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

The economic reforms have boosted per capita production of almost all the major crops.
The 1994 devaluation improved the incentives for production of cotton and other export crops, as well as
increasing the real price of maize and rice. Over the 1990s, cotton production grew at almost 10 percent
per year and rice at 13 percent per year. Other important food crops including maize, manioc, yams, and
groundnuts grew at 4.5 – 8 percent per year over the decade. Per capita production of sorghum/millet was
stable, while that of beans declined slightly.
Most farmers in Benin say that their household’s standard of living has improved since
1992. Slightly more than half report improvement while 28 percent complain of deterioration. Improved
economic conditions are cited as the main reason for improvement, while those perceiving a deterioration
usually cited non-policy factors such as family health and weather.
Reforms have probably reduced poverty and regional imbalances. Although urban
households may have been adversely affected by privatization, higher import prices, and contraction of
the state, the survey suggests that rural household feel their lives have improved since 1992. Even within
rural areas, the perceived gains are greatest in the poorest department (Atacora) and least in the richest
one (Atlantique). Indeed, comparing our results with those of a rural household survey carried out in
1994-95 suggests that the rural poverty rate has fallen markedly. The cotton boom has almost certainly
also reduced the income gap between the North and the South.
Agricultural marketing is characterized by increasing volume and greater competition.
Village leaders report larger volumes of trade at nearby agricultural markets, increased numbers of
traders, and improved market facilities (number of shops and storage facilities). The GV survey confirms
national trends on the growth of fertilizer use and cotton production. And farmers report that they sell
more than they used to and that the number of crop buyers has increased. Furthermore, these
improvements are reported by all income groups.
The SONAPRA/GV system has been successful in providing input on credit to an estimated
165 thousand small-scale cotton farmers. This system has facilitated the impressive growth of Benin’s
cotton sector. Improvements in the quality, quantity, and timing of delivery may be attributable to the
partial privatization of input delivery. One key to the success of the system is the SONAPRA monopoly
on cotton marketing which facilitates the recovery of input credit at harvest.
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