Impact Of Agricultural Market Reforms On Smallholder Farmers In ...

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Households that belong to a club also have a higher level of marketed surplus (by about 3 percent). As mentioned earlier, farmer clubs are usually created to help farmers market their crop. This result shows that farmers’ club should be encouraged to help increase the commercialization of smallholder agricultural production. More contact with extension agents also increases the market orientation of the household by about 4 percent. This may indicate that more access to information is beneficial for the commercialization of agricultural production. The Yawo, followed by the Chewa and the Tumbuka have lower marketed surplus than other ethnic groups. However, there does not seem to be a strong regional difference in terms of the extent of commercialization of farmers. As predicted, the longer the distance of the farm from the road, the lower the marketed surplus (by about 6 percentage points). Longer distances to transportation networks imply that the cost of marketing a crop are higher. Therefore, farmers in remote areas have a lower level of market orientation. The ownership of a radio, which also increases access to market information, increases marketed surplus by around 4 percent. Access to market information increases the ability of farmers to assess whether market conditions are appropriate to sell their crops. The remaining variables show that holding everything else constant, the level of expenditures, gender, age or education of the household head, do not have a significant impact on the market orientation of the household. This suggests that there is no intrinsic bias against poorer households or women in terms of access to agricultural markets. Types of buyers Overall, 35 percent of crop sales transactions are with traders, 30 percent with consumers, 19 percent with ADMARC, and 11 percent at the auction floors. In terms of volume, these percentages are basically similar; i.e. traders buy up about 30 percent of the total volume of sales, 255
ADMARC captures another 17 percent, and consumers about 38 percent. The types of crop buyers, however, vary by crop. Table 5.39 indicates that for maize for example, the most common buyer is ADMARC, whereas for tobacco, auction floors dominate. It is interesting to note that the likelihood of sales to ADMARC increases with expenditure and farm size. This indicates that ADMARC is still more accessible to wealthier and larger farmers. Location of sale The location of the sale also varies by the crop, but in general, about 37 percent of all transactions are conducted in the market, 26 percent on the farm, 18 percent at ADMARC, and 11 percent at the auction floor. Bulky commodities such as tuber crops and vegetables are more likely to be sold on the farm. Grains are more likely to be sold at the market or ADMARC depots; while tobacco is more likely to be sold at the auction. Small farmers use various means to transport their crops to their point of sale market or to ADMARC’s depots. The most common mean of transport is by foot (34 percent of all transactions), followed by bicycles (17 percent), animal and cart (12 percent), car and truck (10 percent; mainly to take tobacco to the auction), and the rest is either not transported or transported by other means. About 57 percent of transport means are owned and 43 percent are rented. The average distance traveled to sell a crop is 8 km and the average time it takes to take the crop to the sale point is 1 hour and 15 minutes. Average transport costs to sale point are 46 MK/km/ton. These numbers indicate that farmers in Malawi do not have access to a cheap source of transport to sell their crop and that modern transport means are still not very common. As a result, farmers still travel long distances on foot or by bicycle to sell their produce. Farmers were asked about the factors that affect their choice of buyer or sale point. The answers were split almost 50-50 between “best price offered” and “closest location”. Therefore, both prices and distance are important in determining sales by small farmers in Malawi. Only 3 percent cited “pre-established relationship with buyer.” Farmers were also asked whether they are always able to sell when they want to. Only 18 percent said that they couldn’t. They attributed this to either because buyers only buy at certain periods (65 percent) or that they can’t store the crop for long (30 percent). The latter reason applies mainly for tuber crops (such as cassava and sweet potato) and vegetables. Few farmers (only 10 percent) contract their crop. The crop that are mostly contracted are cash crops such as tobacco, cotton, chillies, sunflower, and beans. The 256
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IMPACT OF AGRICULTURAL MARKET REFOR
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TABLE OF CONTENTS CHAPTER 1 - INTRO
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5.1.10 Expenditure patterns .......
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CHAPTER 1 - INTRODUCTION 1.1 Backgr
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villageois, (GV)) was needed as the
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CHAPTER 2: POLICY BACKGROUND FOR BE
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2.3 Evolution of Economic Policy 2.
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Under pressure from the World Bank
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anking system has been restored to
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Fertilizer can be imported outside
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particularly urban wage-earners. On
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Soulé (1996) describes the evoluti
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led to a more sustainable agricultu
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Table 2.4 - Gross farm revenue from
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Malawi’s economy is heavily depen
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the reduction of its operations in
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crops is also difficult because tob
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Table 3.1 CROP 1982/83 1983/84 1984
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CHAPTER 4: RESULTS OF THE BÉNIN SM
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where W v is the weight for a house
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heads. This suggests that some of t
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And school attendance is much highe
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Crop production is the main activit
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(33 percent). Livestock income is m
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Somewhat surprisingly, the relation
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It is no more common among richer h
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production, and women actually spen
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Seed use by crop Although only 18 p
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Looking at the results by departmen
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Ouémé presents an unusual case: j
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Market prices have significant effe
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policies of SONAPRA to discourage
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crops are responsible for this incr
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Respondents were asked whether the
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Female-headed households, not surpr
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households are not considered credi
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In almost every category of agricul
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This discussion implies that farms
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eturns per hectare and labor-intens
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farm household and tends to be smal
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Surprisingly, the value of sales as
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Finally, proximity to an all-season
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Changes in crop marketing In this s
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Poor households are more likely to
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it is clear that virtually all grow
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production to total expenditure is
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a significant number of household (
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non-food spending. These are follow
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Larger farms are associated with hi
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This would not be surprising in lig
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Female-headed households appear to
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poorest expenditure category to jus
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headed household were more likely t
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Households in every expenditure cat
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An important result of this analysi
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oad network, although those citing
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questions posed by the IFPRI-LARES
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With regard to cotton marketing, al
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Village leaders were asked to ident
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Marketing patterns Village leaders
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4.3: Results of the Bénin Survey o
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4.3.2 Survey methods At the time of
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officers have CM2 certificates. Thi
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Suppliers The GV representatives we
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Cotton area per GV ranges from 145
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The largest cost items are schools
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members and 10 percent of the membe
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Table 4.1.1-Description of sample o
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Table 4.1.7-Age, education, and lit
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Table 4.1.13-Ethnic background of h
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Table 4.1.19-Importance of each sou
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Table 4.1.25-Number of plots and ar
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Table 4.1.31-Land tenure by expendi
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Table 4.1.37-Change in labor alloca
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Table 4.1.42-Seed use by sex of hea
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Table 4.1.47-Perceived change in av
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Table 4.1.54-Share of producers of
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Table 4.1.59-Fertilizer use by farm
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Table 4.1.64-Characteristics of fer
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Table 4.1.69-Change in fertilizer a
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Table 4.1.75-Allocation of labor by
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Table 4.1.82-Allocation of labor by
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Table 4.1.89-Change in credit avail
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Table 4.1.94-Percent of households
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Table 4.1.102-Area allocation by cr
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Table 4.1.106-Area allocation by cr
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Table 4.1.110-Marketed share of out
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Table 4.1.114-Marketed share of out
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Table 4.1.117-Regression for market
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Table 4.1.120-Change in the type of
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Table 4.1.128-Perceived change in r
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Table 4.1.135-Main reason for stori
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Table 4.1.140-Summary of food expen
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Table 4.1.144-Food consumption by e
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Table 4.1.149-Results of regression
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Table 4.1.152-Value of household as
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Table 4.1.156-Value of household as
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Table 4.1.160-Housing characteristi
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Table 4.1.162-Housing characteristi
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Table 4.1.165-Main source of water
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Table 4.1.170-Source of information
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Table 4.1.176-Source of information
Page 212 and 213: Table 4.1.181-Regression for percei
Page 214 and 215: Table 4.2.5-Change in number of veh
Page 216 and 217: Table 4.2.12-Availability and sourc
Page 218 and 219: Table 4.2.21-Number of GFs per vill
Page 220 and 221: Table 4.2.30-Percentage of villages
Page 222 and 223: Table 4.2.34-Distribution of villag
Page 224 and 225: Table 4.3.1-Distribution of GVs by
Page 226 and 227: Table 4.3.9-Number of each type of
Page 228 and 229: Table 4.3.12-Percentage of secretar
Page 230 and 231: Table 4.3.19-Distribution of GVs by
Page 232 and 233: Table 4.3.24-Percentage of inputs s
Page 234 and 235: Table 4.3.32-Average value of curre
Page 236 and 237: Table 4.3.40-Percentage of GVs in w
Page 238 and 239: CHAPTER 5 - RESULTS FROM THE MALAWI
Page 240 and 241: The weights are used to calculate a
Page 242 and 243: On average, around 20 percent of th
Page 244 and 245: agricultural work. Other less commo
Page 246 and 247: 5.1.4 Time allocation In Malawi, as
Page 248 and 249: attributed it to the fact that fert
Page 250 and 251: insignificant. The coefficient on t
Page 252 and 253: As in the results from the previous
Page 254 and 255: most important sources of input on
Page 256 and 257: applied for credit compared to 20 p
Page 258 and 259: less than 1 mt per ha which are fai
Page 260 and 261: 5.1.9 Agricultural marketing Market
Page 264 and 265: most important contractors are the
Page 266 and 267: indicates that the extent of povert
Page 268 and 269: wheat, and fruits and nuts, a highe
Page 270 and 271: Surprisingly, the education of the
Page 272 and 273: Housing characteristics The overwhe
Page 274 and 275: It was also important to find out w
Page 276 and 277: Surprisingly, tobacco growers are m
Page 278 and 279: Over three-quarter of the EPAs repo
Page 280 and 281: The changes in the number and types
Page 282 and 283: 5.2.11 Storage Facilities On averag
Page 284 and 285: Table 5.2 - Household characteristi
Page 286 and 287: Table 5.7 - Percentage of household
Page 288 and 289: Table 5.12 - Farm labor use and all
Page 290 and 291: Table 5.15 - Determinants of the de
Page 292 and 293: Table 5.17 - Sources of fertilizer
Page 294 and 295: Table 5.22 - Access and use of cred
Page 296 and 297: Table 5.25 - Percent of households
Page 300 and 301: Table 5.34 - Crop disposal by type
Page 302 and 303: Table 5.38 - Determinants of Market
Page 304 and 305: Table 5.42 - Summary of expenditure
Page 306 and 307: Table 5.45 - Food consumption by so
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Table 5.51 - Food consumption by ex
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Table 5.56 - Determinants of per ca
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Table 5.59 Percent of households ow
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Table 5.62 - Characteristics of the
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Table 5.68 - Determinants of percei
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Table 5.71 - Average yields per cro
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Table 5.77 - Changes in the availab
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Figure 5.1 Distribution of househol
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Figure 5.7 - Percentage of Househol
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CHAPTER 6 - SUMMARY, CONCLUSIONS AN
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Fertilizer Half of the far
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Regression analysis indicates that
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Among those seeing improvement, the
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Agricultural markets Three quart
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The economic reforms have boosted p
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department. The farms with very lit
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Strengthen the extension service by
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The most time-consuming agricultura
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Most common means of transport to t
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Small farmers in Malawi are mainly
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households have less assets and les
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Place more serious efforts to impro
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REFERENCES Ahoyo Adjovi, N.R. and F
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Impact Of Agricultural Market Reforms On Smallholder Farmers In ...

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