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

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farm household and tends to be smaller. For example, in Bénin the average value of crop production is 880 thousand FCFA/farm, while the average value of sales is 570 thousand FCFA/farms. Thus, the aggregate market share is 65 percent. But if one calculates the market share for each household and takes the average, the result (the average market share) is 50 percent 14 . The share of total production that is sold (aggregate market share) is highest for cotton (100 percent), tomatoes (91 percent), and “other vegetables” (95 percent). At least two-thirds of the output of groundnuts, manioc, okra, piment, and “other crops” are sold. For maize, rice, and cowpeas, the proportion is 40-55 percent. The least marketed crops are sorghum/millet and yams, with sales accounting for just 11 percent of production (see Table 4.1.109). It may seem surprising that close to 80 percent of the manioc output is sold, but it should be recalled that manioc yields 5-10 tons/ha and few households consume more than 1 ton/year. Thus, even a one-hectare plot of manioc will generate a large surplus. In addition, the market surplus ratio of large producers (who sell a large portion of their output) affects the average more than the ratio of small producers. The market surplus ratio differs markedly across regions. Given that the main cash crop, cotton, is grown in the center and north, one might expect the market surplus share to be highest in those regions. In fact, the aggregate market share is highest in Atlantique (82 percent) and lowest in Atacora and Borgou (43 and 50 percent, respectively). This result can be explained as follows. In Atlantique, the two most important crops are manioc and maize, and over two-thirds of each crop are marketed. In addition, Atlantique has the highest marketed share for a number of crops: maize, cowpeas, groundnuts, manioc, piment, and “other crops”. Presumably, this is due to the proximity of large urban markets and the relatively dense road network that reduces the transaction costs involved in marketing crops (see Table 4.1.110). In Atacora, by contrast, the most important crops are yams and cotton. Although 100 percent of the cotton is marketed, just 11 percent of the yams are. In Borgou, cotton, yams, maize, and sorghum/millet dominate the value of crop production. Less than 10 percent of the yam and 14 This analysis uses estimates of the value of agricultural production based on the prices observed for sales of the same commodity. Generally, department level average prices were used to impute the value of production, but in some cases it was necessary to use national average prices. 75
sorghum/millet output of Borgou is marketed and just 21 percent of the maize is.(see Table 4.1.110). Mono, Ouémé, and Zou are in an intermediate position, with 63-71 percent of the value of crop production being marketed. Although the proportion of maize sold in these departments (30-48 percent) is less than in Atlantique, each of these three departments has important commercial crops that raise the average marketed share (manioc and “other vegetables” in Mono, manioc and tomatoes in Ouémé, and groundnuts and cotton in Zou) (see Table 4.1.110). In terms of the average market share (the average percentage sold), Atlantique remains the most market oriented and Atacora the least. The average market share for Atacora is just 27 percent, implying that, on average, farm households sell barely one-quarter of their output. The large gap between the average market share and the aggregate market share is due to the influence of a relatively small number of cotton farmers in Atacora with high output and high market surplus ratios. In Borgou, where a larger proportion of farmers grow cotton 15 , the two measures of market surplus are similar. It is sometimes argued that female-headed households are less commercially oriented because cash crops are traditionally “male” crops. The IFPRI-LARES Small Farmer Survey data do not support this hypothesis for the case of Bénin. According to both measures of marketed surplus, femaleheaded households are at least as market oriented as male-headed households. This is partly due to the composition of crops grown by female-headed households, in which cotton plays a larger role, and partly due to the fact that female-headed households market a larger share of their maize production (see Table 4.1.111). As expected, higher-income households market a larger share of their output. The share of crop production that is sold (the aggregate market surplus ratio) rises from 60 percent in the poorest expenditure category to 75 percent in the richest. The average market surplus ratio rises from 40 percent to 60 percent. The positive relationship is strengthened by a rising marketed surplus ratio for maize, but this is offset by the fact that cotton becomes less important in the crop mix of richer households. Thus, even the poorest households in rural Bénin sell a significant share of their output (see Table 4.1.112). 15 According to the survey, the proportion of farmers growing cotton is 37 percent in Atacora and 68 percent in Borgou. 76
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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
Page 31 and 32: Malawi’s economy is heavily depen
Page 33 and 34: the reduction of its operations in
Page 35 and 36: crops is also difficult because tob
Page 37 and 38: Table 3.1 CROP 1982/83 1983/84 1984
Page 40 and 41: CHAPTER 4: RESULTS OF THE BÉNIN SM
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
Page 48 and 49: Crop production is the main activit
Page 50 and 51: (33 percent). Livestock income is m
Page 52 and 53: Somewhat surprisingly, the relation
Page 54 and 55: It is no more common among richer h
Page 56 and 57: production, and women actually spen
Page 58 and 59: Seed use by crop Although only 18 p
Page 60 and 61: Looking at the results by departmen
Page 62 and 63: Ouémé presents an unusual case: j
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
Page 74 and 75: households are not considered credi
Page 76 and 77: In almost every category of agricul
Page 78 and 79: This discussion implies that farms
Page 80 and 81: eturns per hectare and labor-intens
Page 84 and 85: Surprisingly, the value of sales as
Page 86 and 87: Finally, proximity to an all-season
Page 88 and 89: Changes in crop marketing In this s
Page 90 and 91: Poor households are more likely to
Page 92 and 93: it is clear that virtually all grow
Page 94 and 95: production to total expenditure is
Page 96 and 97: a significant number of household (
Page 98 and 99: non-food spending. These are follow
Page 100 and 101: Larger farms are associated with hi
Page 102 and 103: This would not be surprising in lig
Page 104 and 105: Female-headed households appear to
Page 106 and 107: poorest expenditure category to jus
Page 108 and 109: headed household were more likely t
Page 110 and 111: Households in every expenditure cat
Page 112 and 113: An important result of this analysi
Page 114 and 115: oad network, although those citing
Page 116 and 117: questions posed by the IFPRI-LARES
Page 118 and 119: With regard to cotton marketing, al
Page 120 and 121: Village leaders were asked to ident
Page 122 and 123: Marketing patterns Village leaders
Page 124 and 125: 4.3: Results of the Bénin Survey o
Page 126 and 127: 4.3.2 Survey methods At the time of
Page 128 and 129: officers have CM2 certificates. Thi
Page 130 and 131: 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
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Table 4.3.19-Distribution of GVs by
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Table 4.3.24-Percentage of inputs s
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Table 4.3.32-Average value of curre
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Table 4.3.40-Percentage of GVs in w
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CHAPTER 5 - RESULTS FROM THE MALAWI
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The weights are used to calculate a
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On average, around 20 percent of th
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agricultural work. Other less commo
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5.1.4 Time allocation In Malawi, as
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attributed it to the fact that fert
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insignificant. The coefficient on t
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As in the results from the previous
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most important sources of input on
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applied for credit compared to 20 p
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less than 1 mt per ha which are fai
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5.1.9 Agricultural marketing Market
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Households that belong to a club al
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most important contractors are the
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indicates that the extent of povert
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wheat, and fruits and nuts, a highe
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Surprisingly, the education of the
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Housing characteristics The overwhe
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It was also important to find out w
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Surprisingly, tobacco growers are m
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Over three-quarter of the EPAs repo
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The changes in the number and types
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5.2.11 Storage Facilities On averag
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Table 5.2 - Household characteristi
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Table 5.7 - Percentage of household
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Table 5.12 - Farm labor use and all
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Table 5.15 - Determinants of the de
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Table 5.17 - Sources of fertilizer
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Table 5.22 - Access and use of cred
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Table 5.25 - Percent of households
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Table 5.34 - Crop disposal by type
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Table 5.38 - Determinants of Market
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Table 5.42 - Summary of expenditure
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Table 5.45 - Food consumption by so
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Page 310 and 311:
Page 312 and 313:
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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