Dörr, A: Economic AQnalysis of Certification in the Brazilia

complemented by some econometric models. The LOGIT model was used three times: first, for identifying the determinants of the adoption of certification and second, for determining the factors relevant for adopting two versus one certification scheme, and third, for testing the main factors that lead farmers to adopt specifically PIF. Several tests were performed to check the robustness of the models.
Comparative analyses between certified and non-certified farmers of grapes, mango, melon and cashew nuts show that certified farmers receive higher net income than non-certified farmers. The net income of the farmers in process is slightly lower compared to certified farmers. The higher net income partly derives from the price premium paid for the certified fruits. Certified mango and grapes farmers have received an increased price per kg of 58% and 28%, respectively. Cashew nuts farmers receive the highest rates: 82% per kg of nuts and 62% per kg of kernel. Melon producers do not receive a price premium after adopting certification, but certification enables them to remain in the market. Other benefits identified refer particularly to environmental, health and food safety aspects. The costs of certification are found to be of minor importance, especially since financial support is provided by Brazilian governmental organizations like SEBRAE and EMBRAPA. Investments due to certification are partly considerable, but are outweighed by higher productivity and price premia. The price premia of small-scale farmers have been found to be lower compared to those of the medium-scale farmers, but the farmers are still able to compete.
The logistic estimates show that education and the years of experience mostly have a positive and significant effect on the decision to adopt certification. The chances to certify decrease, however, when farmers are dependent on the income from non-agricultural activities, are living in rural villages and not on the farm and trade with an individual buyer using a verbal trust-based arrangement. The estimates on separate grapes and mango models also find the size of the farms and the share of the current irrigated area to negatively contribute to the chances of adoption. The decision of mango and grapes farmers to adopt two instead of only one certificate was found to be influenced by whether the farmer can made use of the packing house from the group, cooperative or association. Variables such as ¿years trading with the buyer' and ¿living in the city' have negative and significant influence on the decision making.
An analysis of the grapes and mangoes marketing chains reveals that certified producers generally trade with groups, cooperatives or associations, while non-certified farmers trade with individual buyers. Groups, cooperatives and associations generally contribute to upgrade mostly certified farmers. Written contracts are more often found between groups and farmers. Uncertified farmers, however, trade more often with individual buyers based on verbal contracts. Such marketing chains are less vertically integrated and present low asset specificity.