Linking African Smallholders To High-Value Markets: Practitioner Perspectives On Benefits, Constraints, And Interventions

Henson, Spencer; Jaffee, Steven; Cranfield, John; Ponce-Blandón, José Antonio; Siegel, P. B.

doi:10.1596/1813-9450-4573

Cited by 22 publications

(14 citation statements)

References 47 publications

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“…Smallholders are also often constrained in what they can produce, are confronted with limited marketing opportunities, limited ability to diversify into new crops and limited negotiation power. Moreover, for higher-value markets the participation of smallholders is severely constrained by the requirements of higher level needs of consumers and supply chains (Henson et al, 2008). All these constraints can significantly reduce the benefit that smallholders can take from the market opportunities.…”

Section: Market Approach For Smallholdersmentioning

confidence: 99%

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

Sisay

Verhees

Trijp

2017

Agrekon

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The positive effects of market orientation and its components on firm performance are empirically supported by studies conducted for large firms in developed economies. However, its influence on performance in developing and emerging (D&E) economies, particularly under a cooperative's context, has been under-researched. This paper examines the impact of market orientation components on the performance of seed producer cooperatives (SPCs) in Ethiopia. Results show that customer orientation, interfunctional coordination, and supplier orientation, but not competitor orientation, contribute to higher business performance. Our findings confirm that customer orientation is the key factor for superior business performance in D&E economies. Business performance has a mediating effect between market orientation components and livelihood performance. Interfunctional coordination and supplier orientation influence the livelihood of member farmers both directly and indirectly via business performance. The study concludes that market orientation of SPCs is very important for business performance and provides a strong basis for the livelihood of seed producer families. SPCs can improve their performance and the livelihood of member-farmer families by implementing market oriented strategies, emphasising the key components of market orientation.

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Section: Market Approach For Smallholdersmentioning

confidence: 99%

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

Sisay

Verhees

Trijp

2017

Agrekon

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“…Yet, fewer than 2 per cent produce directly for export (Bawden et al, 2002). The low participation in the export market has been attributed to challenges related to increased consumer demand for high-quality products owing to the rising number of supermarkets in developed countries (Dolan et al, 2002;Henson et al, 2008) and food safety regulations.…”

Section: Introductionmentioning

confidence: 99%

Does contract farming improve smallholder income? The case of avocado farmers in Kenya

Mwambi

Oduol

Mshenga

et al. 2016

Journal of Agribusiness in Developing and Emerging Economies

108

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. Mwanarusi SaidiDepartment of Crop, Horticulture and Soil Science, Egerton University, Nakuru, Kenya Abstract Purpose -Contract farming (CF) is seen as a tool for creating new market opportunities hence increasing incomes for smallholder farmers. Critics, however, argue that CF is likely to pass risks to small scale farmers, thus favouring large scale farmers at the expense of smallholder farmers. The purpose of this paper is to examine the effect of CF on smallholder farmers' income using a case study of avocado farmers in Kandara district in Kenya. Design/methodology/approach -The study uses data collected from 100 smallholder avocado farmers in Kandara district in Kenya and employs an instrumental variable model (Probit-2SLS) to control for endogeneity in participation in the contract and examine the effect of CF on household, farm and avocado income. Findings -The results indicate that participation in CF is not sufficient to improve household, farm and avocado income. Question remains regarding efficient implementation of CF arrangements to promote spill over effects on other household enterprises.Research limitations/implications -The research was carried out using farmers in Kandara district in Kenya as a case study, findings might therefore not reflect the status of CF in all countries. Originality/value -The paper contributes to the growing debate on the effect of value chain upgrading strategies such as contracting on smallholder farmers' welfare. The form of contracting studied in this paper differs from the standard contracts in that the key stakeholders (producers) are loosely enjoined in the contract through officials of their groups.

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“…Another strand of the development literature emphasises that smallholder farmers' limited access to key resources (including cultivable land, irrigation and financial resources) inhibits investment (required for participation in high value markets) and farm productivity (McCulloch and Ota, 2002;Simmons, et al, 2005;Winter-Nelson and Temu, 2005). According to Henson et al (2008), these assessments suggest that the lack of infrastructure, key production B. Grwambi et al assets, information and/or collective action act to constrain initial smallholder entry to high-value markets and threaten the sustainability of such participation over time.…”

Section: Participation Of Smallholder Producers In High Value Marketsmentioning

confidence: 99%

“…They may prefer to source from larger-scale producers (where they exist) unless there are offsetting reasons to continue procuring from smallholder producers. Based on these possibilities, market arrangements made between smallholder producers and downstream buyers to access high value markets may not present a viable long-term approach to poverty alleviation (Henson et al, 2008).…”

Section: Participation Of Smallholder Producers In High Value Marketsmentioning

confidence: 99%

8. Towards achieving sustainable market access by South African smallholder deciduous fruit producers: the road ahead

Grwambi¹,

Ingenbleek

Obi

et al. 2016

Quality and Innovation in Food Chains

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Markets with high purchasing power, like export markets, offer opportunities for African smallholder farmers to move out of poverty. Logically, production for such higher value markets requires a different set of farm resources than the basic factors of production like land and labour. Yet it is not clear which other resources smallholder producers require to participate in different markets including high value markets. Using case studies from the Western Cape Province of South Africa, the authors identify resources that smallholder producers in developing countries require to increase competitiveness and sustain participation in high value markets. An analysis of the cases suggests that smallholder producers who are either in strategic partnerships or mentorship programmes with private sector firms are able to sustain their participation in high value markets. For smallholder producers who have not been integrated with high value markets yet, development of factor markets could be the first step towards achieving sustainable market access.

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Linking African Smallholders To High-Value Markets: Practitioner Perspectives On Benefits, Constraints, And Interventions

Cited by 22 publications

References 47 publications

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

Does contract farming improve smallholder income? The case of avocado farmers in Kenya

8. Towards achieving sustainable market access by South African smallholder deciduous fruit producers: the road ahead

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