Cost-Benefit Analysis of Smallholder Mango Export in Costa Rica's Cooperative Network

Thesis Abstract

This study addresses the economic and social efficiency of smallholder mango export within Costa Rica’s cooperative networks, focusing on how collective organization, value-chain integration, and export-market access influence profitability, livelihoods, and sustainability. The problem motivating the research is that individual smallholders face market volatility, high transaction costs, and limited bargaining power, which erode net incomes despite growing global demand for organic and Fair-Trade mangoes. The aim is to quantify costs and benefits associated with participation in cooperative mango export activities, identify determinants of profitability, and assess policy and managerial levers that enhance welfare and systemic resilience. Specific objectives include (i) estimating the cost structure and revenue streams for smallholders within selected cooperatives; (ii) evaluating the net social and private benefits of export participation using a cost-benefit framework; (iii) identifying factors that influence yield, quality, and compliance with export standards; (iv) analyzing the impact of cooperative governance, collective bargaining, and access to export channels on profitability; and (v) providing evidence-based recommendations for strengthening cooperatives’ value-chain integration and market access. Methodologically, the study adopts an explanatory sequential mixed-methods design. The population comprises smallholder mango growers (less than five hectares) affiliated with five major cooperatives in the Osa and Guanacaste regions, with a sampling frame of 2,150 registered members. A stratified random sample of 420 farmers will be surveyed to collect quantitative data on costs (inputs, labor, logistics, certification), outputs (tonnage, prices, contracts, premiums), and socioeconomic variables (education, household size, off-farm income). Complementary qualitative data will be gathered through 40 in-depth interviews with cooperative managers, extension agents, and exporters, and 6 focus groups with farmer-participants to capture governance dynamics and market access experiences. Data collection instruments include a structured farmer survey validated for content reliability (Cronbach’s alpha >0.75 for repeatability), semi-structured interview guides, and cooperative performance records. The cost-benefit analysis will compute Net Private Benefits (NPB) and Net Social Benefits (NSB) over a 10-year horizon, applying a social discount rate of 6%, with sensitivity analyses on discount rates, export prices, and yield shocks. Regression-based and propensity score matching techniques will be employed to identify determinants of profitability and to address selection bias between cooperative participants and non-participants where feasible. A Multi-Criteria Decision Analysis (MCDA) will be used to integrate qualitative governance factors with quantitative outcomes, and a qualitative thematic analysis will triangulate stakeholder perspectives on governance, certification costs, and market access barriers. Key expected findings include (i) a dominant fixed-cost structure in certification, washing, packing, and logistics that mitigates marginal unit profitability; (ii) higher NPBs for cooperative members due to price premiums, collective bargaining, and reduced transaction costs, with NSB gains amplified when cooperatives secure export contracts and certification premiums (e.g., GAP, GlobalGAP, and organic labels); (iii) significant determinants of profitability linked to cooperative governance quality, contract enforcement, access to inputs at negotiated prices, and compliance with export standards; (iv) substantial spillover effects on household income diversification and female participation within cooperative activities; and (v) notable sensitivity of outcomes to global mango price volatility and shipping disruptions, underscoring resilience benefits of cooperative scale. The study contributes to knowledge by providing robust, context-specific evidence on how cooperative networks affect economic efficiency, livelihood outcomes, and market resilience in tropical fruit export chains, extending the literature on smallholder integration into international value chains and the role of collective action in cost-offsetting and risk-sharing. Theoretical frameworks anchor the analysis in transaction cost economics and the governance of value chains, supplemented by concepts from inclusive development and social capital theory. Policy and managerial implications include guidance on strengthening governance structures, certification cost-sharing mechanisms, and scalable strategies for accessing premium export channels, as well as recommendations for national and cooperative-level policy to enhance market transparency and risk mitigation. The main conclusion anticipates that well-governed cooperatives capable of achieving consistent quality, reliable contracts, and shared certification costs can substantially improve both private and social returns from smallholder mango export, contributing to poverty reduction and rural development. Recommendations emphasize expanding contract farming arrangements, formalizing shared logistics through cooperative aggregators, investing in extension and quality management training, and fostering diversification into value-added products and sustainable certifications to stabilize incomes amidst price and climate volatility.