Does the Contract Type Matter? Impact of Marketing and Production Contracts on Cashew Farmers’ Farm Performance in Ghana

Many studies show that participation in contract farming has positive impacts on farm productivity and incomes. Most of the literature, however, does not take into account that contracts vary in their specifications, making empirical evidence scarce on the diverse impacts of different types of contracts. In this study, we investigate the driving forces of participation in marketing and production contracts, relative to spot markets. We also study the extent to which different contract types add additional benefits to smallholder farmers, using recent survey data of 389 cashew farmers in Ghana. To account for selection bias arising from observed and unobserved factors, we apply a multinomial endogenous switching regression method and implement a counterfactual analysis. The empirical results demonstrate that farmers who participate in production contracts obtain significantly higher cashew yields, cashew net revenues, and are more food secure compared to spot market farmers. We also find substantial heterogeneity in the impact of marketing and production contracts across scale of operation. Small sized farms that participate in production contracts tend to benefit the most. Marketing contracts, however, do not appear to benefit cashew farmers.

Access and Use of Information by Smallholder Dairy Farmers: A Case Study of Meru and Uasin Gishu Counties, Kenya

Dairy in Kenya is a major source of employment, with smallholders contributing more than 70 percent of gross marketed milk production. Dairy marketing is dominated by the informal sector where raw milk is sold directly to consumers, suggesting low use of technical know-how to improve production as well as quality and safety of milk. The study therefore was conducted to understand the level of information on dairy, as well as determine factors influencing the awareness of dairy standards among smallholder dairy farmers in Meru and Uasin Gishu counties in Kenya. A random sample of 273 households was selected and personal interviews conducted. Data were entered and analysed by use of the Statistical Package for Social Scientists (version 20). Descriptive statistics by use of percentages, and a logistic regression model were used to analyse data. The results depict a low level of information on quality and safety of milk, and the regulatory institutions in Kenya had limited influence on improved milk production, quality and safety. Farmers with marketing contracts, those with an upgraded value chain were more likely to access information, while older farmers were less likely to access the information. In order to increase complicity with the regulations, regulatory institutions should increase awareness on the potential benefits of adhering to dairy standards. Farmers should be registered and enter contracts with buyers, and older farmers targeted to provide information. Research and development organisations should make farmers aware so that farmers can demand for information and lobby for services from government institutions.

Do food certification standards guarantee small-sized farming enterprises access to better markets? Effectiveness of marketing contracts in Kenya

PurposeThe purpose of this paper is to investigate the influence of GLOBALGAP standards certification on farmer's preference for marketing contract choices including written contracts, oral contracts and spot contracts, as well as to establish the impact of marketing contracts on net returns from snap bean production in Kenya.Design/methodology/approachIn this study, we use a data collected from 446 Snap bean farmers in Kenya. Using a two-step selection Bourguignon Frontier and Gurgand (BFG) model and Propensity Score Matching (PSM), we analysed determinants of Global Gap Certification and other farming characteristics that influence smallholder farmers preference for marketing contracts and net returns from snap beans venture.FindingsResults indicate that attending GLOBALGAP training, GLOBALGAP subsidy support, membership to GLOBALGAP farmer's groups, and selling beans to GLOBALGAP certified GLOBALGAP buyers would significantly influence better returns underwritten marketing contracts. Producing snap beans underwritten marketing contracts would get farmer's net returns of between 1.8 and 8% while producing under oral and spot market contracts would earn farmer net returns of between 0.2 and 0.08 %.Originality/valueTo the best of the authors' knowledge, this study is the first to examine the influence of GLOBALGAP standards certification on marketing contract choices and net returns from snap bean production, while accounting for selectivity biasness.

LEGAL MEANS OF ENSURING COMPETITION IN PHARMACY

The aim: To research the consequences of pharmacy chains monopolization and establishment of legal means of neutralization of such consequences. Materials and methods: The study is based on acts of the European Union, the United States, and Ukraine and international regulations and documents on health care. The study's materials were the results of a questionnaire survey of managers and specialists in a pharmacy on marketing contracts. The views of scientists on the above issue were also studied. The study analyzes generalized information from scientific journals using scientific, legal methods. Among the main research methods are systematic approach, analytical, statistical, comparative, dialectical, graphical, and a questionnaire survey of respondents. Results: Consolidation of massive pharmacy chains leads to an artificial increase in drug prices by almost 50 percent, which significantly reduces their availability to patients, and in many cases, makes treatment impossible due to lack of funds. Conclusions: As a result of further monopolization of the pharmacy market, the pharmaceutical industry, small pharmacy enterprises, and the complete distribution of medicines will be destroyed.