scholarly journals Cereal-Legume Value Chain Analysis: A Case of Smallholder Production in Selected Areas of Malawi

Agriculture ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. 1217
Author(s):  
Giacomo Branca ◽  
Luca Cacchiarelli ◽  
Valentina D’Amico ◽  
Laifolo Dakishoni ◽  
Esther Lupafya ◽  
...  

This article analyses the cereal-legume value chain in Malawi through a comprehensive VC Map, a SWOT exercise and a policy analysis. VC participation entails a number of challenges for smallholders. Limited access to land, technology and inputs, inadequate knowledge of market functioning, insufficient access to credit and extension services, combined with more general problems of poor infrastructures, often prevent smallholder farmers from accessing profitable market opportunities. The effectiveness of national policies (e.g., public extension service support, inputs subsidy system) oriented to increase smallholders’ market access is often constrained by inadequate financial capacity, an inefficient public extension services system and limited involvement of privates in the extension services scheme. VC interventions should distinguish between VC-ready farmers, namely those provided with the minimum conditions of external and internal factors, and non-value-chain-ready farmers. Market-based interventions (e.g., enhancing VC coordination) are needed for enhancing market access of value-chain-ready farmers. Conversely, while non-market-based interventions (e.g., investments in basic infrastructure, increasing extension services, credit and inputs access) prove necessary to build the minimum asset thresholds for non-value-chain-ready farmers’ participation in the market. A smallholder-friendly VC development relies on the role played by VC actors and the need to harmonise and improve existing policies to remove inadequacies, conflicts and overlaps in the various institutions charged with implementation.

2021 ◽  
Vol 24 (1) ◽  
pp. 99-116
Author(s):  
Waridin Waridin ◽  
Zulfikar Al- Hafidz

A thorough analysis of farmers’ purchasing power is very important because of agricultural products’ unique characteristics that likely position farmers more vulnerably. In this respect, we seek to anayze farmers’ purchasing power and market conditions of an agricultural product (sweet potatoes) by using the value chain and SCP (structure, conduct, performance) analyses. This study is administered in Bergas Sub-district, Semarang Regency that exhibit high potentials of sweet potato products. Our research sample are farmers, marketing institutions, and governments that are selected with the purposive sampling and snowball sampling methods. The results show that sweet potatoes marketing in this sub-district has four marketing channels and the market structure is oligopoly. The concentration ratio (CR4) of 0.52 indicates that the market has weak concentration with the Minimum Efficiency Scale (MES) score of 65%, implying that new competitors are obstructed to enter the market. Further, the fourth market channel has efficient marketing system performance with the marketing margin of Rp 1,500/ kg and farmers’ market share of 57.14%. Overall, our results suggest that farmers have to select short marketing chains and sell their products to final consumers.


Author(s):  
Qian Guo ◽  
Oreoluwa Ola ◽  
Emmanuel Benjamin

Climate change and environmental degradation are major threats to sustainable agricultural development in Southern Africa. Thus, the concept of sustainable intensification (SI) i.e. getting more output from less input using certain practices such as agroforestry, organic fertilizer, sustainable water management etc. has become an important topic among researchers and policy makers in the region in the last three decades. A comprehensive review of literatures on the adoption of SI in the region identify nine relevant drivers of adoption of SI among (smallholder) farmers. These drivers include (i) age, (ii) size of arable land, (iii) education, (iv) extension services, (v) gender, (vi) household size, (vii) income, (viii) membership in farming organization and (ix) access to credit. We present the results of a meta-analysis of 21 papers on the impact of these determinants on SI adoption among (smallholder) farmers in Southern African Development Community (SADC) using random-effects estimation techniques for the true effect size. While our result suggests that variables such as extension services, education, age, and household size may influence the adoption of SI in SADC, factors such as access to credit is also of great importance. Decision-makers should therefore concentrate efforts on these factors in promoting SI across the SADC. This includes increasing the efficiency of public extension service as well as involvement of private sector in extension service. Furthermore, both public and private agriculture financing models should consider sustainability indicators in their assessment process.


Author(s):  
Keshav Prasad Shrestha ◽  
Surendra Yadav

The purpose of the study was to analyze the value chain of potato in the Ilam district. Potato is one of the major stable food and source of income for the majority rural farmers of the Ilam district. Using random sampling techniques, data were collected using semi-structured household survey with 165 respondents, 50 traders, input and service providers and along with 5 focus group discussion. Data were analyzed using SPSS and excel software. Results of the compound annual growth analysis showed that area, production and productivity is increasing significantly by 8.12, 2.87 and 2.79% respectively over 19 years in the country and 3.78, 2.84, and 3.55 respectively in the Ilam district. The farmers are generally growing local variety however; they also grow some improved varieties. The benefit cost ratio of local varieties is very low (0.68) whereas for improved varieties higher (1.73). Farmers do not adopt the grading and packaging which is generally done by the traders. The import of potato sharply increasing over the years which was 46,097 t worth of NPR 35.74 million in 2008/09 and reached to 249,368 t worth of NPR 531.25 million in 2016/17 which is 14.86 fold increases in value within 8 years. The value chain analysis reveals that, the margin received by the farmers is 27% of the retail price whereas traders and wholesalers deals in big quantities and extract substantial margin. The major constraints of potato production are diseases accompanied by weak availability of seed, high production cost, decreasing labor availability, and weak backward and forward linkage. Therefore, findings suggest that, government and developing agencies should support farmers organizations for the adoption of new variety, involve in quality seed production, integrated management of diseases, reduce cost of production, develop agricultural marketing infrastructures to boost up the production and make market access to the farmers.


Author(s):  
Katie D. Ricketts ◽  
Calum G. Turvey ◽  
Miguel I. Gómez

Purpose – The purpose of this paper is to look at the ever-popular, “value-chain approach” for linking smallholder farmers to high value export markets. Conventional wisdom says that value chains undertaken for development purposes redistribute risk and provide benefits and services to participants that are otherwise difficult or impossible to obtain. The authors take a farmer-centric approach and ask farmers participating in these higher value chains if they perceive greater, or different risks and compare results to their conventional counterparts. The authors also ask what benefits they associate with participation and if they believe they believe those benefits are exclusive to value chain participation. Design/methodology/approach – The authors collect data from growers in three different cocoa value chains in Ashanti, Ghana. These chains include one focussed on certified production practices (Rainforest Alliance), one that focussed on high-value product characteristics (Fine Flavor) and a conventional chain, which serves as counterfactual. Findings – The paper finds differences in perceptions of participation risks and benefits – particularly among price risks – that appear to filter based on value chain membership. However, for many risks, value chain participation seems to do little to redistribute potential production shocks. With some exceptions, growers report that many of the benefits they enjoy as a result of participation could feasibly be accessed by other sources. Research limitations/implications – The limitations of this paper are related to sample size. This was managed from a statistical perspective. Social implications – The authors explore how these results might impact the sustainability of the value chain approach and encourage donors and development agencies to be thoughtful and critical about measuring how farmers perceive new market opportunities. Originality/value – The authors believe that this is the first paper prepared to critically investigate the perceived benefits of value chains.


2017 ◽  
Vol 9 (10) ◽  
pp. 156 ◽  
Author(s):  
Tafireyi Chamboko ◽  
Emmanuel Mwakiwa ◽  
Prisca H. Mugabe

At the attainment of Zimbabwe’s independence, government of Zimbabwe established the smallholder dairy development programme to encourage smallholder farmers to participate in formal milk markets. Although now more than three decades since the government established this programme, smallholder contribution to the national formal market remains low at 5%. This study was undertaken to determine factors affecting milk market participation and volume of sales to milk collection centres of the smallholder dairy value chain. Four smallholder dairy schemes were purposively selected on the basis of whether the scheme participated in the semi-formal or formal dairy value chain. A total of 185 farmers were then selected through simple random sampling and interviewed using a pretested structured questionnaire. Data were analysed using descriptive statistics and Heckman two-stage selection econometric models. Results show that resources (represented by dairy cows, household size), knowledge (educational level, access to information and extension), experience (household head age) and agro-ecological region significantly determined farmers’ participation in milk markets. The study also shows the determinants of milk sales volumes to be resources (number of dairy cows and landholding size); market access (distance to milk collection centre); ambition of the farmer (age); and natural climatic conditions (agro-ecological region). Government policy interventions therefore need to be targeted at increasing the number of dairy cows, taking into account landholding and market access, targeting educated, young farmers located in agro-ecological regions I and II, providing them with adequate, appropriate information and extension packages in order to enhance milk market participation and volume of sales.


2016 ◽  
Vol 19 (5) ◽  
pp. 747-773 ◽  
Author(s):  
Wolfgang Von Loeper ◽  
Josephine Musango ◽  
Alan Brent ◽  
Scott Drimie

Smallholder farmers in South Africa find it challenging to participate in the modern economy. Most of these farmers have limited access to credit and insurance, and to markets in which to sell their produce. This paper reviews ethnographic research data and argues that smallholder farmers struggle to take part in modern agricultural value chains in South Africa. System dynamics modelling is used to understand the dynamics relating to agricultural value-chain participants, and to determine whether the ethnographic research data is sufficient to answer the question as to which value-chain participants potentially have the largest impact on smallholder farmers. The modelling results show that banks may have the potential to trigger an impact on smallholder farmers’ productivity that could then attract other value-chain industries to take part in efforts to support these farmers. Smallholder farmers could become a long-term viable and sustainable option for increasing food security in South Africa. However, this study has its limitations. The data used from existing ethnographic research, conducted by way of semi-structured interviews with valuechain participants, is limited and is not able to answer questions such as: (i) how much each industry is prepared to engage with smallholder farmers in the event of other industries being prepared to do the same; and (ii) how long it will take each industry to react to a willingness to engage. Ongoing research is required to extend the interviewee base and data in order to answer these questions and for the model to be completed and used for policy guidance.


2020 ◽  
Author(s):  
Walelgn Yalew Beadgie ◽  
Ponguru Reddy

Abstract The agricultural productivity is low due to use of low level of improved agricultural technologies, risks associated with or no access to market facilities and low participation of the smallholder farmers. Hence the study focused on the specific objectives were to identify factors that affect market participation decision of households and to determine factors affecting the volume of market supply of maize. Quantitative and qualitative data were collected from primary and secondary sources. The cross-sectional survey was conducted using structured questionnaire, key informant interviews, and focus-group discussions. A stratified stage sampling technique was used to draw 150 sample units using systematic random sampling technique. Descriptive statistics and Heckman Two-Stage model was employed. The result indicated that 56% of market participant were male headed, while 30.67% were female headed. Whereas 15.58% of non-market participants were male headed households, while 5.84% of non-market participants were female headed households. Out of 17 potential variables, seven variables age, area of maize, oxen number, distance to market, access to market information, member of cooperatives and inverse mill’s ratio were significantly influence the decision & extent participation in maize marketing. Therefore, the following points are recommended to develop sustainable production and marketing of maize that is locally adaptable and acceptable to increase the competitiveness of smallholder farmers: improving access to credit to apply fertilizer, farmers should rely on intensive cultivation rather than extensive cultivation and strengthen extension service.


Author(s):  
Mercy Maiwa Mwambi ◽  
Judith Oduol ◽  
Patience Mshenga ◽  
Mwanarusi Saidi

Purpose – Contract farming (CF) is seen as a tool for creating new market opportunities hence increasing incomes for smallholder farmers. Critics, however, argue that CF is likely to pass risks to small scale farmers, thus favouring large scale farmers at the expense of smallholder farmers. The purpose of this paper is to examine the effect of CF on smallholder farmers’ income using a case study of avocado farmers in Kandara district in Kenya. Design/methodology/approach – The study uses data collected from 100 smallholder avocado farmers in Kandara district in Kenya and employs an instrumental variable model (Probit-2SLS) to control for endogeneity in participation in the contract and examine the effect of CF on household, farm and avocado income. Findings – The results indicate that participation in CF is not sufficient to improve household, farm and avocado income. Question remains regarding efficient implementation of CF arrangements to promote spill over effects on other household enterprises. Research limitations/implications – The research was carried out using farmers in Kandara district in Kenya as a case study, findings might therefore not reflect the status of CF in all countries. Originality/value – The paper contributes to the growing debate on the effect of value chain upgrading strategies such as contracting on smallholder farmers’ welfare. The form of contracting studied in this paper differs from the standard contracts in that the key stakeholders (producers) are loosely enjoined in the contract through officials of their groups.


Proceedings ◽  
2020 ◽  
Vol 36 (1) ◽  
pp. 115
Author(s):  
Humera Iqbal ◽  
Khizar Hayat ◽  
Anam Afzal ◽  
Emma Hand ◽  
David McGill

In Pakistan there are no dedicated beef breeds consequently beef meat is a by-product of the dairy industry in the form of cull cows and male calves. Smallholder farmers supply up to 80% of animals slaughtered and decisions to sell their animals is driven by a need to generate cash in a time of necessity rather than in response to market signals. The aim of this study was to identify and evaluate beef market opportunities for smallholder farmers with the objective of increasing their income from their beef animals. Using a rapid value chain assessment seven potential beef markets in Punjab and Sindh were assessed and one was studied in detail to evaluate the opportunities and risks for smallholder farmers in beef value chains. Semi-structured interviews were conducted with beef value chain actors including; consumers (10), retailer (1), traders (12), feedlot farmer (1) and smallholder farmers (9). The interview data was analyzed using content analysis within value chain framework comprising of different flows (product, information and financial) and relationships among the chain actors. The results indicated that supplying directly to the retailer was indeed a potential opportunity for smallholder farmers provided they can meet product specifications. This study describes what capacity building support would be required to enable smallholder farmers to implement more focused and cost-effective rearing strategies leading to a reliable and consistent supply for this retailer. If successful, this could be used as a model for market interventions for other farmers leading to increased beef production and profitability.


2019 ◽  
Vol 80 (1) ◽  
pp. 91-109 ◽  
Author(s):  
Ralph Essem Nordjo ◽  
Charles K.D. Adjasi

Purpose The purpose of this paper is to evaluate the impact of access to production credit on the productivity of smallholder farmers. Design/methodology/approach Data for the study were drawn from the Agricultural Value Chain Facility (AVCF), which was implemented in the Northern Region of Ghana. This paper uses the Propensity Score Matching (PSM) to estimate the average treatment effect of access to production credit on the productivity of smallholder farmers. The rationale for the choice of this estimation technique is to control for selection bias since the treatment variable (access to production credit) was not randomised. The authors also test for the effect of hidden bias using “Rosenbaum bounds” sensitivity analysis. The study uses two control groups to examine the net effect of credit on productivity. Findings The results reveal that smallholder farmers with access to production credit increased productivity through investment in farm inputs. For the impact of credit on productivity using control Group 1, the result shows that farmers with access to credit increased their productivity by 0.170 metric tonnes per hectare and for control Group 2, the result shows an increase of 0.252 metric tonnes per hectare more than farmers who are without access to production credit. Practical implications The evidence as provided by this paper is that access to production credit is significant to meet the credit needs of smallholder farmers and therefore contributes to the policy debate on whether access to credit has impact on the productivity of smallholder farmers. Originality/value The paper shows the importance of production credit in augmenting the production function of smallholder farmers.


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