Does Contracting Make Farmers Happy? Evidence from <scp>S</scp>enegal

Dedehouanou, Sènakpon Fidèle Ange; Swinnen, Johan; Maertens, Miet

doi:10.1111/roiw.12041

Cited by 61 publications

(58 citation statements)

References 64 publications

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“…Export or processing companies often source agricultural products through outgrower schemes, in order to ensure consistent and high-quality supply (Barrett et al, 2012;Dedehouanou et al, 2013;Bellemare and Novak, 2016). Also in domestic supply chains in developing countries, the role of contracting increases.…”

Section: Introductionmentioning

confidence: 99%

Farmers’ preferences for supermarket contracts in Kenya

Ochieng

Veettil²,

Qaim

2017

Food Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWith the modernization of global agri-food systems, the role of contract farming is increasing. This also involves smallholder farmers in developing countries. While previous studies have looked at economic impacts of contract schemes on smallholder farmers, little is known about farmers' preferences for contracting in general, and for specific contract design attributes in particular. Better understanding farmers' preferences and constraints is important to make smallholder contract schemes more viable and beneficial. This article builds on a choice experiment to analyze farmers' preferences and preference heterogeneity for contracts in Kenya. In the study region, supermarkets use contracts to source for fresh vegetables directly from preferred suppliers. However, farmer dropout rates are high. Mixed logit models are estimated to examine farmers' attitudes towards critical contract design attributes. Having to deliver their harvest to urban supermarkets is costly; hence farmers require a significant output price markup. Farmers also dislike delayed payments that are commonplace in contract schemes. The most problematic contract attribute is related to unpredictable product rejection rates, which substantially add to farmers' risk. Designing contracts with lower transaction costs, more transparent quality grading, and fairer risk-sharing clauses could enhance smallholder participation in supermarket procurement channels.

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Section: Introductionmentioning

confidence: 99%

Farmers’ preferences for supermarket contracts in Kenya

Ochieng

Veettil²,

Qaim

2017

Food Policy

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“…Unfortunately, no study was identified that collected data before and after a firm offered contractual arrangements to smallscale farmers. A study by Dedehouanou, Swinnen and Maertens (2013), which did not quantitatively estimate income effects, collected data at two points in time, but some farmers were already participating in contract farming during the first wave of data collection.…”

Section: Types Of Study Designmentioning

confidence: 99%

“…Four more studies were excluded for having a unique outcome variable, making it impossible to include in the meta-analysis for lack of a relevant comparison group. These studies measured the effect of contract farming on happiness (Dedehouanou et al, 2013), growth rates (Herck et al, 2012), assets (Michelson, 2013), and marketed surplus (Tadesse and Guttormsen 2009). Another study was excluded for providing so little information that it was impossible to understand and interpret the tables and figures (Munungo, 2012).…”

Section: Excluded Studiesmentioning

confidence: 99%

The effectiveness of contract farming in improving smallholder income and food security in low- and middle-income countries: a mixed-method systematic review

Ton¹,

Desiere²,

Vellema³

et al. 2017

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The International Initiative for Impact Evaluation (3ie) is an international grant-making NGO promoting evidence-informed development policies and programmes. We are the global leader in funding, producing and synthesising high-quality evidence of what works, for whom, how, why and at what cost. We believe that using better and policy-relevant evidence helps to make development more effective and improve people's lives. 3ie systematic reviews 3ie systematic reviews appraise and synthesise the available high-quality evidence on the effectiveness of social and economic development interventions in low-and middleincome countries. These reviews follow scientifically recognised review methods, and are peer-reviewed and quality assured according to internationally accepted standards. 3ie is providing leadership in demonstrating rigorous and innovative review methodologies, such as using theory-based approaches suited to inform policy and programming in the dynamic contexts and challenges of low-and middle-income countries. About this reviewThe effectiveness of contract farming in improving smallholder income and food security in low-and middle-income countries: a mixed-method systematic review, was submitted in partial fulfilment of the requirements of grant SR6.1088 awarded under Systematic Review Window 6. This review is available on the 3ie website. 3ie is publishing this technical report as received from the authors; it has been formatted to 3ie style, however the tables and figures have not been reformatted. 3ie will also publish a brief of this review, designed for use by decision makers, which is forthcoming. This review will also be published in the Campbell Collaboration Library and will be available here.All content is the sole responsibility of the authors and does not represent the opinions of 3ie, its donors or its board of commissioners. Any errors are also the sole responsibility of the authors. Comments or queries should be directed to the corresponding author, Giel Ton, g.ton@ids.ac.uk Funding for this systematic review was provided by 3ie's donors, which include UK aid, the Bill & Melinda Gates Foundation, Hewlett Foundation and 16 other 3ie members that provide institutional support. The effectiveness of contract farming in improving smallholder income and food security in low-and middle-income countries: a mixed-method systematic review Plain language summaryContract farming is a sales arrangement between a farmer and a firm, agreed before production begins, which provides the farmer with resources or services. Many governments and donors promote contract farming as part of agricultural development policies. This systematic review analysed the evidence in the literature on income effects for smallholders. The review included all studies with an econometric design to reduce selection bias in effect estimates. The meta-analysis covered 26 empirical instances of contract farming in 13 developing countries. The contracts varied widely, with varying service packages provided by the firm to the farme...

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“…One strand of the literature focuses on low-income countries and finds positive impacts of the inclusion of farmers in export supply chains on happiness [15], on primary school enrolment [16] and on food security [17]. Regarding the creation of employment opportunities, Van den Broeck and Maertens [18] find that female labor market participation reduces fertility rates.…”

Section: Introductionmentioning

confidence: 99%

Sustainability of Global and Local Food Value Chains: An Empirical Comparison of Peruvian and Belgian Asparagus

Schwarz

Schuster²,

Annaert³

et al. 2016

Sustainability

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Abstract:The sustainability of food value chains is an increasing concern for consumers, food companies and policy-makers. Global food chains are often perceived to be less sustainable than local food chains. Yet, thorough food chain analyses and comparisons of different food chains across sustainability dimensions are rare. In this article we analyze the local Belgian and global Peruvian asparagus value chains and explore their sustainability performance. A range of indicators linked to environmental, economic and social impacts is calculated to analyze the contribution of the supply chains to economic development, resource use, labor relations, distribution of added value and governance issues. Our findings suggest that none of the two supply chains performs invariably better and that there are trade-offs among and between sustainability dimensions. Whereas the global chain uses water and other inputs more intensively and generates more employment per unit of land and higher yields, the local chain generates more revenue per unit of land.

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Does Contracting Make Farmers Happy? Evidence from Senegal

Cited by 61 publications

References 64 publications

Farmers’ preferences for supermarket contracts in Kenya

Farmers’ preferences for supermarket contracts in Kenya

The effectiveness of contract farming in improving smallholder income and food security in low- and middle-income countries: a mixed-method systematic review

Sustainability of Global and Local Food Value Chains: An Empirical Comparison of Peruvian and Belgian Asparagus

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