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 ...
it is clear that virtually all growers store some part of the harvest in the case of maize, sorghum/millet, rice, and groundnuts. In the case of yams and cowpeas, at least 85 percent of the growers store some of the harvest (see Table 4.1.132). The length of storage, defined as the time between the harvest and when the stored item runs out, is generally 6-9 months for all the main food crops and one month for cotton. Not surprisingly, large farms are able to store their harvest longer than small farms. For example, farms in the smallest farm-size category stored maize for an average of seven months, while those in the largest farmsize category stored it for ten months on average (see Table 4.1.133). Bénin farmers report storage losses ranging from less than one percent for cotton to 14 percent for manioc. For most crops, storage losses ranges from 1 to 6 percent (see Table 4.1.134). Most farmers (57 percent) cite insects as the main cause of storage losses, with rodents being cited by another 21 percent of the farmers. The cause of storage losses did not vary much by crop, department, or sex of head of household. Motives for storage For each crop stored, households were asked the main reason for storing it: for later consumption, to sell at a higher price, to sell when the household needed cash, or other reasons. In almost two-thirds of the cases (65 percent), the motive was to consume commodity later in the year. The motives for storage varied by crop, however. Food crops were stored primarily for later consumption. The only two staples for which "selling at a higher price" was a significant secondary motive were maize and cowpeas (cited by 25 percent of the farmers). Cotton is stored for a month or so simply because it is not possible to sell it immediately after harvest (see Table 4.1.134). There are also strong regional differences in the motive for storage. In Atlantique, 64 percent of the storage is to sell the crop later in the season when the price is higher. In contrast, “speculative storage” accounts for 29 percent of the total in Zou and less than 15 percent in the other departments. This pattern probably reflects the existence of large urban consumer markets in Atlantique, creating a demand for storage services in the region (see Table 4.1.135). The motives for storage do not vary much between male- and female-headed households, nor across farm size categories. Income, however, makes a difference. Moving up through the expenditure categories, the proportion of crops stored for later consumption falls from 80 to 50 85
percent, while the proportion of crops being held to sell at a higher price rises from 9 to 36 percent (see Table 4.1.136). This is probably related to the fact that higher-income farm households can more easily tolerate the risk associated with speculating on seasonal price variations. 4.1.8 Expenditure The most common, and perhaps the best measure, of the overall well-being of a household is per capita consumption expenditure. Consumption expenditure includes the following components: Food purchases: the amount spent on food for household consumption Home production: the value of goods produced by the household for its own consumption Non-food purchases: goods and services purchased for household consumption, Housing value: the rental value of the dwelling occupied by the household. Food purchases are measured based on responses to a set of recall questions for 26 food categories. Home production is measured by quantity of food produced by the household for its own consumption, valued using the price of the same food items purchased in the same department. Non-food purchases are estimated based on recall questions for 27 non-food categories. And the rental value of housing is based on estimates by the respondent. Overall expenditure patterns According to the results of the IFPRI-LARES Small Farmer Survey, the average annual value of consumption expenditure among agricultural households in Bénin is 848 thousand FCFA per household or 105 thousand FCFA per capita. Food expenditures account for 53 percent of the total, half of which is purchased and half of which is produced by the farm households. Non-food expenditure (including the rental equivalent of housing) contributes the other half of total expenditure (see Table 4.1.137). Both the level and the structure of expenditure vary from one department to another. Atacora and Mono have the lowest per capita expenditure, 85 and 88 thousand FCFA respectively. Atlantique has the highest level, with 139 thousand FCFA, followed by Ouémé. Zou and Borgou lie in between these two groups. The share of expenditure allocated to food ranges from 62-63 percent in Atacora and Borgou to 46-48 percent in Zou, Atlantique, and Ouémé. The contribution of home 86
- Page 42 and 43: where W v is the weight for a house
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it is clear that virtually all growers store some part of the harvest in the case of maize,<br />
sorghum/millet, rice, and groundnuts. <strong>In</strong> the case of yams and cowpeas, at least 85 percent of the<br />
growers store some of the harvest (see Table 4.1.132).<br />
The length of storage, defined as the time between the harvest and when the stored item runs out, is<br />
generally 6-9 months for all the main food crops and one month for cotton. Not surprisingly, large<br />
farms are able to store their harvest longer than small farms. For example, farms in the smallest<br />
farm-size category stored maize for an average of seven months, while those in the largest farmsize<br />
category stored it for ten months on average (see Table 4.1.133).<br />
Bénin farmers report storage losses ranging from less than one percent for cotton to 14 percent for<br />
manioc. For most crops, storage losses ranges from 1 to 6 percent (see Table 4.1.134).<br />
Most farmers (57 percent) cite insects as the main cause of storage losses, with rodents being cited<br />
by another 21 percent of the farmers. The cause of storage losses did not vary much by crop,<br />
department, or sex of head of household.<br />
Motives for storage For each crop stored, households were asked the main reason for<br />
storing it: for later consumption, to sell at a higher price, to sell when the household needed cash, or<br />
other reasons. <strong>In</strong> almost two-thirds of the cases (65 percent), the motive was to consume<br />
commodity later in the year. The motives for storage varied by crop, however. Food crops were<br />
stored primarily for later consumption. The only two staples for which "selling at a higher price"<br />
was a significant secondary motive were maize and cowpeas (cited by 25 percent of the farmers).<br />
Cotton is stored for a month or so simply because it is not possible to sell it immediately after<br />
harvest (see Table 4.1.134).<br />
There are also strong regional differences in the motive for storage. <strong>In</strong> Atlantique, 64 percent of the<br />
storage is to sell the crop later in the season when the price is higher. <strong>In</strong> contrast, “speculative<br />
storage” accounts for 29 percent of the total in Zou and less than 15 percent in the other<br />
departments. This pattern probably reflects the existence of large urban consumer markets in<br />
Atlantique, creating a demand for storage services in the region (see Table 4.1.135).<br />
The motives for storage do not vary much between male- and female-headed households, nor<br />
across farm size categories. <strong>In</strong>come, however, makes a difference. Moving up through the<br />
expenditure categories, the proportion of crops stored for later consumption falls from 80 to 50<br />
85
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