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

Author

Listed:
  • 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.

Suggested Citation

  • Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2010. "Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents," MPRA Paper 27829, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27829
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Rosch, Stephanie & Ortega, David, 2014. "Looking for Causes of Effects: Imperfect Contract Enforcement in Kenya's French Bean Market," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170553, Agricultural and Applied Economics Association.
    2. repec:spr:ssefpa:v:9:y:2017:i:6:d:10.1007_s12571-016-0642-2 is not listed on IDEAS
    3. Narayanan, Sudha, 2014. "Profits from participation in high value agriculture: Evidence of heterogeneous benefits in contract farming schemes in Southern India," Food Policy, Elsevier, vol. 44(C), pages 142-157.
    4. Frank Mmbando & Edilegnaw Wale & Lloyd Baiyegunhi, 2015. "Welfare impacts of smallholder farmers’ participation in maize and pigeonpea markets in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1211-1224, December.
    5. Suzuki, Aya, 2014. "Risk on Dynamic Behavior of Farmers in the Export Market: A Case from the Pineapple Industry in Ghana," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170665, Agricultural and Applied Economics Association.
    6. 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.

    More about this item

    Keywords

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

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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