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The Impact of Alternative Agro-Industrial Investments on Poverty Reduction in Rural Mozambique

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  • Benfica, Rui M.S.
  • Tschirley, David L.
  • Sambo, Liria

Abstract

Research throughout the developing world has shown a potentially strong relationship between agro-industrial investments and growth in smallholder agriculture and poverty reduction. This paper suggests that agro-industrial investments, if properly structured to relate to smallholder producers, can play a very important role in rural poverty reduction strategies in Mozambique. Current agro-industrial investments in the country demonstrate various degrees of connectedness with rural households. The choice of how, and how closely, to relate to smallholders is determined by the characteristics of the commodity, by the physical, political, and economic environment in which the investment takes place, and by the knowledge, skills, experience, and preferences of the smallholders and of the investors and company management. Given the breadth of factors involved, different approaches can emerge under apparently very similar circumstances, each with differing implications for rural poverty reduction. Therefore, knowledge of the likely effects of alternative investment options in the food and fiber industries on rural incomes and firm profits becomes an important asset in the design of rural poverty reduction strategies.

Suggested Citation

  • Benfica, Rui M.S. & Tschirley, David L. & Sambo, Liria, 2002. "The Impact of Alternative Agro-Industrial Investments on Poverty Reduction in Rural Mozambique," Food Security Collaborative Working Papers 56055, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcwp:56055
    DOI: 10.22004/ag.econ.56055
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    References listed on IDEAS

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    1. Tschirley, David L., 1998. "Planning for Drought in Mozambique: Balancing the Roles of Food Aid and Food Markets," Food Security Collaborative Working Papers 56026, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Santos, Ana Paula & Tschirley, David L., 1999. "The Effects of Maize Trade with Malawi on Price Levels in Mozambique: Implications for Trade and Development Policy," Food Security Collaborative Policy Briefs 55213, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    6. Benfica, Rui M.S. & Arlindo, Pedro & Weber, Michael T. & Tschirley, David L., 2000. "Representative Characteristics of Rural Households in Areas of Central and Southern Mozambique Affected by the 2000 Floods," Food Security Collaborative Policy Briefs 55214, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Rose, Donald & Tschirley, David L., 2000. "A Simplified Method for Assessing Dietary Adequacy in Mozambique," Food Security Collaborative Working Papers 56034, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Reardon, Thomas & Barrett, Christopher B., 2000. "Agroindustrialization, globalization, and international development: An overview of issues, patterns, and determinants," Agricultural Economics, Blackwell, vol. 23(3), pages 195-205, September.
    9. Rose, Donald & Strasberg, Paul J. & Jeje, Jose Jaime & Tschirley, David L., 1999. "Household Food Consumption in Mozambique: A Case Study in Three Northern Districts," Food Security Collaborative Working Papers 56031, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Holloway, Garth & Nicholson, Charles & Delgado, Chris & Staal, Steve & Ehui, Simeon, 2000. "Agroindustrialization through institutional innovation: Transaction costs, cooperatives and milk-market development in the east-African highlands," Agricultural Economics, Blackwell, vol. 23(3), pages 279-288, September.
    11. Howard, Julie A. & Low, Jan W. & Jeje, Jose Jaime & Boughton, Duncan & Massingue, Jaquelino & Maredia, Mywish K., 2001. "Constraints and Strategies for the Development of the Seed System in Mozambique," Food Security Collaborative Working Papers 56045, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:

    1. Deininger, Klaus & Xia, Fang, 2016. "Quantifying Spillover Effects from Large Land-based Investment: The Case of Mozambique," World Development, Elsevier, vol. 87(C), pages 227-241.
    2. Tschirley, David L. & Abdula, Danilo Carimo & Weber, Michael T., 2006. "Toward Improved Maize Marketing and Trade Policies to Promote Household Food Security in Central and Southern Mozambique," Food Security Collaborative Working Papers 56065, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Abdul-Hanan Abdallah & Michael Ayamga & Joseph Agebase Awuni, 2023. "Large-Scale Land Acquisition and Household Farm Investment in Northern Ghana," Land, MDPI, vol. 12(4), pages 1-36, March.
    4. Tschirley, David L. & Poulton, Colin & Boughton, Duncan, 2006. "The Many Paths of Cotton Sector Reform in Eastern and Southern Africa: Lessons From a Decade of Experience," Food Security Collaborative Working Papers 54477, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Suttie, D. & Benfica, R., 2016. "IFAD RESEARCH SERIES 3 - Fostering inclusive outcomes in sub-Saharan African agriculture: improving agricultural productivity and expanding agribusiness opportunities," IFAD Research Series 280040, International Fund for Agricultural Development (IFAD).
    6. Bias, Calisto & Donovan, Cynthia, 2003. "Gaps and Opportunities for Agricultural Sector Development in Mozambique," Food Security Collaborative Working Papers 56058, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Tschirley, David L. & Abdula, Danilo Carimo, 2007. "Toward Improved Marketing and Trade Policies to Promote Household Food Security in Central and Southern Mozambique: 2007 Update," Food Security Collaborative Working Papers 56068, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Tschirley, David L., 2002. "Some Characteristics of Pro-poor Growth, and Policy Implications for Mozambique," Food Security Collaborative Policy Briefs 55227, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. 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.

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    Food Security and Poverty;

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