Economic impact of local geographical indication products on farmers: a case of Kelkit sugar (dry) beans

Figures & data

Figure 1. Theory of Change: Showing a logic of GI-labelled sugar beans production to assess the profit effect (Source: Adopted from Pamuk et al., 2022).

Table 1. Variables compare enterprises.

Variables	Variable codes	Explanation
Farmers’ participation in GI Kelkit Sugar Beans Production Project	Treatment (treat)	1) yes 0) no
Farmer’s education year	Education (edu)	1) Illiterate 2) Literate 3) Primary school 4) Secondary school 5) Highschool 6) University 7) Master / PHd
Age of farmer	Age (age)	Number of years
Agricultural experience of farmer	Farmer experience (fexp)	Number of years
Number of person engaged in agriculture in family	Number family member (nfm)	Person
Farm size (decare)	Farm size (fsize)	Decare (da)
Land ownership size (dekar)	Land ownership size (lownersize)	Decare (da)
Beans in total cultivated land (%)	Share for beans in cultivated land (beanshare)	Share (%)
State of specialization	Specialization (spec)	1) If it provides at least two-thirds (67%) of the total agricultural production value (plant + animal) from the sugar beans production branch.; 0) if not
Gross income (TL-$ /farm)	Gross farm income (gfinc)	1) Lower than 50.000 TL 2) 50.001-75.000 3) 75.001-100.000 4) 100.001-125.000 5) 125.001-150.000 6) 150.001-175.000 7) 175.001 and above
Gross value of beans production per decare (TL-$ /decare)	Gross value of beans production per decare (gvbpd)	TL-$ /decare
Gross margin of beans production per decare (TL-$ /decare)	Gross margin of beans production per decare (gmbpd)	TL-$ /decare
Benefit from counseling	Advise (advise)	1) if the enterprise receives advice from a specialist institution or person; 0) if not

* The average exchange rates between Turkish Lira (TRY) and the US dollar (USD) for 2021 is $1 = 8.50 TL (BÜMKO, 2021).

Table 2. Variable costs per decare and their distribution.

Cost Elements	GI-farmers		Non-GI-Farmers		General		Mann -Whitney U test p value
	Aver	%	Aver	%	Aver	%
Hired Labour Costs	911,21	59,54	1240,88	56,38	1077,71	58,01	*0,001
Fuel	93,52	6,11	109,61	4,98	101,64	5,47	0,685
Fertilizer	258,54	16,89	365,54	16,61	313,15	16,86	**0,028
Medicine	72,09	4,71	74,91	3,40	73,50	3,96	0,348
Water- electric	79,74	5,21	130,85	5,95	106,86	5,75	***0,064
Other costs	115,45	7,54	279,16	12,68	184,90	9,95	0,215
Variable Costs	1530,53	100,0	2200,95	100,0	1857,76	100,0	0,000*

Statistically significant at the *%1, **%5, ***%10 level.

Table 3. Gross output, variable costs and gross profit.

Gross Profit Elements	GI-farmers		Non-GI-Farmers		General		Mann-Whitney U test p value
	Average	SD	Average	SD	Average	SD
Gross Production (TL/da)	3242,23	1369,47	4586,18	2279,35	3920,99	1993,09	*0,001
Variable costs (TL/da)	1530,53	434,41	2200,95	840,45	1857,76	717,07	*0,000
Gross profit (TL/da)	1712,70	1368,65	2385,23	2277,04	2063,23	1918,57	***0,079

* The average exchange rate between the Turkish Lira (TRY) and the US dollar (USD) for 2021 is $1 = 8.50 TL (BÜMKO,2021).

Table 4. Descriptive statistics of variables for comparing enterprises.

		Treatment (treat)				Pearson ki-square test p value
		not producing with GI (0)		Producing with GI (1)
		n	%	n	%
Education (edu)	Primary school	14	28,00	18	36,73	0,379
	Secondary school	5	10,00	7	14,29
	Highschool	25	50,00	16	32,65
	University	6	12,00	8	16,33
	Total	50	100,00	49	100,00
Specialization (spec)	unspecialized (0)	34	68,00	29	59,18	0,362
	specialized (1)	16	32,00	20	40,82
	Total	50	100,00	49	100,00
Total income (TL/ enterprise) (gfinc)	Less than 50 000 TL	21	42,00	26	53,06	0,194
	50 001-75 000	19	38,00	11	22,45
	75 001-100 000	6	12,00	3	6,12
	100.001-125.000	4	8,00	4	8,16
	125.001-150.000	0	0,00	1	2,04
	150.001-175.000	0	0,00	2	4,08
	200.001 and above	0	0,00	2	4,08
	Total	50	100,00	49	100,00
Benefit from counseling	no (0)	31	62,00	26	53,06	0,368
	yes (1)	19	38,00	23	46,94
	Total	50	100,00	49	100,00
		Average	SD	Average	SD	Mann Whitney U test p value
Age of farmer (age)		48,10	9,57	46,63	10,90	0,522
Agricultural experience of the farmer (fexp)		23,46	11,56	23,61	12,32	0,977
Number of person engaged in agriculture in the family (nfm)		2,16	1,23	2,18	1,03	0,583
Farm size (decare) (fsize)		95,64	84,28	104,47	152,88	0,774
Land ownership size (decare) (lownersize)		21,54	33,72	12,63	22,78	0,262
Share of sugar beans in total cultivated land (%) (beanshare)		30,14	38,29	35,46	31,00	**0,040
Gross production value per decare TL/decare		4586,18	2279,35	3242,23	1369,47	*0,001
Gross profit per decare (TL/decare) (gmbpd)		2385,23	2277,04	1712,70	1368,65	***0,079

^* The average exchange rate between the Turkish Lira (TRY) and the US dollar (USD) for 2021 is $1 = 8.50 (BÜMKO, 2021).

Table 5. ATE and ATET values by gross output.

Treatment-effect estimation Estimator: propensity-score matching (PSM) Outcome model: matching Treatment model: logit
	Coefficient	Standard error	z	p	%95 confidence interval
ATE treat | (1 vs 0)	−1417.687 (166,78$)	372.3593	−3.81	*0.000	−2147.498 − 687.8764
ATET treat | (1 vs 0)	−1289.543 (151,45$)	393.6605	−3.28	*0.001	−2061.103 − 517.9828

* Statistically significant at *1% and **5% significance levels.

** The average exchange rates between Turkish Lira (TRY) and the US dollar (USD) for 2021 is $1 = 8.50 TL (BÜMKO,2021).

Graph 1. Covariate balance plot by gross output (gross income) per decare of the enterprises.

Table 6. ATE and ATET values by the gross profit per decare.

Treatment-effect estimation Estimator: propensity-score matching (PSM) Outcome model: matching Treatment model: logit
	Coefficient	Standard error	z	p	%95 confidence interval
ATE treat | (1 vs 0)	−1068.825 (125,74$)	370.4877	−2.88	*0.004	−1794.967 342.6822
ATET treat | (1 vs 0)	−1031.489 (121,35$)	461.0276	−2.24	**0.025	−1935.086 127.8911

* Statistically significant at *1% and **5% significance levels.

^** The average exchange rates between Turkish Lira (TRY) and the US dollar (USD) for 2021 is $1 = 8.50 TL (BÜMKO, 2021).

Graph 2. Covariate balance plot by gross profit per decare of the enterprises.

Pamuk, H., Motovska, N. M., & van Rijn, F. C. (2022). Towards sustainable cotton farming: Validating the impact of Better Cotton on cotton farmers in India, Endline report. Wageningen University & Research.

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BÜMKO. (2021). Average exchange rates. ministry of treasury and finance of The Republic of Turkey. Retrieved June 10, 2021, from http://www.bumko.gov.tr/TR,147/ekonomik-gostergeler.html

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Data availability statement

The data that support the findings of this study are available on request from the corresponding author, [ND]. The data are not publicly available due to [restrictions e.g. their containing information that could compromise the privacy of research participants].