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Do benefits of expanded midstream activities in crop value chains accrue to smallholder farmers? Evidence from Zambia
World Development ( IF 6.678 ) Pub Date : 2021-03-20 , DOI: 10.1016/j.worlddev.2021.105469
Ahmed Salim Nuhu , Lenis Saweda O. Liverpool-Tasie , Titus Awokuse , Stephen Kabwe

The rapid expansion of food supply chains across Africa has created huge market opportunities for farmers. In particular, the rise of numerous enterprises engaged in food processing and trading in the ‘midstream’ of value chains is promising. Compared to large enterprises using formal contracts, midstream enterprises not using contracts are considered more accessible to small-scale farmers. However, the extent to which economic benefits of the recent expansion of these non-contract opportunities in Africa is inclusive of smallholder farmers is uncertain and largely unexplored. This is critical for the global debate on poverty and sustainable economic development as the share of agricultural land under smallholder farmers, who constitute a significant proportion of the world’s poor is still rising. This paper contributes to this thin literature with evidence from Zambia, where a growing demand for meat has stimulated growth of the soybean industry. We use nationally-representative panel survey data from Zambia to explore the welfare effects of smallholder engagement with soybean traders and processors in non-contractual arrangements. The analysis uses fixed effects and instrumental variables estimation techniques to address the endogeneity of the smallholder decision to sell to large-scale traders and processors. We find significant positive crop income effects of selling to soybean large-scale traders and processors on all smallholders. However, the observed effects only translate into higher total household incomes and poverty reduction for medium-scale smallholders (operating 5 ha- 20 ha) but not for small-scale smallholders operating less than five hectares. The positive crop income effects are mainly driven by the opportunity to sell more although small-scale smallholders receive a price premium from selling to large buyers. These results suggest that the recent expansion of the soybean industry in Zambia is benefiting smallholder farmers but not necessarily enough to move the smallest of these farmers out of poverty.



中文翻译:

在农作物价值链中扩大中游活动的收益会给小农带来吗?来自赞比亚的证据

非洲食品供应链的迅速扩展为农民创造了巨大的市场机会。特别是,在价值链的“中游”中从事食品加工和贸易的众多企业的崛起是有希望的。与使用正式合同的大型企业相比,不使用合同的中游企业被认为更适合小规模农民。但是,最近这些非合同机会在非洲的扩大所带来的经济效益在多大程度上涵盖了小农户,这一点尚不确定,而且在很大程度上尚待探索。这对于有关贫困与可持续经济发展的全球辩论至关重要,因为占世界贫困人口很大比例的小农占农地的比例仍在上升。本文为薄薄的文献做出了贡献,并有赞比亚的证据,那里对肉类的需求不断增长刺激了大豆产业的发展。我们使用来自赞比亚的具有国家代表性的小组调查数据来探讨小农与大豆贸易商和加工商以非合同形式进行合作所产生的福利影响。该分析使用固定效应和工具变量估计技术来解决小农出售给大型贸易商和加工商的决定的内生性。我们发现,向所有小农出售大豆的大型贸易商和加工商,对作物收入产生了显着的积极影响。然而,所观察到的影响只会转化为中等规模小农户(经营5公顷至20公顷)的更高的家庭总收入和减贫,而对于经营少于5公顷的小规模小农户则不会。作物收入的积极影响主要是由出售更多的机会驱动的,尽管小规模小农从向大买家的出售中获得了价格溢价。这些结果表明,赞比亚大豆产业的近期扩张正在使小农户受益,但不一定足以使其中最小的农民摆脱贫困。

更新日期:2021-03-21
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