IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v37y2009i6p1094-1104.html
   My bibliography  Save this article

The Economics of Smallholder Organic Contract Farming in Tropical Africa

Author

Listed:
  • Bolwig, Simon
  • Gibbon, Peter
  • Jones, Sam

Abstract

Summary The paper examines the revenue effects of certified organic contract farming for smallholders and of adoption of organic agricultural farming methods in a tropical African context. The comparison in both cases is with farming systems that are "organic by default." Survey data from a large organic coffee contract farming scheme in Uganda are reported and analyzed using a standard OLS regression and a full information maximum likelihood (FIML) estimate of the Heckman selection model. The analysis finds that, controlling for a range of factors, there are positive revenue effects both from participation in the scheme and, more modestly, from applying organic farming techniques.

Suggested Citation

  • Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:6:p:1094-1104
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(08)00314-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dorward, Andrew & Fan, Shenggen & Kydd, Jonathan & Lofgren, Hans & Morrison, Jamie & Poulton, Colin & Rao, Neetha & Smith, Laurence & Tchale, Hardwick & Thorat, Sukhadeo & Urey, Ian & Wobst, Peter, 2004. "Institutions and economic policies for pro-poor agricultural growth," DSGD discussion papers 15, International Food Policy Research Institute (IFPRI).
    2. David Carpenter, 2003. "An investigation into the transition from technological to ecological rice farming among resource poor farmers from the Philippine island of Bohol," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 20(2), pages 165-176, June.
    3. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    4. Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
    5. Vella, Francis & Verbeek, Marno, 1999. "Estimating and Interpreting Models with Endogenous Treatment Effects," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(4), pages 473-478, October.
    6. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
    7. Ravallion, Martin, 2008. "Evaluating Anti-Poverty Programs," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 59, pages 3787-3846, Elsevier.
    8. Patrick Puhani, 2000. "The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
    9. Phil Simmons, 2002. "Overview of Smallholder Contract Farming in Developing Countries," Working Papers 02-04, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    10. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
    11. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    13. Benfica, Rui M.S. & Tschirley, David L. & Boughton, Duncan, 2006. "Interlinked Transactions in Cash Cropping Economies: The Determinants of Farmer Participation and Performance in the Zambezi River Valley of Mozambique," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25244, International Association of Agricultural Economists.
    14. Simmons, Paul, 2002. "Overview of smallholder contract farming in developing countries," ESA Working Papers 289109, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    15. Poulton, Colin & Gibbon, Peter & Hanyani-Mlambo, Benjamine & Kydd, Jonathan & Maro, Wilbald & Larsen, Marianne Nylandsted & Osorio, Afonso & Tschirley, David & Zulu, Ballard, 2004. "Competition and Coordination in Liberalized African Cotton Market Systems," World Development, Elsevier, vol. 32(3), pages 519-536, March.
    16. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
    17. Andrew Dorward & Shenggen Fan & Jonathan Kydd & Hans Lofgren & Jamie Morrison & Colin Poulton & Neetha Rao & Laurence Smith & Hardwick Tchale & Sukhadeo Thorat & Ian Urey & Peter Wobst, 2004. "Institutions and Policies for Pro-poor Agricultural Growth," Development Policy Review, Overseas Development Institute, vol. 22(6), pages 611-622, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:hal:journl:dumas-00802135 is not listed on IDEAS
    2. Katrin Hussinger, 2008. "R&D and subsidies at the firm level: an application of parametric and semiparametric two-step selection models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(6), pages 729-747.
    3. repec:oup:apecpp:v:40:y:2018:i:3:p:379-401. is not listed on IDEAS
    4. Xolile Mamba, Tangetile, 2016. "The role of contracts in improving access to credit in the smallholder livestock sector of Swaziland," Research Theses 243472, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Ba, Hélène A. & de Mey, Yann & Thoron, Sylvie & Demont, Matty, 2019. "Inclusiveness of contract farming along the vertical coordination continuum: Evidence from the Vietnamese rice sector," Land Use Policy, Elsevier, vol. 87(C).
    6. Isoto, Rosemary E. & Kraybill, David S. & Erbaugh, Mark J., 2014. "Impact of integrated pest management technologies on farm revenues of rural households: The case of smallholder Arabica coffee farmers," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(2), pages 1-13, April.
    7. Benfica, Rui M.S., 2007. "Interlinked Transactions in Cash Cropping Economies: Rationale for Persistence, and the Determinants of Farmer Participation and Performance in the Zambezi Valley of Mozambique," Food Security Collaborative Working Papers 56069, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Swati Dhingra, 2016. "Piggy-Back Exporting, Intermediation, and the Distributional Gains from Trade in Agricultural Markets," 2016 Meeting Papers 712, Society for Economic Dynamics.
    9. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    10. Luca Grilli & Samuele Murtinu, 2011. "Econometric Evaluation of Public Policies for Science and Innovation: A Brief Guide to Practice," Chapters, in: Massimo G. Colombo & Luca Grilli & Lucia Piscitello & Cristina Rossi-Lamastra (ed.), Science and Innovation Policy for the New Knowledge Economy, chapter 3, Edward Elgar Publishing.
    11. Christoph Schmidt, 2007. "Policy evaluation and economic policy advice," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 91(4), pages 379-389, December.
    12. Fier, Andreas & Heger, Diana & Hussinger, Katrin, 2005. "Die Wirkungsanalyse staatlicher Förderprogramme durch den Einsatz von Matching- und Selektionsmodellen am Beispiel der Fertigungstechnik," ZEW Discussion Papers 05-09, ZEW - Leibniz Centre for European Economic Research.
    13. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    14. Christian Volpe Martincus, 2010. "Odyssey in International Markets: An Assessment of the Effectiveness of Export Promotion in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 16458, February.
    15. Elisabeth Nindl, 2014. "An empirical assessment of Fairtrade: A perspective for low- and middle-income countries?," Department of Economics Working Papers wuwp160, Vienna University of Economics and Business, Department of Economics.
    16. Mazzutti, Caio Cícero Toledo Piza da Costa, 2016. "Three essays on the causal impacts of child labour laws in Brazil," Economics PhD Theses 0616, Department of Economics, University of Sussex Business School.
    17. Jones A.M & Rice N, 2009. "Econometric Evaluation of Health Policies," Health, Econometrics and Data Group (HEDG) Working Papers 09/09, HEDG, c/o Department of Economics, University of York.
    18. Natalia Pimenta Monteiro, 2010. "Using propensity matching estimators to evaluate the impact of privatization on wages," Applied Economics, Taylor & Francis Journals, vol. 42(10), pages 1293-1313.
    19. Mendola, Mariapia & Simtowe, Franklin, 2015. "The Welfare Impact of Land Redistribution: Evidence from a Quasi-Experimental Initiative in Malawi," World Development, Elsevier, vol. 72(C), pages 53-69.
    20. Shanwen Zhu & Man Li & Renyao Zhong & Peter C. Coyte, 2019. "The Effects of Co-Residence on the Subjective Well-Being of Older Chinese Parents," Sustainability, MDPI, vol. 11(7), pages 1-17, April.
    21. Malo, Miguel A. & Muñoz-Bullón, Fernando, 2005. "Job matching quality effects of employment promotion measures for people with disabilities," DEE - Working Papers. Business Economics. WB wb055315, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    22. Bryson, Alex & Dorsett, Richard & Purdon, Susan, 2002. "The use of propensity score matching in the evaluation of active labour market policies," LSE Research Online Documents on Economics 4993, London School of Economics and Political Science, LSE Library.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:37:y:2009:i:6:p:1094-1104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.