Evans School Policy Analysis & Research Group (EPAR)

The review consists of a summary of the emergence of agribusiness clusters, SEZs and incubators since 1965 (with a focus on smallholder agriculture-based economies in Latin America, Africa, and Asia), followed by a series of brief case studies of example programs with particular relevance for guiding proposed clusters/incubators in the countries of Ethiopia, Tanzania, Nigeria and the Eastern Indian states of Uttar Pradesh, Bihar, and Odisha. Summary conclusions draw upon published reports and primary analysis of case studies to highlight apparent determinants of success and failure in agribusiness investment clusters and incubators, including characteristics of the business environment (markets, policies) and characteristics of the organizational structure (clusters, accelerators) associated with positive smallholder outcomes. 

How development organizations, NGOs, and governments can best allocate scarce resources to those in need has long been debated. As opposed to universal allocation of resources, a more targeted approach attempts to minimize program costs while maximizing benefits among those with the greatest need or market opportunity. Drawing on literature from several sectors,this brief presents two categories of beneficiary targeting in the development context: administrative targeting and self-targeting. The paper includes a brief overview of targeting and segmentation in development, a summary of reasons for targeting, theoretical and practical critiques of targeting, and a discussion of targeting methods in research and practice, including examples from the literature. Implementation examples cited in this body of research include food aid program targeting by self-reported household income in Egypt; fertilizer use in low-potential zones of Uganda; and seven strategic initiatives to improve drought and disease resistance in crops in Asia and Sub-Saharan Africa.  We find that beneficiary segmentation has several theoretical advantages.  Improved targeting may increase the efficiency and equity of organizational and program efforts and help better match interventions to recipient preferences, increasing the likelihood of adoption and participation. Development organizations may improve the focus of both their strategic priorities and budgets through customized targeting methods. However, concerns exist regarding the accuracy, reliability, cost, and time-constraints of targeting methodologies. Creating valid and reliable target groups with implementation potential remains a significant challenge. 

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.

Contract farming (CF) is an arrangement between farmers and a processing or marketing firm for the production and supply of agricultural products, often at predetermined prices. This literature review builds on EPAR's review of smallholder contract farming in Sub-Saharan Africa (SSA) and South Asia (EPAR Technical Report #60)  by specifically examining the evidence on impacts and potential benefits of contract farming for women in SSA. Key takeaways suggest women’s direct participation in contract farming is limited, with limited access to land and control over the allocation of labor and cash resources key constraints hindering women’s ability to benefit from CF. Further, we find that the impact of contract farming on women is often mediated by their relative bargaining power within the household.