in contract farming: comparative evidence from five countries. World Dev. 2012;40(4):715–30. https://doi.org/10.1016/j.worlddev.2011.09.006
Sabu SS, Kuruvila A, Manojkumar K. Status of production and export of Indian black pepper. Indian J Arecanut Spice Med Plants. 2020;22(4):9?20.
Official Web Portal - Government of Kerala. 2024 [Internet]. Available from: https://www.kerala.gov.in/showcalendar
Kerala agricultural university. Agro ecological zones of Kerala - delineation and cropping pattern. Vellanikkara: KAU; 2020 [Internet]. Available from: https://kau.in/
Kerala. Kerala state planning board. Economic review 2023 [Internet]. Trivandrum: KSPB; 20242024. Available from: https://spb.kerala.gov.in/sites/default/files/2024-02/ER_English_Vol_1_2023.pdf
India Pepper and Spice Trade Association. 2024 [Internet]. Available from: https://ipstaindia.com/
Riordan MH, Williamson OE. Asset specificity and economic organization. Int J Ind Organ. 1985;3(4):365–78. https://doi.org/10.1016/0167-7187(85)90030-X
Favereau O, Lazega E. Conventions and structures in economic organization. Markets, Networks and Hierarchy, Cheltenham, UK/Northampton, Mass, USA. 2002;p.355. https://doi.org/10.4337/9781781952863
Williamson OE. Transaction cost economics: the natural progression. Am Econ Rev. 2010;100(3):673–90. DOI: 10.1257/aer.100.3.673
Ciliberti S, Frascarelli A, Martino G. Drivers of participation in collective arrangements in the agri-food supply chain. Evidence from Italy using a transaction costs economics perspective. Ann Public Coop Econ. 2020;91(3):387–409. https://doi/full/10.1111/apce.12263
Shahab S. Transaction costs in planning literature: a systematic review. J Plan Lit. 2022;37(3):403–14. https://doi/full/10.1177/08854122211062085
Menard S. Six Approaches to calculating standardized logistic regression coefficients. Am Stat. 2004;58(3):218–23. https://doi/abs/10.1198/000313004X946
Deng W, Hendrikse G. Uncertainties and governance structure in incentives provision for product quality. Contrib Manag Sci. 2013;179–203. https://link.springer.com/chapter/10.1007/978-3-7908-2867-2_11
Ihli H, Seegers R, Winter E, Chiputwa B, Gassner A. Preferences for tree fruit market attributes among smallholder farmers in Eastern Rwanda. Agric Econ. 2022;53(1):5–21. https://onlinelibrary.wiley.com/doi/full/10.1111/agec.12673
Gulati R. Social structure and alliance formation patterns: A longitudinal analysis. Adm Sci Q. 1995;619?52. https://doi.org/10.2307/2393756
Rørstad PK, Vatn A, Kvakkestad V. Why do transaction costs of agricultural policies vary? Agric Econ. 2007;36(1):1–11. https://onlinelibrary.wiley.com/doi/full/10.1111/j.1574-0862.2007.00172.x
Jones P, Clarke-Hill C, Comfort D, Hillier D. Marketing and sustainability. Mark Intell Plann. 2008;26(2):123–30. https://doi.org/10.1108/02634500810860584
Meemken EM, Barrett CB, Michelson HC, Qaim M, Reardon T, Sellare J. Sustainability standards in global agrifood supply chains. Nature Food. 2021;2(10):758–65. https://www.nature.com/articles/s43016-021-00360-3
Rapsomanikis G. Food and Agriculture Organization of the United Nations Rome. 2015; Available from: www.fao.org/publications
Siwandeti M, Israel B, Mahuwi L. The effect of supply chain factors on market participation among smallholder cereal crop producers in Tanzania. Global Business Rev. 2023;09721509231187490. https://doi.org/10.1177/09721509231187490
Tuomala V, Grant DB. Exploring supply chain issues affecting food access and security among urban poor in South Africa. Int J Logist Manag. 2021;33(5):27–48. https://doi.org/10.1108/IJLM-01-2021-0007
De A, Singh P. Sustainable agri-pricing towards smallholder’s profit: A modified buffer stock operations model under B2B contractual supply chain. Comput Ind Eng. 2022;172. https://doi.org/10.1016/j.cie.2022.108622
Mahuwi L, Israel B. Supply chain issues affecting market access among smallholder maize farmers in mbozi district, Tanzania. Int J Food Agric Econ. 2023;11(2):115?29. http://dx.doi.org/10.22004/ag.econ.334710
Abodi MA, Obare GA, Kariuki IM. Supply and demand responsiveness to maize price changes in Kenya: An application of error correction autoregressive distributed lag approach. Cogent Food Agric. 2021;7 (1): https://doi.org/10.1080/23311932.2021.1957318
Ghazaryan A, Westgren R, Parcell J, Gedikoglu H. Factors affecting farmers market produce prices in Missouri. J Food Prod Market. 2018;24(8):927–45. https://doi.org/10.1080/10454446.2017.1422843
Piabuo SM, Yakan HB, Puatwoe JT, Nonzienwo VY, Mamboh TR. Effect of rural farmers’ access to information on price and profits in Cameroon. Cogent Food Agric. 2020;6(1). https://doi.org/10.1080/23311932.2020.1799530
Sadiq MS, Singh IP, Ahmad MM. Price volatility spillovers among major wheat markets in the world. Anadolu J Agric Res. 2022;32(2):203–16. https://doi.org/10.18615/anadolu.1224602
Chandra R, Collis S. Digital agriculture for small-scale producers: challenges and opportunities. Communications of the ACM. 2021;64(12):75?84.
Jabbouri I, Jabbouri R, Bahoum K, El Hajjaji Y. E-commerce adoption among Moroccan agricultural cooperatives: Between structural challenges and immense business performance potential. Ann Public Coop Econ. 2023;94(4):1145–71. https://onlinelibrary.wiley.com/doi/full/10.1111/apce.12406
Miller C, Jones L. Agricultural value chain finance: tools and lessons. Rome. Food and Agriculture Organization of the United Nations and Practical Action Publishing; 2010. p. 12.
A global framework of reference on digital literacy skills for indicator 4.4.2 [Internet].2024. Available from: https://www.researchgate.net/publication/326223206_A_Global_Framework_of_Reference_on_Digital_Literacy_Skills_for_Indicator_442
Pavez I, Bouhsina Z. The effect of quality uncertainty and asset specificity on the coordination of fruit supply chains. Post-Print [Internet]. 2020; Available from: https://ideas.repec.org/p/hal/journl/hal-03986286.html

Downloads
Published
Versions
- 24-02-2025 (2)
- 05-01-2025 (1)
How to Cite
Issue
Section
License
Copyright (c) 2025 P K Smija, C D Neetha Rose, R Stephen, G S Sreekala, P P Gopinath, Y Chadar

This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright and Licence details of published articles
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Open Access Policy
Plant Science Today is an open access journal. There is no registration required to read any article. All published articles are distributed under the terms of the Creative Commons Attribution License (CC Attribution 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited (https://creativecommons.org/licenses/by/4.0/). Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).