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on Agricultural Economics |
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Issue of 2019‒03‒11
53 papers chosen by |
| By: | Wolfgang Britz (Institute for Food and Resource Economics, Bonn University); Hasan Dudu (World Bank Group); Ilaria Fusacchia (Roma Tre University); Yaghoob Jafari (Institute for Food and Resource Economics, Bonn University); Roberto Roson (Ca' Foscari University of Venice); Luca Salvatici (Roma Tre University); Martina Sartori (European Commission – JRC) |
| Abstract: | Reducing food waste has become a policy priority in recent years as many studies show that a significant amount of food is wasted at various stages of the food supply chain. However, the economic impacts of food waste reduction have not been studied in depth as most of the studies in the literature ignore the cost and feedback effects. The aim of this report is to develop a general framework to analyse the economic impacts of reducing food waste in EU28 in both a global and a regional context in support of the EU policy making process on food waste reduction. For the purposes of this study, we employ the CGEBox toolbox which is a flexible, extendable, and modular code basis for CGE modelling. The default configuration of CGEBox used in this study covers the global economy with a detailed representation of the agriculture and food production sector whereas the EU28 is modelled at NUTS-II level. The impact of a food waste reduction equal to 5% of the intermediate input use of food processing sectors under two different cost assumptions is analysed in the scenarios. Firstly, in the cost neutral scenario, we assume that the cost of reducing food waste is equal to the monetary savings for the food processing industry. Secondly, in the pessimistic scenario, we assume that the cost of reducing food waste is twice as much as the cost savings made by reducing food waste. The results suggest that a unilateral commitment by the EU to reducing food loss and waste would most likely decrease the competitiveness of the EU’s food processing. Reduced demand for primary agricultural inputs would shrink the EU’s agricultural sectors, putting pressure on farm incomes and land prices. The contribution to global food security would be very minor. The impact on emissions relevant to climate change at global level is also minor, with a very limited contribution within the EU. |
| Keywords: | Policy analysis, food loss and waste, food availability, environment, simulation |
| JEL: | Q18 Q24 Q25 Q50 C59 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113395&r=all |
| By: | Bethuel Kinuthia; Abdelkrim Araar; Laura Barasa; Stephene Maende; Faith Mariera |
| Abstract: | Panel data from the Living Standards Measurement Study-Integrated Surveys on Agriculture for Tanzania and Uganda were analyzed to investigate the impact of off-farm participation on agricultural production and farmers’ welfare. Using strategies ranging from simple least squares to a dynamic panel model, we demonstrated how each of the intermediate models, such as the random effects Tobit model, could tackle censoring bias. Our results reveal that off-farm participation had a negative impact on agricultural production in both countries, though the impact was positive on welfare for Tanzania only. Policy makers should consider the complexities surrounding the formulation of pro-agriculture and pro-welfare policies aimed at producing desirable outcomes from off-farm participation. In that effort, policies that minimize the trade-off between agricultural production and off-farm participation and which enhance positive welfare effects are vital. |
| Keywords: | Off-farm participation, Agricultural production, Welfare, Consumption, Farmers, Sample selection, Dynamic panel model, East Africa, Tanzania, Uganda |
| JEL: | Q10 Q12 Q14 Q15 Q16 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:pmmacr:2019-01&r=all |
| By: | Saule Burkitbayeva; Emma Janssen; Johan Swinnen |
| Abstract: | The adoption of modern technologies in agriculture is crucial for improving the productivity and welfare of poor farmers in developing countries. Not much is known about how value chains do (not) affect technology transfer and/or adoption in domestic food chains in developing countries. Our paper analyzes farm-level technology adoption in the dairy chain in Punjab, India, combining quantitative panel data from representative surveys in 2008 and 2015 with data from targeted interviews with emerging modern dairy farms. Between 2008 and 2015 there were important increases in technology adoption in the form of better hygienic practices, better feed and improved livestock among traditional dairy farms. Especially those farms which lagged behind in 2008 improved their technology. However, the role of vertical coordination in value chains in stimulating technology adoption among these traditional dairy farmers seems to be minor. In contrast, we document the emergence of a group of dynamic modern dairy farms which are much larger, only use modern technology, and are fully integrated in vertically coordinated value chains which support these modern farms' management and investments. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:41019&r=all |
| By: | Mudavanhu, S.; Blignaut, J.; Vink, N. |
| Abstract: | Invasive alien plants (IAPs) are major the major causes of environmental degradation in the Western Cape Province, South Africa. IAPs clearing activities have been implemented and funded largely by the state through the Working for Water Programme under the auspices of the Department of Environmental Affairs� Natural Resource Management directorates (DEA: NRM), to counteract these negative impacts. Using a system dynamics modelling approach, this study estimates the costs and benefits of clearing IAPs, using the cleared biomass to make VAPs and restoring the cleared land to various agricultural land use options under five broad management scenarios using a system dynamics modelling approach. The simulation results show positive cumulative net present values (NPV) when a private sector co-finance of between 20% and 100% from the private sector is included to clear IAPs whilst at the same time restoring the cleared land to productive agricultural land uses and making VAPs from the cleared IAPs biomass. However if the clearing of IAPs is conducted by the state alone (with no private sector co-finance) from 2008 whilst omitting the restoration of cleared land to productive agricultural land use options and the use of IAPs biomass to make VAPs , the cumulative NPV is negative. |
| Keywords: | land use, restoration, natural capital, invasive alien plants, opportunity cost, value added products, system dynamics modelling, cost benefit analysis; Land Economics/Use |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284738&r=all |
| By: | Ndibongo-Traub, L.; Jayne, R. |
| Abstract: | Growing global markets have created opportunities that much of sub-Saharan Africa has been leveraging through high-value export agriculture. The share of high-value agriculture (HVA) in total exports out of sub-Saharan Africa has increased from 8.4% in 2001 to 10.2% in 2016. This modest increase is far beneath SSA�s true potential. The emergence of domestic and international markets for high-value agricultural products presents opportunities for growth and development by providing farmers with increased economic returns and marketing opportunities. Smallholder farmers can particularly benefit from becoming better integrated into these markets for HVA. Using Ugandan household panel data, this study identifies the factors related to the decision to cultivate HVA and the households� marketing outcomes. A triple-hurdle model is employed to examine market-related decisions made by smallholder farmers beyond conventional approaches to market participation models. Results indicate that policies that encourage HVA market participation simultaneously increase the likelihood of non-producers of HVA to commence producing HVA and lead to greater levels of HVA sales in the market. The analysis reinforce findings that even highly resource-constrained smallholder farmers respond to market incentives and that government policies, by influencing these incentives, can fundamentally alter smallholder farmers� crop choice, surplus production decisions, and livelihoods. |
| Keywords: | Crop Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284740&r=all |
| By: | Maku, M.; Mushunje, A. |
| Abstract: | This study investigates factors influencing adoption and intensity cultivation of high value crops (HVC) in the OR Tambo district municipality. HVC programme is a collaborative effort between Agricultural Research Council and Is'Baya Development Trust. A multistage sampling procedure was employed and 151 respondents were interviewed using a semi-structured questionnaire in 3 local municipalities. A double hurdle model was used to separately assess the factors influencing adoption as well as intensity. The results of the probit regression (first hurdle) revealed that household characteristics such as gender, household size, off-farm income, employment status and access to water for irrigation are key influencers to adoption of HVC cultivation. The truncated regression (second hurdle) indicated that gender is also significant at intensity cultivation of HVC's along with land size and market participation. The study recommends that an increased effort to help households fully participate in the formal markets will be beneficial and will significantly improve food security and household incomes. Also, installing taps in and around the villages will allow households to irrigate regularly to meet the quantity and quality of produce needed to penetrate formal markets. Key words: Adoption, Intensity, High Value Crops, Double-hurdle model, Food security |
| Keywords: | Crop Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284742&r=all |
| By: | Oosthuizen, M.; Conradie, B. |
| Abstract: | Western Cape agriculture's strong TFP growth over the second half of the twentieth century is explained by access to irrigation water. Drier conditions are predicted for the western escarpment, a region severely affected by the current drought. The SA wine industry is not flourishing for many reasons that potentially include climate change. This study examines longitudinal data for twenty West Coast farms to establish if there has been an invisible drying trend prior to the current drought which could explain these farms' performance. The two models fitted agree on falling productivity over the period 2005-2015. Battese and Coelli's (1992) error components model cannot distinguish between general Hicks neutral technical collapse and specific farms falling behind. Battese and Coelli's (1995) technical efficiency effects model confirms technical collapse and the contribution of water to productivity. Dryland production is most vulnerable and although regions differ, there is no evidence of specific farms falling behind. The dataset is limited in scope and the frontier preliminary, but this study demonstrates how easily climate change effects can be monitored. One of the most important responses to the current drought will be to systematically evaluate study group data to quantify its impact on productivity. Keywords: Wine industry, climate change mitigation, stochastic production frontier, convergence |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284735&r=all |
| By: | Rodrigo Garcia-Verdu; Alexis Meyer-Cirkel; Akira Sasahara; Hans Weisfeld |
| Abstract: | This paper estimates agricultural total factor productivity (TFP) in 162 countries between 1991 and 2015 and aims to understand sources of cross-country variations in agricultural TFP levels and its growth rates. Two factors affecting agricultural TFP are analyzed in detail – imported intermediate inputs and climate. We first show that these two factors are independently important in explaining agricultural TFP – imported inputs raise agricultural TFP; and higher temperatures and rainfall shortages impede TFP growth, particularly in low-income countries (LICs). We also provide a new evidence that, within LICs, those with a higher import component of intermediate inputs seem to be more shielded from the negative impacts of weather shocks. |
| Date: | 2019–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:19/26&r=all |
| By: | Sylvain Dessy (Université Laval); Francesca Marchetta (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Roland Pongou (uOttawa - University of Ottawa [Ottawa], Harvard University [Cambridge]); Luca Tiberti (Université Laval) |
| Abstract: | In communities highly dependent on rainfed agriculture for their livelihoods, the common oc-currence of climatic shocks such as droughts can lower the opportunity cost of having children, and raise fertility. Using longitudinal household data from Madagascar, we estimate the causal effect of drought occurrences on fertility, and explore the nature of potential mechanisms driving this effect. We exploit exogenous within-district year-to-year variation in rainfall deficits, and find that droughts occurring during the agricultural season significantly increase the number of children born to women living in agrarian communities. This effect is long lasting, as it is not reversed within four years following the drought occurrence. Analyzing the mechanism, we find that droughts have no effect on common underlying factors of high fertility such as marriage timing and child mortality. Furthermore, droughts have no significant effect on fertility if they occur during the non-agricultural season or in non-agrarian communities, and their positive effect in agrarian communities is mitigated by irrigation. These findings provide evidence that a low opportunity cost of having children is the main channel driving the fertility effect of drought in agrarian communities. |
| Keywords: | Climatic shocks,Droughts,Agricultural season,Opportunity cost of children,Fertility,Irrigation |
| Date: | 2019–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02053100&r=all |
| By: | Catherine Haeck; Giulia Meloni; Johan Swinnen |
| Abstract: | Previous studies on the value of terroir, or more generally geographical indications (GI), used hedonic techniques. We use historical data and exploit temporal and geographical variations in the introduction of wine GIs in early twentieth century France to study the impact on the price of specific wines in the years and decades following their introduction. We find large effects of GIs on prices of some Champagne wines, but no significant impact on Bordeaux or other Champagne wines. |
| Keywords: | Treatment effects, Appellations, European agriculture, regulation, wine history |
| JEL: | C21 L51 L66 N53 Q11 Q18 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:40818&r=all |
| By: | Mazibuko, N.; Balarane, A.; Antwi, M.; Yeki, P. |
| Abstract: | The study investigated the socio-economic factors contributing to smallholder farmers' availability, accessibility and satisfaction of agricultural infrastructure. Using cross sectional data from the North West Province of South Africa. One hundred and fifty smallholder farmers, were selected using the stratified sampling to group the farmers to those who had agricultural infrastructure and to those that did not have agricultural infrastructure. The data was coded, captured and analysed using STATA 14.0, the methods used to analyse the data were descriptive analyses and Tobit Regression Models. The results of the Tobit Regression Model showed, among other factors influencing availability of agricultural infrastructure, the following variables played a critical role; household members' assistance in farming enterprise; farm ownership; farm acquisition; farmer Occupation; member of farmer organisations; sources of labour and farming experience and agricultural production inputs. In terms of agricultural infrastructure accessibility, the following variables played a critical role; engage in non-farming activities; contact to extension services; farm ownership; farmer occupation; member of farmer organisations; sources of labour; farming experience and land tenure. In terms of satisfaction with agricultural infrastructure, among other factors influencing satisfaction with agricultural infrastructure, the following variables played a critical role; organisation for extension services; household members' assistance in farming enterprise; farmer receives government agricultural support; farm ownership; member of farmer organisations; farmer age; education level; marital status and gender. The results from the analysis were used to close the gap of knowledge on the impact of agricultural infrastructure, availability, accessibility and satisfaction on the productivity and agricultural income of smallholder farmers in the North West Province. Key words: Agricultural infrastructure, availability, accessibility, satisfaction, agricultural income, agricultural production. |
| Keywords: | Farm Management |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284790&r=all |
| By: | Aliber, M. |
| Abstract: | The paper is based on a study that sought to understand the nature of the interaction between small-scale farmers and government in the Eastern Cape from a variety of different perspectives. The study involved a sample survey of farmers, and in-depth interviews with farmers, extension officers and other government staff, and leaders of farmer associations. This particular paper explores two themes that emerged in the course of the larger study: first, what is popularly known in South Africa and elsewhere as the 'culture of dependency and entitlement', and second, the forms of support that government chooses to offer to small-scale farmers. The paper argues that government is stuck in a vicious cycle whereby it seeks to placate expectant small-scale farmers with material support, which it can most effectively do via problematic group projects; although generally ineffective, the practice has the effect of maintaining widespread demand for such support, even to the point that small-scale farmers forming group projects for the sole purpose of attracting it. In seeking to compensate for the weaknesses of this approach, government has sought to introduce compensatory measures such as 'strategic partnerships', sometimes with the ironic consequence that small-scale farmers no longer play a role in farming in 'their' agricultural projects. The paper concludes that government in the Eastern Cape needs to return to the basics of effective extension support aimed at supporting individual farmers; to the extent material support is still needed, it should no longer be given away for free. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284791&r=all |
| By: | Ursu, Ana |
| Abstract: | The volume contains the papers accepted and published in the proceedings of the 9th International symposium entitled: “Agrarian Economy and Rural Development - Realities and Perspectives for Romania’, organized by the Research Institute for Agriculture Economy and Rural Development – Bucharest, in cooperation with the Institute of Agricultural Economics - Romanian Academy, University of Agrarian Sciences and Veterinary Medicine – The Faculty of Management, Economic Engineering in Agriculture and Rural Development – Bucharest - Romania, Institute for Economy, Finance and Statistics – Chisinau - Republic of Moldova, Institute of Agricultural Economics - Belgrade – Serbia, under the high scientific patronage of the Academy of Agricultural and Forestry Sciences ”Gheorghe Ionescu Sisesti”, held in Bucharest - Romania, on November 15th, 2018. The proceedings are structured in accordance with the sessions of the symposium: Concepts, evaluations and visions on the dynamics of rural socio-economy; Economy, management and agricultural marketing; Rural development and agricultural policies. In the symposium proceedings, there are shared knowledge, experience and the newest results of the research on agrarian economy and rural development domains, related to: the agri-food trade, the impact of new tax policies in semi-subsistence agriculture, statistical analysis of the socio-demographic and economic characteristics of rural areas, bioeconomy concept - challenges and perspectives for agriculture, land resources – structural evolutions, modernization and socio-economic development of the rural area, rural education, improvement and optimisation of soil conservation system “no tillage”, the analysis of the technico-economic indicators for the main crops, milk sector in international context, vegetable farm structure evolution by standard output, rentability of consumed resources in condition of conventional and ecological operation, analysis of the impact of coupled support in agriculture etc. The symposium proceedings is structured in 5 specialized sections, where the read my find interesting argues regarding this research field. |
| Keywords: | agriculture, rural development, rural economy, CAP. |
| JEL: | A1 C1 D2 N5 N50 O1 O12 O13 Q1 Q13 Q18 R0 R1 R11 |
| Date: | 2018–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92473&r=all |
| By: | Makweya, L.; Oluwatayo, I. |
| Abstract: | Consumers around the world are progressively becoming more concerned and aware about food standards, quality and safety issues. The purpose of this study was to determine consumers� preference regarding safe and quality beef and willingness to pay (WTP) for graded beef in Polokwane municipality. The research surveyed 150 consumers using a structured questionnaire to collect data on consumer characteristics and responses to different bid levels for graded beef. Analytical methods were descriptive statistics, Likert scales, contingent valuation method to evaluate respondents� mean WTP for graded beef and logit model to determine the dependence of WTP on socioeconomic factors. Results showed that consumers prefer their beef tender, with less fat and bones and labelled with price, grade/class, size or quantity of the product and lastly quality inspection or certification indicator. Over half of the respondents (53%) were aware of grading or classification systems. The results further revealed that most respondents are willing to pay an increase of 16.04 % over the current price for beef. This could be an opportunity for investments in beef label industry. Consumer characteristics including age, income, gender and household size significantly influenced WTP for graded beef in Polokwane Municipality. Marketing strategies considered by beef product investors should target young, female and wealthier consumers. Grading with respect to quality attributes would make beef sales at differentiated prices possible. This will eventually enhance sales volume and returns for all stakeholders along the value chain. |
| Keywords: | Food safety, Graded beef, Preference, Polokwane, Quality, Willingness to pay; Consumer/Household Economics |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284743&r=all |
| By: | Kubik, Z.; May, J. |
| Abstract: | In this paper, we analyze the food access dimension of food security, and we model the link between weather shocks and food security that acts specifically through food prices. We focus on dietary diversity as a measure of food security, and we employ an instrumental variable model where household dietary diversity is determined by food prices instrumented with standardized precipitation evapotranspiration index (SPEI), a measure of weather shock. Our findings suggest that food prices have a significant negative impact on household food security, i.e. a one per cent increase in local food prices induced by a weather shock decreases the number of food items consumed by household by around 2.5 per cent, and the number of food groups by almost one per cent. The low-income households are particularly vulnerable to weather and price shocks; however, their response to shocks seem to depend on the level of poverty. The moderately poor households from the second wealth quartile show the greatest response to shocks, but the extremely poor household from the first wealth quartile have little scope to decrease their dietary diversity which is already very low. While own food production might alleviate food insecurity of the poorest, it does not insulate them form the weather and food price shocks. Our findings are robust to employing self-reported measures of food security. |
| Keywords: | Food Security and Poverty |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284748&r=all |
| By: | Day, M.; Vink, N. |
| Abstract: | This study is the second comprehensive analysis of the distortions to agricultural producers' incentives in South Africa. The core analysis of this study reapplies the Anderson et al. (2006) empirical framework for the time period 2005 to 2014, as applied by Kirsten et al. (2009), in order to estimate the distortions faced by agricultural producers. In addition to the aggregate application, the disaggregated approach to measuring distortions to individual agents' incentives in a vertical value chain is seminally applied in the South African context. The methodology developed by Briones, Alonso and Swinnen (2015) is applied to the South African wheat value chain for the marketing years starting in October 2000 and ending in September 2014. The results highlight the opposing incentives faced by primary agricultural producers depending on the trade status of their commodity. It is recommended that policy makers and market regulators thus consider the implicit impact of the long-term depreciation of the South African rand on agricultural producers' incentives, while also focusing on the phasing out of inter-industry distortion differences in order to realise potential efficiency gains. Keywords: Tariff Policy; Wheat; South Africa; Policy Distortions; Value Chain JEL Codes: Q17, Q18, F13, O13 |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284727&r=all |
| By: | Mawoko, Z.; Hendriks, S.; Reys, A. |
| Abstract: | Evidence of the impact of large-scale land transfers on household food security is scarce in Africa. This study investigated the effect of large-scale agricultural investments in the Monapo and Gurue districts of Mozambique. The sample of 504 households was classified into households (i) in which at least one member was employed (ii) households in the same area that were not employees of the agribusiness (non-engaged) and (iii) counterfactual households from another community. Although a third of households in the factual zones reported having lost land, severe hunger and food insecurity were not common. Employed households reported better dietary quality, food security and resilience. The counterfactual households had higher food security indexes than non-engaged households in the factual zones. It is not possible to draw concrete conclusions on whether the large-scale agricultural investments had a positive or negative effect on household food security as the effect could be influenced by a number of factors. In the case of female-headed households, dietary quality was worse among employed households. The study concludes that large-scale agricultural investments may provide employment opportunities in remote area and improve food security. However, policy makers and investors should take employment quotas for women into consideration when providing employment. Keywords: Large-scale agricultural investment, Food security, Mozambique, dietary diversity, coping strategies |
| Keywords: | Food Security and Poverty |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284759&r=all |
| By: | Khumalo, N.; Sibanda, M. |
| Abstract: | Peri-urban agriculture presents an opportunity as a livelihood strategy to alleviate poverty and ensure household food security. However, little is still known on the contribution of peri-urban agriculture towards household food security. The current study assessed the contribution of peri-urban agriculture on household food security in Tongaat peri-urban area. Using a stratified random sampling procedure, 208 households (that is 109 farming and 99 non-farming households) were selected. Descriptive statistics were used to describe household socio-economic characteristics. The Household Dietary Diversity Score (HDDS) and Household Food Insecurity Access Score (HFIAS) measures were employed to estimate a household food security status. The HDDS tool showed that a greater proportion (54%) � farming households consumed >6 food groups as compared to their counterparts, the non-farming households (40%) in the same food group. the HFIAS measure revealed that a greater proportion (about 72%) of the farming households indicated that they never or rarely worried about food shortages as compared to their counterparts � the non-farming households (about 61%) that never or rarely worried about food shortages. Overall results suggest that farming households were better-off in terms of food access and dietary requirements than non-farming households. Peri-urban agriculture if promoted can help households achieve food security. |
| Keywords: | Households, Household dietary diversity score, Household food insecurity access scale, household food security, peri-urban agriculture, Tongaat.; Food Security and Poverty |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284758&r=all |
| By: | Nkonki-Mandleni, B.; Ighodaro, D.; Mushunje, A. |
| Abstract: | This study evaluates smallholder farmers' adoption decision behaviours regarding the adoption of climate smart agricultural (CSA) practices, using the adoption of soil conservation practices at Qamata Irrigation Scheme, South Africa as a case study. Using the case study research methodology, 70 smallholder farmers were selected through a focused group interview method. Empirical data analysis was with the probit, logit and the binary logistic regression analysis models. Based on results and congruent with literature, the nature of smallholder farmers' adoption behaviour regarding the adoption of soil conservation technologies is complex, being affected by multiplicity of factors. Of most significance (at p<0.01) are gender, marital status, length of time of continuously farming on one spot (LENTFARM) and crop production respectively. The indication is that women farmers prefer their own practices to extension recommendations which is as expected. Similarly, married farmers, LENTFARM, and farmers with increased crop production preferred extension recommendations for soil conservation instead of their own practices. The conclusion is that significant variables of this study are factors influencing smallholder farmers' adoption decision behaviour regarding CSA practices in the study area. Therefore intervention efforts for improved CSA practice adoption should consider the significant variables of this study. Key words: Smallholder farmers; adoption; adoption decision-making behaviours; climate smart agriculture practices; soil conservation. |
| Keywords: | Farm Management |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284769&r=all |
| By: | Mauro Vigani (University of Gloucestershire); Hasan Dudu (World Bank); Emanuele Ferrari (European Commission – JRC); Alfredo Mainar Causape (European Commission – JRC) |
| Abstract: | Food security is a key topic for the Kenyan economy. This report contributes to the improvement of the understanding of the demand-side drivers of food demand patterns and their evolution in respect to changes in income and prices in this country. The report provides a new estimate of expenditure and price elasticities for goods consumed by households in Kenya. The estimation approach employed is based on the Quadratic Almost Ideal Demand System (QUAIDS) which depicts the demand system in a flexible way by imposing less restrictive marginal expenditure shares. The estimations are performed for 4 different levels of commodity grouping and also at the regional level, yielding significant income and price elasticities at all levels. These estimations will contribute to improve the overall food security analysis and in particularly can be useful to enhance the demand side of economic simulation models largely employed by JRC. |
| Keywords: | Kenya, Food Security, Food demand, Demand system |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc115472&r=all |
| By: | Gibson, John; Le, Trinh |
| Abstract: | Many countries lack spatially disaggregated consumer price data. Yet these data are needed to estimate real inequality and spatial patterns of poverty, especially for poor countries where weak infrastructure and high transport costs create big price variation over space. We experimented in Vietnam with a new way of obtaining disaggregated price data, using local expert knowledge to derive the mean and variance for prices of 64 consumer items in over 1000 communities. We used photographs of the specified items to ensure comparability of the reported prices. These prices are used to calculate regional cost-of-living indexes, which provide a good approximation to benchmark multilateral price indexes that are calculated from data obtained from traditional market price surveys. In comparison, two widely used no-price methods, based on using food Engel curves to derive deflators and based on using unit values (survey group expenditures over group quantity) are very poor proxy indicators of prices and of the cost-of-living and would distort estimates of real inequality and the spatial pattern of poverty. Prices from local expert informants also exhibit a basic spatial feature of prices – the Alchian-Allen effect or ‘shipping the good apples out’ – in much the same way as do prices from the traditional survey approach. This effect is one reason why unit values are a bad proxy for prices and this effect should become more important as food systems commercialize. Using expert knowledge to measure local prices is a low-cost and feasible approach that could be adopted more widely in developing countries. |
| Keywords: | Expert knowledge; Inequality; Prices; Regional Cost-of-Living; Surveys; Vietnam |
| JEL: | D12 O15 |
| Date: | 2019–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92533&r=all |
| By: | Masemola, M.; Ogundeji, A.; Chaminuka, P. |
| Abstract: | Emergence of livestock diseases pose a worldwide socio-economic threat to human and animal welfare. In the past years, South Africa has seen an increase in the extent and rate of various infectious livestock diseases. The continuous outburst in re-emerging infectious disease has created a demand for development of new improved novel livestock vaccines. However, sustainable use of livestock vaccines remains low, necessitating better understanding of farmers� demand and preferences. Using a Discrete Choice Experiment (DCE) approach, this studyinvestigated attributes influencing farmers` choice of livestock vaccines and their willingness to pay (WTP). Data were drawn from 204 respondents keeping cattle and small stock. The livestock vaccine attributes considered were; target specie, cold chain, multivalent, efficacy and price/50 doses. Analysis was done using descriptive statistics and alternative-specific conditional logit model. Results show that farmers� preferred a vaccine that had the multivalent attribute, could be used on more than one species, and had higher levels of efficacy. Price was however not a significant determinant of the choices made. Positive WTP was estimated for the multivalent attribute and negative for low efficacy. These findings are vital to guide developers in producing vaccines that are more likely to benefit and attract smallholder farmers. |
| Keywords: | Discrete Choice Experiment, Willingness to pay, livestock vaccines and diseases; Livestock Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284785&r=all |
| By: | Zantsi, S.; Greyling, J.; Vink, N. |
| Abstract: | The South African Agricultural sector is dualistic nature, comprised of large scale commercial farmers (mostly white) on one hand and on the other smallholder farming mainly practiced by black rural households in the former homelands. The smallholder farming, however is not homogeneous. Mostly a distinction is made between subsistence orientated smallholders and fully commercial orientated smallholders. Lately a middle class of smallholders falling in between these two groups has been a subject of much academic study and a large concern of smallholder policies in the last two decades. However there is no consensus on the criteria of describing these emerging farmers-various authors use different methods without giving sufficient details of who these emerging farmers are. This could have adverse effects and can potentially jeopardize success of development initiatives intended for this group of farmers. This article seeks to contribute towards a common understanding of the term 'emerging farmer' hence the group of farmers it represents by identifying various measures used to describe these farmers and apply to a data set from a survey of 379 smallholders from the former homelands of the Eastern Cape. Finally, the paper suggest a criteria based on the argument of the identified measures. Key words: Emerging farmer, South Africa, Survey, Eastern Cape. |
| Keywords: | Farm Management |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284733&r=all |
| By: | Kau, J.; Mashayamombe, E. |
| Abstract: | The objective of the study was to assess the effect of demographics, towards crop choice and farming practices among the 90 farmers participating in the High Value crop production programme in O.R. Tambo district municipality in the Eastern Cape province and how this affected the level of farm income generated. Semi-structured questionnaire was used to carry out field interviews. Descriptive statistics and multivariate regression analysis were employed for data analyses. The results of multivariate regression analyses shows that as a farmer�s age increased by a year, their chances of growing cabbages increased by 1.70%. As the plot size increased by a hectare, the chances of farmers growing cabbages decreased by 6.12%; their chance of growing maize decreased by 1.71%, but their chance of growing potatoes increased by 9.36%. These results were statistically significant at 10% level of significance. Farmers who hired extra labour earned 168% more income than those who did not. High farm-income was statistically significantly associated with increase in plot size, gender of the farmer (males performing better than women), and fertilizer application. Implementing policies that would result in equal distribution of land between men and women and educating women on how to optimally exploit limited resources is necessary. Key words: Demographics, High Value Crops, crop choice, plot size, level of farm income |
| Keywords: | Crop Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284739&r=all |
| By: | Maria Garrone; Dorien Emmers; Alessandro Olper; Johan Swinnen |
| Abstract: | This paper investigates the relationship between EU agricultural subsidies and agricultural labour productivity by estimating a conditional growth equation. We use more representative subsidy indicators and a wider coverage (panel data from 213 EU regions over the period 2004- 2014) than have been used before. We find that, on average, CAP subsidies increase agricultural labour productivity, and the effect is almost entirely due to decoupled Pillar I payments. Coupled Pillar I payments have no impact. The impact of Pillar II is mixed. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:40918&r=all |
| By: | Richards, Meryl; Arslan, Aslihan; Cavatassi, Romina; Rosenstock, Todd |
| Abstract: | International discussions on climate change increasingly recognize the importance of agriculture in adaptation and mitigation efforts. This study estimates the mitigation potential of agricultural practices supported by IFAD’s current investments in order to provide guidance for the design of future investments. Using data from field studies in scientific literature, this research estimates the effects of a large set of agricultural practices promoted by IFAD (and other development agencies) on soil organic carbon stocks, nitrous oxide emissions from soils, and methane emissions from rice paddies. Findings identify soil and rice management practices with the largest mitigation potential and those that can potentially increase emissions; discuss uncertainties in mitigation analyses; and provide recommendations to improve monitoring of mitigation benefits. |
| Keywords: | Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy |
| Date: | 2019–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:unadrs:284726&r=all |
| By: | Ramoshaba, T.; Hlongwane, J.; Belete, A. |
| Abstract: | Price transmission studies have become increasingly important in Sub Saharan Africa over the past decades because of its nature of providing clear and insightful information into our markets. In this study, price transmission mechanism is described with an agricultural product within the dairy industry, which is pasteurised liquid milk. The aim of the study was to investigate and analyse the nature of price transmission mechanism of pasteurised liquid milk South Africa. The study used secondary time series data that covered a sample size of 17 years (2000 -2016) of pasteurised liquid milk. Granger causality test and Vector Error Correction Model were used for data analysis. The Granger causality tests suggested a bidirectional causal relationship between processor and farm gate prices and also between retail and processor prices. On the other hand, a unidirectional causality was found from retail to farm gate prices. The VECM results showed asymmetric price transmission implying that retailers and processors react quicker to price increases than to price decrease. Price monitoring policy is suggested in order to protect the consumers from unfair prices passed on by the retailers. |
| Keywords: | Price transmission, granger causality, pasteurised liquid milk, Vector Error Correction model; Demand and Price Analysis |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284755&r=all |
| By: | Sowunmi, F.; Famuyiwa, T.; Oluyole, K.; Aroyeun, S.; Obasoro, O. |
| Abstract: | The use of copper based fungicide in the control of black pod disease caused by Phytophthora megakarya is a common practice among cocoa farmers. Copper based fungicide has detrimental effect on the environment as well as the output of cocoa production in Ondo State, Nigeria. Deviation from the recommended quantity of fungicides by cocoa farmers is not uncommon. Several studies on cocoa production often ignore these externalities. The objective of the study was to determine the environmental efficiency of cocoa farmers using detrimental variable (deviation from the recommended quantity of fungicide on cocoa farm) and traditional inputs within the framework of stochastic frontier approach. The averages of fungicide used per cropping season per hectare were 2,230 grams, 5,820 grams 10,555 grams for respondents that used below, actual and above the recommended doses respectively while average cocoa outputs were 0.92, 3.35 and 1.32 metric tons for farmers that used below, actual and above recommended doses of fungicide respectively. The low environmental efficiency did not only raise the cost of production but also affirmed that the wrong use of fungicide in cocoa farm constitutes environmental burden and make the environmental unsustainable. The study recommended that farmers should be educated on the significance and mode of application of recommended dose of fungicide on cocoa plantation. |
| Keywords: | Environmental efficiency, detrimental input, stochastic frontier, cocoa production.; Environmental Economics and Policy |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284747&r=all |
| By: | Gerwel, H. |
| Abstract: | South Africa has a high share of its poor population living in rural areas of the country, and especially the former homelands of Transkei and Ciskei, now part of the Eastern Cape. The challenge of mitigating and eventually ending the economic and social marginalisation of the rural poor in South Africa is clear. Agriculture plays a key role here. The sector is labour intensive with a potential for unskilled and semi-skilled job creation. It also has strong linkages to non-farm, rural economic activity. South Africa also has a highly unequal and dualistic economy with a history of support to traditional crops and markets in agriculture. It must innovatively seek to promote certain �emerging� industries that could be managed within a more inclusive and equitable manner. Hayami and Ruttan�s Theory of induced innovation interprets technical as well as institutional change as endogenous to the prevailing economic system (Hayami and Ruttan, 1971, 1984, 1985; Ruttan, 1984). With the global cannabis market opening up, and South Africa�s land locked neighbour Lesotho already having granted a number of licenses for the cultivation and exporting of medical cannabis. The lack of poverty focused social scientific research on the potential of cannabis cultivation to promote inclusive growth compared to the wealth of natural science research on the impacts of cannabis highlights a gap in the literature that should be exploited towards the goals of creating conditions of improved social justice and economic emancipation. JEL Codes: O13; O43; Q17 |
| Keywords: | Crop Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284784&r=all |
| By: | Wakamatsu, Hiroki |
| Abstract: | This study estimates Japanese consumers’ willingness to pay (WTP) for several components of seafood sustainability. A choice experiment via a web survey is conducted among Japanese seafood consumers. In order to estimate WTP, a latent class model is employed to treat heterogeneity of consumer preference in addition to a basic conditional logit model. The latent class model resulted in separating consumers into two characteristic groups: nature-oriented and human-oriented groups. Neither group was found to be willing to pay for seafood sustainability even though they are somewhat concerned about seafood sustainability. Specifically, the nature-oriented group, which comprised 51% of our consumer sample, negatively evaluated fisheries management and preservation of tradition and culture but highly evaluated the environment and ecosystems. Meanwhile, the human-oriented group, which comprised 49% of our consumer sample, positively evaluated fisheries management and regionality, but negatively evaluated the environment and ecosystems. The differences between the groups are unrelated to education or income, but are related to seafood expense, age, family structure, and knowledge of sustainability. |
| Keywords: | best–worst scaling, choice experiment, consumer preference, seafood sustainability |
| JEL: | Q01 Q22 Q51 |
| Date: | 2019–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92390&r=all |
| By: | Davids, T.; Meyer, F.; Westhoff, P. |
| Abstract: | Despite well-researched benefits and stated policy goals of increasing intra-regional trade, African policy makers continue to rely on export controls in an effort to keep prices at tolerable levels. Within the Southern African region, Zambia has been particularly prone to such policy action, typically in the maize sector, which has strong connotations to food security. Against the backdrop of drought-induced supply shortages of white maize in Southern Africa in 2016, this study applied a partial equilibrium model with bilateral trade flows to simulate the impact on prices and trade flow of imposing export controls in Zambia relative to an open trade scenario. The goal of reducing prices for domestic consumers was achieved at the expense of producers, who lose the market-induced price increase that would offset some revenue loss if trade was allowed to flow freely. Contrary to most previous literature on Zambian export controls, the impact of Zambian policy was also related to neighbouring markets, highlighting higher prices, reduced consumption and changes to typical trade flows. Price increases in neighbouring countries supported area expansion in subsequent years, inducing a shift in production towards these countries and highlighting the detrimental impact of trade control policies on long term production growth. Key words: Export controls, Partial equilibrium simulation, bilateral trade modelling |
| Keywords: | International Relations/Trade |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284728&r=all |
| By: | Gidi, L.; Hlongwane, J.; Nkoana, M. |
| Abstract: | The modern way of practising agriculture is moving at a snail pace among small-scale farmers despite the scientifically proven improved technology which is currently used to enhance agricultural productivity. This study was conducted in Ga-Mamadila village of Polokwane Municipality in Limpopo Province. The main aimed of the study was to analyse factors limiting the adoption of improved maize varieties (IMVs) by small-scale farmers. Data was collected through a cross-section design, using a quantitative approach. Purposive sampling method was employed and a total of 75 small-scale maize farmers (40 adopters and 35 non-adopters) were sampled based on probability proportional to sample size. Data analysis was done through descriptive inferential statistics and econometric modelling using logistic regression model. Findings show that gender was negatively significant to the adoption of IMVs at 5% level. Household income, access to extension services and membership in association were positively significant to the adoption of IMVs at 10%, 5% and 1% respectively. The study recommends that the benefits of using IMVs should be highlighted through extension agents and information sources to enhance the adoption rate of improved maize varieties. |
| Keywords: | Improved Maize Varieties, Adoption, Extension Agents, Small-scale maize farmers; Crop Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284760&r=all |
| By: | Christophe Gouel (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - INA P-G - Institut National Agronomique Paris-Grignon, IFPRI - International Food Policy Research Institute); Houssein Guimbard (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique) |
| Abstract: | Estimating future demand for food is a critical aspect of global food security analyses. The process linking dietary changes to wealth is known as the nutrition transition and presents well-identified features that help to predict consumption changes in poor countries. This study proposes to represent the nutrition transition with a nonhomothetic, flexible-in-income, demand system. The resulting model is estimated statistically based on cross-sectional information from FAOSTAT. It captures the main features of the nutrition transition: rise in demand for calories associated with income growth; diversification of diets away from starchy staples; and a large increase in caloric demand for animal-based products, fats, and sweeteners. The estimated model is used to project food demand between 2010 and 2050 based on a set of plausible futures (trend projections and Shared Socioeconomic Pathways scenarios). The main results of these projections are: (1) global food demand will increase by 47%, less than half the growth in the previous four decades; (2) this growth will be attributable mainly to lower-middle-income and low-income countries; (3) the structure of global food demand will change over the period, with a doubling of demand for animal-based calories and a much smaller 19% increase in demand for starchy staples; and (4) the analysis of a range of population and income projections reveals important uncertainties: depending on the scenario, the projected increases in demand for animal-based and vegetal-based calories range from 74 to 114% and from 20 to 42%, respectively. |
| Keywords: | food demand,food security,Bennett’s law,nutrition transition,Bennett's law |
| Date: | 2019–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02043169&r=all |
| By: | Masegela, C.; Oluwatayo, I. |
| Abstract: | Marketing plays a major role in agricultural production and this is because agriculture has the potential to provide the majority of smallholder farmers with employment and income. However, for smallholder farmers to enjoy the benefits provided by agriculture they need to have a reliable market for their produce. This paper therefore examined cowpea value chain mapping and marketing efficiency among cowpea farmers in Ga-Molepo of Capricorn district and Bela-Bela of Waterberg district. Primary data was collected through face to face interviews from 80 smallholder cowpea farmers using structured questionnaire. Value chain map, descriptive statistics and binary logistic regression model were used to analyse the data. The study findings showed that 66% of the smallholder cowpea farmers were market efficient and 34% were market inefficient. It was also revealed that women were more involved in cowpea production than men. Results of binary logistic regression model employed indicated that age, household size, years in schooling, years in farming cowpea, income generated from selling cowpea, quantity of cowpea sold and occupation of the farmers had positive significant influence on marketing efficiency in the study area. The paper therefore recommends that increased investment in education and training opportunities for smallholder farmers for better profit making and stakeholders in agriculture value chain in the study area should come together for proper coordination of activities to further enhance efficiency. |
| Keywords: | Cowpea production, Limpopo province, marketing efficiency, value chain mapping, Smallholder farmers; Marketing |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284751&r=all |
| By: | Grwambi, B. |
| Abstract: | Changes in the structure of value chains have opened up lucrative opportunities for smallholder producers to increase income as a means to improve their livelihoods. Yet, recent literature argues that smallholder producers are better off in their current markets than when integrated in high value chains on disadvantageous terms. This chapter studies the terms of integration of smallholder producers in high value chains from a marketing systems perspective. Results indicate that because of uncertainty regarding reliability of supplies from smallholder producers, exporters adopt quasi-hierarchical forms of governance to monitor supplies. To enhance production, exporters offer advanced payments or loans and disbursements to smallholder producers and use smallholders� harvest as collateral. In return, smallholder producers offer assortments of deciduous fruit to exporters. To coordinate delivery of fruit to overseas markets, exporters estimate yields and inform markets; they monitor packing, liaise with cold stores, make transport and shipping arrangements and communicate these with the importer(s).While this approach guarantees smallholder producers access to high value chains, it also locks them into these relationships thus creating dependency. These findings imply a need for smallholder producers to learn to perform the functions necessary to integrate in high value chains in order to increase their margins. Key words: uncertainty, quality, deciduous fruit, exporters, perishability |
| Keywords: | Marketing |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284744&r=all |
| By: | Mdlulwa, Z.; Ngwane, C.; Mathebula, T. |
| Abstract: | Key government strategic development plans in South Africa have perpetually identified livestock farming as one of the vital strategies to alleviate poverty, secure livelihoods and improve food security in rural South Africa. However, livestock remains vulnerable to animal disease that threaten productivity and food security of smallholder farmers. Efficient animal production and control of animal diseases are identified as two of the main challenges that need urgent attention. Using data collected on 593 smallholder farmers in five provinces of South Africa, this paper uses partial proportional odds modelling to evaluate the determinants of livestock keeper's choice of primary animal health care practices. The primary animal health practises considered are biosecurity measures, vaccination and supplementary feeding. The analysis revealed that markets, animal handling facilities, contact with animal health practitioner, farmer association, household size, information, household income, number of goats and perceptions about the effectiveness and use of vaccines were the main determinants of farmer's choice of primary anima heath care practises. The study recommends intensification of programmes that seek to promote farmers; capacity development, social capital, improved inclusive facilitated access to markets and animal handling facilities in order to expedite increased farmers uptake of animal health care practises. Key words: Livestock, diseases, primary animal health care practices, partial proportional odds model, South Africa JEL codes: Q1, Q120 and D11 |
| Keywords: | Livestock Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284778&r=all |
| By: | Chanda, Areendam; Kabiraj, Sujana |
| Abstract: | One of the well documented facts about India's rapid growth since 1991 has been the accompanying unequal sub-national experiences. In this paper, using unsaturated night-light data for 1996-2010, we investigate patterns of growth at the district level. We find evidence of absolute convergence. Disaggregating along rural and urban dimensions, we also show that this is mainly due to faster growth in rural areas. Further, districts that have grown faster are ones that are geographically disadvantaged - further away from the coast, with lower agricultural suitability of land, and more rugged terrains. The convergence results are also robust to a few of the major policy initiatives that overlapped during this time. |
| Keywords: | Convergence, Regional Growth, India, Rural-Urban, Night Lights |
| JEL: | O4 O40 O47 R11 |
| Date: | 2017–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92506&r=all |
| By: | Modiselle, S.; Mazwane, S.; Randela, M. |
| Abstract: | This paper looks at potato prices in four big fresh produce markets in South Africa, namely, Tshwane, Durban, Johannesburg and Cape Town. It starts by giving an overview of potato industry, its importance and performance of the markets over time. Its contribution in economy of South African includes creation of job opportunities, export earnings for the country, empowerment of traders in the informal sector, food to neigbouring countries, improved welfare of the general population through productivity increases, opportunities for emerging small-scale farmers and income generation in small towns and rural areas. The paper focuses on determining integration in potato markets using weekly potato data from January 2013 to December 2017 by using Cointegration which is run using Eviews. The results show that prices tend to converge towards one price in the long run. The paper also suggests policy implications that will assist smallholder potato farmers as they get exposure to the big formal markets. It also concludes that understanding the market integration will benefit potato consumers, traders and producers. In turn, farmers� livelihoods and food security will be improved as the farmers operate in an environment they understand. |
| Keywords: | fresh produce markets, market integration, cointegration.; Crop Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284787&r=all |
| By: | Gitau, R.; Meyer, F. |
| Abstract: | The aftermath of the high energy and unstable market crises globally was the unprecedented volatile and high food prices experienced throughout the Eastern and Southern Africa (ESA) region. Most governments implemented a wide range of policy instruments to mitigate and insulate domestic markets against this price hikes. Despite insulation of the domestic market, high food prices have continued unabated. Raising the question are these policies effective. The success of the policy is dependent on the government ability to implement the specific policy. Implementation of most policies in the ESA region may be described as erratic, highly discretionary, inconsistent, unexpected and sudden hence leading to policy failure and market distortion. Domestic factors and to some extent, regional factors play an important role in determination of price as opposed to international market as most country within the region are either self-sufficient or almost self-sufficient in staple foods. The aim of this study was to examine the different policy regimes implemented to mitigate against high food crises and their effects on spatial price transmission on domestic markets. . The results demonstrates evidence of long-run relationship and cointegration between surplus and deficit market under regime with little or no policy intervention. Under this regime, there was higher price transmission, faster correction in price shocks as illustrated by higher speed of adjustment and lower half-life between surplus and deficit markets. Low price transmission, price shocks taking longer to correct as illustrated by low speed of adjustment and higher half-life were observed under different policy regimes. JEL Classification: C22,D43,L13,R32,Q18? |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284732&r=all |
| By: | Yobe, C.; Ferrer, S.; Mudhara, M. |
| Abstract: | The SA government has favored cooperatives over other types of corporate entities in its programmes for rural development. This study examines financial efficiency and its determinants for 387 agricultural cooperatives in SA using a two-stage double bootstrap approach. Bias-corrected Data Envelopment Analysis (DEA) efficiency estimates are obtained in the first-stage for the agricultural cooperatives. Next, a Double Bootstrapped Truncated Regression model was estimated to obtain bias-corrected scores. The model was designed to obtain DEA scores for financial efficiency. First-stage results indicate that many agricultural cooperatives are relatively inefficient. Results of the second-stage analysis identified significant determinants of efficiency as age of cooperatives, size, gender of management, governance indicators and training. Governance indicators negatively influencing efficiency indicate institutions that prioritize non-financial goals and consequently compromise on governance quality. The deviation from institutional control mechanisms most likely emerges in a weak institutional environment. Various types of training influenced financial efficiency meaning that an understanding of training needs across institutions is crucial for equipping and empowering cooperatives towards financial efficiency. The study shows that the design and implementation of suitable training programs are prerequisites for addressing financial efficiency of agricultural cooperatives. Key words: Agricultural cooperatives, Data envelopment analysis, Financial efficiency, Two-stage double bootstrap method, South Africa JEL codes: Q10, Q12, Q13 |
| Keywords: | Agricultural Finance |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284757&r=all |
| By: | Bird, Julia; Venables, Anthony J |
| Abstract: | Land rights and tenure systems are an important factor behind poor housing and inefficient land-use in developing country cities. In Kampala, Uganda, four systems of land tenure coexist, allowing a detailed study of the effects of these on household and firm location decisions. Spatially disaggregated data across the city suggest that the presence of a traditional land tenure system (called mailo) skews land-use towards informal housing and away from productive activities. Using a structural model of the city we show that this due to mailo having a positive value for occupants of informal housing, attributable to mailo-specific amenity benefits and/ or rent caps. We use the model to investigate the effect of converting all mailo land in the city to leasehold. Despite direct loss of amenity experienced by mailo residents, aggregate city income may rise substantially because of more efficient land-use. Manufacturing firms move into formerly mailo areas and form new clusters of activity. This increases urban wages, particularly among the low skilled, and raises aggregate urban real incomes by 2% in the absence of localisation economies and as much as 6.7% in the presence of such economies of scale. |
| Keywords: | customary; land-tenure; land-use; Uganda; urban |
| JEL: | O1 R3 R52 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13563&r=all |
| By: | Kyei, C.; Hassan, R. |
| Abstract: | The Olifants river basin, which is one of the nine river basins in South Africa ranks as the third most water-stressed basin as well as the most polluted due to pollution from mining activities, irrigation agriculture, and industrial waste disposal. As a result, the government has implemented a series of pollution control measures with the view to mitigating pollution and water shortage in the basin. In this paper, we analysed the regional economic and environmental impacts of a tax policy to reduce water pollution using a Computable General Equilibrium (CGE) model. Firstly, an extended Social Accounting Matrix (SAM) which includes water pollution related activities was constructed for the basin using the framework of environmentally extended SAM. Secondly, we simulate a reduction in current pollution load by increasing the pollution tax rate under alternative revenue recycling schemes. The analyses reveal that internalising the cost of pollution control will effectively reduce the pollution situation in the river basin with marginal negative impact on Real Regional Gross Domestic Product (RRGDP). However, revenue recycling through uniform lump-sum transfers may positively impact RRGDP. In addition, the policy will lead to a change in regional production structure from heavy polluting sectors to less pollution-intensive sectors with benefits to sustainable development and the aquatic ecosystem. JEL codes: C68, Q25, Q28 |
| Keywords: | water quality, Olifants River, computable general equilibrium model, South Africa, market-based incentives; Public Economics |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284737&r=all |
| By: | Khoza, T.; Senyolo, G.; Nekhavhambe, E.; Mmbengwa, V. |
| Abstract: | The aim of the study was to identify smallholder farmers participating in agro-processing and factors influencing their choice of participation. The study was conducted in Gauteng Province on a randomly purposive selected sample of 102 smallholder farmers. Data was collected through a structured questionnaire that was administered face-to-face to respondents. A probit regression model was used to determine factors influencing farmers� participation in agro-processing. The results show that only 19% of the sampled respondents are participating in the agro-processing industry of Gauteng Province. The results also revealed that factors such as educational level, land tenure, agro-processing training and information have a positive influence on agro-processing participation. Yet, distance to market and off-farm income negatively influence the decision to participate in agro-processing. However, there are challenges that need to be addressed in order for them to participate to their potential (i.e. lack of access to infrastructure, transport, poor knowledge on agro-processing norms and standards, poor finance and high cost of production). The study recommended for development of strategies that could realistically increase access of friendly investment capital to potential smallholder farmers to start their own small-scale agro-processing businesses, intensification of awareness of farmers on micro-financing institutions, and building local agro-processing plants. |
| Keywords: | Agro-processing industry; Smallholder; Probit regression; Challenges; Agribusiness |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284780&r=all |
| By: | Mdleleni, B.; Hendriks, S.; Makhura, M.; Makabanyane, I.; Seleka, K.; Phahlane, H.; Zibele, M.; Mofolo, K.; Makgoka, L.; Gininda, P.; Mathio, I.; Jafta, A.; Ramonyai, D.; Peter-Dukuza, F.; Lathane, M.; Lubbe, P. |
| Abstract: | Despite commitment to the 2003 Maputo Declaration, South Africa has not yet formally launched a domestication process for the Comprehensive Agriculture Development Programme (CAADP) Maputo and Malabo Declarations, even though the National Development Plan and Medium Term Strategic Framework generally align with the continental growth agenda; and notwithstanding the country conducting an innovative, unique and inclusive consultation across the country between 2013 and 2015. A decision to submit a Biennial Review (BR) report on how the country stacks up against the Malabo commitments represents a bold step towards engagement and alignment. This paper presents the outcomes of the 2017 BR and seeks to identify where country's national policy framework and targets align with Malabo to support the process of domesticating CAADP. The discussion will assist South Africa and other countries in aligning a set of priority programmes and policies to facilitate faster progress towards attaining development targets. Keywords: CAADP, Malabo Declaration, South Africa, agricultural growth, food security |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284745&r=all |
| By: | Nhundu, K.; Mahlangu, S.; Chaminuka, P.; Gandidzanwa, C.; Mamabolo, M.; Makhura, M. |
| Abstract: | Sunflower is one of the most vital field crops produced in South Africa, accounting for approximately 60% of oil seeds produced locally. However, total sunflower seed production is considerably lower than total consumption; making the country a net importer of sunflower. Restructuring of the agricultural sector around 1996, exposed the oil industry to international oilseed markets, leading to changes in the pricing system of agricultural commodities. It is not clear how these changes have influenced sunflower production patterns over time. Moreover, farmers respond differently to changes in policy and economic issues. The study estimates sunflower supply response using panel data from 1920 to 2016, modelled through the Nerlovian partial adjustment model. The short- and long price elasticities of 0,2387 and 0,3135 respectively, suggest that farmers do not adjust easily to sunflower acreage given price changes. An adjustment coefficient of 0,2718 suggests that farmers make slow adjustments acreage by 27% within a year. Policy instruments to enhance sunflower growth could be aided by empirical knowledge of structural parameters of supply responsiveness to facilitate decision-making behaviour of producers to spearhead external and internal adjustment processes. This will reduce the country's dependency on imports and be able to sustain the sunflower industry. Key words: Nerlovian partial adjustment; supply response; elasticities; acreage; sunflower |
| Keywords: | Crop Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284773&r=all |
| By: | Kau, J.; Mahlangu, S.; Mazwane, S.; Nhundu, K.; Chaminuka, P.; Nemakhavhani, S.; Lekgau, S. |
| Abstract: | The objective of the paper was to study seasonality in citrus prices, for informing food security policy. Secondary data was collected from the Joburg Fresh Produce Market. Analysis of the data followed two steps. First was the construction of price indexes and second, statistical significance using the ARIMA model. Grapefruit, oranges, lemon and soft citrus were considered for analyses. Results show that the highest price index for grapefruit at 189% was recorded in February against a low of 51% in July. Orange came second, with a high of 157% in February and a low of 60% in June; Soft Citrus a high of 153% in December and a low of 66% in April whereas lemon had high of 120% in January and low of 80% in June. The average high price index for the four species was 156%. On average, the difference between high and low price index among the four species was 92%. For the Lemon, the aforesaid figure was 45%. ARIMA seasonal terms are statistical significant at 1%, 5% and 10%. The length of period for high price index and the rate of price index renders citrus seasonality high. Government to invest in agro processing and storage infrastructure. Key words: Seasonality, price index, citrus species, nutrition, food security |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284777&r=all |
| By: | Seanego, K.; Hlongwane, J. |
| Abstract: | The aim of the study was to analyse and compare the relationship between entrepreneurship education and entrepreneurial intentions amongst Agricultural Economics and Animal Production students at the University of Limpopo. The study used primary cross-sectional data which was obtained by means of a structured questionnaire from 25 final year students randomly selected from each class which made the sample size of the study 50. Drawing from the Theory of Planned Behaviour, descriptive statistics was used to process the data obtained from the entrepreneurial intention measurement instrument adopted from (Linan and Chen, 2009). Descriptive statistics revealed that the entrepreneurial intentions of Agricultural students at the University of Limpopo are high; the mean for the entrepreneurial intention scale of the BSc Agric (Agricultural Economics) students was 6.02 and BSc Agric (Animal Production) students was 6.42. The results reveal that agricultural students at the University of Limpopo have high entrepreneurial intentions regardless of the study program they are enrolled in. It is recommended that agricultural students need support in terms of business mentorship, funding and incubation to facilitate the materialization of the business ideas they intend to start. |
| Keywords: | Entrepreneurship education, Entrepreneurial intentions, Agricultural Students, University of Limpopo; Teaching/Communication/Extension/Profession |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284753&r=all |
| By: | Sotsha, K.; Rambau, K.; Khoza, T.; Mmbengwa, V.; Ngqangweni, S. |
| Abstract: | This paper provides an analysis of factors that influence rural household expenditure on food using a quantile regression analysis. The objective was to investigate if there are any relationships to discern between household expenditure on food and a number of other socio-economic factors in addition to household income and household size as stipulated in Engel�s law. The results indicate that indeed there are relationships that could be discerned between household food expenditure and gender, education, occupation, household income, number of people depending on household income, gender distribution by age groups and number of livestock sales per annum. However, household income has a relatively smaller effect in magnitude as compared to the rest of these factors. Furthermore, the results show that the relationships differ along the quantiles. In other words, some factors had a significant and higher effect in the lower quantile compared to the higher quantile. On the basis of such results, the study suggests that tailor-made interventions should be considered in the development initiatives that are targeting rural households as different factors affect these households differently. |
| Keywords: | Consumer/Household Economics |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284768&r=all |
| By: | Nicoletta Batini |
| Abstract: | France is the top agricultural producer in the European Union (EU), and agriculture plays a prominent role in the country’s foreign trade and intermediate exchanges. Reflecting production volumes and methods, the sector, however, also generates significant negative environmental and public health externalities. Recent model simulations show that a well-designed shift in production and consumption to make the former sustainable and align the latter with recommended values can curb these considerably and generate large macroeconomic gains. I propose a policy toolkit in line with the government’s existing sectoral policies that can support this transition. |
| Date: | 2019–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:19/41&r=all |
| By: | Mantsho, S.; Hlongwane, J. |
| Abstract: | The paper�s aim was to investigate Consumer perception and preference between broiler and indigenous chicken meat in Limpopo Province, South Africa. In this purpose 216 individuals participated to a questionnaire based survey in Mankweng Township. Factor analysis and chi square analysis was used to analyse the consumer� perceptions towards broilers and indigenous chicken meat. Cronbach alpha value was used to study the properties of measurement scales. The results pointed out an increased study found that where 53% of respondent prefers broiler chicken meat while 47% prefers indigenous chicken meat. Most of persons used to buy meat from supermarket (65%), being advantaged to purchase more food and goods at one way saving time. About 18% persons used to buy meat from hypermarket, 11% from street vendors, 4% produce their chicken meat for consumption and 2% buy from farm gate. Food choice questionnaire highlight that preference of food items is divided into ten categories which are health, mood, convenience, sensory appeal, natural content, price, familiarity and ethical concern. The Cronbach�s alpha for this research is 0.748, where number of Cases = 216 and number of Items = 15. So, the research is an acceptable one. With this analysis, the first question of the compare and analyse the influence of consumers� preference between broiler and indigenous chicken meat. Therefore, all factors are acceptably important for consumers� preference and perceptions. Key word: Chronbach alpha, preference, perception |
| Keywords: | Consumer/Household Economics |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284788&r=all |
| By: | Mshengu, S.; Kalaba, M. |
| Abstract: | South Africa negotiated the Economic Partnership Agreement (EPA) with the EU under the Southern African Development Community (SADC) - EU EPA configuration. SADC-EU (EPA) replaced the TDCA (Trade Chapter) after the SADC-EPA was signed by both parties and came into force in 2016. The annual (2016) tariff-rate quota (TRQ) for South African wine to enter the EU duty free was 50 126 000 litres under the TDCA and increased to 110 000 000 litres that will enter the EU market duty. The aim of this paper was to assess the potential impact of wine quota under EU-SADC EPA agreement on wine trade flows between South Africa and the European Union countries by adopting the Software on Market Analysis and Restriction on Trade (SMART). The increase in duty free quota is expected to stimulate more wine production hence increasing the exports to EU market, resulting in high wine export revenues. The estimated revenue increase is $80 million. The increased trade is expected to have both direct and indirect impact on the employment in South African wine industry. In terms of the out of quota impact, the simulation results reveal that wine TRQ under the EPA would lead to a significant decrease in EU wine imports from South Africa. The results further show that trade diversion largely exceed trade creation effects and overall trade effect would be negative for out of quota trade. The findings of this study are crucial for South Africa�s wine sector because it provides strong evidence for South Africa need to pay more attention to the impact of the EU wine quota and develop appropriate strategies and policies to compete and also look into other market opportunities for diversification purposes. Key words: Tariff Rate Quota, SMART model, partial equilibrium |
| Keywords: | International Relations/Trade |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284772&r=all |
| By: | Partridge, A.; Daniels, R.; Kekana, D.; Musundwa, S. |
| Abstract: | This paper discusses the changing profile of rural livelihoods in South Africa using the National Income Dynamics Study Waves 1 - 3. The rural sector is undergoing compositional change, with the literature suggesting a phenomenon of de-agrarianisation taking place as households are choosing to move away from agriculture as their main livelihood source. This concept, and others, are interrogated by constructing a panel and looking at the movement of individuals into and out of various states over the period 2008-2012. This is a crucial period for South Africa following fourteen years of policy changes since entering democracy and thus being at the beginning of a period where the country starts setting its path for the future. The analysis finds support for the notion of deagrarianisation, most prominently through the movement of individuals away from agriculture in rural labour markets and the decision by households to cease farming activities outside of formal employment. Rural-urban migration to find work was another identified livelihood strategy, although in South Africa there is also a simultaneous significant, albeit lesser, movement of individuals in the opposite direction. Grants were also shown to have become more prominent for rural livelihoods over the study period. Key words: agriculture, food security, migration, employment, rural development JEL codes: N57, N97, Q18, R11, R12, R23 |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284767&r=all |
| By: | Abei, L.; Van Rooyen, J. |
| Abstract: | Since independence, the cocoa industry of Cameroon has gone through various phases suffering from deregulation of the industry, globalisation, trade liberalisation, natural disasters etc. This paper aims at analysing the competitive performance of a very tradeable global commodity and the main export crop of Cameroon from 1961 to 2013 through the application of a step-wise analytical framework adapted from ISMEA, (1999); Esterhuizen, (2006); Van Rooyen and Esterhuizen (2012) accommodating aspects of agri-value chain analysis. This conventional analysis was expanded to include value chain comparisons between various value-adding processes in the Cameroonian cocoa value chain as well as consensus vs. variations in opinions of different actors within the cocoa industry regarding the factors influencing the industry�s competitive performance from the application of the Porter Diamond model. Information from chain actors through the cocoa executive survey (CES) was used to further expand the framework and analyse the relationship between the various factors affecting the industry�s performance i.e. identify factors which are interrelated in influencing the industry and those that show a degree of independence. Such information is viewed as facilitative for strategic planning purposes. Results revealed that three Porter determinants positively influence the industry�s performance while two were constraining implying that the Cameroon cocoa industry, while performing positively, can strive to increase competitiveness considerably by applying selected industry-based strategies. Keywords: Cameroonian cocoa industry, competitive performance, relative trade advantage (RTA), cocoa executive survey (CES), Porter Diamond. |
| Keywords: | Crop Production/Industries |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aeas18:284771&r=all |