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 ...

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Suppliers The GV representatives were asked to name the most important supplier of each type of input. The GVs obtain fertilizer from more than a dozen different suppliers, the most important of which are SONAPRA (30 percent of the GVs) and NACSON (14 percent). Pesticides are also purchased from a wide range of suppliers. In contrast, SONAPRA is cited as the most important source of herbicides by more than three-quarters of the GVs and as the source of cotton seed by 95 percent of them. The USPPs are cited as the most important source of processing equipment for 62 percent of the GVs (see Table 4.3.19). The level of satisfaction is relatively high (at least 80 percent) for suppliers of fertilizer, herbicides, cotton seed, and other inputs. On the other hand, just half of the GVs reported being satisfied with their pesticide supplier (see Table 4.3.20). About 10 percent of the GVs reported obtaining inputs from outside the cotton system, meaning from an organization other than SONAPRA or the designated input suppliers. Even among these GVs, the outside sources accounted for just 20 percent of the input purchases (see Table 4.3.21). In most cases where a GV purchased from outside the system (17 out of 19), the supplier was another GV. The GVs said that these transactions were necessary because the quantity ordered was not sufficient for their members or the inputs were not available on time. Types of inputs Generally, 85-90 percent of the members of the GVs order fertilizer, pesticide, and cotton seed. In Zou, the proportion was just two-thirds, but in the other departments it was generally over 90 percent. Herbicides are purchased by just 8 percent of the GV members (see Table 4.3.22). The average quantity ordered was 417 kilograms of fertilizer per farm ordering fertilizer. This mean is affected by a few large values, however (see Table 4.3.23). In half of the GVs, the average quantity was less than 270 kilogram per farm, but the average was over 1000 kg/farm in thirteen GVs and over 3000 kg/farm in four GVs. It is interesting to note that all thirteen of these GVs were in Zou. These large quantities do not seem to be caused by large farms: the four GVs with more than 3000 kg/farm of fertilizer orders report just 110-250 hectares of cotton cultivation. Another possible explanation is that fertilizer is being used on other crops grown by GV members or that members are selling some of the fertilizer. The quantity of cotton seed ordered per farm is largest among the GVs in the north (99 kg in Atacora and 64 kg in Borgou) and smallest in the south (16 kg in Mono/Ouémé). This reflects the 123

fact that farms, and hence the areas planted to cotton, are smaller in the south than in the north. The amount of pesticides ordered varies from 1 liter/farm in the southern departments to 15 liters/farm in Zou, the national average being 10 liters/farm. The quantity of herbicides ordered is 6 liters per farm ordering it, but it should be recalled that less than 10 percent of GV members order herbicides (see Table 4.3.23). Input credit The survey asked about the proportion of inputs sold on credit. As expected, 95-100 percent of the fertilizer and pesticides are sold to members on credit. The percentage was somewhat lower in the case of herbicides (61 percent), largely because most GVs in Zou that sell herbicides do not offer input credit (see Table 4.3.24). When asked about the factors that determined the amount of credit offered to members, cotton area was cited by 95 percent of the GVs and ability to repay was cited by 93 percent. Other factors were cited as well: credit needs for cotton (84 percent), credit history (73 percent), and trust and character (72 percent). Trends GV representatives were asked to evaluate the trends in input use since 1992. Over 90 percent of the GVs reported increases in the use of fertilizer, pesticides, and cotton seed, as would be expected given national trends in input use and cotton production (see Table 4.3.25). The main reasons cited for these increases were the expansion in cotton area and rising numbers of GV members. On the other hand, the responses with regard to trends in herbicide use were more mixed, with 34 percent of the GVs reporting an increase and 20 percent reporting a decrease. Among GVs reporting a decrease in herbicide use, the most commonly cited reason was the price of the input (67 percent). Crop marketing Cotton dominates the marketing activities of the groupements villageois. Cotton is marketed by all 189 GVs in the sample, but maize is marketed by just 5 percent of the GVs and groundnuts and yams by even fewer. Furthermore, cotton represents 97 percent of the volume of crops marketed by the GVs and 99 percent of the value of crops marketed. Even in the south, cotton accounts for 95 percent of the value and volume of crops marketed (see Table 4.3.26). Given the importance of cotton and the small number of GVs marketing other crops, the remainder of this section will focus on cotton marketing. 124

Suppliers The GV representatives were asked to name the most important supplier of each<br />

type of input. The GVs obtain fertilizer from more than a dozen different suppliers, the most<br />

important of which are SONAPRA (30 percent of the GVs) and NACSON (14 percent). Pesticides<br />

are also purchased from a wide range of suppliers. <strong>In</strong> contrast, SONAPRA is cited as the most<br />

important source of herbicides by more than three-quarters of the GVs and as the source of cotton<br />

seed by 95 percent of them. The USPPs are cited as the most important source of processing<br />

equipment for 62 percent of the GVs (see Table 4.3.19).<br />

The level of satisfaction is relatively high (at least 80 percent) for suppliers of fertilizer, herbicides,<br />

cotton seed, and other inputs. <strong>On</strong> the other hand, just half of the GVs reported being satisfied with<br />

their pesticide supplier (see Table 4.3.20).<br />

About 10 percent of the GVs reported obtaining inputs from outside the cotton system, meaning<br />

from an organization other than SONAPRA or the designated input suppliers. Even among these<br />

GVs, the outside sources accounted for just 20 percent of the input purchases (see Table 4.3.21). <strong>In</strong><br />

most cases where a GV purchased from outside the system (17 out of 19), the supplier was another<br />

GV. The GVs said that these transactions were necessary because the quantity ordered was not<br />

sufficient for their members or the inputs were not available on time.<br />

Types of inputs Generally, 85-90 percent of the members of the GVs order fertilizer,<br />

pesticide, and cotton seed. <strong>In</strong> Zou, the proportion was just two-thirds, but in the other departments<br />

it was generally over 90 percent. Herbicides are purchased by just 8 percent of the GV members<br />

(see Table 4.3.22).<br />

The average quantity ordered was 417 kilograms of fertilizer per farm ordering fertilizer. This<br />

mean is affected by a few large values, however (see Table 4.3.23). <strong>In</strong> half of the GVs, the average<br />

quantity was less than 270 kilogram per farm, but the average was over 1000 kg/farm in thirteen<br />

GVs and over 3000 kg/farm in four GVs. It is interesting to note that all thirteen of these GVs were<br />

in Zou. These large quantities do not seem to be caused by large farms: the four GVs with more<br />

than 3000 kg/farm of fertilizer orders report just 110-250 hectares of cotton cultivation. Another<br />

possible explanation is that fertilizer is being used on other crops grown by GV members or that<br />

members are selling some of the fertilizer.<br />

The quantity of cotton seed ordered per farm is largest among the GVs in the north (99 kg in<br />

Atacora and 64 kg in Borgou) and smallest in the south (16 kg in Mono/Ouémé). This reflects the<br />

123

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