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1 – 10 of over 1000Ummi Ibrahim Atah, Mustafa Omar Mohammed, Abideen Adewale Adeyemi and Engku Rabiah Adawiah
The purpose of this paper is to propose a model that will demonstrate how the integration of Salam (exclusive agricultural commodity trade) with Takaful (micro-Takaful – a…
Abstract
Purpose
The purpose of this paper is to propose a model that will demonstrate how the integration of Salam (exclusive agricultural commodity trade) with Takaful (micro-Takaful – a subdivision of Islamic insurance) and value chain can address major challenges facing the agricultural sector in Kano State, Nigeria.
Design/methodology/approach
The study conducted a thorough and critical analysis of relevant literature and existing models of financing agriculture in Nigeria to come up with the proposed model.
Findings
The findings indicate that measures undertaken to address the major challenges fail. In view of this, this study proposed Bay-Salam with Takaful and value chain model to solve a number of challenges such as poor access to financing, poor marketing and pricing, delay, collateral requirement and risk issues in order to avail farmers with easy access to finance and provide effective security to financial institutions.
Research limitations/implications
The paper is limited to using secondary data. Therefore, empirical investigation can be carried out to strengthen the validation of the model.
Practical implications
The study outcome seeks to improve the productivity of the farmers through enhancing their access to finance. This will increase their level of production and provide more employment opportunities. In addition, it will boost financial inclusion, income generation, poverty alleviation, standard of living, food security and overall economic growth and development.
Originality/value
The novelty of this study lies in the integration of classical Bay-Salam with Takaful and value chain and create a unique model structure which the researchers do not come across in any research that presented it in Nigeria.
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Timothy Anakwa Osei, Samuel A. Donkoh, Isaac Gershon Kodwo Ansah, Joseph A. Awuni and Mensah Tawiah Cobbinah
Promoted for its inclusivity, agricultural value chain (AVC) financing leverages social capital and mechanisms such as off-take agreements and forward contracts to reduce…
Abstract
Purpose
Promoted for its inclusivity, agricultural value chain (AVC) financing leverages social capital and mechanisms such as off-take agreements and forward contracts to reduce borrowing and lending costs and risks for both farmers and lending institutions. AVC financing has been defined as the flow of financial products and services to and among the various actors within the AVC to address constraints of production and distribution and fulfill the needs of those involved in the chain by reducing risk and improving efficiency. This paper investigates how farmers' involvement in AVC affects their access to credit.
Design/methodology/approach
The authors collected primary data from 400 crop farmers in northern Ghana through a semi-structured questionnaire and analyzed the data, using the multinomial endogenous switching regression model.
Findings
Joint participation in AVC increased the amount of formal and informal credit received by 64 and 78%, respectively, compared to nonparticipation. Similarly, participation in AVC horizontal linkage and AVC vertical linkage increased the amount of formal and informal credit received by 40 and 47% and 46 and 74%, respectively, compared to nonparticipation. Irrigation farming, extension visits, knowledge of AVC in the community, access to a storage facility and trust in contract farming significantly influenced farmers' participation in AVC.
Originality/value
The authors’ work offers valuable insights into how different dimensions of value chain participation can impact smallholder farmers' access to credit. This work also underscores the importance of considering both formal and informal credit sources when analyzing the outcomes of value chain participation. The findings could enable formal financial providers to identify, liaise and/or resource informal financial players such as value chain actors to supply both formal and informal credit to farmers in AVCs.
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Deepa Pillai and Shubhra Mishra Deshpande
Warehouse receipt-based financing (WRF), an innovative instrument with its structure embedded in the agricultural value chain can potentially address farmers' concerns about…
Abstract
Purpose
Warehouse receipt-based financing (WRF), an innovative instrument with its structure embedded in the agricultural value chain can potentially address farmers' concerns about timely credit access and accessible remunerative markets. However, studies indicate farmers' exclusion from currently practiced WRF mechanisms across developing countries. Transaction cost and lack of assured remunerative markets post storage are the challenges thwarting farmers' participation. The study explores how these challenges can be addressed by analyzing a case study. The finding will help in coming up with a farmer-inclusive WRF mechanism.
Design/methodology/approach
The study uses a case study as an analysis tool. Primary data is gathered through farmers. Descriptive statistics and partial least squares (PLS) approach to structural equation modeling methodology has been adopted for empirical testing of the hypothesis of the study. The study uses SMART PLS 3.0 for analysis of data.
Findings
Single window offering of multiple value chain operations and technological intervention in physical handling substantially reduces transaction costs for farmers. Sustained farmers' participation in the case supports this finding. The presence of an assured market (PAM) is found to have a positive and significant relationship with WRF in the case of beneficiary farmers. The PAM is found to have a negative yet significant relationship with WRF in the case of nonbeneficiary farmers. Critical success factors of the entity KisanMitra stated in the case substantiates a farmer-inclusive WRF mechanism.
Research limitations/implications
The study analyzes a case study of specific geography. However, similarities enlisted across developing countries in the introduction section provide a scope of generalization of findings across developing countries. The identified factors for a farmer-inclusive WRF mechanism will enable the governments, policymakers and development institutions to ascertain and align their WRF implementation measures to inculcate and upgrade these factors to the prospective WRF agents. Future studies can explore the replication of farmer-inclusive WRF mechanisms across other geographies. The studies also explores the role of technological interventions in further reducing the transaction cost and suitable policy modifications to encourage replication of the study in other geopgraphical context.
Originality/value
The study on WRF and the methodology adopted is first of its kind to identify factors for a farmer-inclusive WRF mechanism.
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This study assesses the extent to which integrated extension services contribute to the adoption of climate-smart agriculture (CSA) innovations within the cotton value chain in…
Abstract
Purpose
This study assesses the extent to which integrated extension services contribute to the adoption of climate-smart agriculture (CSA) innovations within the cotton value chain in Burkina Faso.
Design/methodology/approach
To address the research question, a probit multivariate econometric model with sample selection is utilized. The model is applied to a random sample of farmers (n = 510), and the endogeneity is addressed through a control function approach.
Findings
The study highlights the central role of value chains, particularly in the cotton sector, in overcoming resource scarcity through integrated extension services. Findings show that smallholder farmers who benefit from sound extension services are more willing to adopt and diversify CSA technologies. These include improved seeds, conservation techniques, adapted planting dates and mechanization. This study confirms the synergistic nature of these technologies and emphasizes that effective climate risk mitigation depends on the combined adoption of CSA technologies.
Research limitations/implications
The use of cross-sectional data limits the analysis of long-term farmer behavior, and due to data limitations, the focus was primarily on the contributions of cotton companies and farmers to climate risk mitigation. Future research using panel data across the value chain could provide a more robust insights for policy decision-making.
Originality/value
The study contributes to the existing body of knowledge by emphasizing the crucial role of integrated extension services within the cotton value chain in developing countries. This highlights the critical benefits for farmers and emphasizes the need to diversify modern technologies to effectively combat climate change and its variability in agriculture.
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Sayeda Zeenat Maryam and Ashfaq Ahmad
In the current era of technological advancement, it is becoming essential for financial institutions to serve through financial technology (Fintech). This study aims to integrate…
Abstract
Purpose
In the current era of technological advancement, it is becoming essential for financial institutions to serve through financial technology (Fintech). This study aims to integrate Fintech with value chain in existing system of Islamic financial institutions (IFIs) and to determine the adoption of Fintech value chain financing (FVCF) by IFIs in the presence of mediators.
Design/methodology/approach
This paper examines a conceptual model by performing a self-administration survey for 393 sample size. After the completion of data collection 263 suitable responses are used for analysis. The hypotheses are tested by applying algorithm, bootstrapping and blindfolding techniques.
Findings
The findings of structural model demonstrate that trust, information sharing (IS) and information and communication technology (ICT) are important for adoption of FVCF in the perspective of IFIs. Secondly, innovativeness is partially mediating the relationship of trust, IS and ICT for adoption of FVCF. Thirdly, competitiveness is fully mediating the relationship of trust, IS and ICT with agility for adoption of FVCF by IFIs.
Research limitations/implications
Theoretically, this research is developing a conceptual model that is providing a new way to integrate value chain partners. This study is demonstrating the sequential mediation for the adoption of FVCF. Practically, this research is giving meaningful insight to policymakers of IFIs by suggesting a way forward to adopt FVCF. However, there is need to know the perception of other stakeholders that may involve in FVCF.
Originality/value
Because there exists limited work in the context of integration and adoption of Fintech by organizations, this study is a pioneer that is taking the perspective of financial institutions for FVCF.
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Elisa Medina, Federico Caniato and Antonella Maria Moretto
Since 2008’s financial crisis, attention toward supply chain finance (SCF) has increased. However, most research investigates SCF considering single supply chain (SC) stages or…
Abstract
Purpose
Since 2008’s financial crisis, attention toward supply chain finance (SCF) has increased. However, most research investigates SCF considering single supply chain (SC) stages or buyer–supplier dyads and focuses on a single SCF solution. It is important to see how different solutions are adopted at different SC stages, by actors with different financing needs. This study aims to analyze SCF at different SC stages, to understand why different solutions are implemented at different SC stages and the contingency factors (regulation, SC stage, product category and size) influencing their adoption.
Design/methodology/approach
The paper is based on multiple exploratory case studies in the Italian agri-food industry, considering firms distributed at different SC stages and adopting multiple SCF solutions. The paper exploits a contingent approach (Sousa and Voss, 2008) to analyze how contingent factors influence SCF adoption at different SC stages.
Findings
Findings explain how and why different SC stages (producer, cooperative, processor and retailer) implement different SCF solutions (reverse factoring, dynamic discounting, inventory finance and Minibond), describing contingency variables’ impact on their adoption.
Originality/value
To the best of the authors’ knowledge, the research is original in its description of SCF at different SC stages, considering different SC actors’ drivers and barriers, and questioning the importance of a coordinated approach in SCF adoption along an entire SC. Moreover, the paper adopts a contingent approach, contributing to SCF research, seldomly based on theoretical lenses.
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Piotr Rogala, Piotr Kafel and Inga Lapina
The study aims to determine whether audited organizations experience differences between external audits and official controls.
Abstract
Purpose
The study aims to determine whether audited organizations experience differences between external audits and official controls.
Design/methodology/approach
A survey among 100 organic food producers was conducted to explore differences regarding the usability of external audits and official controls. The survey was conducted in 2020 using the computer-assisted telephone interview (CATI) method supplemented by the computer-assisted web interview (CAWI) method. Organizations processing organic farming products in Poland were chosen for the study.
Findings
Three primary benefits associated with external audits and official controls were identified, i.e. (1) enabling and initiating activities related to the improvement of the organization, (2) improving the financial performance of the organization and (3) enhancing credibility. For most organizations, the assessment of these features was at the same level for both external audits and official control. However, if these assessments differed, commercial audits were assessed at a higher level than official controls.
Research limitations/implications
The study is limited to only one specific type of manufacturing organization and one European country.
Originality/value
The literature review shows some conceptual differences between audits and official controls, but the results of this study show that the business environment does not perceive these differences as significant. Thus, the value of the study is reflected in the conclusion that both external audits and official controls are considered useful and credible approaches to monitoring the quality within the organization, which allows us to state that external evaluation is generally seen as an opportunity to improve the performance of the organization.
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Meine Pieter van Dijk, Gigi Limpens, Julius Gatune Kariuki and Diederik de Boer
This article explores the potential of an emerging group of farmers in Kenya, namely the growing segment of urban-based medium-size farmers, often called “telephone farmers”. To…
Abstract
Purpose
This article explores the potential of an emerging group of farmers in Kenya, namely the growing segment of urban-based medium-size farmers, often called “telephone farmers”. To what extent do they benefit from an emerging ecosystem to support them in operating their farms, and what does that mean for the Hidden middle of agricultural value chains, the actors between the farmers and consumers? Unlocking the potential production of telephone farmers will require more services from collectors, traders, transport firms, the storage facilities, wholesalers and processing units and retailers. Ultimately, optimized telephone farm production benefits the business of Hidden middle value chain actors, increases incomes and jobs and improves food security.
Design/methodology/approach
Based on a survey and in-depth interviews a profile of the telephone farmers is given and their role as innovators is analyzed. The Latia Resource Centre (LRC) provides assistance to medium-size farmers, like the telephone farmers, helping them to prepare business plans and use modern technology and contributing to an emerging ecosystem providing support to all farmers.
Findings
The article analyzes the medium-size telephone farmers. It documents the contributions of this new agricultural actor to developing value chains and a dynamic ecosystem. The paper profiles the telephone farmers first and then identifies what they need and the support they receive. The emerging innovative ecosystem impacts agricultural productivity and production and hence the development of value chains. Small farmers gain access to opportunities offered by telephone farmers, working for them as outgrower or farm worker.
Research limitations/implications
The authors used a small sample of 51 farmers and covered only a two-year period.
Social implications
Small farmers are being helped through the emerging eco-system and farm labor acquire skills, which they can also you on another or their own farm.
Originality/value
Based on the analysis an even more effective ecosystem is suggested and policy recommendations are formulated before the conclusion is drawn that these medium-size farmers contribute to innovation diffusion, inclusive value chain development and food security and are becoming part of this expanding, innovative ecosystem. Following the debate on food security the results suggest to pay more attention to the development of telephone farmers given their role in developing agricultural value chains and innovative ecosystems.
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Yanti Nuraeni Muflikh, Rajendra Adhikari and Ammar Abdul Aziz
This paper aims to analyse the governance structures of the Indonesian chilli value chain, price volatility issues across the chain and to critically explore the value chain…
Abstract
Purpose
This paper aims to analyse the governance structures of the Indonesian chilli value chain, price volatility issues across the chain and to critically explore the value chain actors' perceptions and responses to price volatility.
Design/methodology/approach
The authors used semi-structured interviews with 148 primary actors of the Indonesian chilli value chain. In-depth interviews with 22 key stakeholders – from local, provincial and national levels – were conducted in order to obtain additional information about their roles and the current policies and challenges in the chilli industry. The authors also conducted focus group discussions (FGDs) with farmers and support providers and held a national workshop to gather governance and price volatility risk-related information.
Findings
The Indonesian chilli value chains are long, complex and involve multiple actors. Most relationships within the value chains are based on market governance in which price regulates transactions. Most value chain actors shared a similar perception of price volatility and its causes. Under different governance structures, the value chain actors identified production, product characteristics and marketing as a major cause of price volatility. Although strategies applied by the value chain actors varied, in the main they are all aimed at minimising the impact of price volatility. Contractual arrangements are viable alternatives to minimising price risk.
Research limitations/implications
This research relies primarily on qualitative data derived from purposive data collection methods, which may reduce the ability to generalise the findings. A quantitative analysis is required to validate the level of price volatility perceived by the stakeholders and to assess the cause and impact of price volatility across the chain. Future research should focus on proposing and assessing potential policy interventions that address price volatility, in order to facilitate the development of the Indonesian chilli industry.
Originality/value
To the best of the author’s knowledge, this study is the first to investigate the governance structures of the Indonesia chilli value chain, the value chain actors' perceptions of price volatility and their responses under the different types of governance in a developing country context.
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This paper examines the relevance of Public-Private-Community Partnerships (PPCPs) as an alternative mechanism in enhancing food security during the COVID-19 pandemic and beyond…
Abstract
Purpose
This paper examines the relevance of Public-Private-Community Partnerships (PPCPs) as an alternative mechanism in enhancing food security during the COVID-19 pandemic and beyond in Zimbabwe. It also draws attention to the complexities of adopting PPCPs, and proposes possible options to improve their effectiveness.
Design/methodology/approach
The study applied concurrent mixed research methods. The sample population comprised multiple stakeholders in the area of food security and agricultural financing in Zimbabwe. The research adopted purposive and snowball sampling techniques. Data were collected through questionnaire, in-depth interviews, focus group discussions (FGDs) and documentary analysis. Descriptive statistics were used to analyse quantitative data, while qualitative data analysis was conducted thematically.
Findings
Prior to the outbreak of the COVID-19 pandemic, food insecurity was a consistent challenge in Zimbabwe. The pandemic has worsened the situation by further disruption of food systems and limiting people's access to food. PPCPs could be feasible alternative as they enhance value chain collaboration, improve access to inputs, reduce information asymmetry, ensure trust and facilitate risk sharing. PPCPs require proper design, control of transaction costs, clear definition of partners' roles, fair risk sharing, trust, and flexibility.
Originality/value
PPCPs are yet to be adopted in the Zimbabwean agricultural sector. The research informs policymakers on the need to implement multi-stakeholder collaborations in food production.
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