Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents
40 Pages Posted: 3 Jan 2011
Date Written: December 30, 2010
Supermarkets, specialized wholesalers, and processors and agro-exporters’ agricultural value chains have begun to transform the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework through which to study contracting between smallholders and a commodity-processing firm. We then conduct an empirical meta-analysis of agricultural value chains in five countries across three continents (Ghana, India, Madagascar, Mozambique, and Nicaragua). We document patterns of participation, the welfare gains associated with participation, reasons for non-participation, the significant extent of contract non-compliance, and the considerable dynamism of these value chains, as farmers and firms enter and exit frequently.
Keywords: Agricultural Value Chains, Contract Farming, Africa, Asia, Latin America
JEL Classification: L23, L24, O13, O14, Q12
Suggested Citation: Suggested Citation