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Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents

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Author Info

  • Barrett, Christopher B.
  • Bachke, Maren E.
  • Bellemare, Marc F.
  • Michelson, Hope C.
  • Narayanan, Sudha
  • Walker, Thomas F.

Abstract

Supermarkets, specialized wholesalers, and processors and agro-exporters’ agricultural value chains have begun to transform the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework through which to study contracting between smallholders and a commodity-processing firm. We then conduct an empirical meta-analysis of agricultural value chains in five countries across three continents (Ghana, India, Madagascar, Mozambique, and Nicaragua). We document patterns of participation, the welfare gains associated with participation, reasons for non-participation, the significant extent of contract non-compliance, and the considerable dynamism of these value chains, as farmers and firms enter and exit frequently.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27829.

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Date of creation: 30 Dec 2010
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Handle: RePEc:pra:mprapa:27829

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Related research

Keywords: Agricultural Value Chains; Contract Farming; Africa; Asia; Latin America;

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References

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  1. Marc F. Bellemare, 2010. "Agricultural extension and imperfect supervision in contract farming: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 41(6), pages 507-517, November.
  2. Bellemare, Marc F., 2010. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," MPRA Paper 27259, University Library of Munich, Germany.
  3. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
  4. Trienekens, Jacques H. & Willems, Sabine, 2007. "Innovation and Governance in International Food Supply Chains: The Cases of Ghanaian Pineapples and South African Grapes," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 10(4).
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  11. Sashi Sivramkrishna & Amalendu Jyotishi, 2008. "Monopsonistic exploitation in contract farming: articulating a strategy for grower cooperation," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(3), pages 280-296.
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  18. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
  19. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, December.
  20. Michelson, Hope & Reardon, Thomas & Perez, Francisco Jose, 2010. "Small Farmers and Big Retail: trade-offs of supplying supermarkets in Nicaragua," Staff Papers 62124, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  21. Patrick Bajari & Steven Tadelis, 1999. "Incentives versus Transaction Costs: A Theory of Procurement Contracts," Working Papers 99029, Stanford University, Department of Economics.
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  24. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
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Cited by:
  1. Sudha Narayanan, 2012. "Safe gambles? Farmer perceptions of transactional certainty and risk-return tradeoffs in contract farming schemes in Southern India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-021, Indira Gandhi Institute of Development Research, Mumbai, India.

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