Agricultural and Food Economics

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ISSN / EISSN : 2193-7532 / 2193-7532
Total articles ≅ 203
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Delelegne A. Tefera, Jos Bijman
Agricultural and Food Economics, Volume 9, pp 1-21; doi:10.1186/s40100-021-00198-0

Abstract:
Foreign direct investment (FDI) facilitates modernization of domestic agri-food systems in emerging economies through increased use of vertical coordination. This paper sheds lights on how international brewer investments in African food systems affect smallholder market participation and value chain development. In particular, we analyze the impact of contracts among malt barley producers in Ethiopia. Using cross-sectional survey data, we employ inverse probability-weighted regression adjustment (IPWRA) and propensity score matching (PSM) techniques to analyze the economic impact of contracting. We find that contrary to popular belief, contracting has positive and significant impact on malt barley production, intensification, commercialization, quality improvement, and farm gate prices, ultimately resulting in increased net income and spillover into the productivity of other food crops.
, Daniel Callo-Concha
Agricultural and Food Economics, Volume 9, pp 1-21; doi:10.1186/s40100-021-00190-8

Abstract:
Market access influences the dietary diversity and food security for smallholder households in many ways. In Ethiopia, most smallholders are subsistence farmers who have poor access to markets. This study used primary data from a household survey to examine the relationship between market access and the dietary diversity and food security for 324 smallholder households in the Yayu area of southwestern Ethiopia in early 2018. Multivariate regression analysis showed that households located far from market centers consumed not only less diverse foods but also spend less on food consumption than households located close to market centers. The correlation between market access and food security measured by Household Food Insecurity Access Scale (HFIAS) did not reach statistical significance, nor did the impact of market access on household consumption and dietary diversity through income. Rather, greater market access appeared to encourage smallholder households to rely on market purchases more than their own production to improve the diversity of household consumption. A direct action to improve the market accessibility would be investments in infrastructure to expand rural road connectivity, which would reduce transaction costs and benefit the welfare of smallholder farmers and communities.
, Sebastian Lakner, Ioannis Skevas
Agricultural and Food Economics, Volume 9, pp 1-22; doi:10.1186/s40100-021-00195-3

Abstract:
The objective of this article is to assess the determinants of the technical efficiency of dairy processing firms in Southern Brazil while accounting for their different organizational forms, namely cooperatives and investor-owned firms. The data from 243 milk processors in southern Brazil, including firm structure, management capacity, and organizational choice of dairies, were analyzed. A production frontier is specified to estimate technical efficiency and identify its potential driving sources. Bayesian techniques are used to estimate the model. An average efficiency of 77% indicates that the actual output is 23% below its potential, which implies that output could, on average, be increased by approximately 31.6%, under ceteris paribus conditions. Economies of scale were also detected. The analysis reveals that the management capacity within companies is the main determinant of efficiency. Idle capacities of processing plants are an important source of inefficiencies and cooperatives are more efficient than investor-owned firms, despite their transaction costs potentially being higher and the five vaguely defined property rights inherent to the traditional cooperatives which they must overcome. Knowledge about the cooperatives’ objectives other than profit maximization would provide a more realistic comparison against investor-owned firms. This study assessed the determinants of the efficiency levels of dairy processing companies in an emerging economy using a unique own dataset with data collected at a plant level. Based on the results, manifold managerial and political implications have been derived that can benefit the dairy industry of developing and emerging economies.
Demaria Federica, Drogue Sophie, Lubello Pasquale
Agricultural and Food Economics, Volume 9, pp 1-16; doi:10.1186/s40100-021-00193-5

Abstract:
In this article, we investigate how pest risk management protocols may affect trade flows of fresh apples. We apply our analysis to two major players in the international trade of fresh apples: France and Chile. These two countries have been chosen because they are among the world’s leading apple exporters and although they have similar market shares, they differ in terms of destination markets, seasonality, local conditions and export strategy. In order to assess the impact of pest risk management protocols on international trade of apples from France and Chile, we introduce in a gravity equation beside the traditional variables, a score able to measure their complexity. The results are interesting in the sense that even if the score for France and Chile by main trading partners are rather close, we found that French apples exporters would be more impacted by pest risk management protocols than their Chilean counterparts.
, Laura Trijsburg, Thom Achterbosch, Inge D. Brouwer, Gina Kennedy, , Ruerd Ruben, Elise F. Talsma
Agricultural and Food Economics, Volume 9, pp 1-21; doi:10.1186/s40100-021-00188-2

Abstract:
Previous studies in Nigeria examined food and nutrition security mainly using anthropometric indicators, total calorie intake, or the household dietary diversity score (HDDS). However, recent evidence on nutrient and dietary gaps, especially from nationally representative surveys, is weak. This study contributes by examining factors influencing household mean nutrient adequacy and HDDS with focus on components of food systems in Nigeria. Based on the 2015/16 Nigeria General Household Survey, we found that fruits and animal source foods were the least consumed food groups. Yet, these food groups seem to be the main sources of difference in HDDS and were strongly associated with the mean probability of nutrient adequacy, given covariates. Among 11 nutrients under study, large shortfalls were observed in consumption of iron, vitamin B12, and riboflavin with probability of adequacy being 0.2 or below, followed by niacin, vitamin C, and zinc with corresponding probability of adequacy ranged between 0.48 and 0.58. Further, results suggested that mobile phone ownership by the household head, household’s access to electricity, improved sources of water for household consumption, and percent of the community with improved sanitation were strongly associated with HDDS. Heterogeneities in food groups and nutrient consumption and food system drivers are discussed.
Agricultural and Food Economics, Volume 9, pp 1-21; doi:10.1186/s40100-021-00187-3

Abstract:
In Switzerland, there are separated value chains for dairy and cheese products, which differ in terms of industry concentration, value chain governance, and product characteristics. We analyze how milk prices are passed on along these different value chains. Using detailed price data on farm gate, wholesale, export, and retail levels, we apply asymmetric vector autoregressive and vector error correction models to study vertical price transmission in Swiss dairy and cheese chains. Contrary to most existing literature, we find almost no long-run price relationships and no significant asymmetries between the different stages and products and discuss the potential reasons.
, Kwasi Ohene-Yankyera, Robert Aidoo, Camillus Abawiera Wongnaa
Agricultural and Food Economics, Volume 9, pp 1-17; doi:10.1186/s40100-021-00191-7

Abstract:
The traditional system of producing small ruminants (sheep and goats) contributes significantly to the socioeconomic wellbeing of farm households in northern Ghana. Besides serving as an important source of income, sheep and goats also offer important non-pecuniary benefits such as the provision of manure, savings, insurance, farm portfolio diversification, and strong social relations. However, technical evaluation of traditional small ruminant systems places much emphasis on financial gains to farmers and abstracts on the non-conventional utilities derived from the livestock system. The main purpose of this study, therefore, is to estimate the overall economic benefits associated with traditional small ruminant systems by accounting for both market and non-market values in two agro-ecological zones (Guinea and Sudan savannah) of northern Ghana. Using a multistage sampling technique, we collected cross-sectional data from 249 small ruminant farmers for empirical analysis. The results show that at least 60% of the net benefits from sheep and goat production in northern Ghana are in non-marketable (non-cash) forms. The study demonstrates that the traditional free-range system of managing sheep and goats is economically viable when the non-market value derived from the system is incorporated in the economic analysis. The findings have practical implications in improving the traditional small ruminant system for higher meat productivity and income generation in northern Ghana and elsewhere in sub-Saharan Africa (SSA).
Agricultural and Food Economics, Volume 9, pp 1-29; doi:10.1186/s40100-020-00170-4

Abstract:
In this paper, efforts were made to the impact of full and seasonal stall feeding technology on households’ economic, ecological, and social welfare outcome indicators in rural Northern Ethiopia using data obtained from the survey of 518 rural farmers. In order to address our primary objective, an endogenous switching regression model was applied. The overall result indicated that SF adoption ensures significant gains in terms of the specified outcome indicators. Using endogenous switching regression models, we estimated different outcome indicators for both adopters from adoption (ATT), and non-adopters had they adopted (ATU). It is identified that there would be a decline of 21% in milk production and productivity if adopters would not have adopted this technology while non-adopters are estimated to increase their milk production and productivity by 100 and 48% if they would adopt this technology. The results further show that SF adoption had a significant increment in the lactation period. An increase of consumption expenditure by 17% from FSF and 44% in the case of SSF could be considered significant on livelihoods for smallholder farmers. On average, adoption of SF increased manure use in the range of 258–294 kg for adopters. The results showed that SF has decreased the propensity of hiring labor by about 29% and purchase of animal feed by 31%. We have found that participation in SF, on average, decreased total cattle stock by 1 TLU but increased the probability of keeping milking cow by 23%. The adoption of SF increased the likelihood of participating in an animal sale market by 29% for adopters and by 47% for non-adopters had they decided to adopt. The adoption of SF leads to a gain in a number of plants of 11 trees and 29 m of physical construction for the typical adopter and 36 trees and 133 m if the typical non-adopter were to adopt the SF technology on their plots. The adoption process also increased the propensity of growing trees by 19% and decreased household animal shock experience by a probability of 19% for adopters and about 15%.
, Hamdiyah Alhassan
Agricultural and Food Economics, Volume 9, pp 1-18; doi:10.1186/s40100-021-00183-7

Abstract:
Climate adaptation is an essential strategy for responding to climate change at local levels and required for sustainable food production to meet the growing food demand. In this light, this study analyzed the effects of climate adaptation strategies on technical efficiency of maize farmers in Northern Ghana. This involved a total of 619 maize farmers that were selected through a multistage sampling procedure. A Cobb-Douglas stochastic frontier was fitted to the data. From the result, the major climate adaptation strategies adopted by the farmers include row planting, changing planting date, mixed farming, refilling, and intercropping. The frontier result shows that while climate adaptation significantly leads to higher maize outputs, only crop rotation and row planting significantly improve technical efficiency of maize farmers. Other factors that significantly influence maize output are farm size, labor, seed, and chemicals. The study concludes that climate adaptation, particularly, crop rotation and row planting, remains essential adaptation strategies for sustainable food production in the region. However, further understanding of mechanisms through which majority of the climate adaptation strategies significantly reduce technical efficiency is required.
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