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Cooperatives for staple crop marketing: Evidence from Ethiopia

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  • Bernard, Tanguy
  • Spielman, David J.
  • Seyoum Taffesse, Alemayehu
  • Gabre-Madhin, Eleni Z.

Abstract

Rural producer organizations, such as farmers' organizations or rural cooperatives, offer a means for smallholder farmers in developing countries to sell their crops commercially. They hold particular promise for Sub-Saharan Africa, where small-scale farming is the primary livelihood but commercialization of foodcrops is very limited. Using the experience of smallholders in Ethiopia as a case study, this research monograph identifies the benefits of rural producer organizations for small farmers, as well as the conditions under which such organizations most successfully promote smallholder commercialization. The evidence from Ethiopia indicates that they do increase farmers' profits from crop sales, but that the beneficiaries do not tend to be the poorest smallholders. Moreover, a rural producer organization's marketing effectiveness is precarious: it can easily diminish if the number or diversity of its members increases or if it provides more nonmarketing services. The authors conclude that these organizations have a role to play in the agricultural development of Sub-Saharan Africa, but that role should be complemented by other programs that directly target the poorest farmers. Further, the effectiveness of rural producer organizations should be preserved by allowing them to follow their own agendas rather than being encouraged to take on nonmarketing activities. The assessment of rural producer organizations presented in this monograph should be a valuable resource for policymakers and researchers concerned with economic development and poverty reduction in Sub-Saharan Africa.

Suggested Citation

  • Bernard, Tanguy & Spielman, David J. & Seyoum Taffesse, Alemayehu & Gabre-Madhin, Eleni Z., 2010. "Cooperatives for staple crop marketing: Evidence from Ethiopia," Research reports 164, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:resrep:164
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    File URL: http://www.ifpri.org/sites/default/files/publications/rr164.pdf
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    References listed on IDEAS

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    1. C. Peter Timmer, 1997. "Farmers and Markets: The Political Economy of New Paradigms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 621-627.
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    Cited by:

    1. Mojo, Dagne & Fischer, Christian & Degefa, Terefe, 2015. "Who benefits from collective action? Determinants and economic impacts of coffee farmer cooperatives in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211889, International Association of Agricultural Economists.
    2. Minten, Bart & Stifel, David & Tamru, Seneshaw, 2012. "Structural Transformation in Ethiopia: Evidence from Cereal Markets:," ESSP research notes 14, International Food Policy Research Institute (IFPRI).
    3. Minten, Bart & Tamru, Seneshaw & Engida, Ermias & Kuma, Tadesse, 2013. "Using evidence in unraveling food supply chains in Ethiopia: The supply chain of teff from major production areas to Addis Ababa:," ESSP working papers 54, International Food Policy Research Institute (IFPRI).
    4. Gashaw Tadesse Abate & Gian Nicola Francesconi & Gian Nicola Francesconi, 2013. "Impact of agricultural cooperatives on smallholders' technical efficiency: evidence from Ethiopia," Euricse Working Papers 1350, Euricse (European Research Institute on Cooperative and Social Enterprises).
    5. Gashaw Tadesse ABATE & Gian Nicola FRANCESCONI & Kindie GETNET, 2014. "Impact Of Agricultural Cooperatives On Smallholders’ Technical Efficiency: Empirical Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 257-286, June.
    6. Minten, Bart J. & Legesse, Ermias & Beyene, Seneshaw & Werako, Tadesse, 2015. "Feeding Africa's cities: The case of the Supply Chain of Teff to Addis Ababa," 2015 Conference, August 9-14, 2015, Milan, Italy 212465, International Association of Agricultural Economists.
    7. Woldu, Thomas & Tadesse, Fanaye & Waller, Marie-Katherine, 2013. "Women’s participation in agricultural cooperatives in Ethiopia:," ESSP working papers 57, International Food Policy Research Institute (IFPRI).
    8. Mapedza, Everisto & Wichelns, Dennis, 2010. "Evaluating baseline indicators pertaining to Oxfam America's Water Program in Ethiopia: a revised report prepared for Oxfam America," IWMI Research Reports H043433, International Water Management Institute.
    9. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    10. Diao, Xinshen & Kennedy, Adam & Badiane, Ousmane & Cossar, Frances & Dorosh, Paul & Ecker, Olivier & Hagos, Hosaena Ghebru & Headey, Derek & Mabiso, Athur & Makombe, Tsitsi & Malek, Mehrab & Schmidt, , 2013. "Evidence on key policies for African agricultural growth:," IFPRI discussion papers 1242, International Food Policy Research Institute (IFPRI).
    11. Dorosh, Paul A. & Rashid, Shahidur, 2012. "Food and agriculture in Ethiopia: Progress and policy challenges," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-81224-529-5 edited by Dorosh, Paul A. & Rashid, Shahidur.
    12. Minten, Bart & Koro, Bethlehem & Stifel, David, 2013. "The last mile(s) in modern input distribution: Evidence from Northwestern Ethiopia," ESSP working papers 51, International Food Policy Research Institute (IFPRI).
    13. Bernard, Tanguy & Frölich, Markus & Landmann, Andreas & Unte, Pia Naima & Viceisza, Angelino & Wouterse, Fleur, 2015. "Building Trust in Rural Producer Organizations in Senegal: Results from a Randomized Controlled Trial," IZA Discussion Papers 9207, Institute for the Study of Labor (IZA).
    14. Rashid, Shahidur & Negassa, Asfaw, 2012. "Policies and performance of Ethiopian cereal markets," IFPRI book chapters,in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 5 International Food Policy Research Institute (IFPRI).
    15. repec:oup:ajagec:v:99:y:2017:i:5:p:1344-1361. is not listed on IDEAS
    16. Dorosh, Paul A., 2012. "The evolving role of agriculture in Ethiopia's economic development," IFPRI book chapters,in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 11 International Food Policy Research Institute (IFPRI).
    17. Paul A. Dorosh & John W. Mellor, 2013. "Why Agriculture Remains a Viable Means of Poverty Reduction in Sub-Saharan Africa: The Case of Ethiopia," Development Policy Review, Overseas Development Institute, vol. 31(4), pages 419-441, July.
    18. Renkow, Mitch & Slade, Roger, 2013. "An assessment of IFPRI's work in Ethiopia 1995-2010: Ideology, influence, and idiosyncrasy," Impact assessments 36, International Food Policy Research Institute (IFPRI).
    19. Abate, G. T., 2013. "Impact of agricultural cooperatives on smallholders\u2019 technical efficiency: evidence from Ethiopia," IWMI Working Papers H045831, International Water Management Institute.
    20. Abate, Gashaw T. & Bernard, Tanguy, 2017. "Farmers’ quality assessment of their crops and its impact on commercialization behavior: A field experiment in Ethiopia," IFPRI discussion papers 1624, International Food Policy Research Institute (IFPRI).
    21. Rodrigo, Maria F., 2012. "Do cooperatives benefit the poor? Evidence from Ethiopia," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 130545, Agricultural and Applied Economics Association.

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