Export contracts for non-traditional products: Chayote from Costa RicaExport Contract • October 2nd, 2007
Contract Type FiledOctober 2nd, 2007This paper focuses on the determinants of market and contract choice for non-traditional crops and the possibilities for involving local producers in global agro-food chains through delivery relationships with packers and brokers. Main attention is given to the importance of quality for entering the export market and the impact of contractual arrangements on loyal behaviour. Core stipulations in the contract regarding the frequency of delivery and the provision of technical assistance are mediating factors between quality and loyalty. The study among traditional and recently established producers of chayote in Costa Rica confirms the importance of production scale and experience for engagement in exports. The export share is positively related to quality performance but inversely related to delivery frequency and sales at the local market. Apparently, traditional producers rely on market diversification to maintain a certain bargaining power vis-à-vis traders and processors. Verbal con