Impact Of Agricultural Market Reforms On Smallholder Farmers In ...
Impact Of Agricultural Market Reforms On Smallholder Farmers In ... Impact Of Agricultural Market Reforms On Smallholder Farmers In ...
questions posed by the IFPRI-LARES Community Survey do not allow us to quantify this increase, but it is notable that such a large share of villages report increased market activity. The survey provides additional evidence of increased marketing activity. A majority (51-77 percent) of the respondents reported that the number of warehouses has increased in all three types of markets. Very few reported reductions. Furthermore, a number of villages report increasing numbers of stores (13-64 percent), while none report a shrinking number. The access to water in agricultural markets, an important factor in the sanitary condition of the commodities sold, has also improved, particularly in the consumption markets. One areas where little or no improvement is observed by the village leaders is in the number of telephones (see Table 4.2.10). Finally, according to the village leaders interviewed, the number of assemblers, wholesalers, and retailers has increased since 1992. For example, 41 percent cite an increase in the number of wholesalers compared to just 10 percent reporting a decrease (see Table 4.2.11). This is a positive trend for two reasons. First, it confirms expanding agricultural trade in the rural areas of Bénin and suggests that farmers and traders may have responded to market reforms. Second, an increase in the number of traders is generally associated with a greater degree of competition in agricultural markets. It is more difficult for traders to collude to fix prices when there are many of them. Examining the perceived change in wholesalers and retailers for each of the three regions, it is clear that the increase in the number of traders is not limited to one or two regions. In all three regions, the number of villages seeing an increase in traders exceeds the number seeing a decrease. Input credit The proportion of farmers getting input credits varies markedly across regions. Over 97 percent of the villages in the North and 88 percent of those in the Center report that farmers can purchase inputs on credit. The dominant source of input credit in these regions is the groupements villageois (GVs). By contrast, less than one third of the villages in the south say that their farmers can purchase inputs on credit. The source of the input credit also differs: in the South, the main source of credit is CARDER (see Table 4.2.12). The village leaders were also asked to estimate the proportion of farmers that are able to purchase inputs on credit in their villages. In half the villages in the North, “all” farmers are said to get input 109
credit, while another third of the northern villages report that “most” farmers get input credit. In contrast, two-thirds of the villages in the South say that “none” of their farmers get inputs on credit. 4.2.4 Activities of groupements villageois and groupements feminins The groupements villageois (GVs) play an critical role in agricultural marketing in Bénin, distributing inputs on credit to cotton farmers and acting as an agent of Sonapra in the collection of cotton. The groupements feminins (GFs) play a different and less well-documented role in agricultural marketing. The purpose of this section is to describe the activities of these two types of farmer organizations and explore some of the changes in them since 1992 25 . Groupements villageois As is well-known, GVs are much more common in the cotton-growing areas of the North and Center of Bénin. According to the IFPRI-LARES Community Survey, 91 percent of the villages in the North have at least one GV and 79 percent of those in the Center do. By contrast, only 39 percent of the villages in the South have a GV. Among villages in the South that do have GVs, the incidence of multiple GVs is higher than in the North and Center (see Table 4.2.13). This geographic split is also found in the activities carried out by the GVs. In the North and Center, the vast majority of GVs (85-90 percent) are involved in cotton marketing and the distribution of fertilizer, seed, and pesticide/herbicides. In the South, however, GVs are primarily involved in the marketing of maize and other food crops, with only a quarter of them participating in input distribution. Few GVs anywhere are involved in marketing cash crops other than cotton or in agricultural processing (see Table 4.2.14). Most of the GVs involved in marketing maize and other food crops handle less than half the quantity marketed within the village. In contrast, GVs are usually able to dominate cotton marketing because of Sonapra’s legal monopoly on cotton marketing (see Table 4.2.15). Examining maize marketing activities by region reveals that northern GVs are more successful in handling a large proportion of the maize marketed by the village. In contrast, 80 percent of the GVs in the South market less than half the maize sold within the village (see Table 4.2.16). 25 As part of the same project, IFPRI and LARES also carried out a survey of GVs, the results of which are available in a separate report. 110
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credit, while another third of the northern villages report that “most” farmers get input credit. <strong>In</strong><br />
contrast, two-thirds of the villages in the South say that “none” of their farmers get inputs on credit.<br />
4.2.4 Activities of groupements villageois and groupements feminins<br />
The groupements villageois (GVs) play an critical role in agricultural marketing in Bénin,<br />
distributing inputs on credit to cotton farmers and acting as an agent of Sonapra in the collection of<br />
cotton. The groupements feminins (GFs) play a different and less well-documented role in<br />
agricultural marketing. The purpose of this section is to describe the activities of these two types of<br />
farmer organizations and explore some of the changes in them since 1992 25 .<br />
Groupements villageois<br />
As is well-known, GVs are much more common in the cotton-growing areas of the North<br />
and Center of Bénin. According to the IFPRI-LARES Community Survey, 91 percent of the<br />
villages in the North have at least one GV and 79 percent of those in the Center do. By contrast,<br />
only 39 percent of the villages in the South have a GV. Among villages in the South that do have<br />
GVs, the incidence of multiple GVs is higher than in the North and Center (see Table 4.2.13).<br />
This geographic split is also found in the activities carried out by the GVs. <strong>In</strong> the North and Center,<br />
the vast majority of GVs (85-90 percent) are involved in cotton marketing and the distribution of<br />
fertilizer, seed, and pesticide/herbicides. <strong>In</strong> the South, however, GVs are primarily involved in the<br />
marketing of maize and other food crops, with only a quarter of them participating in input<br />
distribution. Few GVs anywhere are involved in marketing cash crops other than cotton or in<br />
agricultural processing (see Table 4.2.14).<br />
Most of the GVs involved in marketing maize and other food crops handle less than half the<br />
quantity marketed within the village. <strong>In</strong> contrast, GVs are usually able to dominate cotton<br />
marketing because of Sonapra’s legal monopoly on cotton marketing (see Table 4.2.15).<br />
Examining maize marketing activities by region reveals that northern GVs are more successful in<br />
handling a large proportion of the maize marketed by the village. <strong>In</strong> contrast, 80 percent of the<br />
GVs in the South market less than half the maize sold within the village (see Table 4.2.16).<br />
25<br />
As part of the same project, IFPRI and LARES also carried out a survey of GVs, the results of which<br />
are available in a separate report.<br />
110