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022 _a0305-750X
024 8 _ahttps://doi.org/10.1016/j.worlddev.2021.105469
040 _aMX-TxCIM
041 0 _aeng
100 1 _aNuhu, A.S.
_920096
245 1 0 _aDo benefits of expanded midstream activities in crop value chains accrue to smallholder farmers? Evidence from Zambia
260 _aOxford (United Kingdom) :
_bElsevier,
_c2021.
500 _aPeer review
520 _aThe 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.
546 _aText in English
650 7 _2AGROVOC
_91763
_aSmallholders
650 7 _2AGROVOC
_97947
_aFood systems
650 7 _2AGROVOC
_911442
_aValue chains
650 7 _2AGROVOC
_93639
_aSoybeans
651 7 _2AGROVOC
_94309
_aZambia
700 1 _aLiverpool-Tasie, L.S.O.
_920097
700 1 _aAwokuse, T.
_920098
700 1 _aKabwe, S.
_914859
773 0 _tWorld Development
_gv. 143, art. 105469
_dAmsterdam (Netherlands) : Elsevier, 2021.
_x0305-750X
_w444788
942 _cJA
_n0
_2ddc