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This paper aims to quantify the loss (or leakage) of organic cattle to conventional value chains in Ireland and assess its economic and environmental impacts.
Abstract
Purpose
This paper aims to quantify the loss (or leakage) of organic cattle to conventional value chains in Ireland and assess its economic and environmental impacts.
Design/methodology/approach
The paper adopts a Bio-economy Input-Output (BIO) model, a quantitative economic model representing the interdependencies between different sectors of the economy, to assess the economic and environmental impacts of organic leakage in the Irish beef sector.
Findings
The study reveals that 17% of organic cattle aged under 1 year old leave the organic value chain, leaking to the conventional market as a result of imbalances in the development of the beef value chain. The economic cost of this organic leakage is 5.66 million euros. Leakage also has environmental effects because of changes in lifecycle methane and nitrogen emissions based on longer finishing times on organic farms and chemical fertilisers applied on conventional farms. The organic leakage results in a reduction of 82 tons of methane emission and 52 additional tons of nitrogen emission, which leads to 11,484 tons of net global warming potential (GWP) for a 100-year time horizon.
Research limitations/implications
Because of data availability, the research focussed on the baseline year 2015, which had national data available for disaggregation in Ireland. Therefore, researchers are encouraged to assess the economic and environmental impacts when more recent data are available and to analyse the change in the impacts over the years.
Practical implications
This study contributes to the discussion on organic conversion and provides valuable insights for stakeholders, especially policymakers, for the design of future organic schemes.
Originality/value
This is the first paper to assess organic leakage in the beef sector.
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Christopher N. Boyer, Eunchun Park, Karen L. DeLong, Andrew Griffith and Charles Martinez
Premium subsidy rates were increased in 2019 and 2020 for livestock risk protection (LRP) insurance, which is price insurance for cattle producers. The authors examined if the LRP…
Abstract
Purpose
Premium subsidy rates were increased in 2019 and 2020 for livestock risk protection (LRP) insurance, which is price insurance for cattle producers. The authors examined if the LRP subsidy rate changes affected the LRP coverage levels purchased by feeder and fed cattle producers.
Design/methodology/approach
The authors collected the United States Department of Agriculture Risk Management Agency summary of business sales data for daily LRP purchases from 2015 to 2023. The authors estimated a multinomial logit model to determine if subsidy rate changes were associated with the likelihood of LRP policies being purchased at different coverage levels.
Findings
After the 2019 and 2020 subsidy rate changes, the likelihood of producers buying LRP-feeder cattle policies with coverage over 95% increased relative to the policies with coverage less than 89.99% but did not influence the likelihood of producers buying LRP-feeder cattle policies with coverage between 90 and 94.99% relative to policies with coverage less than 89.99%. Marginal effects show these subsidy rate changes increased the likelihood of buyers purchasing LRP-feeder cattle policies with greater than 95% coverage. The subsidy change did not affect the purchase of LRP-fed cattle policies.
Originality/value
The results demonstrate the influence of the recent LRP policy adjustments on insurance purchases, which could be important for agency officials and policy makers. This is the first study to explore the LRP policy purchases which provides the United States cattle industry insight into the LRP price insurance take-up, which can guide producer extension education on managing price risk.
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Amanda Bowen, Claire Beswick and Richard Thomson
Upon completion of this case study, students should be able to apply lessons learned in core readings, analysis and discussion to a specific case study dealing with a current…
Abstract
Learning outcomes
Upon completion of this case study, students should be able to apply lessons learned in core readings, analysis and discussion to a specific case study dealing with a current, real-world situation, specifically: critically assess Livestock Wealth’s case facts and present and justify their point of view – based on attentive reading, critical analysis and engagement – about the company; use a range of strategic tools such as strengths, weaknesses, opportunities and threats analysis, PESTLE analysis and the Ansoff matrix to thoroughly evaluate Livestock Wealth’s internal and external business environment for developing strategic options for business growth and improvements to marketing strategy; use strategic thinking to develop a range of creative solutions to guide the company’s business growth and improvements to marketing strategy; and assess their own growth and development in terms of personal preparation and organisation, collaboration, critical thinking, decision-making skills, participation and problem-solving.
Case overview/synopsis
By February 2022, Ntuthuko Shezi, the founder and chief executive officer of Livestock Wealth, had turned his idea of “crowd farming”, which enables anyone to invest in living farm assets and earn a profit at harvest, into a full-fledged business that was creating wealth for both investors and farmers. Underpinning this case study is Shezi’s vision of an African continent where there is “no ground that is not planted with something of value”, local economies are created in those areas, communities are wealthy, there is abundance, there is money for children to attend school and ultimately where “cows (and agricultural produce in general) are seen as money”. Shezi had grown up in a rural area with grandparents who owned a couple of cows, realizing that the cows were the bedrock of the family’s finances. Describing his business, he says, “Cattle are like a walking bank, and we see ourselves as the bank of the future, where every person who owns a cow can access financial services through Livestock Wealth, just like it has always been in Africa.” This case study describes the two key decisions that Shezi needed to make – what direction to take in terms of business growth and how to improve his marketing strategy (with a limited budget) to attract sufficient investment into Livestock Wealth to make his dreams a reality.
Complexity academic level
This case study is suitable for use for a post-graduate diploma in business, master of business administration or master’s in management.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy.
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Abubakar Yinusa Muhammed, Waziri B. Adisa, Johnson Ayodele, Olawale James Gbadeyan and Esther Garba
Conflicts between herders and farmers in Nigeria in the last five years have been destructive to the corporate existence of Nigerian society and the Nigerian State, especially in…
Abstract
Purpose
Conflicts between herders and farmers in Nigeria in the last five years have been destructive to the corporate existence of Nigerian society and the Nigerian State, especially in Northcentral, Northwestern and Southern Nigeria. This paper aims to investigate the relationships between state responses and peace-building in rural grazing communities in Nigeria using a National Survey on Peace-building in Nigeria conducted by this team using a cross-sectional survey of 1,711 farmers and herders.
Design/methodology/approach
The study adopted the political economy of the herder–farmers conflict in Africa to contextualise the problem. Data generated from the study were analysed using chi-square test and binary logistic regression model.
Findings
The results showed that protection of victims of herder–farmers conflict (P = 0.024), blockage of sources of illicit weapons (P = 0.000), arrest of leaders (P = 0.043), provision of shelter (P = 0.030), provision of food (P = 0.037), protection of women from sexual exploitation and abuse (P = 0.019) and use of the media were positively related to peace-building in the rural grazing areas. The study further found that when the Federal Government (ß= 0.452, P = 0.018), State Government (ß= 0.522, P = 0.018), private individuals (ß = 0.855, P = 0.000) and cooperative societies (ß = 0.744, P = 0.021) established ranches, peace was likely to be guaranteed as opposed to where herders (ß= –0.355, P= 0.029) were allowed to establish ranches in the rural grazing communities in Nigeria implying that the Federal and State Government must be cautious in the implementation of the Livestock Transformation Plans not to create an impression that it is designed to favour the herders.
Originality/value
To the best of the authors’ knowledge, this study is original and the paper has not been submitted to any journal.
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Jason Loughrey and Herath Vidyaratne
The purpose of this paper is to analyse the association between farm/farmer characteristics and unsubsidized farm insurance premium expenditure in Ireland. The distribution of…
Abstract
Purpose
The purpose of this paper is to analyse the association between farm/farmer characteristics and unsubsidized farm insurance premium expenditure in Ireland. The distribution of farm insurance expenditures is wide, and it is important to understand the extent to which individual factors influence demand for different levels of insurance premium.
Design/methodology/approach
The quantile regression approach and farm accountancy data from the Teagasc National Farm Survey are used to model the association between farm/farmer characteristics and farm insurance demand in Ireland.
Findings
Asset values (livestock, buildings and machinery) are positively associated with total insurance expenditure. Both forestry area and crop area are significantly associated with farm insurance expenditure with a stronger influence on the middle and upper part of the distribution. The interaction between farm income and farmer age is positively associated with insurance expenditure pointing to the importance of farm income protection.
Research limitations/implications
The research is mainly concerned with insuring against substantive risks, which are capable of threatening the asset base and continuation of the farm business. Future research can integrate questions in relation to farm safety and farmer health with research on the economic survival of the farm business.
Practical implications
Farmers in Ireland adopt unsubsidized farm insurance as a risk management tool. This situation is relevant to other EU member states including Belgium, Denmark, Germany and Sweden. The findings can be used to inform stakeholders and policymakers about the relative impact of different factors on insurance expenditure.
Originality/value
Previous research has typically focused on the linear relationship between farm/farmer characteristics and insurance demand without accounting for variability across the size distribution. This research is based on the quantile regression approach where the association between farm/farmer characteristics and farm insurance expenditure can be assessed at different points of the distribution.
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Tita Flores, Verónica Greis Andía Flores, Efrain Chura Zea and Javier Mamani Paredes
This article examines the dairy value chain in Southern Peru and identifies four critical success factors that can enhance the local situation.
Abstract
Purpose
This article examines the dairy value chain in Southern Peru and identifies four critical success factors that can enhance the local situation.
Design/methodology/approach
The study employed descriptive research using semi-structured interviews with entrepreneurs from 17 cheese factories across eight districts, namely Azángaro, Ayaviri, Pucara, Lampa, Cabana, Acora, Pomata and Puno. Quantitative market data were also gathered and analyzed alongside qualitative views.
Findings
The study identified four critical issues: quality concerns in milk production, suboptimal managerial practices of cheese-processing plants, lack of compliance to regulations, particularly hygiene and environmental ones, and inadequate access to finance. The findings reveal a gap between the practices of the Puno region's dairy industry and world-class standards for cheese production. Urgent actions are required to improve product quality, increase access to finance, enhance managerial education and ensure compliance with regulations.
Research limitations/implications
Results suggest critical issues to be prioritized, but the article does not propose how to solve the problems identified. External factors, such as economic changes, were also not considered. Interviews were conducted exclusively with cheese processing entrepreneurs, not milk producers.
Originality/value
This case study provides an insight into the interior of Peru, an under-researched region facing several development challenges. The findings have significant implications for dairy value chain stakeholders in Peru and other similar contexts.
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Christopher Belford, Delin Huang, Yosri Nasr Ahmed, Ebrima Ceesay and Lang Sanyang
Climate change and its imminent threat to human survival adversely impact the agriculture sector. In an impoverished country like The Gambia, economic costs of climate change are…
Abstract
Purpose
Climate change and its imminent threat to human survival adversely impact the agriculture sector. In an impoverished country like The Gambia, economic costs of climate change are colossal. This study aims to establish a computable general equilibrium (CGE) model for The Gambia’s agriculture sector to examine the effects of climate change on crops, livestock and sea-level rise.
Design/methodology/approach
This study used a CGE model with other climate change impact models to compute the impacts of climate change on The Gambia’s agriculture sector. The social accounting matrix calibrates the results from the various models, thereby generating the baseline results which exemplify a “steady-state” and policy shock results illustrating the medium- and long-term effects of climate change on the country’s agriculture sector.
Findings
The baseline results indicate the status quo showing the neglect of the agriculture sector due to limited investment in the sector. Hence, the sector is the “hardest hit” sector as a result of climate change. When the model factored in climate change in the medium term (2055) and long term (2085), the macroeconomic indicators of gross domestic product, national savings, wages, disposable income and consumer price index deteriorated, elucidating the vulnerability of the economy to climate change. The consumption of groundnuts, cattle and fish will decline by 5%, 5% and 4%, respectively, in the long term. However, the production of all agricultural commodities will decline by an average of 35% for the same period. The results for international trade show that exportation would decline while importation will increase over time. The general price level for agricultural commodities would increase by 3% in 2055 and 5% in 2085. Generally, the results manifest the severity of climate change in the agriculture sector which will have a multiplier effect on the economy. The impact of climate change would result in agriculture and economic decline causing hunger, poverty and human misery.
Originality/value
The caveat of this study revealed the nuances not captured by previous Gambian climate change studies, thus the novelty of the study.
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Pius Enechojo Adejoh, Omobolanle Gift Amaike, Augustine Okechuchwu Agugua, Gafar Femi Olowu and Sofiat Busari-Akinbode
This paper aims to examine the victimisation experiences of farmers, herders and community members within the context of the persistent conflict between farmers and herders across…
Abstract
Purpose
This paper aims to examine the victimisation experiences of farmers, herders and community members within the context of the persistent conflict between farmers and herders across Nigeria, with specific focus on Anambra, Benue and Oyo states in south-east, north-central and south-west geopolitical zones of the country, respectively.
Design/methodology/approach
The study used the cross-sectional survey to elicit quantitative data from 725 respondents made up of 256 farmers, 225 herders and 244 community members aged 18 years and above, in six purposively sampled local government areas in the three states, while 16 in-depth interviews, 19 key informant interviews and 18 focus group discussions were conducted to extract qualitative data from purposively sampled farmers, herders, community leaders and members of the study communities.
Findings
The results show that farmers, herders and other community members in the study suffered losses in the form of destruction of farmlands and livelihood, internal displacement and human fatalities, for the farmers and community members; and destruction of livelihood, loss of money and human fatalities, for the herders. The paper predicts a worsening of the feud between these groups and the attendant reprisal attacks and victimisation if the current binary narrative of victimhood that privileges the needs and experiences of one group over the other persists, and urges stakeholders to put in place enduring structures that will minimise nomadic herding and ensure proactive security.
Originality/value
The focus on the issue of the “victimisation experiences” of herders and farmers and the invitation to researchers and policymakers to examine the role of the prevailing binary construction of victimhood in the conflict is a refreshing addition to other works on this subject.
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After the completion of this case study, students will be able to understand the importance of being close to local people when embarking on social business; understand that clear…
Abstract
Learning outcomes
After the completion of this case study, students will be able to understand the importance of being close to local people when embarking on social business; understand that clear purpose and good decision-making can lead to great outcomes; and learn that innovation is crucial to ensure sustainability of both business and impact.
Case overview/synopsis
The case highlights the journey of Laiterie du Berger (LDB), a social enterprise in the agribusiness industry and the challenges faced as it expands and innovates. LDB’s roots lie in its commitment to social impact, aiming to uplift the Fulani livestock farmers and address socioeconomic issues. The company’s business model prioritizes people over profits, focusing on sustainable development and poverty alleviation. The LDB case showcases the challenges and opportunities in the agribusiness industry. LDB’s commitment to social impact, demonstrated through its support for farmers and sustainable farming practices, has been integral to its success. As the company expands and innovates, it faces critical decisions that require balancing financial growth with social responsibility. By embracing development, innovation and collaboration, LDB can continue to be a catalyst for positive change in the agribusiness industry while staying true to its roots and the principles that have defined its journey.
Complexity academic level
This case study is designed for bachelor’s and master’s degree students in the field of entrepreneurship and innovation, as well as MBA students. The case focuses on social entrepreneurship with the example of an agribusiness company located in Senegal, prioritizing social impact and quality of life. The case study explores the dynamics of the sector, including expansion strategy, innovation initiatives and the dilemma of balancing social mission and profit that social entrepreneurs may be facing. By analyzing this real-world situation of LDB, students will have the opportunity to enhance their decision-making skills.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 3: Entrepreneurship
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Tsegamariam Dula Sherka, Abreham Berta and Solomon Abirdew
The purpose of this study is to explore the potential and challenges of biogas utilization as an alternative and sustainable energy source in the Gurage zone of Southern Ethiopia…
Abstract
Purpose
The purpose of this study is to explore the potential and challenges of biogas utilization as an alternative and sustainable energy source in the Gurage zone of Southern Ethiopia, where traditional energy sources such as firewood and charcoal are widely used.
Design/methodology/approach
The study adopts a mixed-methods approach to collect and analyze data from different sources and perspectives. The research collects quantitative data from structured interviews with 200 rural households who use biogas or other energy sources, and qualitative data from key informant interviews and focus group discussions with biogas experts, local authorities and community leaders. Socioeconomic analysis is conducted to assess the importance of biogas in terms of income, expenditure, health and environmental benefits, and a multivariate probit model is used to identify the factors influencing biogas energy adoption among rural households.
Findings
The findings indicate that biogas users are more likely to substitute traditional energy sources with biogas for cooking, lighting and heating purposes. The model reveals that age, sex, education level, land size and livestock quantity influence biogas energy adoption, whereas income, distance to market and access to credit do not have a significant effect. The findings also show that biogas users have higher income, lower expenditure, better health and lower greenhouse gas emissions than nonusers.
Research limitations/implications
The study concludes that the socioeconomic impact of biogas varies among households based on location and lifestyle. The study also highlights the need for further research on the technical, institutional and behavioral aspects of biogas utilization in different contexts.
Practical implications
To address the challenges faced by biogas users and their energy choices, such as lack of awareness, maintenance, quality control and affordability, the study suggests exploring biogas energy to meet the diverse needs of cattle owners in different regions. The study also recommends enhancing the capacity of local stakeholders, promoting public–private partnerships, and developing supportive policies and regulations for biogas development in Ethiopia.
Social implications
The study implies that biogas utilization can contribute to social development by improving the living standards, health status and gender equality of rural households. The study also suggests that biogas utilization can foster social cohesion and empowerment by creating opportunities for collective action, knowledge sharing and income generation among biogas users and their communities.
Originality/value
The study provides a comprehensive and empirical analysis of the socioeconomic landscape of biogas utilization and the determinants of energy choice in the Gurage zone of Southern Ethiopia. The study also offers valuable insights and recommendations for policymakers, practitioners, researchers and other stakeholders involved in biogas development in Ethiopia and other developing countries.
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