Economic impact of direct marketing and contracts: The case of safe vegetable chains in northern Vietnam

Wang, Huaiyu; Moustier, Paule; Lộc, Nguyễn Thị Tân

doi:10.1016/j.foodpol.2014.04.001

Cited by 68 publications

(60 citation statements)

References 30 publications

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“…In our conclusion that participation in contract farming tends to be biased towards the better‐off farmers, we coincide with Wang et al (2014), Prowse (2012, p. 85), and Otsuka, Nakano and Takahashi (2016). These reviews found that although most contract farming schemes target and include small farms, most included farms are larger.…”

Section: Discussionsupporting

confidence: 78%

“…. Overall (I-squared = 88.9%, p = 0.000) Miyata et al, 2009Warning and Key, 2002Winters et al, 2005 Trifkovic, 2014 Miyata et al, 2009Bolwig et al, 2008Rao and Qaim, 2011Escobal and Cavero, 2012Maertens and Swinnen, 2009Ito et al, 2012Simmons et al, 2005 Cahyadi and Waibel, 2011 Girma and Gardebroek, 2015Wainaina et al, 2014Narayanan, 2014 Study Low level of service provisoning Narayanan, 2014Saigenji, 2012 Subtotal (I-squared = 90.0%, p = 0.000) Awotide et al, 2015Bellemare, 2012Wang et al, 2014Ramaswami et al, 2009Simmons et al, 2005Narayanan, 2014 High level of service provisioning Setboonsarng et al, 2008 Subtotal (I-squared = 65.1%, p = 0.005) Sokchea and Culas, 2015 Nevertheless, due to the limited sample size, the power of the analyses was low and the results should be interpreted with care. ***,**,* coefficient statistically significant at the 1%, 5% and 10% levels, respectively; values are unstandardized meta-regression coefficients, with their corresponding standard errors in parenthesis.…”

Section: Meta-regressionsmentioning

confidence: 99%

See 1 more Smart Citation

The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review

Ton¹,

Desiere²,

Vellema³

et al. 2017

Campbell Systematic Reviews

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This Campbell systematic review examines the impact of contract farming on income and food security of smallholder farmers in low‐ and middle‐income countries. The review summarises findings from 75 reports, of which 22 (covering 26 contract farming interventions) were used for meta‐analysis Contract farming may substantially increase farmer income with an average effect in the range of 23 to 54 per cent. There is upward bias in the estimate because of survivor bias in individual studies (no data on farmers who drop out of schemes) and in the body of evidence (no studies on contract farming arrangements that collapsed in their initial years), and publication bias in the literature (under‐reporting of insignificant outcomes). Therefore, some caution is needed in interpreting the findings. For farmers to give up their autonomy in marketing and prevent side‐selling, substantial income gains need to be offered. This is especially so for annual crops and when firms have contracts directly with farmers rather than through a cooperative. Poorer farmers are not usually part of contract farming schemes. In 61% of the cases, contract farmers had significantly larger landholdings or more assets than the average farmers in the region. Plain language summary The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countriesThe evidence suggests that contract farming arrangements need to offer clear incentives to farmers in order to survive over time. The review in briefContract farming, a sales arrangement between a farmer and a firm, is popular with government and donors. Contract farming can produce substantial income gains for farmers. Moreover, these benefits may well be required for contract farming schemes to survive. Better‐off farmers are most likely to participate in contract farming schemes. What is this review about?Contract farming is a sales arrangement agreed before production begins, which provides the farmer with resources or services. The service package provided by the firm varies per location, and can include transport, certification, input provisioning and credit.This systematic review summarises evidence on income effects for smallholders to assess average effects and explore combinations of factors that increase these effects.What studies are included?Included studies had to examine the impact of contract farming on income and food security of smallholder farmers in low‐ and middle‐income countries. Studies had to use a comparison group with appropriate statistical methods to allow for selection effects.Seventy‐five studies were identified with quantitative estimates of the impact of contract farming of which 22 studies, covering 7,471 respondents, were of sufficient rigour to include in the meta‐analysis of income effects. The meta‐analysis covers 26 empirical instances of contract farming in 13 developing countries. What are the main findings of this review?Contract farming may substantially increase farmer income with an average effect in the range of 2...

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Section: Discussionsupporting

confidence: 78%

Section: Meta-regressionsmentioning

confidence: 99%

The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review

Ton¹,

Desiere²,

Vellema³

et al. 2017

Campbell Systematic Reviews

View full text Add to dashboard Cite

show abstract

“…Rising incomes and fast urbanization are driving up the demand for high-value produce as well as heightening consumer concern for food safety [25,29]. There is an increasing attention to the food safety aspect in Vietnam.…”

Section: Different Roads Towards Sustainable Productionmentioning

confidence: 99%

Restructuring the Vietnamese Rice Sector: Towards Increasing Sustainability

Demont

Rutsaert

2017

Sustainability

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Although Vietnam is one of the biggest rice exporters today, there is an urgent need to restructure the sector. To guide the transition from being a quantity-focused producer to a credible supplier of quality rice, this study explores the sector's opportunities for sustainable value chain upgrading. Data was collected through focus group discussions with farmers, stacked surveys with rice value chain stakeholders, and a participatory workshop bringing several value chain actors together. Stakeholders perceive the sector's capability to grasp opportunities (including growing export and domestic markets) to be higher than its resilience to potential threats (including more stringent food safety regulations and climate change). Three strategies are discussed for making rice value chains more sustainable; embodying sustainability in the product through certified sustainable production labels; internalizing sustainable production standards through vertical coordination (e.g., contract farming); and disembodying sustainability through book and claim certificate trading.

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“…Contract farmers had 13 years of education on average and owned 0.5 ha of land. Non-contract farmers, on the other hand, had 12 years of education and worked on 0.4 ha of land.The sample used by Wang et al (2014) included 41 farmers from Vietnam that supplied 'safe' vegetables to private firms through farmer cooperatives, but no additional services were provided. The total sample contained 107 observations.…”

mentioning

confidence: 99%

The effectiveness of contract farming in improving smallholder income and food security in low- and middle-income countries: a mixed-method systematic review

Ton¹,

Desiere²,

Vellema³

et al. 2017

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The International Initiative for Impact Evaluation (3ie) is an international grant-making NGO promoting evidence-informed development policies and programmes. We are the global leader in funding, producing and synthesising high-quality evidence of what works, for whom, how, why and at what cost. We believe that using better and policy-relevant evidence helps to make development more effective and improve people's lives. 3ie systematic reviews 3ie systematic reviews appraise and synthesise the available high-quality evidence on the effectiveness of social and economic development interventions in low-and middleincome countries. These reviews follow scientifically recognised review methods, and are peer-reviewed and quality assured according to internationally accepted standards. 3ie is providing leadership in demonstrating rigorous and innovative review methodologies, such as using theory-based approaches suited to inform policy and programming in the dynamic contexts and challenges of low-and middle-income countries. About this reviewThe effectiveness of contract farming in improving smallholder income and food security in low-and middle-income countries: a mixed-method systematic review, was submitted in partial fulfilment of the requirements of grant SR6.1088 awarded under Systematic Review Window 6. This review is available on the 3ie website. 3ie is publishing this technical report as received from the authors; it has been formatted to 3ie style, however the tables and figures have not been reformatted. 3ie will also publish a brief of this review, designed for use by decision makers, which is forthcoming. This review will also be published in the Campbell Collaboration Library and will be available here.All content is the sole responsibility of the authors and does not represent the opinions of 3ie, its donors or its board of commissioners. Any errors are also the sole responsibility of the authors. Comments or queries should be directed to the corresponding author, Giel Ton, g.ton@ids.ac.uk Funding for this systematic review was provided by 3ie's donors, which include UK aid, the Bill & Melinda Gates Foundation, Hewlett Foundation and 16 other 3ie members that provide institutional support. The effectiveness of contract farming in improving smallholder income and food security in low-and middle-income countries: a mixed-method systematic review Plain language summaryContract farming is a sales arrangement between a farmer and a firm, agreed before production begins, which provides the farmer with resources or services. Many governments and donors promote contract farming as part of agricultural development policies. This systematic review analysed the evidence in the literature on income effects for smallholders. The review included all studies with an econometric design to reduce selection bias in effect estimates. The meta-analysis covered 26 empirical instances of contract farming in 13 developing countries. The contracts varied widely, with varying service packages provided by the firm to the farme...

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Economic impact of direct marketing and contracts: The case of safe vegetable chains in northern Vietnam

Cited by 68 publications

References 30 publications

The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review

The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review

Restructuring the Vietnamese Rice Sector: Towards Increasing Sustainability

The effectiveness of contract farming in improving smallholder income and food security in low- and middle-income countries: a mixed-method systematic review

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