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Article
Publication date: 7 January 2020

Syed Zahoor Hassan, Muhammad Shakeel Sadiq Jajja, Muhammad Asif and George Foster

Small farmers, being the primary producers of crops, are the key players in the food supply chain. Yet, they remain the most marginalized in the value chain. The marginalization…

Abstract

Purpose

Small farmers, being the primary producers of crops, are the key players in the food supply chain. Yet, they remain the most marginalized in the value chain. The marginalization of small farmers can affect food sustainability. The purpose of this paper is to identify opportunities for bringing more value to small farmers in an agricultural value chain.

Design/methodology/approach

This paper makes use of action research, studying the potato value chain, in a developing agricultural country Pakistan. The authors conducted an in-depth study of 37 farmers in four regions, each being a large potato growing ecosystem. The study examined the end-to-end decision-making processes, sources of input (both physical and information), cultivation and sales practices, cost structure, productivity and profitability of the farmers in potato farming.

Findings

Large variations exist in the crop yield, cost structure and profitability of farmers within each of and among the four regions due to differences in cultivation practices and approach to sales. There is a significant potential to lower costs, increase yield and enhance overall profitability by using the existing better processes. By addressing the issues faced by small farmers their profits can be potentially doubled. The paper also discusses potential means of recrafting and streamlining the value chain to bring more value to small farmers.

Research limitations/implications

The paper provides a detailed account of how different interventions can increase the value for small farmers. Since the current food supply chain and sustainability are under stress, worldwide, the findings of this study have implications for farmers as well as policy makers.

Originality/value

The literature on streamlining the agricultural value chain and enhancing the share of small farmers is scarce. Improving the value chain and reducing the marginalization of small farmers is an essential step toward increasing food sustainability.

Details

Management Decision, vol. 59 no. 4
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 15 August 2023

Juan David Cortes, Jonathan E. Jackson and Andres Felipe Cortes

Despite the abundance of small-scale farms in the USA and their importance for both rural economic development and food availability, the extensive research on small business…

Abstract

Purpose

Despite the abundance of small-scale farms in the USA and their importance for both rural economic development and food availability, the extensive research on small business management and entrepreneurship has mostly neglected the agricultural context, leaving many of these farms' business challenges unexplored. The authors focus on informing a specific decision faced by small farm managers: selling directly to consumers (i.e. farmer's markets) versus selling through aggregators. By collecting historical data and a series of interviews with industry experts, the authors employ simulation methodology to offer a framework that advises how small-scale farmers can allocate their product across these two channels to increase revenue in a given season. The results, which are relevant for operations management, small business management and entrepreneurship literature, can help small-scale farmers improve their performance and compete against their larger counterparts.

Design/methodology/approach

The authors rely on historical and interview data from key industry players (an aggregator and a small farm manager) to design a simulation analysis that determines which factors influence season-long farm revenue performance under varying strategies of channel allocation and commodity production.

Findings

The model suggests that farm managers should plan to evenly split their production between the two distribution channels, but if an even split is not possible, they should plan to keep a larger percentage in the nonaggregator (farmers' market/direct) channel. Further, the authors find that farmers can benefit significantly from a strong aggregator channel customer base, which suggests that farmers should promote and advertise the aggregator channel even if they only use it for a limited amount of their product.

Originality/value

The authors integrate small business management and operations management literature to study a widely understudied context and present practical implications for the performance of small-scale farms.

Details

New England Journal of Entrepreneurship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2574-8904

Keywords

Book part
Publication date: 29 July 2009

Partha Gangopadhyay and Manas Chatterji

The fragmentation can either lead to an all-out civil war as in Sri Lanka or a frozen conflict as in Georgia. One of the main characteristics of fragmentation is the control of…

Abstract

The fragmentation can either lead to an all-out civil war as in Sri Lanka or a frozen conflict as in Georgia. One of the main characteristics of fragmentation is the control of group members by their respective leaders. The chapter applies standard models of non-cooperative game theory to explain the endogenous fragmentation, which seeks to model the equilibrium formation of rival groups. Citizens become members of these rival groups and some sort of clientelism develops in which political leaders control their respective fragments of citizens. Once the divisions are created, the inter-group rivalry can trigger violent conflicts that may seriously damage the social fabric of a nation and threaten the prospect of peace for the people for a very long time. In other words, our main goal in this chapter is to understand the formation of the patron–client relationship or what is called clientelisation.

Details

Peace Science: Theory and Cases
Type: Book
ISBN: 978-1-84855-200-5

Article
Publication date: 24 January 2022

Zhigang Xu, Kerong Zhang, Li Zhou and Ruiyao Ying

While the peer effects of technology adoption are well established, few studies have considered the variation in peer effects resulting from the mutual proximity between leaders…

Abstract

Purpose

While the peer effects of technology adoption are well established, few studies have considered the variation in peer effects resulting from the mutual proximity between leaders and followers and the heterogeneity of farmers' learning technology. This study addresses the gap in the literature by analyzing the peer effects of technology adoption among Chinese farmers.

Design/methodology/approach

Drawing on a government-led soil testing and formulated fertilization program, this study uses survey data of farmers from three Chinese provinces to examine the peer effects of technology adoption. This study uses a probit model to examine how mutual proximity influences peer effects and their heterogeneity. Accordingly, farmers were divided into two groups, namely small- and large-scale farmers, and then into leaders or followers depending on whether they were selected by the government as model farmers.

Findings

Both small- and large-scale farmers are more likely to use formula fertilizer if their peers do so. However, a large-scale farmer is more likely to adopt formula fertilizer if the average adoption behavior of other large-scale model (leader) farmers is higher, while a small-scale farmer is more likely to adopt formula fertilizer if other small-scale non-model (follower) farmers have higher average adoption behavior. Moreover, the peer effect was weakened by geographic distance among small-scale farmers and by economic distance among large-scale farmers.

Originality/value

This study elucidates the means of optimizing social learning and technology adoption among farmers.

Details

China Agricultural Economic Review, vol. 14 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 24 January 2020

Meishan Jiang, Krishna P. Paudel, Donghui Peng and Yunsheng Mi

The purpose of this paper is to study land title’s credit effect from a financial inclusion perspective in China. The focus is both small land holding and poor farmers. Formal and…

Abstract

Purpose

The purpose of this paper is to study land title’s credit effect from a financial inclusion perspective in China. The focus is both small land holding and poor farmers. Formal and informal finances are considered to test their differences in land title’s credit effect.

Design/methodology/approach

The authors use augmented inverse-probability weights of the doubly robust method to test the effect of land titling on the rural credit market by addressing self-selection, endogeneity and heterogeneity concerns.

Findings

Results show that the poor, non-poor and small land holders with land titles are willing to borrow more from formal financial institutions. Land titling increases loan accessibility for non-poor and small land holding farmers. As for informal financing, large land holding and non-poor farmers show a decrease in informal lending. Land titling has a financial inclusion effect for some farmers, but poor farmers’ credit restrictions are not entirely solved by land titling.

Originality/value

This is the first study that focuses on the financial inclusion effect of farm land titling in China.

Details

China Agricultural Economic Review, vol. 12 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 21 August 2017

Mei Yan, Anne Terheggen and Dagmar Mithöfer

Domestic demand for walnuts has been on the rise for the last decades. Consumption outstrips domestic production capacities, which led to increasing prices until recently. Small

Abstract

Purpose

Domestic demand for walnuts has been on the rise for the last decades. Consumption outstrips domestic production capacities, which led to increasing prices until recently. Small-scale farmers are at the centre of walnut tree planting and walnut collection efforts. Farmers are now integrated into rapidly expanding agrifood value chains. The purpose of this paper is to investigate the walnut value chain originating in Yunnan (the dominant producer of walnuts in China). The authors are especially interested in the position of small-scale farmers in the chain and the factors affecting the price that they receive.

Design/methodology/approach

Price and intra-chain governance information were collected through structured interviews with value chain actors like certified and conventional small-scale farmers, traders, processors, food manufacturers and wholesalers. The resultant price data set was analysed using a multiple regression analysis.

Findings

Timing of harvest, distance to market and sales volume are correlated with the village-level price. Farmers are in a market governance segment of the chain. Lead firms (e.g. supermarkets) are price-setters and determine the value distribution, with farmers receiving a smaller share relative to downstream actors’ shares.

Research limitations/implications

Improved connectivity to markets, transparency of standards and price (formation), processing and certification could improve farmers’ profits.

Originality/value

The authors contribute to the growing literature of value chain studies focussing on farmers’ integration into food systems at different scales. The authors investigated the price determinants at the village level and additionally provide information on an organic marketing arrangement.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 7 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 20 September 2022

Inder Sekhar Yadav and M. Sanatan Rao

This work examines the impact of institutional agricultural credit on crop productivity of some major crops such as paddy, cotton, wheat and pulses for small and marginal farmers

Abstract

Purpose

This work examines the impact of institutional agricultural credit on crop productivity of some major crops such as paddy, cotton, wheat and pulses for small and marginal farmers across various social groups.

Design/methodology/approach

The cross-sectional field data on socio economic variables was collected from three Indian states from about 400 small and marginal farmers across various social groups using multi-stage stratified random and purposive sampling through a structured questionnaire by interviewing. The method of propensity score matching (PSM) was employed to calculate average treatment effect (ATE) and average treatment effect on the treated (ATET) by categorising sample farmers as treatment group and control group where crop productivity was considered as outcome variable and access to institutional credit was considered as treatment variable.

Findings

The PSM estimates reveal that ATE and ATET for all the selected crops are found to be significantly higher for the treated group vis-à-vis non-treated group suggesting that institutional agricultural credit has a statistically and significant positive impact on the crop productivity.

Research limitations/implications

Similar study can be extended for more crops and across regions in India for a universal coverage.

Originality/value

The agricultural credit policy of India has been to increase the access and availability of institutional farm credit. This has led to in general increase in the flow of formal farm credit to agricultural sector. However, the impact of institutional credit and crop productivity especially for small and marginal farmers across social groups is not well recognized in India using field data. Accordingly, this field data study contributes to the existing research by providing fresh evidence from field across social groups for both kharif and rabi crops using recent survey data from small and marginal farmers which has important policy implications.

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: 2 November 2015

Zuhui Huang, Vijay Vyas and Qiao Liang

Agriculture sectors in China and India are going through rapid changes. There is a shift in demand pattern, significant changes in the supply chain, greater competition due to…

Abstract

Purpose

Agriculture sectors in China and India are going through rapid changes. There is a shift in demand pattern, significant changes in the supply chain, greater competition due to opening up of the domestic and external markets and fuller integration with rest of the economy. These developments have impacted traditional agriculture and its institutional underpinning. Latter are being transformed and new institutions are coming into existence. The paper aims to discuss these issues.

Design/methodology/approach

This paper discusses the changes in economy and the agricultural sector, explores institutional responses in terms of various producer organizations in the two countries, and examines their adequacy for the coming phase of agricultural development in China and India.

Findings

The co-existence of various farmer organizations will sustain for a long period in both China and India. Overall, they have benefitted agriculture producers, and more particularly the surplus generating farmers. However, the incompatibility between these and the vast and growing small farm sector is not disappearing. Next set of institutional reforms should address this critical question of “reaching the unreached.”

Originality/value

China and India are the world’s two largest countries in terms of population as well as agricultural population. They share a lot of common features. This paper discusses the changes in agricultural sector, explores institutional responses in terms of farmer organizations, and examines their adequacy for the coming phase of agricultural development in China and India, which has never been seen before.

Details

China Agricultural Economic Review, vol. 7 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 23 February 2021

Navjot Sandhu and Javed Hussain

This paper investigates the mediating role of access to finance and entrepreneurial education for small and marginal farmers (SMFs) in the Indian northern state of Punjab…

Abstract

Purpose

This paper investigates the mediating role of access to finance and entrepreneurial education for small and marginal farmers (SMFs) in the Indian northern state of Punjab. Furthermore, it examines the inter-mediatory role of entrepreneurs and the access to finance in the promotion of innovation, development and consequently poverty alleviation.

Design/methodology/approach

To gain a deeper insight, we used a purposive sampling technique, involving in-depth, face-to-face interviews based on a semi-structured questionnaire amongst 185 farmers from the state of the Punjab in India. The combination of open ended and dichotomous questions amenable to the Likert scale, captured responses and the transcribed questionnaires were thematically analysed.

Findings

Using the analysis of the quantitative and qualitative responses, we explain the cause and consequences of the finance gap and the impact of poverty on household income and the debt levels of SMFs. The findings suggest that the expanding pool of SMFs is due to land ownership fragmentation that disenfranchises SMFs from accessing adequate finance thus limiting their ability to adapt to technological innovations, and therefore limiting their productivity and growth. This essentially limits their ability to transform their economic and social wellbeing. The findings from the data analysis suggest a lack of access to finance negatively impacts on SMFs' ability to use innovative practices, technologies and productivity. This adversely affects income level, access to education and social goods to propel them out of poverty. The findings advocate that government policy should focus on land reforms, which provide adequate access to finance to enable the adaption of technology and an access to markets to empower marginal farmers.

Research limitations/implications

Land fragmentation resulting with population growth in emerging economies continuously expands SMFs. To improve efficiency, productivity and entrepreneurial traits amongst SMFs, it is a pre-requisite to have an agile economy. However, in emerging economies such as India, the responses of 185 farmers suggest, a bespoke policy to promote the interest of SMFs through enabling them access to finance, technologies, training and education, continues to prove elusive. This novel empirical research provides evidence that demands that policymakers, commercial institutions and donors need to respond to the needs of SMFs to ensure food security and an optimal utilisation of farmland. The limitation of this research is that the sample is from one country, which limits its generalisation. The findings of this study could be enhanced by conducting comparative studies in other regions or economies.

Originality/value

This empirical study examined the barriers to enterprise for SMFs in the Indian Punjab; it examined the causes and consequences and the implications for food security for India. The findings of this study highlight the importance of developing the entrepreneurial capabilities of SMFs through effective education, training and above all through an adequate access to finance to enable them to adapt their technology. Furthermore, the findings make a case as to why SMFs are an integral part of the food chain and why it is necessary to enhance their efficiency, productivity and their access to finance.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 25 September 2007

Alan Cameron

The paper seeks to explore the importance of a sample of New Zealand farmers' markets in providing a supportive setting for the take‐off as well as the decline stage of the small

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Abstract

Purpose

The paper seeks to explore the importance of a sample of New Zealand farmers' markets in providing a supportive setting for the take‐off as well as the decline stage of the small business life cycle, with a view to identifying factors that may enhance rural small business survivability.

Design/methodology/approach

The task was achieved by use of a combination of interviews and case studies. A list of new generation farmers' markets was compiled. Managers from four of these markets were interviewed to identify the possible existence of businesses that had been fostered by, but had now outgrown, the market. Four incubated businesses were selected from one of the longer established markets. From a more recently established market, 18 stallholders were selected for examination of their attitudes towards the market as a nurturing environment in relation to the life‐cycle stage of the business. Data were analysed using qualitative techniques of theme identification and analysis.

Findings

It was found that farmers' markets can have a role as small business incubators and safety nets, thus enhancing the survival chances of rural small businesses. This may be particularly useful where dwindling government subsidies and growing supermarket power result in declining incomes and reduced outlets for small‐scale farmers and rural producers.

Research limitations/implications

The research findings are limited by the non‐random nature of the sampling procedure. In such an exploratory study, the main emphasis was on establishing the existence of the incubator and safety net functions. Further research is needed to establish the extent of these roles.

Originality/value

The research investigates a relatively unique setting of an unsubsidised agricultural sector.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 13 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

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