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

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

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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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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  2. Foster, Andrew D. & Rosenzweig, Mark R., 2010. "Microeconomics of Technology Adoption," Working Papers 78, Yale University, Department of Economics.
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  8. Mathias Dewatripont & Patrick Bolton, 2005. "Contract theory," ULB Institutional Repository 2013/9543, ULB -- Universite Libre de Bruxelles.
  9. 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.
  10. Bellemare, Marc F., 2010. "Agricultural Extension and Imperfect Supervision in Contract Farming: Evidence from Madagascar," MPRA Paper 23788, University Library of Munich, Germany.
  11. 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.
  12. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
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  18. 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).
  19. 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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