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Article
Publication date: 15 April 2024

Balaji Sedithippa Janarthanan

The study attempts to estimate farm subsidies the governments can save by transitioning to a millet-based production system, replacing GHG emission-intensive crops.

Abstract

Purpose

The study attempts to estimate farm subsidies the governments can save by transitioning to a millet-based production system, replacing GHG emission-intensive crops.

Design/methodology/approach

It updates a 131 × 131 commodity input–output (IO) table of the year 2015–16 into 2021–22 using the RAS procedure and simulates the economy-wide impacts of replacing rice and wheat with pearl millet and sorghum using consumption and production approaches. It then quantifies fertilizer, electricity and credit subsidy expenses the government can save through this intervention. It also estimates the potential reduction in GHG emissions that the transition could bring about. India is taken as a case.

Findings

Results show pearl millet expansion brings greater benefits to the government. It is estimated that when households return to their pearl millet consumption rates that prevailed in the early-reform period, this could save the Indian government Rs. 622 crores (USD 75 m). The savings shall be reinvested in agriculture to finance climate adaptation/mitigation efforts, contributing to a sustainable food system. Net GHG emissions also decline by 3.3–3.6 MMT CO2e.

Practical implications

Indian government has been actively aiming to bring down paddy areas since 2013–14 through the Crop Diversification Program and promoting millets (and pulses and oilseeds) on these farms. The prime reason is to check rapidly declining groundwater irrigation in Green Revolution states. Regulations in the past in these states have not brought the intended results. Meanwhile, electricity and fertilizers are heavily subsidized for agriculture. A slight shift in the cropping system can help conserve these resources. Meanwhile, GHG emissions could also be brought down and subsidies could well be saved. The results of the study indicate the same.

Social implications

A less warm society is what governments and nongovernment organizations across the world are aiming for at present. Financial implications affect actions against climate change to a greater extent, apart from technological innovations. The effects of policy strategies discussed in the study, taking a large country as a case, when implemented appropriately around the regions, could help move a step closer to action against climate change.

Originality/value

The paper addresses a key but rarely explored research issue – that how a climate-sensitive crop choice will help reduce the government’s fiscal burden to finance climate adaption/mitigation. It also offers a mechanism to estimate the benefits within an economy-wide framework.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 22 March 2024

Achille Augustin Diendere and Sansan Ali Bepounte Dah

Effective agricultural product price regulation policies depend on market integration and the degree of symmetry in the transmission of agricultural product price signals. This…

Abstract

Purpose

Effective agricultural product price regulation policies depend on market integration and the degree of symmetry in the transmission of agricultural product price signals. This study analyzes the transmission and asymmetry of the price series between the Ouagadougou consumer market and assembly markets considering three primary cereal products in Burkina Faso.

Design/methodology/approach

This study applies the nonlinear autoregressive distributed lag (NARDL) econometric model, which is an asymmetric extension of the ARDL cointegration model. The price series examined covers the period extending from January 2005 to December 2020.

Findings

Our analysis provides novel insights regarding short- and long-term asymmetric effects in the transmission of price signals between assembly markets and the consumer market. We also determine that the effects of negative shocks are more persistent than those of positive shocks in several markets.

Research limitations/implications

For markets that exhibit symmetrical responses of assembly market prices to consumer market prices, the results could reflect the continuous efforts of market players, particularly the government, to eliminate market failures and ensure the long-term efficiency of cereal markets. To this end, an agricultural market information system can have a crucial role in easing information access for all market players.

Originality/value

This study provides new evidence regarding the nature of the transmission and asymmetry of price information on primary cereal products in the largest markets in Burkina Faso. Applying the NARDL model makes it possible to simultaneously estimate short- and long-term asymmetry.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 28 February 2023

Paul Kwame Nkegbe, Abdelkrim Araar, Benjamin Musah Abu, Yazidu Ustarz, Hamdiyah Alhassan, Edinam Dope Setsoafia and Shamsia Abdul-Wahab

Ghana's economy is largely agrarian, and the business of agriculture is dominated by smallholder farmers who are predominantly rural dwellers. As a result, efforts to lift rural…

Abstract

Purpose

Ghana's economy is largely agrarian, and the business of agriculture is dominated by smallholder farmers who are predominantly rural dwellers. As a result, efforts to lift rural farming households from poverty have been narrowed to the promotion of agricultural development to the neglect of the rural non-farm sector. However, this is fast changing in the advent of a burgeoning rural nonfarm economy and must engage the attention of policy actors. This study thus assesses the effect of non-farm participation on households' level of commercialization of agricultural crops in Ghana.

Design/methodology/approach

The study applies a generalized structural equation model (GSEM) to the Ghana Living Standards Survey round 6 dataset, a stratified and nationally representative random sample of 16,772 households in 1,200 enumeration areas.

Findings

This study finds that non-farm participation increases the produce sold to output ratio. It is concluded that non-farm engagement by farmers boosts commercialization in Ghana. Thus, for the Ghanaian and similar contexts, agricultural development interventions that incorporate non-farm activities are more likely to be successful in improving livelihoods.

Research limitations/implications

The study uses only the ratio of sales value to output value definition for commercialization and acknowledges use of multiple definitions could be superior.

Originality/value

Various empirical studies have examined the link between the farm and nonfarm sectors. This paper is original in its approach as it tackles an aspect of the subject that has been understudied, namely, an exploration of nonfarm and farm linkages from the perspective of agricultural commercialization.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 5 September 2022

Mamadou Sissoko, Veronique Theriault and Melinda Smale

The authors assess the development potential of cowpea beyond grain in local markets in Mali by: (1) identifying trader types and types of cowpea products sold; (2) examining…

Abstract

Purpose

The authors assess the development potential of cowpea beyond grain in local markets in Mali by: (1) identifying trader types and types of cowpea products sold; (2) examining trader roles; (3) estimating gross margins and their determinants; and (4) discussing policy opportunities to further develop the value chain.

Design/methodology/approach

The authors analyze data collected through observation and semi-structured questionnaires from 487 sellers in 26 markets, including market, seller, and product characteristics. The authors also calculate gross margins and conduct a regression analysis to identify influential factors.

Findings

The authors identify several types of cowpea sellers in local markets, including processor-retailers, retailers of fresh leaves and fodder, and grain retailers, collectors and wholesalers. Women dominate the marketing of processed products and fresh leaves. The marketing of boiled cowpeas offers retailers higher margin rates compared to fritters and pancakes. Grain sellers, who are mostly men, have lower margins but sell larger quantities. Processor-retailers bring more value to the cowpea value chain. Specialization of the seller in cowpea, regional location of the market and day of the market fair all influence gross margins.

Research limitations/implications

Future work should explore consumer preferences for different types of cowpea products.

Originality/value

This study of the cowpea value chain in Mali has revealed the multidimensional character of the cowpea plant, which goes far beyond its grain and highlight the important roles played by women.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 15 September 2022

Sei Jeong and Munisamy Gopinath

This study aims to investigate the role of international price volatility and inventories on domestic market price dynamics in the case of agricultural commodities.

Abstract

Purpose

This study aims to investigate the role of international price volatility and inventories on domestic market price dynamics in the case of agricultural commodities.

Design/methodology/approach

A structural model is employed to uncover relationships among commodity price, price volatility, inventories and convenience yield. Monthly producer price data along with annual data on trade, consumption, inventories and tariffs for 71 countries and 13 commodities covering 2010–2019 are assembled to estimate the model. With a first-stage Least Absolute Shrinkage and Selection Operator (LASSO) estimator to identify the best instrument set, a nonlinear approach is used to estimate the model.

Findings

Results show that international market information plays a critical role in domestic market price dynamics. International price volatility has a stronger effect on domestic prices than that of international inventories.

Research limitations/implications

Current upheaval in commodity markets requires an understanding of how prices move together and inventories affect that movement. A country's internal price is not independent of the effects of global market events.

Originality/value

Although hypotheses exist that global market information (volatility and inventories) helps countries manage domestic commodity prices, there have been limited studies on this relationship, especially with a structured model and cross-country data.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 7 February 2024

Chinkle Kaur and Jasleen Kaur

Millets are ancient grains, following wheat, that have been a fundamental source of human sustenance. These are nutrient-rich small-seeded grains that have gained prominence and…

Abstract

Purpose

Millets are ancient grains, following wheat, that have been a fundamental source of human sustenance. These are nutrient-rich small-seeded grains that have gained prominence and admiration globally due to their super resilience in diverse climates and significant nutritional benefits. As millets are renowned for their nutritional richness, the demand for millet-based products increases. Hence, this paper aims in identifying the growing need for innovative processing techniques that not only preserve their nutritional content but also extend their shelf life.

Design/methodology/approach

In traditional times, heat was the only means of cooking and processing of the foods, but the amount of damage they used to cause to the sensorial and nutritional properties was huge. Millets’ sensitivity toward heat poses a challenge, as their composition is susceptible to disruption during various heat treatments and manufacturing processes. To cater to this drawback while ensuring the prolonged shelf life and nutrient preservation, various innovative approaches such as cold plasma, infrared technology and high hydrostatic pressure (HPP) processing are being widely used. These new methodologies aim on inactivating the microorganisms that have been developed within the food, providing the unprocessed, raw and natural form of nutrients in food products.

Findings

Among these approaches, nonthermal technology has emerged as a key player that prioritizes brief treatment periods and avoids the use of high temperatures. Nonthermal techniques (cold plasma, infrared radiation, HPP processing, ultra-sonication and pulsed electric field) facilitate the conservation of millet’s nutritional integrity by minimizing the degradation of heat-sensitive nutrients like vitamins and antioxidants. Acknowledging the potential applications and processing efficiency of nonthermal techniques, the food industry has embarked on substantial investments in this technology. The present study provides an in-depth exploration of the array of nonthermal technologies used in the food industry and their effects on the physical and chemical composition of diverse millet varieties.

Originality/value

Nonthermal techniques, compared to conventional thermal methods, are environmentally sound processes that contribute to energy conservation. However, these conveniences are accompanied by challenges, and this review not only elucidates these challenges but also focuses on the future implications of nonthermal techniques.

Article
Publication date: 30 January 2024

Ting-Ting Sun and Chi Wei Su

The study investigates the inter-linkages between geopolitical risk (GPR) and food price (FP).

Abstract

Purpose

The study investigates the inter-linkages between geopolitical risk (GPR) and food price (FP).

Design/methodology/approach

By employing the bootstrap full- and sub-sample rolling-window Granger causality tests.

Findings

The empirical results show that there is a time-varying bidirectional causality between GPR and FP. High GPR leads to a rise in FP, suggesting that geopolitical events usually may disrupt supply and demand conditions in food markets, and even trigger global food crises. However, the negative effect of GPR on FP does not support this view in certain periods. This is mainly because GPR is also related to the global economic situation and oil price, which together have impacts on the food market. These results cannot always be supported by the inter-temporal capital asset pricing model, which states that GPR affects FP in a positive manner. Conversely, there is a positive impact of FP on GPR, indicating that the food market is an effective tool that can reflect global geopolitical environment.

Originality/value

In the context of the Russia–Ukraine conflict, these analyses can assist investors and policymakers to understand the sensitivity of FP to GPR. Also, it will provide significant revelations for governments to attach importance to the role of food price information in predicting geopolitical events, thus contributing to a more stable international environment.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 14 November 2023

Mark Eghan and Charles Adjasi

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.

Details

Agricultural Finance Review, vol. 83 no. 4/5
Type: Research Article
ISSN: 0002-1466

Keywords

Open Access
Article
Publication date: 4 November 2022

Aimro Likinaw, Woldeamlak Bewket and Aragaw Alemayehu

The purpose of this paper was to examine smallholder farmers’ perceptions of climate change risks, adaptation responses and the links between adaptation strategies and…

2706

Abstract

Purpose

The purpose of this paper was to examine smallholder farmers’ perceptions of climate change risks, adaptation responses and the links between adaptation strategies and perceived/experienced climate change risks in South Gondar, Ethiopia.

Design/methodology/approach

This paper used a convergent mixed methods design, which enables us to concurrently collect quantitative and qualitative data. Survey data was collected from 352 households, stratified into Lay Gayint 138 (39%), Tach Gayint 117 (33%) and Simada district 97 (28%). A four-point Likert scale was used to produce a standardised risk perception index for 14 climate events. Moreover, using a one-way analysis of variance, statistical differences in selecting adaptation strategies between the three districts were measured. A post hoc analysis was also carried out to identify the source of the variation. The findings of this paper are supplemented by qualitative data gathered through focus group discussions and key informant interviews of households who were chosen at random.

Findings

The standardised climate change risk perception index suggests that persistent drought, delayed onset of rainfall, early termination of rainfall and food insecurity were the major potentially dangerous climate change risks perceived by households in the study area. In response to climate change risks, households used several adaptation strategies such as adjusting crop planting dates, crop diversification, terracing, tree planting, cultivating drought-tolerant crop varieties and off-farm activities. A Tukey’s post hoc test revealed a significant difference in off-farm activities, crop diversification and planting drought-tolerant crop types among the adaptation strategies in the study area between Lay Gayint and Simada districts (p < 0.05). This difference reconfirms that adaptation strategies are location-specific.

Originality/value

Although many studies are available on coping and adaptation strategies to climate change, this paper is one of the few studies focusing on the linkages between climate change risk perceptions and adaptation responses of households in the study area. The findings of this paper could be helpful for policymakers and development practitioners in designing locally specific, actual adaptation options that shape adaptation to recent and future climate change risks.

Details

International Journal of Climate Change Strategies and Management, vol. 15 no. 5
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 22 April 2024

Girma Asefa Bogale

This study aims to explore the smallholder farmers’ perceptions of climate change and its adaptation options (changing crop variety; improved crop and livestock; soil and water…

Abstract

Purpose

This study aims to explore the smallholder farmers’ perceptions of climate change and its adaptation options (changing crop variety; improved crop and livestock; soil and water conservation [SWC]; and irrigation practices) and drought indices in the Dire Dawa Administration Zone, Eastern Ethiopia.

Design/methodology/approach

A cross-sectional household survey was used. A structured interview schedule for respondent households for key informants and focus group discussions were used. This study used both descriptive statistics and an econometric model. The model was used to compute the determinants of climate adaptation options in the study area. Drought characterization was carried out by DrinC software.

Findings

The results revealed households adapted to selected adaptation options. The model results confirmed that education level, farm size, tropical livestock units (TLUs) and access to agricultural extension services have positive and significant impacts on changing crop variety by 0.0014%, 0.045%, 0.032% and 0.035%, respectively. The likelihood of farmers’ decisions to use adaptation strategies (family size, TLU, agricultural extension service and distance from the market) has positive and significant impacts on SWC. The reconnaissance drought index (RDI6) of ONDJFM and AMJJAS showed extreme and severe drought index values of −2.88 and −1.96, respectively.

Originality/value

This study used a locally adopted climate change adaptation intervention for smallholder farmers, revealing the importance of drought characterization indices both seasonally and annually.

Details

International Journal of Climate Change Strategies and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-8692

Keywords

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