![]() The paper also discusses how foreign direct investment in developing countries-in Africa in particular-affects modernization of domestic food systems. Understanding the effectiveness of CFAs in the emerging malt barley sector in Ethiopia is particularly relevant because the country aims at expanding the domestic malt barley production to cut the import bill and to increase smallholder commercialization. In this paper, we seek to fill the knowledge gap by exploring the impact of CFAs between foreign investors and smallholders on economic performance of malt barley farmers in Ethiopia. The empirical evidence on the impact of CFAs in domestic food systems is sparse, with the exception of Maertens and Vande Velde ( 2017). Most studies have focused on supply chains of high-value products (e.g., vegetables), traditional cash crops (e.g., coffee, tea, cocoa), and industrial commodities (e.g., cotton, palm oil, and rubber), mainly destined for international markets (Minot and Sawyer 2016 Otsuka et al. Yet, there is also evidence that participating in a CFA has a negative association with farm income (Michelson et al. Most of these studies claim that CFAs promote smallholder linkages to high-value markets and increase farm income. Many scholars have studied the increasing prevalence of contract farming arrangements (CFAs) in the dynamic food systems (Bellemare 2015 Minot and Sawyer 20 Wang et al. 2010).Ĭontract farming has been presented as a possible solution to raising productivity and linking smallholders in the emerging modern chains (FAO 2013a). They are often constrained by lack of access to improved technology, low bargaining power, and high transaction costs (Poulton et al. Smallholders are unable to comply with the stringent standards (safety, quality, and reliability) and technical requirements. However, smallholder access to modern chains is limited due to several constraints. ![]() Increased vertical coordination and modernization in food systems present market opportunities for smallholders (Dries et al. These developments have resulted in changes in the food production process, vertical coordination, and dominance of food processors (Swinnen and Maertens 2007). The increase in urbanization, rising incomes, industrialization, a burgeoning middle class, and globalization have led to the emergence of modern supply chains, including modern food retail (Maertens and Swinnen 2012 Minten et al. In recent years, food systems in this region witnessed major changes and rapid structural transformation. Smallholder agriculture remains important for economic development in sub-Saharan Africa (SSA) and produces about 80% of the food consumed in the region (FAO 2013b). ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2022
Categories |