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Impact of contract-farming in staple food chains: the case of rice in Benin

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  • Vande Velde, Katrien
  • Maertens, Miet

Abstract

Research on the impact of smallholder contract-farming largely focuses on exportoriented high-value commodities. Little is known about the possibility of contract-farming for upgrading in staple food chains. While theoretical insights predict contract-farming to be infeasible for lower-value staple food crops, empirical evidence from such sectors is extremely scarce. In this paper, we provide evidence on smallholder contract-farming in the rice sector in Benin. We use cross-sectional household data and propensity score matching methods to analyze the impact of contract-farming on selected farm performance indicators. The findings indicate that contract-farming has a positive impact on rice productivity and income.

Suggested Citation

  • Vande Velde, Katrien & Maertens, Miet, 2014. "Impact of contract-farming in staple food chains: the case of rice in Benin," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182682, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae14:182682
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    References listed on IDEAS

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    1. 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.
    2. Diao, Xinshen & Thurlow, James & Benin, Samuel & Fan, Shenggen, 2012. "Strategies and priorities for African agriculture: Economywide perspectives from country studies," Issue briefs 73, International Food Policy Research Institute (IFPRI).
    3. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    4. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    5. Porter, Gina & Phillips-Howard[malt], Kevin, 1997. "Comparing contracts: An evaluation of contract farming schemes in Africa," World Development, Elsevier, vol. 25(2), pages 227-238, February.
    6. Peter Gibbon, 2003. "Value-chain Governance, Public Regulation and Entry Barriers in the Global Fresh Fruit and Vegetable Chain into the EU," Development Policy Review, Overseas Development Institute, vol. 21(5-6), pages 615-625, December.
    7. Diao, Xinshen & Thurlow, James & Benin, Samuel & Fan, Shenggen, 2012. "Strategies and priorities for African agriculture: Economywide perspectives from country studies," IFPRI books, International Food Policy Research Institute (IFPRI), number Xinshen Diao, OCTOBER.
    8. Miet Maertens & Liesbeth Colen & Johan F. M. Swinnen, 2011. "Globalisation and poverty in Senegal: a worst case scenario?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(1), pages 31-54, March.
    9. repec:fpr:ifprib:xinshendiao is not listed on IDEAS
    10. 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.
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    Cited by:

    1. Iro Ibrahim Kutawa, 2016. "Empirical evidence on contract farming in northern Nigeria: Case study of tomato production," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 6(12), pages 240-253, December.

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    Keywords

    Institutional and Behavioral Economics;

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