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

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The changes in the number and types of traders since 1995 are reported in Table 5.78. For the majority of the EPAs (64 percent), the number of assemblers has not changed; in 21 percent of the EPAs, the number of assemblers has actually declined. On the other hand, the number of private crop wholesalers and retailers has increased in most EPAs, whereas the number of ADMARC crop markets has not changed in most cases (81 percent of the EPAs). This indicates that market reform has led to an increase in the number of private traders. This usually should lead to greater market competition, better prices, and more market choices for producers and consumers. In the input markets, the number of private retailers seems to have increased the most, followed by private wholesalers. For most ADMARC input markets and the subsidiary of input manufacturers, there are no changes since 1995. In all cases, it is the number of retailers that has increased the most since the reforms. This is expected since retailing is an easy business to get into and does not require a lot of capital, technical expertise, or business savvy as wholesaling would. 5.2.7 Starter Pack Initiative (SPS) The EPA survey indicates that, as expected, all the EPAs were included in the SPS during the 1998/99 season. About 93 percent of the households in each EPA were included in the SPS. This is not surprising since the SPS was supposed to cover all farming households and some of the households in each EPA may not be involved in farming. In 95 percent of the cases, both fertilizer (urea or 23-21-0) and seed (mainly maize, groundnuts, and soybeans) were distributed for free. In about 5 percent of the EPAs, only fertilizer was distributed. The quantities distributed were about 15 kgs of fertilizer and 4 kgs of seeds. 5.2.8 Agricultural Productivity Investment Program (APIP) About 97 percent of the EPAs were covered in the APIP, but only 10 percent of the households in each EPA were part of the program. A higher percent of households in the Northern region were included (19 percent compared to 8 percent of the households in the Center and 5 in the South). The APIP is a more selective program; it only includes households who are interested in applying for input on credit and who are eligible for credit (no history of loan default and demonstrated ability to repay). Again, in 90 percent of the cases, both fertilizer and seed are distributed on credit under the APIP. The average quantities given are 98 kgs of fertilizer and 10 kgs of seed. 273
The most common fertilizers distributed are urea and 23-21-0 and the most common seeds are maize followed by soybeans. The average value of the input-credit APIP package is about MK 2,043 (US $45). Households usually pay back the loan in cash or a combination of in-kind and cash at a specified loan closing date. 5.2.9 Farmers’ Associations and Clubs On average, each EPA has about one farmers association and 121 farmers’ clubs. Clubs are usually made up of a few farmers and are useful for farmers to market their cash crops together (such as selling tobacco on the auction floor) and obtain input on credit as a group. The most common types of clubs are tobacco and horticultural clubs. Associations are usually more formal and are made up of several clubs. Both clubs and associations are, in most cases, initiated by the MOAI, but in some instances they are self-initiated by the farmers themselves (more for clubs than associations). 5.2.10 Formal and Informal Credit Services Each EPA has, on average, 3 moneylenders, less than one commercial bank branch, about 2 Malawi Rural Finance Corporation (MRFC) branches, about 1.5 NGOs, and very few have Savings and Credit Cooperatives (SACCO) (see Table 5.79). NGOs and MRFC branches are more heavily concentrated in the South while no moneylenders were reported in the Center. We also find more commercial bank branches in the North. Not all these credit institutions lend to small farmers however. For example, only 12 percent of commercial banks and 2/3 of SACCO lend to small farmers. The other credit institutions all lend to small farmers. As Table 5.80 shows, the number of moneylenders and NGOs seems to have increased since 1995. For the other credit institutions, few EPAs report changes in their availability in their respective areas. 274
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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
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Table 4.1.181-Regression for percei
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Table 4.2.5-Change in number of veh
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Table 4.2.12-Availability and sourc
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Table 4.2.21-Number of GFs per vill
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Table 4.2.30-Percentage of villages
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Table 4.2.34-Distribution of villag
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Table 4.3.1-Distribution of GVs by
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Table 4.3.9-Number of each type of
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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 262 and 263: Households that belong to a club al
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 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
Page 312 and 313: Table 5.51 - Food consumption by ex
Page 314 and 315: Table 5.56 - Determinants of per ca
Page 316 and 317: Table 5.59 Percent of households ow
Page 318 and 319: Table 5.62 - Characteristics of the
Page 320 and 321: Table 5.68 - Determinants of percei
Page 322 and 323: Table 5.71 - Average yields per cro
Page 324 and 325: Table 5.77 - Changes in the availab
Page 326 and 327: Figure 5.1 Distribution of househol
Page 328 and 329: 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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