One of the main reasons that small- and medium-scale producers are often not participating in growing export markets for high-value agricultural commodities is that they cannot meet strict food safety and quality requirements associated with the delivery of their product to distant and more formal markets. These producers face four distinct problems: 1) how to produce safe food, 2) how to be recognized as producing safe food, 3) how to identify cost-effective technologies for reducing risk, and 4) how to be competitive with larger producers who have the advantage of economies of scale for compliance with food safety requirements. At the same time, lower standards are often applied for domestic markets in LDCs.
This project examined the export flows of Green Beans from Kenya, Ethiopia, and Zambia to the EU. The study focused on the five research questions - a) any food safety requirements imposed by green bean importers and the national government. b) how producers and exporters meet those requirements, c) are small-holders squeezed out by these requirements, and d) what are the spillover effects of food safety regulations for exports on the domestic market?
The article on green beans is here: http://www.ifpri.org/sites/default/files/pubs/pubs/dp/ifpridp00737.pdf The basic finding is that smallholders can only compete if they join forces into producer groups.