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<p>Linking smallholder farmers to modern value chains through contract agriculture (CA) is one of the rural development strategies being promoted to address the challenge of smallholders’ integration in markets. However, the conditions under which CA enhances smallholders’ prospects for inclusion in modern value chains is still debatable. This paper examines the determinants of smallholders’ participation in Zambian dairy markets through interlocked contractual arrangements (ICAs). A multi-stage sampling design was used to select 266 households from milk shed areas from three districts in Lusaka and Central provinces of Zambia. A double-hurdle model was estimated from data collected through semi-structured questionnaires, key informant interviews and focus group discussions. Key determinants of smallholders’ participation in ICAs included ownership of improved breed animals, MCC milk price, access to dairy marketing information, income from other sources and landholding size. While most of these factors also affected the proportion of milk sold, the following were also important: household head education level, cattle rearing culture, extent of supplier’s dependency on buyer and trust in the exchange relationship. To enhance smallholders’ market participation, there is need to facilitate their access to extension services, infrastructure (breeding centres, MCCs and water) and affordable stock feed, and to offer them an effective milk price that is higher than the spot market price. Promotion efforts should target smallholders that are literate, from a cattle rearing culture, and particularly encourage youth and women participation. There is also need for building trust in the exchange relationship and judicious use of power by processors.</p>

This article examines the effects of transaction costs on the choice of marketing channel by smallholder banana producers (i.e. travel to the market to sell their produce versus selling at the farmgate). A probit analysis is used to identify the factors which determine the choice of a selling point. Variables capturing transaction costs are used in the analysis and these relate to searching for a trading partner, gathering information about the transaction, contracting, negotiating, monitoring and enforcing of contracts. The findings reveal that collective action, gender of household head, degree of dependence on the crop, geographical location and access to price information significantly affect the choice of selling point. This suggests that policies aimed at establishing market information systems, promotion of collective action among smallholder farmers, increased investment in rural infrastructure and achieving gender balance in trade are important.

African agriculture needs to adapt to climate change and shift from unsustainable production practices to sustainable ones. This requires innovative, substantial, and long-term agricultural investments that can allow all agricultural actors to adopt sustainable agricultural practices. Better and more inclusive options to leapfrog Africa’s sustainable agricultural development lie in financial technologies (FinTech). FinTech uses digital technology innovations to ease the provision of financial services to users and thus enhance financial inclusion. The aim of this study is to clarify the important role that FinTech can play in financing sustainability in agriculture in sub-Saharan Africa (SSA). To examine this role, the study shortlisted 17 SSA countries. The literature on FinTech-enhanced agricultural initiatives in these countries was reviewed. The results confirm that FinTech has the opportunity to become the much needed ‘support system’ for sustainable agriculture in SSA. Most of the financial products accessed by smallholder farmers in the selected countries helped the farmers in addressing production and marketing challenges in agriculture. The technologies can also help to improve efficiency in financing smallholder agriculture, enabling wider adoption of sustainable agricultural practices. To promote the financing of sustainable agriculture at scale, there is a need to train the farmers about the functionality of digital platforms, and policymakers need to address challenges such as gaps in infrastructure between the urban and rural areas.

This article presents a policy research agenda for the promotion of farm/non-farm linkages in South Africa. Our premise is that promoting the participation of small farms and small agroindustrial businesses in these linkages will have a strong impact on employment and income for the poor. We argue that there is potential for growth in linkages. The first question of the policy research agenda concerns the current status of linkages, and we note the dearth of research on this. The second question concerns the constraints on and prospects for promoting linkages from the demand side, and the third question treats the same concerns from the supply side. The fourth question is rooted in the duality in South Africa's non-farm and farm sectors, and asks whether, and how, small and large agroindustrial businesses and farms will compete or relate in 'business linkages' that can benefit intersectoral linkages. The final question concerns the impacts of and alternatives for policies and programmes to spur linkages.