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

most important contractors are the auction (40 percent of all contracts), ADMARC (30 percent),
and traders (22 percent).
Changes in crop marketing
Only 17 percent of households noted a change in the distribution of their sales to buyers
since 1995. Cash crops such as tobacco, cotton, coffee, chillies, and sunflower, were the areas
where most changes were reported. Of those households that reported a change, about 38 percent
noted an increase in sales to traders, while 19 percent said that they increased sales to ADMARC.
The rest increased their sales to the auction (15 percent), relatives and friends (13 percent) and
others (15 percent). The change in sale distribution varies by crops. For example, more sales to
traders are observed for maize and groundnuts, while increased auction sales refer mainly to
tobacco. Coffee producers also have increased sales to coffee cooperatives since 1995.
5.1.10 Expenditure patterns
The most common, and perhaps the best measure, of the overall well being of a household is per
capita consumption expenditure. Consumption expenditure includes the following components:
Food purchases: the amount spent on food for household consumption
Home production: the value of goods produced by the household for its own consumption
Non-food purchases: goods and services purchased for household consumption,
Housing value: the rental value of the dwelling occupied by the household.
Food purchases are measured based on responses to a set of recall questions for 29 food and
beverage categories. Home production is measured by quantity of food produced by the
household for its own consumption, valued using the price of the same food items purchased in
the same region. Non-food purchases are estimated based on recall questions for 14 non-food
categories. And the rental value of housing is based on estimates by the respondent.
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