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Monday, 20th August 2007
IMPROVED MARKETS FOR AFRICAN FARMERS FOR POVERTY REDUCTION
Linking Farmers to Markets through Modern Information and Communication
Technologies: The Case of KACE
Andrian W. Mukhebi - Kenya Agricultural Commodity Exchange (KACE)
This paper highlights market information and linkage system (MILS)
developed and tested by the Kenya Agricultural Commodity Exchange Limited
(KACE) that increases the efficiency of agricultural markets to work
better for smallholder farmers and other small and medium sized
agro-enterprises (SMEs). The MILS involves harnessing modern information
and communication technologies (ICTs) to empower farmers with low-cost
reliable and timely market information to enhance the bargaining power of
the farmer for a better price in the market place, and to link the farmer
to markets more efficiently and profitably. The components of the KACE
MILS are (www.kacekenya.com):
Rural based Market Information Points (MIPs) which are information
kiosks located in rural markets, District-level Market Information Centres
(MICs), Mobile Phone Short Messaging Service (SMS), Interactive Voice
Response (IVR), Internet based database system, rural FM radio and the
Central Coordinating Hub in Nairobi. KACE has adopted a business approach
to the provision of its services: users pay for the services. For instance
it charges: placement fees per initial offer or bid (US$ 1.5-15),
commissions on concluded deals (0.5%-5%), subscriptions to price
information recipients (US$ 65 for 6 months or US$ 125 for 12 months),
fees to visiting foreign groups (US$ 2,000-5,000/visit) and revenue
sharing agreements with SMS and IVR service providers. When the KACE MILS
services are scaled out and widely used by many farmers and SMEs across
Kenya, the system will generate sufficient revenue to sustain its services
without reliance on development partner funding. To enhance the financial
sustainability of the MILS services further, KACE has recently initiated
two innovations: franchising MIPs and MICs to local entrepreneurs, and
establishing a virtual trading floor to improve the matching of offers and
bids through a rural-based FM Radio program. A recent study of the impact
of the KACE MILS concluded that the proportion of farmers and traders that
say their incomes have increased and their bargaining positions have
improved is very high (75% farmers and 60% commodity traders).
Furthermore, the study concluded that it was clear that during the years
in which the KACE MILS has been operational, market integration improved
for two commodities studied (i.e. maize and beans). This study also
highlights the challenges faced by the KACE MILS, including poor
infrastructure that imposes high transport costs to markets, high costs of
mobile phone calls and SMS and small quantities of produce of varying
quality offered.
The Market of Cattle of the Governorship of Sidi Bouzid: A Lever of Rural
Development of the Tunisian Center
Salah Selmi
-
Enseignant-chercheur à l’ESA-Mograne
L’élevage ovin est une activité traditionnelle dans toutes les régions de
la Tunisie et surtout le Centre et le Sud. Sur le plan national et jusqu'à
une date récente seule la viande bovine retenait l'attention des pouvoirs
publics et les opérateurs privés. Face aux enjeux actuels de satisfaction
des besoins du pays en viandes rouges et la mise à niveau de la filière
des ovins, on assiste à un processus de développement du secteur qui
connaît une restructuration du cheptel et une intensification de la
production en intégrant les cultures fourragères ainsi qu’une mise à
niveau des marchés de bestiaux. Dans le gouvernorat de Sidi Bouzid où
l’élevage ovin occupe une place de choix dans l’économie régionale, les
systèmes de production agricole connaîssent une mutation profonde. Le
développement du secteur irrigué et la diversification des systèmes de
cultures et d'élevage expliquent la croissance de l’agriculture et le
développement de la région. Cette mutation a touché aussi la structure du
marché et les circuits de commercialisation des animaux. La
commercialisation des viandes rouges est étroitement liée à l’élevage de
bétail qui reste encore très dépendant des conditions climatiques et des
politiques suivies. Dans la région de Sidi Bouzid, on dénombre des
circuits différenciés de distribution des animaux et la concurrence est
relativement forte. La performance du marché est caractérisée par la
faiblesse des marges bénéficiaires dégagées par les éleveurs et les
bouchers en comparaison avec les intermédiaires. Ce travail cherche à
analyser la structure, les comportements des acteurs et la performance du
marché de bestiaux de Sidi Bouzid –l’un des plus grands et connus des
marchés du pays- et son rôle dans la dynamique de la filière ovine et dans
le développement régional.
Finding a Sustainable Linkage between the Emerging Farmer and Formal
Markets: The Case of Pick ‘N Pay and the Zanyokwe Farmers in the Eastern
Cape of South Africa
Flash
A. Bediako- University of Fort Hare
A major problem confronting rural and emerging farmers is the
marketing of their products. Most of the farmers encountered depend on the
local or village markets which are often saturated or purchases are not
backed by effective demand to make sales meaningful for the desired
benefits. Small scale South African farmers have not been able to access
the formal sector to sell their goods. There are several reasons for this
which is linked to the nature of the historical evolution of the South
African agricultural sector and in particular the food production system.
Recently, it has been argued that the small scale farmers are not able to
meet the standards that are set by the formal sector and are therefore
responsible for their own exclusion by producing poor quality products.
The private sector is not aware of the capabilities of the small scale
African farmers. Consequently the private sector is unable to communicate
its needs to this group of emergent farmers. This paper presents
information and findings of the Case Study project of how the gap has been
bridged from both ends of the production chain about needs of business and
the small scale or emerging farmer which has led to finding a sustainable
marketing linkage between the rural farmer and the private sector.
Durability of the Systems of Production of the Small Ruminants: An
Approach of Animal Health – Marketing
Lokman Zaibet
-
Ecole Supérieure d’Agriculture de Mograne
L’objectif de ce papier est d’identifier les contraintes de
commercialisation des petits ruminants sur le marché aux bestiaux. Ces
contraintes sont particulièrement prononcées chez les petits éleveurs.
Notre recherche met en évidence la relation entre les caractéristiques de
cette catégorie d’éleveurs et le choix du lieu de commercialisation
(marché, sur la route ou à la ferme). Ce choix est lié aussi aux coûts de
transaction qui se manifestent sur le marché mais aussi à l’état de santé
du cheptel. La décision de ne pas se rendre sur le marché est supposée
influencer négativement la continuité de cette activité et par conséquent
la durabilité de d’élevage chez les petits éleveurs. Parmi les facteurs
trouvés favoriser la chance de se rendre sur le marché il y a la
possession de moyen de transport et la fréquence de visites vétérinaires.
La santé animale est déterminante aussi bien pour la productivité
(problème d’avortement, par exemple) que la commercialisation.
Linking Farmers to Markets: The Case of Grain Marketing Information in
Western Kenya
Martin Odendo
-Kenya
Agricultural Research Institute (KARI)
Market liberalization
created a situation where there are no guaranteed grain prices, no central
information source and the need for marketing information increased.
Unfortunately, most farmers have little or no access to marketing
information. This study evaluates farmers’ perceptions of importance of
marketing information; identifies farmers’ sources of grain marketing
information; determine farmers’ confidence in and use of marketing
information; and assesses determinants farmers’ willingness (WTP) to pay
for marketing information. Data used in this study were generated using a
structured questionnaire in a survey that covered a random sample of 120
households in traditionally grain surplus-and deficit zones of Kenya. The
data were analyzed by descriptive statistics and logit model. Results show
that 68% and 55% of the households in grain surplus and deficit zones,
respectively, recognized that marketing information was very important.
Farmers received marketing information from multiple sources, mainly from
traders and other farmers. Most of the farmers who received the
information were not utilizing the information due to perceived
unreliability of the information and poor access to complementary
infrastructure. Education level of the household was the most significant
factor that positively affected farmers’ WTP for marketing information. In
view of farmers’ perception that information provided by the private
sources is unreliable, the public sector ought to provide marketing
information as a public service. Smallholder farmers should be catalyzed
to form strong associations so as to enjoy economies of scale in accessing
marketing information and markets.
Consumer Preferences and Market Opportunities for Processed Cowpea-Based
Products in the Coastal Regions of Ghana
Nimoh, Fred -University of Ghana
The nutritive value of cowpea as an essential source of protein to
supplement carbohydrate diets has long been recognized. Its role as a
subsidiary crop to be relied on during the “hungry season” and during
times of food shortages, drought, inflation and the subsequent erosion of
the consumer’s purchasing power particularly among the urban poor makes it
a crop of choice by housewives who look for nutritious but cheaper sources
of food. In addition, it has been documented that over 80% of mothers in
Ghana use cowpea to prepare infant foods and family meals. This paper
sought to investigate consumer preferences and market opportunities for
different cowpea-based food products such as boiled cowpea with cereals,
fried cowpea paste, and cowpea fortified maize dough and flour, among
others, in selected coastal regions of Ghana. Using descriptive
statistics, Kendall’s Coefficient of Concordance, Logit Model, and Product
Market Opportunity (PMO) analysis, it was found that there was high
preference for cowpea-based products in all the communities studied; and
that processing cowpea into various food types was relatively profitable.
Key socio-economic factors and consumer characteristics that influence
consumer preferences include gender, marital status, income, education,
product taste and product availability.
ADVANCING TECHNICAL CHANGE IN AFRICAN AGRICULTURE: PUBLIC POLICY ISSUES &
STRATEGIC CHOICES
Consumer Perception of Sorghum Variety Attributes in The Lake Zone
Tanzania.
January Mafuru,-ARI- Ukiriguru
Many sorghum varieties have been developed by research institutes
in an effort to address food security problems in the semi-arid areas of
Tanzania. Although sorghum is better adapted to drier areas than maize,
farmer adoption rates for sorghum varieties are always lower than that of
maize. In addition, maize based food is more acceptable to urban consumers
than sorghum based food. In this study consumer evaluated quality
attributes of sorghum ugali based on different varieties in order
to determine marketing potential relating to the different improved
sorghum varieties. A total of 231 consumers, randomly selected from urban
and rural areas participated in a food panel to evaluate ugali
prepared from five sorghum varieties (three improved, two local). Conjoint
analysis was used to determine consumer perceptions of the variety
attributes, while a logistic model was applied to determine preference
ranking of different varieties. The results indicated that the color and
taste of sorghum ugali were the most important criteria used by
consumers to evaluate the quality ugali. The study results
indicated that sorghum ugali with white/khaki color and the
majority of panel participants preferred neutral or slightly sweet taste.
Consumers from rural and urban areas accepted two improved varieties; only
consumers from rural areas accepted the remaining variety.
Soil
Fertility Management and Maize Productivity in Malawi: Curvature Correct
Efficiency Modeling and Simulation
Hardwick
Tchale -
World Bank
We assess the level and determinants of relative technical efficiency of
maize-based smallholder farmers using a translog stochastic frontier (TL)
model and a symmetric generalized Barnett production function (SGB), both
of which are tested for economic regularity conditions. In addition, we
conduct a bootstrapping procedure in order to infer about the probability
distributions and significance of the relative efficiency values for
farmers using different soil fertility management options. The results
indicate that higher levels of relative technical efficiency obtain when
farmers use integrated soil fertility options compared to the use of
chemical fertilizer only. The consistency of the results across the two
models increases the robustness of the findings. The paper concludes that
productivity growth under the maize-based farming systems is considerably
higher when farmers use integrated soil fertility management options. Thus
there is need for policy and institutional interventions that enhance
farmers’ adoption and scaling-up of integrated soil fertility management.
Financing Smallholder Agricultural Production in Kenya: An Analysis of
Effective Demand for Credit
Rose A Nyikal - University of Nairobi
Financing smallholder farming has been one of the major concerns of
Kenya’s development efforts. Many credit programs have evolved over the
years but with dismal performance. In a study that sought to find the best
way to fund smallholder agriculture, it became necessary to analyze and
document smallholders’ effective demand for credit. Of particular interest
was the comparison of the existing production plans and production plans
under strictly profit maximization. Linear programming model was used to
formalize observed plans and determine those under profit maximization.
Both the activities and the values of outputs under different objectives
were compared. Farm Investment Analysis was undertaken to determine the
suitability of funding farm activities through credit. The study was
undertaken in selected zones of Murang’a and Kisumu districts, being
typical smallholder areas. Sample farmers were visited and structured
questionnaires administered to cover farm events and physical resources of
short rains 1995 and long rains 1996. This formed a basis of formulating
the farm plans. Ten years down the road, objectives of smallholders have
not changed as have been observed during outreach programs. The results
showed that: (i) farmers’ activities in the observed plans were different
from those under strictly profit maximization; (ii) the observed plans had
significantly lower profit than those under profit maximization; and (iii)
meeting constraints through credit was only feasible when the objective
was profit maximization. Smallholder agriculture, characterized by
subsistence production, does not exhibit effective demand for credit, and
funding it therefore requires means other than the competitive market.
Determinants of Adoption and Intensity of Use of Balanced Nutrient
Management Systems Technologies in the Northern Guinea Savanna of Nigeria
Akinola,
Adebayo, - University, Ile-Ife
As part of a major effort to address soil fertility decline in West
Africa, a project on Balanced Nutrient Management Systems (BNMS) has since
2000 been implemented in the northern Guinea savanna (NGS) of Nigeria. The
project has tested and promoted two major technology packages, including a
combined application of inorganic fertilizer and manure (BNMS-manure) and
a soybean/maize rotation practice referred to as BNMS-rotation. This
study employed Tobit model to examine factors that influence the adoption
and intensity of utilization of BNMS technologies in the NGS of Nigeria.
Results showed that less than 10% of the sample households adopted at
least one of the two components of the technology package by the end of
2002. However, by 2005 the adoption of BNMS-rotation had reached 40%
while that of BNMS-manure had reached 48%. A number of factors such as
access to credit, farmers’ perception of the state of land degradation,
and assets ownership were found to be significant in determining farmers’
adoption decisions on BNMS-manure while off-farm income was found to be
significant in determining farmers’ adoption decisions on BNMS-rotation.
Extension services and farmer-to-farmer technology diffusion channels were
the major means of transfer of BNMS technologies.
Organic Rural innovation systems and networks: Findings from a study of
Ethiopian smallholders
Martha Negash
- International Food Policy Research Institute (IFPRI)
Agriculture in Ethiopia is changing. New players, relationships,
and policies are influencing the ways in which information and knowledge
are used by smallholders. While this growing complexity suggests
opportunities for Ethiopian smallholders, too little is known about how
these opportunities can be effectively leveraged to promote pro-poor
processes of rural innovation. This paper examines Ethiopia’s smallholder
agricultural sector from an innovation systems perspective to understand
the changing roles, responsibilities, and interactions of diverse actors
in relation to smallholder livelihoods. The paper uses a combination of
qualitative and quantitative research tools to paint a picture of the
innovation landscape at both the system and local levels. Findings suggest
that public sector extension, administration, and related service
providers form a closely-knit network in rural Ethiopia with the ability
to influence smallholder access to knowledge and information. Given the
Government of Ethiopia’s priorities of improving rural welfare by
increasing market access among smallholders, these findings suggest the
need for policies and programs designed to strengthen innovative
capabilities among rural service providers from the public sector, and to
create more space for private and civil society actors to participate in
smallholder innovation networks.
Backyard
Fish Farmers: Information Needs in Osun State, Nigeria
Israel
Ogunlade- University of Ilorin
The need for increase in fish production in order to improve
protein intake by Nigerians led to this study. The study analyzed
information needs of backyard fish farmers in Osun State, Nigeria.
Specifically, the study investigated the socio-economic characteristics of
backyard fish farmers, frequency of performance, importance and
difficulties of management practices as well as the constraints facing
backyard fish farming. Questionnaire was used to elicit information from
70 backyard fish farmers. The findings indicated that backyard fish
farmers in Osun State were mostly males, middle aged, married and most of
them rear catfish, Feeding and cleaning are frequently performed by the
fish farmers, feeding and maintenance of water quality were of extreme
importance and also cleaning and harvesting were found to be extremely
difficult. The major constraints facing the fish farmers were capital,
security, feed, fingerlings procurement. The paper concluded that backyard
fish farmers need training on management practices.
THE ROLE OF AGRICULTURE IN POVERTY REDUCTION: RECENT EXPERIENCES FROM
AFRICA
Science in agricultural relief and development programs: The case of
conservation farming in Zimbabwe
Kizito Mazvimavi - ICRISAT
Drought is
endemic to southern Africa. In Zimbabwe farmers have been experiencing
drought once every two to three years. Relief agencies have traditionally
responded to drought by providing farmers with enough seed and fertilizer
to enable them to re-establish their cropping enterprises. But, in the
absence of these interventions there are limited sustainable options for
farmers to maintain higher productivity levels. ICRISAT has been working
with government, NGOs and the donor community to test more sustainable
farming strategies that will increase food production levels even under
drought conditions. For years, ICRISAT sought to develop more
drought-tolerant varieties of sorghum, pearl millet and groundnut. But
these offered only limited gains in productivity. More recently, ICRISAT
and its partners have been testing strategies to sustainably improve crop
productivity. These encompass two major components – conservation farming
techniques that include the use of planting basins, which concentrate
limited water and nutrient resources to the plant, and the precision
application of small doses of nitrogen-based fertilizer. These simple
technologies have increased average yields by 15-75
percent, being obtained by more than 300,000 farm households. Rather than
simply handing free inputs to farmers, this strategy teaches farmers how
to apply the inputs most efficiently. The pursuit of input-use efficiency
provides higher and more sustainable productivity gains necessary to
achieve food security in drought-prone farming systems. A farm enterprise
budget analysis has been employed to show that it is more viable to adopt
conservation farming techniques particularly under drought conditions.
Tea Farming Enterprise Contribution to Smallholders Well Being in Kenya
Francis Mwaura -Tea Research Foundation of Kenya
Poverty reduction among smallholders has remained a major priority for the
Kenyan government. Efforts have been geared to have a streamlined
agri-business system like emulated by the tea sub-sector. In the
smallholder tea sub-sector, farmers are organized to private companies,
owns factories, engage in produce assembling, processing, contract experts
for profession services, have micro-financing institutions serving them,
and procure fertilizer from overseas in bulk to distribute it to its
members. While the success of the organization and operations are visible
the impact of the enterprise returns are unknown. The paper discusses the
tea farming enterprise contribution to the well being of the smallholders’
tea farmers in central and western highlands of Kenya
Cereal Marketing and Household Market Participation in Ethiopia: The Case
of Teff, Wheat and Rice
Berhanu Gebremedhin
– ILRI
Teff, wheat and rice are becoming important market oriented crops
in Ethiopia. This study aims at analyzing the market participation of farm
households, market actors, market channels and determinants of household
market participation for these crops. Results are based on analysis of
data collected from community and household surveys in three districts in
three regional states of the country in 2005. Analysis of descriptive
information and econometric analysis are used. About 65 - 77% of
households produce these market oriented commodities, on about 27 – 44% of
the total cultivated area. About 47 – 60% of the produce of these market
oriented commodities is sold. The important market places for producers
of these commodities are the district town markets and markets located at
the peasant associations. Markets in other district towns or regional
markets are not important for producers. Wholesalers and retailers are the
most important buyers from producers. Average distance to market places
for these commodities is about two walking hours. Econometric analyses
showed that access to markets as measured by distance to market places
does not have effect on market orientation of households in the study
area. We find evidence of an U-shaped relationship between age of
household head and market orientation of households in the cereal crops.
Availability of cultivated land, traction power and household labor supply
are important factors that induces households to be market oriented. The
resource poverty of female headed households seems to detract from market
orientation. While household size tends to favor food security objectives,
number of dependents is associated with market orientation. Our results
imply that improvements of markets to benefit producers need to be
targeted at the district level. Improving the operations of factor markets
of land, traction and farm labor could contribute to enhancing market
orientation of farm households. Special attention is needed to female
headed households to induce them to be market oriented.
Agriculture and the Challenge to Reduce Poverty in East Africa
Jeremiah Makindara -Sokoine University of Agriculture
The three East African (EA) countries Tanzania, Kenya and Uganda
have a population of about 95 million people and Gross Domestic Product
(GDP) of USD 34.2 billion. In recent years efforts has been made among the
three East African countries, towards forging economic and regional
co-operation by establishing the East African Community (EAC). The premise
for economic and regional co-operation has been underpinned for the need
for a common market and boost regional trade. The ultimate goal of these
efforts is to achieve one of the international development objectives of
increasing growth to 7% a year that is required to reduce income poverty.
One of the challenges that East African countries need to tackle in the
face of globalisation is the ability to participate in international
markets. East African countries have to make serious consideration with
regards to changing the composition of their exports away from primary
products to manufactured exports. Value addition to both agricultural and
industrial products is vital to improving the EA economies. This paper
examines the composition of East Africa’s economic structure. The aim is
to analyse how the economic structure has changed over time, and to assess
whether or not East African countries have transformed their agricultural
sectors, and what the impact has been on poverty reduction in these
economies.
Integrating Small Scale Farmers into Bread Wheat Marketing Chain through
Contract Farming in Ethiopia
Bekabil Fufa
- Haramaya University
The treatment effect censored regression model results of this
study showed that educational level, value of agricultural equipment and
number of oxen owned affected the participation decisions of the farmers
in bread wheat contract farming significantly. The most important factors
that determine gross margin obtained from bread wheat production were
contract farming experience, the number of oxen owned and participation in
contract farming. However, technical efficiency differences and management
practices followed were not the reasons for differences in gross margin
between the participant and non-participant farmers.
Les marges de commercialisation et l’équité du commerce des produits
alimentaires au Togo
Estri Homevoh -LARPSAD, ESA-UL
Face à l'inefficacité et l'inefficience des systèmes de commercialisation
en ASS, la présente étude tente d’évaluer les marges commerciales et
l’équité du commerce du maïs, du sorgho, du gari, de la tomate, de
l’oignon, du poisson et du bétail au Togo. Elle conclut que les circuits
commerciaux du pays s’intègrent dans un système commercial régional qui se
traduit par des flux ouverts sur les pays voisins (Bénin, Ghana, Burkina)
et lointains (Niger, Gabon). L’analyse
des marges a permis de constater que le commerce des produits alimentaires
est en général viable. Toutefois, les marges nettes demeurent modestes.
L’analyse de l’équité révèle que la distribution des bénéfices sur les
tronçons, n’est pas équitable. Certains acteurs amassent d’énormes profits
qu’ils semblent tirer de leur monopole et de l’asymétrie de l’information
sur les conditions de marché. Dès lors, il importe pour améliorer la
sécurité alimentaire au Togo, d’entreprendre des actions visant à :
réduire le coût du service transport des produits alimentaires en milieu
rural; d' améliorer la disponibilité et l'accessibilité de l'information
pour l'ensemble des acteurs du marché céréalier (producteurs,
consommateurs et commerçants).La mise en œuvre de ces politiques permettra
alors de garantir la sécurité alimentaire à travers une meilleure
disponibilité et une meilleure accessibilité des produits alimentaires aux
consommateurs.
EXPANDING THE
FRONTIERS OF AGRICULTURAL ECONOMICS TO MEET THE CHALLENGES OF AGRICULTURAL
DEVELOPMENT IN ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS
Rural Household Labour Demand, Contract Choice, Hoarding Cost and Poverty:
Evidence from Western Kenya
Musyoka, Philiph
- Egerton University
This study determines the factors that influenced contract choice,
labour demand and examines the existence of labour hoarding practice in
Western region of Kenya. Data from Egerton University’s Tegemeo Institute
of Agricultural Policy and Development was used for the analysis.. A two
step Heckman model was employed to estimate the extent of engagement in
daily and semi-permanent contracts conditional on choice of contract.
Results from the study show that casual and semi-permanent contracts are
substitutes. Family labour negatively influences engagement in daily and
semi-permanent contracts hence it is a substitute to the two forms of the
contracts. Increase in wages paid to casual contracts is negative and
significant to the extent of daily contract engagement but positive and
significant to semi-permanent contracts supporting the substitutability of
daily contracts for semi-permanent contracts. Methods and costs of farm
preparation are significant in influencing the choice and demand for any
type of contracts. The proxy variable for hoarding costs is significant
and positive indicating that there are hoarding costs incurred in the
maintaining a steady pool of labour within the farm. From the results the
relatively asset poor farmers engage in the wage high daily contracts to
avoid incurring hoarding costs as indicated by the dummy denoting poverty
level. However, to avoid uncertainty during peak periods semi-permanent
contracts are highly employed by the asset poor farmers. From the results,
farmers willing to minimize hoarding costs may find themselves
substituting family labour for daily contracts or in absence of family
labour, semi-permanent contracts for daily contracts.
A Game Theoretic Approach
to Analyse Cooperation between Rural Households in Northern Nigeria
Marloes Gerichhause - IITA
To improve the livelihood of the poor in Sub-Saharan Africa (SSA)
much attention has been paid to the development of new agricultural
technologies. We hypothesize that farmers can also improve their
livelihood through cooperation. Partial cooperation, in which knowledge is
shared or bargaining power improved, is relatively common in SSA, while
cooperation where all resources are fully shared, which we address, has
rarely been investigated. An important pre-requisite to establish such
cooperation, is the need for a fair division rule for the gains of
the cooperation. This paper combines linear programming and cooperative
game theory to model the effects of cooperation of (individual) households
on income and farm plans. Linear programming establishes insight in the
optimal farm plans in cooperation, and cooperative game theory is used to
generate fair division rules. The model is applied to a village in
Northern Nigeria. Households are clustered based on socio-economic
parameters, and we explore cooperation between clusters. Cooperation leads
to increased income and results in changes in farm plans, because more
efficient use of resources leads to more intensified agriculture (labour
intensive – high value crops).
Does Participation in Microfinance Programs Improve Livelihoods: Empirical
Evidence from Makueni District, Kenya
Joy Kiiru, - Bonn University
Although microfinance has elicited different reactions from
different stakeholders, there seems to be a general agreement that it is
useful in reducing poverty. This study is an attempt to contribute in to
the debate on the impact of microfinance on household incomes. We use a
pooled data set collected from the south western part of Makueni district
in Kenya to study the households’ access to microfinance credit and how
the credit affects their incomes. We control for household selection bias
as well as endogenity problems in the sample. Cross sectional analysis
fails to show any significant positive impact of microfinance on poverty
reduction. Only after the inclusion of time dynamics in the study are we
able to find a weak positive significance of microfinance on household
incomes.
Linking Mara Fruits and Vegetable Growers to Serengeti National Park
Tourist Hotels Market
Adventina Babu,
- Ukiriguru Agricultural Research and Development Institute
Tourism in Tanzania has been on the rise since late 1990s when the
markets were fully liberalized. This has created a high demand for
horticultural produces from tourist hotels located in Serengeti national
park in the northwest of Tanzania. Analysis was carried out to determine
supply and demand for horticultural produces in Mara region. The annual
requirements for horticulture produces in three Serengeti tourist hotels
were about 614 tons. These hotels obtain most of the fruits and vegetables
from Arusha, Kenya and South Africa which are very far from the park. Due
to long distances and poor roads the hotels obtain high priced, low
quality and small quantities of produces. The production of horticulture
in Mara region is about 620 tons which is more than what is demanded by
the hotels. The major problems hindering horticulture production in Mara
region include unstable markets, erratic prices and low demand for
horticulture produces. The tourist hotels demand locally produced, regular
supply, fresh and medium quality horticulture produces while farmers want
regular markets for their produces. The Gross Margin analysis indicated
that supplier gross profit and growers’ return to labour are high with
horticultural crops as compared to other crops. The study recommends that
the hotels and growers establish contract agreement to enhance reliable
deliveries. To improve production and entrepreneurial skills of the
farmers; management support at the beginning of implementation from
extension, research, credit and irrigation schemes from local institutions
would be necessary.
Emperical Analysis of Agricultural Growth and Unemployment in Nigeria
Ope Ayinde, K. Ayinde -
University of Ilorin
Unemployment which has been identified as the major cause of
poverty is a worldwide economic problem. Poverty alleviation has been a
great concern to developing countries. The economic burden of unemployment
on a society necessitates this study. Consequently, this study analyses
the Nigerian agricultural growth rate, its contributions, and examines the
linkage and dimension of agricultural growth and unemployment rates.
Collected time series data were analyzed with the aid of t – test, Duncan
Multiple Range test, Granger Causality test and regression analysis.
Results showed that Nigerian agricultural growth rate has an inverse
relationship with unemployment and re – establish the Cobweb supply
theory. In addition, increase in agricultural growth decrease unemployment
and thus can alleviate poverty. Consequently, recommending polices to
alleviate poverty should focus on increasing agricultural growth.
Gendered Impact of Irrigated Rice Schemes’ Governance on Farmers’ Income,
Productivity and Technical Efficiency in Benin
Florent M. Kinkingninhoun-Mêdagbé -WARDA
Collective actions groups have many advantages and are sometimes
essential, yet they can reinforce or perpetuate inter-and intra-gender
inequalities when their functioning is left entirely subject to internal
community dynamics and they are not well managed. This is well illustrated
by the case of Koussin-Lélé rice scheme in the central Benin. This paper
apply inequality indices and frontier production function to data from a
sample of male and women rice farmers to analyze the gender inequalities
in access to land and the governance of the groups, and their
gender-differentiated impacts on farmers' productivity, technical
efficiency and income. The results show that women are particularly
discriminated against with regards to access to land, with significant
negative impacts on their productivities and incomes. However, this
discrimination did not have a significant impact on technical efficiency
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