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 ...
eturns per hectare and labor-intensivity make vegetables an attractive option for small farmers with the necessary skills and market access. Third, the share of land allocated to cotton and “other crops” rises from 9 percent in the smallest farm-size category to 32 percent in the largest. “Other crops” includes fruit trees, oilseeds, cashew, and a number of crops grown primarily for the market. In summary, small farms allocate most of their land to staple foods with some vegetable production, while large farms devote an increasing share of the total area to cotton and other nonhorticultural cash crops (see Table 4.1.108). 4.1.7 Agricultural marketing and storage International experience indicates that rural development is associated with three trends: rising productivity in agricultural production, the movement of farmers from subsistence production to commercial production, and the rising share of non-farm income in rural areas. Thus, it is important to understand the patterns of agricultural marketing and the constraints that prevent farmers from becoming further integrated with the national and international economy. Although production data is available from official statistics, information on agricultural marketing patterns is generally only available from agricultural household surveys such as the IFPRI-LARES Small Farmer Survey. This section describes three aspects of agricultural marketing in Bénin. First, it describes the patterns of crop sales and how marketed surplus varies by crop and across household types. Second, it examines the specifics of the sale of agricultural commodities, including the timing, the types of buyers, and the location of the transactions. Finally, it explores the perceptions of Bénin farmers regarding changes in agricultural marketing as a result of economic reforms over the past eight years. Marketed surplus As described elsewhere in this report, farmers in Bénin operate on a relatively small scale (3.3 hectares on average), with little mechanization (less than 10 percent use animal traction). Furthermore, the average per capita expenditure of farm households is 105 thousand CFA, equivalent to US$ 175. From this information, one might assume that the agricultural sector in 73
Bénin is characterized by semi-subsistence farmers, producing mainly for their own consumption and selling small amounts in good years when a surplus is generated. In fact, the evidence from the IFPRI-LARES Small Farmer Survey indicates that Bénin farmers are highly integrated into the market economy and that almost two-thirds of the value of crop production is marketed. Percentage of households selling One measure of the extent of commercialization is to look at the proportion of growers that sell each crop. For most crops, at least two-thirds of the growers sell part of their harvest. This percentage is, of course, highest for cotton, which is sold by all farmers growing it. Tomatoes, groundnuts, and piment are sold by 90 percent of the farmers that grow them. The proportion is high even for basic food crops. Manioc is sold by three-quarters of the farmers that produce it, while maize and cowpeas are sold by two-thirds of those growing these crops. Among the main crops, only sorghum/millet is sold by less than half of the growers (see Table 4.1.109). The percentage of farm households (as opposed to growers) that sell each crop is lower, of course. The most commonly marketed crop is maize, being sold by 57 percent of farm households in Bénin 13 . Cowpeas and cotton are sold by approximately one-third of the farm households, while groundnuts and manioc are sold by about one-quarter of them. The survey data indicate that the average Bénin farmers sells 2.8 of the 14 main crops (recall that Bénin farmers grow an average of 4.0 crops per farm) (see Table 4.1.109) Percentage of output sold Another measure of commercial orientation is the marketed surplus ratio, defined as the amount sold as a proportion of the amount produced. The average market surplus ratio for a group of households can be calculated two ways: the aggregate market share calculated as 1) the total value of sales divided by the total value of output or 2) the average value of sales divided by the average value of production (in tables, we refer to this as ‘Sales as % of production’). the average market share, calculated as the average of the market surplus ratios for each household (in tables, we use ‘Average % sold’). . The aggregate market share gives greater weight to large producers and represents national or regional marketing patterns. The average market share describes the marketing patterns of a typical 13 The proportion of households selling maize (0.57) cam be calculated as the proportion of households growing maize (0.87) multiplied by the proportion of maize growers that sell maize (0.66). 74
- Page 31 and 32: Malawi’s economy is heavily depen
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- Page 35 and 36: crops is also difficult because tob
- Page 37 and 38: Table 3.1 CROP 1982/83 1983/84 1984
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- Page 42 and 43: where W v is the weight for a house
- Page 44 and 45: heads. This suggests that some of t
- Page 46 and 47: And school attendance is much highe
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- Page 50 and 51: (33 percent). Livestock income is m
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- Page 54 and 55: It is no more common among richer h
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- Page 58 and 59: Seed use by crop Although only 18 p
- Page 60 and 61: Looking at the results by departmen
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- Page 64 and 65: Market prices have significant effe
- Page 66 and 67: policies of SONAPRA to discourage
- Page 68 and 69: crops are responsible for this incr
- Page 70 and 71: Respondents were asked whether the
- Page 72 and 73: Female-headed households, not surpr
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- Page 76 and 77: In almost every category of agricul
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- Page 100 and 101: Larger farms are associated with hi
- Page 102 and 103: This would not be surprising in lig
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Bénin is characterized by semi-subsistence farmers, producing mainly for their own consumption<br />
and selling small amounts in good years when a surplus is generated. <strong>In</strong> fact, the evidence from the<br />
IFPRI-LARES Small Farmer Survey indicates that Bénin farmers are highly integrated into the<br />
market economy and that almost two-thirds of the value of crop production is marketed.<br />
Percentage of households selling <strong>On</strong>e measure of the extent of commercialization is to<br />
look at the proportion of growers that sell each crop. For most crops, at least two-thirds of the<br />
growers sell part of their harvest. This percentage is, of course, highest for cotton, which is sold by<br />
all farmers growing it. Tomatoes, groundnuts, and piment are sold by 90 percent of the farmers that<br />
grow them. The proportion is high even for basic food crops. Manioc is sold by three-quarters of<br />
the farmers that produce it, while maize and cowpeas are sold by two-thirds of those growing these<br />
crops. Among the main crops, only sorghum/millet is sold by less than half of the growers (see<br />
Table 4.1.109).<br />
The percentage of farm households (as opposed to growers) that sell each crop is lower, of course.<br />
The most commonly marketed crop is maize, being sold by 57 percent of farm households in<br />
Bénin 13 . Cowpeas and cotton are sold by approximately one-third of the farm households, while<br />
groundnuts and manioc are sold by about one-quarter of them. The survey data indicate that the<br />
average Bénin farmers sells 2.8 of the 14 main crops (recall that Bénin farmers grow an average of<br />
4.0 crops per farm) (see Table 4.1.109)<br />
Percentage of output sold Another measure of commercial orientation is the marketed<br />
surplus ratio, defined as the amount sold as a proportion of the amount produced. The average<br />
market surplus ratio for a group of households can be calculated two ways:<br />
<br />
<br />
the aggregate market share calculated as 1) the total value of sales divided by the total<br />
value of output or 2) the average value of sales divided by the average value of production<br />
(in tables, we refer to this as ‘Sales as % of production’).<br />
the average market share, calculated as the average of the market surplus ratios for each<br />
household (in tables, we use ‘Average % sold’). .<br />
The aggregate market share gives greater weight to large producers and represents national or<br />
regional marketing patterns. The average market share describes the marketing patterns of a typical<br />
13<br />
The proportion of households selling maize (0.57) cam be calculated as the proportion of households<br />
growing maize (0.87) multiplied by the proportion of maize growers that sell maize (0.66).<br />
74