This thesis explores constraints to the development of markets for high quality cacao in Ecuador. It focuses on the role of market level constraints, particularly the transmission of quality incentives along the marketing chain and their effects on farmers' incentives to invest in quality production. Chapter 1 introduces the reader to the problem, demonstrating that Ecuadorian farmers are not responding to international incentives to produce high quality cacao, and outlines the objectives, hypotheses, and structure of the thesis. Chapter 2 provides background to the market, detailing Ecuador's role in world commodity and high-value cacao markets and gives a detailed description of the cacao market in Ecuador. Chapter 3 uses a subsector analysis to develop and test hypotheses that specific market level constraints, such as transaction costs, market power, and institutional constraints, impede the transmission of incentives to produce quality to farmers. The subsector analysis failed to support the hypotheses that intermediaries are able to exert market power but found that transaction costs and weak institutions presented significant constraints to the transmission of quality incentives. Chapter 4 examines the determinants of farmers' market channel choice and the prices that they receive. In addition to determinants that are commonly found in the literature, such as the characteristics of the transaction and farmer's characteristics, hypotheses testing of quality incentives makes a unique contribution. Analysis of survey data of Ecuadorian farmers found minimal transmission of quality incentives to farmers—only the cultivar Nacional as a quality indicator was found to affect the farmers' market channel choice out of six indicators selected to represent quality. The quality indicators selected were pre- and post-harvest practices, variety, having received technical assistance, credit, belonging to a cacao association, and discounts at sale by the buyer. Also, pre- and post-harvest practices, having received credit, and belonging to a cacao association out of similar quality indicators were found to affect the price paid to the farmer. Finally, Chapter 5 summarizes the main points discovered through the research, discusses policy implications, and proposes further research needs. / Master of Science

Media and consumer attention has propelled local food to prominence, and a significant price premium has signaled its potential as a value-added option for family farms looking to transition from commodity production. Many of these farms –entering an unfamiliar market– have been selling local food in groups, to share risks and investments. This strategy has introduced a scale of production and operations to the marketplace that could challenge some of the basic premises of the local food contract. This research project was premised on the notion that the local food movement –dominated by small-scale production and direct marketing– appears to be governed by a set of principles that would be tested by the introduction of farms and farm groups of increasing scale. To understand the implications –for these farm families, local food marketing groups, and growing local food systems– this research sought to address whether these groups would adopt a more conventional approach to meet their needs, and fit their scale, or change their approach and practices to conform to the requirements and expectations established by the principles of governance that characterize local food systems. ‘Local beef’ chains from across Ontario were selected to capture a range of operational and geographic scale. Interviews with farmers and coordinators investigated the extent to which scale –at farm and group level– affected motivations, as well as group governance decisions. The research found that increased group scale limits the range of options available, and magnifies pressures towards conventionalization. Transition to larger scale favours governance based on surveillance and discipline, and suffers from lack of infrastructure that would facilitate mid-scale aggregation, distribution, and the development of bridging capital. Farmers who had direct input into decisions invested more time and effort, but also identified more strongly with their group. Farmers who marketed through larger-scale intermediary-led groups faced fewer costs, but were treated as commodity input suppliers, and were less engaged in the group’s success. Most farmers did not see these intermediary-led groups as a long-term solution, and looked instead to policy solutions, or other alternative marketing models – including smaller-scale regional intermediaries.

Submitted by Johnny Rodrigues (johnnyrodrigues@ufcg.edu.br) on 2018-09-24T15:02:38Z No. of bitstreams: 1 JOSÉ CÂNDIDO DA SILVA NÓBREGA - DISSERTAÇÃO PPGSA PROFISSIONAL 2018..pdf: 598498 bytes, checksum: c39669a11a1747c13a51de142da42356 (MD5) / Made available in DSpace on 2018-09-24T15:02:38Z (GMT). No. of bitstreams: 1 JOSÉ CÂNDIDO DA SILVA NÓBREGA - DISSERTAÇÃO PPGSA PROFISSIONAL 2018..pdf: 598498 bytes, checksum: c39669a11a1747c13a51de142da42356 (MD5) Previous issue date: 2018-03-12 / Esse estudo apresentou o plano de gestão na cadeia de comercialização do mel no sertão da Paraíba. A empresa que se pretende abrir terá o nome fictício de MEL ORGÂNICO POMBALENSE. Ela se diferenciará das concorrentes, pois oferecerá aos consumidores produtos orgânicos. O principal motivo para esta proposta é que atualmente não há nenhuma empresa especializada na região de Pombal em mel orgânico certificado, ou pelo menos não em evidência ou quantidade, que desenvolva um trabalho semelhante, portanto acredito que estes diferenciais possam agregar valor ao processo de venda, criando uma carteira fiel de clientes satisfeitos, garantindo boa rentabilidade, sucesso e prospecção do negócio. O foco da empresa será um atendimento premium de alta qualidade para o mercado de mel orgânico, hoje em dia carente de uma gestão profissional e com foco na satisfação do cliente. Teremos venda direta de produtos no varejo para os clientes. Concluiu-se que ao vender mel no mercado, é preciso levar em consideração uma série de questões que não podemos ignorar é que muito poucos comerciantes que não têm planos econômicos e, portanto, acabam falhando, por isso temos de ter um plano econômico também definido para este tipo de negócio de venda de mel. / This study presented the management plan in the honey commercialization chain in the interior of the state of Paraíba. The company that intends to open will have the fictitious name of ORGANIC HONEY POMBALENSE. It will differentiate itself from competitors as it will offer consumers organic products. The main reason for this proposal is that currently there is no company specialized in the region of Pombal certified organic honey, or at least not in evidence or quantity, that develops a similar work, so I believe that these differentials can add value to the sales process , creating a loyal portfolio of satisfied customers, ensuring good profitability, success and business prospecting. The focus of the company will be a premium service of high quality for the market of organic honey, nowadays lacking a professional management and with focus on the satisfaction of the client. We will have direct sales of products in retail for customers. It was concluded that when selling honey on the market, we must take into account a number of issues that we can not ignore is that very few traders who have no economic plans and therefore end up failing, so we have to have an economic plan also defined for this type of business. sale of honey.