Emiliano Lopez Barrera, Luis Peña-Lévano, James Lowenberg-DeBoer, Carlos Fontanilla-Díaz and Mauricio Mosquera-Montoya
Farmers in Colombia have faced economic instability due to a long-lasting armed conflict. An attempt to support the rural community has been through the creation of productive…
Abstract
Purpose
Farmers in Colombia have faced economic instability due to a long-lasting armed conflict. An attempt to support the rural community has been through the creation of productive alliances – a strategic association between small-scale producers and anchor companies with the assistance of the private and public sectors. By closely examining the Association of Guarupay Palm Growers (ASOPAY)'s financial cash flows, this study investigates the challenges faced by small-scale agribusinesses in an emerging economy.
Design/methodology/approach
This study addresses the situation of ASOPAY, an oil palm productive alliance formed by families displaced by the Colombian armed conflict and relocated in the eastern foothills of the Andes Mountains. By closely examining ASOPAY's financial flows, the article sheds light on the economic incentives enhancing the cohesion of the small-farmers’ association.
Findings
A key finding is the critical role played by institutional efforts focused by promoting policies to enhance producers income. In addition, technological transfers made through technical assistance programs may improve the association's profitability by enhancing agronomic practices, while decreasing palm mortality and disease incidence.
Research limitations/implications
The relatively small sample used in the study might rise concerns regarding the generalization of the outcomes. However, the authors implemented strategies to overcome these limitations by incorporating the inputs from experts on the oil palm supply chain in Colombia and from experts in rural development.
Originality/value
To the authors' knowledge, this is the first study analyzing the financial success of small farmers in post-conflict zones.
Details
Keywords
Millicent Adei Kotey, Faizal Adams, Fred Nimoh, James Osei Mensah, Seth Etuah and Coleman Edwin
To help address the problem of imperfections in the performance of cowpea markets in Ghana, the study sought to understand the costs and benefits associated with different market…
Abstract
Purpose
To help address the problem of imperfections in the performance of cowpea markets in Ghana, the study sought to understand the costs and benefits associated with different market outlets and factors influencing farmers' choice of these outlets.
Design/methodology/approach
A two-stage sampling technique was adopted to collect data from 300 cowpea farmers through purposive sampling of communities and simple random selection at the farmer level in Ejura Sekyedumasi municipality of Ghana. Analytical methods including profitability measures such as gross margin, net margin, return on investment and multinomial logistic (MNL) regression model were used to analyze the data.
Findings
The results showed that production and marketing of cowpea is profitable with farmers who trade in wholesale markets recording the highest gross margin (Gh₵1245.85 (US$227.76)), net margin (Gh₵1029.37 (US$188.18)) and return on investment (ROI) of 63%. Important nonfarm-related factors including household size, farming experience, membership of farmer-based organization and extension contact were found to significantly influence the choice of marketing outlets in the study area. In addition, market attributes such as produce selling price, volume of cowpea sold and post-harvest value addition were also key determinants of cowpea market outlet choices.
Practical implications
The results of the study are vital to agricultural administrators in devising efficient cowpea market systems for smallholder farmers in Ghana. Likewise, the study provides important information to smallholder farmers in the choice of market outlets that maximizes their returns.
Originality/value
Previous studies on marketing of cowpea in Ghana emphasized on direct retail or consumer marketing to maximize farmers' returns. Meanwhile, there are claims to suggest that the sale of cowpea grains in the country are carried out through varied market outlets which come with differing costs and benefits implications for smallholder farmers. Therefore, the present study comprehensively compared associated costs and benefits in all available cowpea market outlets so as to settle the confusion surrounding most profitable and efficient marketing channel for smallholder farmers toward poverty reduction.
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Shaoze Jin, Xiangping Jia and Harvey S. James
This paper aims to explore the relationship between prudence in risk attitudes and patience of time preference of Chinese apple growers regarding off-farm cold storage of…
Abstract
Purpose
This paper aims to explore the relationship between prudence in risk attitudes and patience of time preference of Chinese apple growers regarding off-farm cold storage of production and marketing in non-harvest seasons. The authors also consider the effect of farmer participation in cooperative-like organizations known as Farm Bases (FBs).
Design/methodology/approach
The authors use multiple list methods and elicitation strategies to measure Chinese apple farmers' risk attitudes and time preferences. Because these farmers can either sell their apples immediately to supermarkets or intermediaries or place them in storage, the authors assess correlations between their storage decisions and their preferences regarding risk and time. The authors also differentiate risks involving gains and losses and empirically examine individual risk attitudes in different scenarios.
Findings
Marketing decisions are moderately associated with risk attitudes but not time preference. Farmers with memberships in local farmer cooperatives are likely to speculate more in cold storage. Thus, risk aversion behavioral and psychological motives affect farmers' decision-making of cold storage and intertemporal marketing activities. However, membership in cooperatives does not always result in improved income and welfare for farmers.
Research limitations/implications
The research confirms that behavioral factors may strongly drive vulnerable smallholder farmers to speculate into storage even under seasonal and uncertain marketing volatility. There is the need to think deeper about the rationale of promoting cooperatives and other agricultural forms, because imposing these without careful consideration can have negative impacts.
Originality/value
Do risk and time preferences affect the decision of farmers to utilize storage facilities? This question is important because it is not clear if and how risk preferences affect the tradeoff between consuming today and saving for tomorrow, especially for farmers in developing countries.
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James Osei Mensah, Kwasi Ohene-Yankyera and Robert Aidoo
Considering the fact that business management training has the potential to improve performance of micro and small enterprises, it is surprising why participation rates in most…
Abstract
Purpose
Considering the fact that business management training has the potential to improve performance of micro and small enterprises, it is surprising why participation rates in most freely offered management training courses remain low. The purpose of this paper is to explore factors that determine an invitee’s decision to participate in a capacity building management training for street food entrepreneurs in Ghana.
Design/methodology/approach
Using data from a baseline survey, the study invited 314 street food entrepreneurs, selected through a stratified random technique from a list of 516 eligible food entrepreneurs. Training participants were invited to the programme through official invitation letters which were hand-delivered. Data on reasons for non-participation were collected either through phone interviews or on-site visit when a vendor could not be reached on phone. Descriptive statistics were used to summarise characteristics of vendors and businesses as well as reasons for non-participation while probit model was used to estimate determinants of participation.
Findings
The study found that whereas vendors with higher formal education better appreciate the benefits of education and training, their counterparts with fewer years of schooling do not. The latter’s perceived knowledge deficiencies appear to explain the difference in participation rates. Also, total workforce does not necessarily increase the probability of participation, especially when there are no trusted workers in the business who will take over critical activities such as handling of finances in the absence of the owner. The study also found that distance between vending premises and training centres had significant negative effects on vendors’ participation in the training programme.
Research limitations/implications
The external validity of the study findings and conclusions may not be limited to all informal sectors of the developing economies due to high degree of heterogeneity of the informal economy.
Originality/value
The study focusses on an informal sector in developing country dominated by women. The study focusses on understanding informal entrepreneurs’ response to formal training.