Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya

Muriithi, Beatrice; Matz, Julia Anna

doi:10.1016/j.foodpol.2014.11.001

Cited by 93 publications

(73 citation statements)

References 40 publications

(23 reference statements)

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“…The reservation to sell beans reduces with assured alternative income from livestock. The extent of market participation is also positively influenced by the price of beans and is consistent with research conducted on maize in Kenya [30]. Though price alone is not sufficient to stimulate commercialization, it is considered a key incentive for market participation among smallholders [26].…”

Section: Discussionsupporting

confidence: 72%

Towards commercial agriculture in Rwanda: Understanding the determinants of market participation among smallholder bean farmers

Ingabire¹,

Mshenga²,

Langat³

et al. 2017

AJFAND

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Agricultural transformation is key to poverty reduction and food security in sub-Saharan Africa (SSA). In Rwanda, this transformation has focused on shifting subsistence-based production to market-oriented farming. Over the last one decade and a half, major emphasis has been placed on the intensification of production systems, promotion of farmers' cooperatives, and enhancement of farmers' access to markets. Although the country recorded an increase in food crop commercialization, subsistence farming is still prevalent amongst smallholder farmers. Yet, in the few studies conducted on agricultural transformation, smallholder commercialization has received scanty attention. As the country aims to achieve commercialized agriculture, there is a need to understand what factors can influence farmers' decisions to participate in the output markets. This study analyses the levels of market participation and drivers of output commercialization, using a sample of 256 Common bean farmers from northern Rwanda. A double-hurdle model was used to analyse the data. Results indicated that 30% of the farmers participated in the market with an average commercialization index of 0.42. Land size, agricultural training and group membership of household head had a positive effect on households' participation to bean market. The distance to the nearest access road that can be used throughout the year reduces the probability of commercialization at household level. The degree of market participation was positively influenced by price, education level of the household head and livestock income. On the other hand, distance to key markets had a negative effect on the degree of households' commercialization. The findings of this paper show that participation in bean markets is still low, with disparities in the commercialized quantities amongst those who participate. Female-headed households were more likely to participate in bean markets, selling higher volumes than male-headed households. This gender difference suggests that bean production can be an important source of income for women smallholder farmers. The study recommends more efforts in improving road networks connecting to key markets, facilitating cross-border trade and increasing agricultural training amongst the farmers. Additionally, the use of improved inputs in bean production as well as income diversification through livestock rearing should be encouraged. All the interventions should be gender-sensitive so as not to deny women their source of livelihood through bean production and marketing.

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Section: Discussionsupporting

confidence: 72%

Towards commercial agriculture in Rwanda: Understanding the determinants of market participation among smallholder bean farmers

Ingabire¹,

Mshenga²,

Langat³

et al. 2017

AJFAND

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“…Commercialization of agriculture is an important means of enhancing crop productivity, food security, and nutrition reduce poverty and incomes (Gebremedhin, Jaleta, & Hoekstra, ; Läpple, Hennessy, & Newman, ; Muriithi & Matz, ; Pingali, ). Carletto, Kilic, and Kirk () present evidence on the long‐term effects of agricultural commercialization on household welfare by using panel data and focus on the nontraditional agricultural export crop in the Central Highlands of Guatemala.…”

Section: Introductionmentioning

confidence: 99%

Food crops commercialization and household livelihoods: Evidence from rural regions in Central Africa

Ochieng¹,

Knerr

Owuor

et al. 2019

Agribusiness

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Several countries in Central Africa face challenges of low food production and high incidences of poverty, particularly in rural areas. Several programs initiated in the region to increase food production and commercialization among smallholder farmers have had limited success. Over 80% of the farm households grow bananas and legumes as staple crops. We evaluate the impact of commercialization of these crops on‐farm income and the dietary diversity of rural households in Rwanda and the Democratic Republic of Congo. We employ three methods: propensity score matching, endogenous switching regression, and IPTW on cross‐sectional data. We find that commercialization has a robust and positive significant effect on dietary diversity and farm income, even after controlling for unobserved heterogeneity across the households. In particular, commercialization increases household incomes by 67% and dietary diversity by 11%. We find strong evidence of the impact of commercialization on incomes but little evidence of dietary diversity of rural households. Wider policy recommendations to raise the capacity of smallholders to produce for the market and improve their livelihoods are discussed. [EconLit citations: Q13, Q12, Q11]

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“…The effects of cash crop vegetable cultivation on smallholder's food security have been widely studied. For example, several authors found that participation in the vegetable business improves farmers' income, food access, availability and consumption [12,13,28,29]. The production of vegetables is found to stimulate exports, the development of rural labour markets and female wage employment in companies.…”

Section: Smallholders Cash Crops and Food Securitymentioning

confidence: 99%

“…Irrigation-led technological changes are the key drivers of productivity growth in the agricultural sector, which in turn has a substantial impact on economic growth. Furthermore, in south Africa and Kenya, linking irrigation with the market orientation has further optimized the benefits of irrigation beyond the smallholders; in addition, access to water security has increased farmers' confidence [28,66]. The literature reveals that irrigation generates an average income of about 323 USD /ha after accounting for the annual investment replacement cost net gross margin from irrigation (60USD/ha) which is more than twice as high as the gross margin from rain-fed agriculture [54].…”

Section: Agriculture Irrigation and Food Security Policies In Ethiopiamentioning

confidence: 99%

Vegetable Business and Smallholders’ Food Security: Empirical Findings from Northern Ethiopia

et al. 2019

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In Ethiopia, there have been increased efforts to promote market-oriented vegetable production. Given that food security is a crucial issue in Ethiopia, the question is whether market-oriented vegetable production will actually help farmers to become more food secure. Using a mixed methods approach, the present research gathered empirical evidence on the determinants of participation in the vegetable business and its food security impacts in the Raya Azebo district. The Heckman two-stage selection model was used to identify factors affecting participation in the vegetable business and its effects on several food security outcomes. A thematic analysis was applied to the qualitative data. The results show that a farmer’s participation in the vegetable business increased significantly with adequate household productive resources (e.g., land size and access to irrigation), cooperative memberships and access to extension services. On the other hand, the age of the head of household, the market distance and risk perceptions significantly decreased participation. Additionally, the results indicate participation in the vegetable business results not only in higher food availability and access but also in lower food variety and diet diversity scores. Participation has less of an impact on per capita kilocalorie consumption and child anthropometric measures of food security. The policy implication is that, while Ethiopia is going ahead with inclusive market-driven approaches to food security, alternative mechanisms must be put in place to address the negative impacts and to empower those living in the most vulnerable conditions.

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Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya

Cited by 93 publications

References 40 publications

Towards commercial agriculture in Rwanda: Understanding the determinants of market participation among smallholder bean farmers

Towards commercial agriculture in Rwanda: Understanding the determinants of market participation among smallholder bean farmers

Food crops commercialization and household livelihoods: Evidence from rural regions in Central Africa

Vegetable Business and Smallholders’ Food Security: Empirical Findings from Northern Ethiopia

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