Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal

Mishra, Ashok K.; Kumar, Anjani; Joshi, Pramod Kumar; Dsouza, Alwin

doi:10.1002/agr.21563

Cited by 35 publications

(36 citation statements)

References 46 publications

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“…Using an endogenous switching regression approach, Mishra et al (2018a) reveal that farmer group membership enhances value chain participation and food security through white onion contract farming in India. A plethora of other studies also found that smallholder participation in agrifood value chains though farmer groups improves farm yields, household income and net farm income (e.g., Maertens and VandeVelde, 2017;Mishra et al, 2018b), prices received by group members, farm profit and gross income (e.g., Ma and Abdulai, 2017) and land and labor redistribution (e.g., Henderson and Isaac, 2017).…”

Section: Introductionmentioning

confidence: 94%

Farmer groups, collective marketing and smallholder farm performance in rural Ghana

Abdul‐Rahaman

Abdulai

2020

JADEE

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PurposeRapid transformation of agrifood value chains because of population growth, urbanization, rising consumer incomes and increased demand for food quality and safety has resulted in the need for smallholder farmers to coordinate horizontally through group formation and collective marketing to improve farm performance in developing countries. This paper aims to examine the factors that influence farmer group membership and collective marketing decisions and their impacts on smallholder farm performance in rural Ghana.Design/methodology/approachUsing data from a recent survey of 447 rice farmers in rural Ghana, an endogenous switching regression model is employed to account for selection bias arising from both observable and unobservable farmer attributes.FindingsThe data reveal that group members and collective marketing participants obtained higher prices and also incurred lower input costs. The econometric estimates show that age, access to credit, mobile phone ownership, distance to market and road status are the main drivers of group membership and collective marketing decisions. The authors also find positive and significant impacts of farmer group membership and collective marketing on farm net revenues.Research limitations/implicationsThe findings from this study suggest that government and donor support for the formation of farmer groups during implementation of agriculture and value chain interventions should as well incorporate strategies to facilitate collective marketing.Originality/valueTo the best of the authors’ knowledge, this study is the first to examine the role farmer groups and collective marketing play in improving smallholder farm performance.

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Section: Introductionmentioning

confidence: 94%

Farmer groups, collective marketing and smallholder farm performance in rural Ghana

Abdul‐Rahaman

Abdulai

2020

JADEE

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“…Very few studies have extended their analysis on how factors like output prices and labor inputs contribute to the improvement of smallholders welfare through CF (Bellemare, 2018;Benali, Brümmer, & Afari-Sefa, 2018;Mishra, Kumar, Joshi, & D'Souza, 2018a). Participation in CF generally evolves in response to market imperfections particularly that of labor inputs due to moral hazard and high monitoring costs in developing countries (Casaburi, Kremer, & Mullainathan, 2016).…”

Section: Introductionmentioning

confidence: 99%

Participation in contract farming and farm performance: Insights from cashew farmers in Ghana

Dubbert

2019

Agricultural Economics

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The global demand for cashew nuts continues to increase steadily. However, many African countries face difficulties in marketing and adding value to the product. Using recent survey data of 391 cashew farmers in Ghana, this paper contributes to the growing evidence on the significance of contract farming (CF) in improving the welfare of rural households in developing countries. Specifically, the paper analyzes the factors that influence cashew farmers' decisions to participate in CF, and the impact of participation on farmers' performance. We employ a recently developed switching regression model with endogenous explanatory variables and endogenous switching to control for selection bias caused by observable and unobservable factors. The empirical results show that participation in CF significantly increases labor productivity and price margins, as well as cashew yields, and net revenues. A disaggregated analysis of the sample into farm size categories reveals that small-sized cashew farms tend to benefit more through CF, compared to medium-and large-sized farms.

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“…Such agreements can involve specification about the transaction only, such as product quality, delivery times, as well as sales price (marketing contract), or specifications related to production process, product quality, seed variety, chemicals used among others (production contract; Maertens & Vande Velde, 2017; Roussy, Ridier, Chaib, & Boyet, 2018). Contracting is important in facilitating farmers’ access to inputs, credit, and technology, as well as reduces risks associated with prices and markets (Kariuki & Loy, 2016; Mishra, Kumar, Joshi, & Dsouza, 2018). Buyers can prefinance smallholder farmers by providing them within puts, technology, and cash credit, and costs associated with these provisions are deducted from the final produce at the point of product delivery (Bellemare, 2012).…”

Section: Introductionmentioning

confidence: 99%

Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana

Abdul‐Rahaman¹,

Abdulai²

2019

Agribusiness

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Despite the fact that contracting facilitates farmer participation in agrifood value chains, evidence on farmers’ participation in different forms of contracts and the impact on farm performance is still limited. This study examines the determinants and impacts of vertical coordination mechanism‐spot market transactions, written, and verbal contract‐on‐farm performance of rice farmers in northern Ghana, using a multinomial BFG model to account for selectivity bias. The findings indicate that vertical coordination participation decision is significantly influenced by age, access to credit, labor, association membership, and sales to institutional buyers. The empirical results also reveal significant gains in farm performance outcomes from participating in written and verbal contracts, relative to spot market transactions.

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Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal

Cited by 35 publications

References 46 publications

Farmer groups, collective marketing and smallholder farm performance in rural Ghana

Farmer groups, collective marketing and smallholder farm performance in rural Ghana

Participation in contract farming and farm performance: Insights from cashew farmers in Ghana

Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana

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