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 ...

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Finally, proximity to an all-season road, a paved road, or to the sous-prefecture headquarters are not associated with higher market surplus ratios. As mentioned above, proximity to a large urban market seems to be more important than proximity to a good road. Characteristics of sales transactions Timing The IFPRI-LARES Small Farmer Survey collected information on each sales transaction carried out by the farmers in the sample. This allows us to estimate the distribution of marketed supply by month for each crop and each type of farmer. Since the marketing patterns vary from one year to the next, it should be kept in mind that the results presented refer to the year prior to the implementation of the survey (1998). Maize sales take place throughout the year, but tend to be greater in the period March-June when 59 percent of the marketed surplus is sold. This corresponds to the three months before the mainseason harvest. Thus, it appears that farmers are storing maize until just before the main harvest, perhaps to take advantage of higher prices or perhaps to ensure that their own consumption needs have been met first. A second period of maize sales occurs in December, when 12 percent of the annual volume is sold. This corresponds to the harvest of the second season in the south. (see Table 4.1.118). Three-quarters of the sorghum/millet sales take place in the first six months of the year. In fact, around half of the sales occur in the second quarter (April-June). The monthly pattern of sales appears somewhat erratic because of the small number of farmers that sell sorghum/millet (see Table 4.1.118). Cowpeas are sold throughout the year, but sales tend to be concentrated in the first four months of the year. Almost half (46 percent) of sales occur between January and April. August and December are also period of active commercialization of cowpeas (see Table 4.1.118). One of the advantages of manioc is that the harvest can be delayed, allowing it to be “stored” in the ground until needed. Thus, manioc is useful for coping with the failure of other crops. The results of the IFPRI-LARES Small Farmer Survey suggest that in spite of this flexibility, the sales of manioc tend to be seasonally concentrated. Sixty percent of manioc sales take place in April and 79

May 16 (see Table 4.1.118). The commercialization of yams, like that of sorghum/millet, is somewhat erratic due to the small volume marketed. Fifty-three percent of the total is marketed between December and March, , but sales in September are also significant. Finally, cotton sales are also concentrated in the first few months of the year. Half of the total volume is sold in January and another 39 percent in February. The concentration of sales during a brief two month period puts a large burden on the transportation system. This is reflected in the fact that the sales of maize, cowpeas, and yams during these months are lower than before and after this period. In fact, 42 percent of the total volume of crop sales occur in January and February. Types of buyers Traders are the dominant buyers of all the basic food crops. Sales to friends, family, cooperatives, or other organizations are negligible. Traders purchase 87 percent of the total marketed volume of sorghum/millet and more than 90 percent of the marketed surplus of maize, cowpeas, manioc, yams, and other crops. Cotton is a major exception to this pattern. Ninety-nine percent of the volume is sold through the official system, in which the groupements villageois market the cotton to SONAPRA on behalf of farmers. The farmers in the sample report that just 1 percent of sales are to traders. It should be noted, however, that sales to traders are illegal, so farmers may be under-reporting this type of sale. Location of sales The place where the transaction occurs varied widely by crop. Over half of the sales of maize, sorghum/millet, and cowpeas take place at a market. In other words, the farmer brings the product to the market to find a buyer. The remainder is sold either on the farm (13-30 percent) or at the home of a friend or family member (17-22 percent). In contrast, over three-quarters of the manioc and yams are sold on the farm. In other words, for these two crops, the usual pattern is for traders to come to the farm to make the purchase. This makes sense because the per kilogram value of these crops is lower than that of grains and legumes so the farmer faces a greater risk in bringing the product to market without knowing that current market conditions are. Not surprisingly, most of the cotton (71 percent) is sold at the groupement villageois, with farmers taking responsibility for getting the harvested cotton to the GV buying station. 16 Although manioc sales transactions were dispersed over the period February-May, many of the larger manioc sales took place in April and May. 80

May 16 (see Table 4.1.118).<br />

The commercialization of yams, like that of sorghum/millet, is somewhat erratic due to the small<br />

volume marketed. Fifty-three percent of the total is marketed between December and March, , but<br />

sales in September are also significant.<br />

Finally, cotton sales are also concentrated in the first few months of the year. Half of the total<br />

volume is sold in January and another 39 percent in February. The concentration of sales during a<br />

brief two month period puts a large burden on the transportation system. This is reflected in the<br />

fact that the sales of maize, cowpeas, and yams during these months are lower than before and after<br />

this period. <strong>In</strong> fact, 42 percent of the total volume of crop sales occur in January and February.<br />

Types of buyers Traders are the dominant buyers of all the basic food crops. Sales to<br />

friends, family, cooperatives, or other organizations are negligible. Traders purchase 87 percent of<br />

the total marketed volume of sorghum/millet and more than 90 percent of the marketed surplus of<br />

maize, cowpeas, manioc, yams, and other crops. Cotton is a major exception to this pattern.<br />

Ninety-nine percent of the volume is sold through the official system, in which the groupements<br />

villageois market the cotton to SONAPRA on behalf of farmers. The farmers in the sample report<br />

that just 1 percent of sales are to traders. It should be noted, however, that sales to traders are<br />

illegal, so farmers may be under-reporting this type of sale.<br />

Location of sales The place where the transaction occurs varied widely by crop. Over<br />

half of the sales of maize, sorghum/millet, and cowpeas take place at a market. <strong>In</strong> other words, the<br />

farmer brings the product to the market to find a buyer. The remainder is sold either on the farm<br />

(13-30 percent) or at the home of a friend or family member (17-22 percent).<br />

<strong>In</strong> contrast, over three-quarters of the manioc and yams are sold on the farm. <strong>In</strong> other words, for<br />

these two crops, the usual pattern is for traders to come to the farm to make the purchase. This<br />

makes sense because the per kilogram value of these crops is lower than that of grains and legumes<br />

so the farmer faces a greater risk in bringing the product to market without knowing that current<br />

market conditions are.<br />

Not surprisingly, most of the cotton (71 percent) is sold at the groupement villageois, with farmers<br />

taking responsibility for getting the harvested cotton to the GV buying station.<br />

16<br />

Although manioc sales transactions were dispersed over the period February-May, many of<br />

the larger manioc sales took place in April and May.<br />

80

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