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Smallholder Participation in Agricultural Value Chains

Last updated on January 9, 2011

I have a new working paper with Chris Barrett, Maren Bachke, Hope Michelson, Sudha Narayanan, and Tom Walker on agricultural value chains in developing countries. Here is the abstract:

“Supermarkets, specialized wholesalers, and processors and agro-exporters’ agricultural value chains have begun to transform the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework through which to study contracting between smallholders and a commodity-processing firm. We then conduct an empirical meta-analysis of agricultural value chains in five countries across three continents (Ghana, India, Madagascar, Mozambique, and Nicaragua). We document patterns of participation, the welfare gains associated with participation, reasons for non-participation, the significant extent of contract non-compliance, and the considerable dynamism of these value chains, as farmers and firms enter and exit frequently.”

Comments and suggestions would be most welcome.