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1 – 2 of 2Sylvester Amoako Agyemang, Tomáš Ratinger and Samuel Ahado
The purpose of this paper is to determine the impact of microcredit on smallholder poultry production and its subsequent role on domestic protein and food supply.
Abstract
Purpose
The purpose of this paper is to determine the impact of microcredit on smallholder poultry production and its subsequent role on domestic protein and food supply.
Design/methodology/approach
Cross-sectional farm-level data from 61 farmers with at least two years of microcredit access and 39 farmers without microcredit access in the Dormaa Municipality of Ghana collected in 2016 via semi-structured questionnaire were used. Using the propensity score matching, PSM, and data envelopment analyses approaches, the authors analysed the propensity of farmers’ taking microcredit and its effect on beneficiaries’ technical efficiency, productivity, profitability and domestic production of chicken and eggs, farm performance. The authors addressed selection biases with the PSM and answered the research question of whether farmers with microcredit access perform better than non-microcredit farmers.
Findings
Farmers with high years of education, farming experience, technology and machinery as well as micro-savings and female farmers are more likely to take microcredit whereas large farm size reduces farmers’ propensity to take microcredit. Furthermore, farms with microcredit access were more technically efficient, productive and profitable than they would have been in the absence of microcredit.
Practical implications
The paper can be useful to policymakers and microcredit institutions since it provides evidence of microeconomic impacts of microcredit on agricultural production and the determinants of farmers’ participation in microcredit.
Originality/value
The study helps to understand how access to credit can improve smallholders’ technology adoption, production efficiency and productivity and output thereby enhancing domestic food supply.
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Samuel Ahado, Jiří Hejkrlík, Anudari Enkhtur, Tserendavaa Tseren and Tomáš Ratinger
The purpose of this paper is to examine the impact of agricultural cooperative membership on potato production and technical efficiency.
Abstract
Purpose
The purpose of this paper is to examine the impact of agricultural cooperative membership on potato production and technical efficiency.
Design/methodology/approach
A combination of propensity score matching technique and sample selection stochastic frontier framework that addresses potential selection bias due to observable and unobservable attributes is used to estimate the effect of participation between cooperative members and non-members. Using a stochastic meta-frontier approach, the technical efficiency of farmers was estimated and compared.
Findings
The empirical results show that the effect of participation in agricultural cooperatives is associated with increased yield and technical efficiency. A comparison of group-specific frontiers indicates that cooperative members perform better than non-members. Cooperative membership decisions is significantly associated with household and farm characteristics (e.g. education, participation in off-farm work, total farmland, distance to market and geographic location).
Practical implications
The findings of this study demonstrate that cooperative organisations can be an important tool to enhance the productivity and efficiency of smallholder farmers. Successful cooperative models together with training programs designed to enlighten farmers on the importance and tangible benefits of collective action should be used to enlarge participation in cooperative organisations. In addition, governments and development agencies should implement targeted investment and capacity building programs related to irrigation management, gender-sensitive awareness and development of the internal institutional mechanisms in cooperatives for the transfer of knowledge and mutual learning so that all members benefit from cooperatives.
Originality/value
Despite the pervasive evidence of the impact of cooperatives on productivity and technical efficiency in the Asian region, this study is probably the first attempt in the crop sector in Mongolia. It provides a rigorous empirical analysis of the impact of agricultural cooperative membership on potato production and technical efficiency through a counterfactual design.
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