Types of Research
- (-) Remove Sub-Saharan Africa filter Sub-Saharan Africa
- (-) Remove Market & Value Chain Analysis filter Market & Value Chain Analysis
- (-) Remove South Asia Region and Selected Countries filter South Asia Region and Selected Countries
- (-) Remove Labor & Time Use filter Labor & Time Use
- (-) Remove Smallholder Farmers filter Smallholder Farmers
Market-oriented agricultural production can be a mechanism to increase smallholder farmer welfare, rural market performance, and contribute to overall economic growth. Cash crop production can allow households to increase their income by producing output with higher returns to land and labor and using the income generated from sales to purchase goods for consumption. However, in the face of missing and underperforming markets, African smallholder households are often unable to produce efficiently or obtain staple foods reliably and cheaply. This literature review summarizes the available literature on the impact of smallholder participation in cash crop and export markets on household welfare and rural markets. The review focuses exclusively on evidence from Sub-Saharan Africa regarding top and emerging export crops, with the addition of tobacco and horticulture due to the volume of research relevant to smallholder welfare gains from the production of these crops. It includes theoretical frameworks, case studies, empirical evidence, and historical analysis from 42 primary empirical studies and 112 resources overall.
In recent years, product supply chains for agricultural goods have become increasingly globalized. As a result, greater numbers of smallholder farmers in South Asia (SA) and Sub-Saharan Africa (SSA) participate in global supply chains, many of them through contract farming (CF). CF is an arrangement between a farmer and a processing or marketing firm for the production and supply of agricultural products, often at predetermined prices. This literature review finds empirical evidence that demonstrates that the economic and social benefits of CF for smallholder farmers are mixed. A number of studies suggest that CF may improve farmer productivity, reduce production risk and transaction costs, and increase farmer incomes. However, critics caution that CF may undermine farmers’ relative bargaining power and increase health, environmental, and financial risk through exposure to monopsonistic markets, weak contract environments, and unfamiliar agricultural technologies. There is consensus across the literature that CF has the best outcomes for farmers when farmers have more bargaining power to negotiate the terms of the contract. In reviewing the literature on CF, we find a number of challenges to comparing studies and evaluating outcomes across contracts. This literature review summarizes empirical findings and analyses regarding contract models and best practices to increase farmers’ bargaining power and decrease contract default.
Smallholder farmers in Africa are largely located in poor rural areas, are often geographically dispersed, and have limited access to road and communication infrastructure, thus raising the cost of market participation. This is especially true for farmers growing relatively low value staple crops. This literature review summarizes research on the challenges and innovations in linking smallholder producers of staple grains to markets in Sub-Saharan Africa, with a focus on post-harvest issues including storage, aggregation, and transportation. For each post-harvest stage, we describe challenges faced by farmers and current efforts to address these challenges. In our review, we find a large amount of literature on the constraints to smallholder production and marketing but relatively few examples of innovative or novel technologies designed to improve storage and transportation for rural smallholder producers in Africa. Existing technologies have often been available for some time but have not seen widespread adoption, apparently due to high costs or inadequate funding for on-farm testing and extension. We conclude that the literature is somewhat divided as to whether interventions linking smallholder farmers to markets should be entirely market-driven and focus on linkages that can be profitable without subsidization, or whether NGO- and donor-driven interventions should play a role.
Special Economic Zones (SEZs) are generally defined as geographically delimited areas administered by a single body, offering certain incentives (duty-free importing and streamlined customs procedures, for instance) to businesses that physically locate within the zone. This literature review provides a baseline analysis of SEZs and their potential impacts on smallholder farmers in SSA. Criticism on SEZs is distinctly divided between those who criticize on social or environmental grounds versus those who question the economic impact of SEZs. SEZs are often criticized based on perceived negative socio-economic impacts—particularly their negative impact on women, labor, and working conditions. This review includes several country-specific studies that find evidence that SEZs actually have higher environmental standards and higher worker satisfaction than outside the SEZ. Most responses to criticisms do note, however, that the case studies’ results are not necessarily generalizable to SEZs throughout the world. The literature review includes key elements of successes and failures pulled from the case studies of SEZs in SSA. Though the evidence is insufficient to conclusively determine if smallholder farmers receive direct benefits from SEZs and their associated agroindustrial contracts, this review finds that resources provided to farmers (credit at rates lower than bank rates, technical or managerial assistance, pesticides, seeds, and fertilizer on credit) tend to be concentrated among larger farmers. The report concludes with a note on donor involvement as well as recommendations for further research.