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1 – 10 of 271Iqbal Irfany, Peter John McMahon, Jenny-Ann Toribio, Kim-Yen Phan-Thien, Muhamad Amin Rifai, Sigit Yusdiyanto, Grant Vinning, David I. Guest, Merrilyn Walton and Nunung Nuryartono
The aim of this study was to evaluate determinants of four diversification practises by cocoa smallholders in West Sulawesi, Indonesia: (1) growing other crops, (2) keeping…
Abstract
Purpose
The aim of this study was to evaluate determinants of four diversification practises by cocoa smallholders in West Sulawesi, Indonesia: (1) growing other crops, (2) keeping livestock, (3) off-farm work for wages (4) off-farm self-employment, and the impact of diversification on welfare of community members.
Design/methodology/approach
Household interviews (n = 116) conducted in two subdistricts (Anreapi and Mapilli) of Polewali-Mandar District, West Sulawesi, provided quantitative data on household characteristics, crop and livestock production, income sources, expenditure and credit access. Two villages per subdistrict were included in the study, each producing cocoa as the main crop but differing in their proximity to a market town. Logistic regression was applied to identify determinants of diversification by households. Multiple linear regression (MLR) models evaluated the impact of diversification practices and other explanatory variables on two proxies of welfare (or household wealth): per capita value of durable assets (household assets other than land or livestock) and per capita expenditure for each household.
Findings
Mean per capita cocoa production in the sample was low (51 kg dry beans/annum). The mean dependency ratio (proportion of household occupants age <18 and >64) was 35%, with an average of five occupants per household. Household heads were predominantly male (95%), averaging 46 yo and 7 years of formal education. Most households (72%) depended on loans, but only 24% accessed formal loans. Significant determinants of diversification practices were access to formal credit for self-employment and subdistrict for livestock, with Mapilli subdistrict households more likely to keep livestock. Household predictors in the MLR accounted for 28% variation of the dependent, per capita value of durable goods. Off-farm self-employment and raising livestock significantly improved welfare, but growing other crops or off-farm work for wages had little effect. Other household variables demonstrated to have significant positive effects on welfare were education of the household head, proximity to a market town and land area per household.
Research limitations/implications
The study was restricted to a relatively small sample size (n = 116). Studies including panel data or larger numbers of households could enable the identification of further determinants of diversification.
Practical implications
The study demonstrates that diversification has the potential to improve rural livelihoods, but that obstacles, especially formal credit access, may deter poorer households from diversifying their income sources.
Social implications
Programs and policies that facilitate access to formal finance by smallholders could encourage diversification into small business and improve livelihoods in cocoa-dependent communities.
Originality/value
In the light of the decline in cocoa farm productivity in West Sulawesi, the study demonstrates the potential benefits, as well as limitations, of income diversification by smallholders.
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Diederik de Boer, Gigi Limpens, Amzul Rifin and Nunung Kusnadi
The inclusiveness of smallholder cocoa farmers in the international cocoa value chain is addressed in the context of institutional voids through linkages with different business…
Abstract
Purpose
The inclusiveness of smallholder cocoa farmers in the international cocoa value chain is addressed in the context of institutional voids through linkages with different business models in the region of Bali, West-Sumatra and West-Sulawesi. Being the third highest producer of cocoa, local farmers have a high dependency on cocoa cultivation; however, they lack policies that foster and reward sustainable high-quality cocoa according to international standards. The paper aims to discuss these issues.
Design/methodology/approach
An explanatory multiple-case study design assessed the relevance of partnerships in contributing to sustainable local development and inclusiveness for smallholder farmers. The selected business models, business supported, NGO supported and government supported, are evaluated through improved access to finance, training, technology, subsidized inputs and markets.
Findings
The paper found that a linkage with a business-supported model, here BT COCOA, achieves the best results in terms of improved yields, quality and farmer’s welfare, indicating improved inclusiveness via successful process upgrading. Yet, future cooperation between stakeholders should improve on access to information and finance.
Research limitations/implications
The research is a relative research, comparing three models of inclusiveness within one sector (cocoa) in predefined regions of Indonesia. Future research should test the proposed propositions in other agricultural sectors.
Practical implications
The paper showcases the effect of support model affiliation for smallholder farmer inclusiveness and the circumvention of institutional voids. It selects the business model as best suitable to achieve smallholder inclusiveness, as well a need to prioritize institutional voids.
Originality/value
The research is assessing three models addressing inclusiveness applying value chain assessment tools to measure inclusiveness.
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Katie D. Ricketts, Calum G. Turvey and Miguel I. Gómez
The purpose of this paper is to look at the ever-popular, “value-chain approach” for linking smallholder farmers to high value export markets. Conventional wisdom says that value…
Abstract
Purpose
The purpose of this paper is to look at the ever-popular, “value-chain approach” for linking smallholder farmers to high value export markets. Conventional wisdom says that value chains undertaken for development purposes redistribute risk and provide benefits and services to participants that are otherwise difficult or impossible to obtain. The authors take a farmer-centric approach and ask farmers participating in these higher value chains if they perceive greater, or different risks and compare results to their conventional counterparts. The authors also ask what benefits they associate with participation and if they believe they believe those benefits are exclusive to value chain participation.
Design/methodology/approach
The authors collect data from growers in three different cocoa value chains in Ashanti, Ghana. These chains include one focussed on certified production practices (Rainforest Alliance), one that focussed on high-value product characteristics (Fine Flavor) and a conventional chain, which serves as counterfactual.
Findings
The paper finds differences in perceptions of participation risks and benefits – particularly among price risks – that appear to filter based on value chain membership. However, for many risks, value chain participation seems to do little to redistribute potential production shocks. With some exceptions, growers report that many of the benefits they enjoy as a result of participation could feasibly be accessed by other sources.
Research limitations/implications
The limitations of this paper are related to sample size. This was managed from a statistical perspective.
Social implications
The authors explore how these results might impact the sustainability of the value chain approach and encourage donors and development agencies to be thoughtful and critical about measuring how farmers perceive new market opportunities.
Originality/value
The authors believe that this is the first paper prepared to critically investigate the perceived benefits of value chains.
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Richard Kwasi Bannor, Helena Oppong-Kyeremeh, Bismark Amfo and Ada Adoley Allotey
The authors investigate cocoa farmers' willingness and motivation to participate in agritourism entrepreneurship in Ghana.
Abstract
Purpose
The authors investigate cocoa farmers' willingness and motivation to participate in agritourism entrepreneurship in Ghana.
Design/methodology/approach
Primary data were obtained from 583 cocoa farmers. Contingent valuation method, ordered probit and truncated regressions were employed.
Findings
Cocoa farmers' willingness to participate in agritourism was high. The minimum fee farmers were willing to charge per tourist per day ranged from US$0.870 to US$6.957. Agritourism products farmers were willing to offer to tourists are interaction with rural folks, indigenous cuisine, quality locally stored drinking water, indigenous primary healthcare and on-site restrooms. Cocoa farmers' motivations to participate in agritourism are income generation, alternative livelihood strategy and education. Education, being a native, farm size, motorable roads to farm, and distance to farm influence minimum fee farmers were willing to accept to participate in agritourism.
Research limitations/implications
Agritourism could be considered in rural and tourism development policies of developing countries.
Originality/value
The authors investigate cocoa farmers' participation in agritourism, motivations and determinants of willingness to participate.
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Patrick Owiredu, Camillus Abawiera Wongnaa, Patricia Pinamang Acheampong, Monica Addison, Kwaku Agyei Adu and Dadson Awunyo-Vitor
Various models and approaches are implemented to provide technical assistance and support to improve cocoa farmers' welfare in Ghana. The Farmer Business School (FBS), which is…
Abstract
Purpose
Various models and approaches are implemented to provide technical assistance and support to improve cocoa farmers' welfare in Ghana. The Farmer Business School (FBS), which is analogous to Farmer Field School (FFS), is one of the few initiatives of GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) and Ghana Cocoa Board (COCOBOD). The main aim of the initiative is to train smallholder cocoa farmers to perceive cocoa production as a business. However, there is limited or conflicting evidence as to the effect of FBS on productivity and food security, especially in Ghana. This study assessed FBS participation and the participation's impact on productivity and food security of cocoa farmers.
Design/methodology/approach
The study used primary data collected from 542 cocoa farmers in Central and Western North regions of Ghana and employed descriptive statistics, perception index and Endogenous Switching Regression (ESR) as analytical tools.
Findings
The results, which reported an overall perception index of 0.7, indicated that the farmers had a strong positive perception on the FBS program. The results also showed that sex of a farmer, number of years of formal education, farm size, extension contact, perception, distance to extension outlet and membership of farmer-based organizations (FBOs) significantly influenced the decision to participate in FBS program. Also off-farm income, years of education and household size significantly influenced farm productivity and household food security. The results further showed that participation in FBS improved productivity and food security of cocoa farmers.
Research limitations/implications
The study used data from two regions of Ghana, namely the Central region and the Western North region. Findings from studies using data covering all cocoa growing areas of Ghana could be more informative in formulating policies aimed at encouraging participation in FBS and consequently help improve cocoa productivity and food security.
Originality/value
This article offers insights into the welfare effects of FBS on cocoa farmers as previous similar studies are without this information.
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Arnold Missiame, Patrick Irungu, Rose Adhiambo Nyikal and Grace Darko Appiah-Kubi
The study aims to estimate the rates of exposure to, and adoption of, rural bank credit programs by smallholder farmers in rural Ghana and the factors responsible for those rates.
Abstract
Purpose
The study aims to estimate the rates of exposure to, and adoption of, rural bank credit programs by smallholder farmers in rural Ghana and the factors responsible for those rates.
Design/methodology/approach
The study used a random sample of 300 smallholder farmers in the Fanteakwa District of Ghana, obtained through the multistage sampling technique. The study also employed the average treatment effects approach to estimate the average treatment effect of farmers’ exposure to rural bank credit programs, on their adoption of such programs.
Findings
The actual adoption rate is approximately 41%, and the potential, conditional on the whole population being aware of rural bank credit programs, is approximately 61%. Accordingly, there is a gap of about 20% in the adoption of rural bank credit programs, and is due to the incomplete exposure of smallholder farmers to the rural bank credit programs. Age of the household head, access to extension services, membership in farmer-based organizations and active savings accounts with a rural bank are the major contributors to smallholder farmer exposure to and the adoption of rural bank credit programs.
Originality/value
The current study is the first of its kind to be conducted in Ghana on rural bank credit programs. It takes into account the extent to which smallholder farmers are exposed to such credit programs and how it influences their decisions to access or adopt.
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Bismark Amfo, Adinan Bahahudeen Shafiwu and Mohammed Tanko
The authors investigated cocoa farmers' access to subsidized fertilizer in Ghana and implications on productivity.
Abstract
Purpose
The authors investigated cocoa farmers' access to subsidized fertilizer in Ghana and implications on productivity.
Design/methodology/approach
Primary data were sourced from 435 cocoa farmers. Cragg hurdle and two-step Tobit model with continuous endogenous regressors/covariates were applied for the drivers of cocoa farmers' participation in fertilizer subsidy programme and productivity. Propensity score matching (PSM), inverse-probability weights (IPW) and augmented inverse-probability weights (AIPW) were applied for productivity impact assessment of fertilizer subsidy.
Findings
All the farmers were aware of fertilizer subsidy for cocoa production in Ghana. Farmers became aware of fertilizer subsidy through extension officers, media and other farmers. Half of cocoa farmers benefitted from fertilizer subsidy. Averagely, cocoa farmers purchased 292 kg of subsidized fertilizer. Many socio-economic, farm-level characteristics and institutional factors determine cocoa farmers' participation in fertilizer subsidy programme, quantity of subsidized fertilizer obtained and productivity. Beneficiaries of fertilizer subsidy recorded higher cocoa productivity than non-beneficiaries. Hence, fertilizer subsidy for cocoa production in Ghana leads to a gain in productivity.
Practical implications
There should be more investments in fertilizer subsidy so that all cocoa farmers benefit and obtain the required quantities.
Originality/value
The authors provide new evidence on cocoa productivity gain or loss emanating from fertilizer subsidy by combining different impact assessment techniques for deeper analysis: PSM, IPW and AIPW.
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This paper aims to test the impact of remittances receipt on agricultural productivity. The paper empirically assesses whether heterogeneity in economic activity of farming…
Abstract
Purpose
This paper aims to test the impact of remittances receipt on agricultural productivity. The paper empirically assesses whether heterogeneity in economic activity of farming households affects the effects of remittances on productivity of tradable and nontradable crop farming households in Ghana.
Design/methodology/approach
The authors employ propensity score matching (PSM) methods to address potential endogeneity issues that could arise from the estimation due to selection bias. This paper uses the seventh round of Ghana living standard survey dataset for Ghana.
Findings
The authors find that, the involvement of farming households in other economic activities alters the impact of remittances on crop yield. This differential impact also varies according whether the crop is tradeable or not.
Practical implications
Policy can reduce the cost of sending remittances and include financial literacy modules in the farmer training modules to increase farmers' knowledge on investment of remittance in agricultural production.
Originality/value
The authors distinguish the paper from others by controlling for crop types (particularly tradeable or otherwise and gestation period), farming of a second or more crops and engagement of smallholder farmers in nonfarm economic activities.
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Napoleon Kurantin and Bertha Z. Osei-Hwedie
This chapter uses the Ghana Living Standards Survey (GLSS) 7 datasets to investigate and examine the effect of rural non-farm diversification and its implications on agricultural…
Abstract
This chapter uses the Ghana Living Standards Survey (GLSS) 7 datasets to investigate and examine the effect of rural non-farm diversification and its implications on agricultural (tree-crop) farming sector inequalities and sustainable development in Ghana. Applying a Gini-decomposition method and/or technique within a quantitative approach, the study outcome indicates the average non-farm income thus, increased income inequality among tree-crop smallholder rural livelihoods and households. Income diversification by farm households has gained the attention of governments, policy makers, and researchers because of its commonness and contribution to socio-economic development especially in developing countries. Aggregationally, non-farm self-employment reduced income inequality, and non-farm wage employment income led to an increase in income inequality. Increased rate of educational enrollment and achievement is the most important variable of non-farm income inequality. Government effort at expanding tree-crop acreages and improve yields have to degree achieved its intended policy implementation, increased rate of educational achievement could undermine the socio-economic policy cohesion and sustainable development of rural livelihood, communities, and national economy. Tree crop policies should take account of the spatial distribution of tree-crop commodity production and in particular, the implication and effect of rural non-farm diversification on agricultural sector inequalities.
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Jason Donovan, Nigel Poole, Keith Poe and Ingrid Herrera-Arauz
Between 2006 and 2011, Nicaragua shipped an average of US$9.4 million per year of smallholder-produced fresh taro (Colocasia esculenta) to the USA; however, by 2016, the US market…
Abstract
Purpose
Between 2006 and 2011, Nicaragua shipped an average of US$9.4 million per year of smallholder-produced fresh taro (Colocasia esculenta) to the USA; however, by 2016, the US market for Nicaraguan taro had effectively collapsed. The purpose of this paper is to analyze the short-lived taro boom from the perspective of complex adaptive systems, showing how shocks, interactions between value chain actors, and lack of adaptive capacity among chain actors together contributed to the collapse of the chain.
Design/methodology/approach
Primary data were collected from businesses and smallholders in 2010 and 2016 to understand the actors involved, their business relations, and the benefits and setbacks they experienced along the way.
Findings
The results show the capacity of better-off smallholders to engage in a demanding market, but also the struggles faced by more vulnerable smallholders to build new production systems and respond to internal and external shocks. Local businesses were generally unprepared for the uncertainties inherent in fresh horticultural trade or for engagement with distant buyers.
Research limitations/implications
Existing guides and tools for designing value chain interventions will benefit from greater attention to the circumstances of local actors and the challenges of building productive inter-business relations under higher levels of risk and uncertainty.
Originality/value
This case serves as a wake-up call for practitioners, donors, researchers, and the private sector on how to identify market opportunities and the design of more robust strategies to respond to them.
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