This paper deals with the economic development of Tanzania and especially with the development of the smallholders. My aim is to study whether the Structural Adjustment Programmes have helped to facilitate growth in the agricultural and export-sector and if the reforms implemented through the programmes have made agricultural specialization easier and improved the economic situation for the smallholders. In this paper, I will discuss that there might be significant limitations in the favours received due to SAP and that the Structural Adjustment Programmes because of this may not be the model for agricultural development as it is claimed by the initiators; the World Bank and the IMF. On the contrary, I present the idea that SAP can be said to have failed in its undertaking and that the reforms might not be suitable for the smallholder sector. I will in the paper argue that SAP has not facilitated an agricultural specialization and that this has much to do with the increase of production costs that the smallholders have been faced with after the reforms. And because of this it could be argued that the Structural Adjustment Programmes might not be an appropriate development strategy for Tanzania, if the country is to achieve growth through specialization. Consequently, there might be reason to believe that the reforms not are overall suitable for the Tanzanian development, considering that a growth within the agricultural smallholder sector is crucial for Tanzania to achieve a long term economic growth.

<p>Smallholder farmers have been at the center of the development discourse not only because they represent a significant portion of the world's extreme poor but because of their potential role in food security, climate change and gender equality. Smallholders account for 70% of global food production but most of them in the developing world operate in the informal markets. Market formalization is accelerating even in the least developed countries, however, and formal market channels are gradually displacing informal ones. Global value chain based formal markets may also offer opportunities for smallholders to tap into fast growing international markets for high value agricultural products.</p><p> One of the key challenges policymakers, the development community and agribusinesses face, however, is smallholders' limited formal organization ("producer organizations") that aggregate their production and demand for goods and services in order to enable more effective market participation ("aggregation"). Only 5-10% of farmers globally are estimated to participate in formal producer organizations. This is despite the fact that such organizations have been supported by both policymakers and the development field as a way of tackling poverty and addressing market failures. </p><p>The shift towards food production being organized based on global value chains and production networks and the fast dissemination of supermarkets and other modern food retail outlets around the world is creating increased need for smallholders to partake in some form of aggregation mechanism in order to become contributors to the global food system.</p><p>Agribusinesses that buy agricultural products have therefore also been encouraging producer organizations as a way to improve their ability to source from smallholders. Nonetheless, of the producer organizations that do exist in emerging economies, only a negligible portion have been able to achieve stable access to the growing global market of high value agricultural products.</p><p>The objective of this dissertation is to contribute to the understanding of this paradox and to identify factors that may improve the likelihood and effectiveness of aggregation. The structure of this work is as follows: first the research problem and the gap in the literature (Chapter 1) will be defined, followed by the review of existing scholarship on smallholder agricultural producers, the globalization of agribusiness and global value chains as well as the literature on the aggregation of smallholder production, producer organizations and their access to global and modern value chains (Chapter 2). </p><p>Next a conceptual framework will be proposed based on which a model for smallholder global-value-chain-relevant aggregation (Chapter 3) will be developed that takes into account the producer organization types, the services offered by the producer organizations, producer organizations' access to financing and the requirements of global value chains. </p><p>The model will be tested first using the population of Hungarian producer organizations, and then a sample of Central American and Peruvian producer organizations (Chapter 4), utilizing the following hypotheses:</p><p>1. "Collective identity narratives", manifesting themselves in Collective Identity Activities, play an important role in facilitating the growth and competitiveness of POs.</p><p>2. Services, including access to financing for farmers, provided by POs play an important role in facilitating scaling.</p><p>3. Cooperatives are at a disadvantage compared to other producer organization (PO) forms in achieving the conditions of global value chain access.</p><p>The empirical analysis has five main findings. First, because trust is so important in enabling farmer participation in collectives, shared narratives that establish collective identity may play a role in ensuring not only farmer loyalty but also may help improve producer organizations' performance, particularly as organizations grow. Second, organizations that offer more services to farmers are more likely to scale and hence achieve global value chain access. However, this study found that considerable variation among services, some having much more significant relationship to the ability to scale than others. Third, cooperatives, the producer organization form most often supported by policymakers and the development field, on average were found less effective than other forms of producer organizations in their ability to connect farmers to global value chains. Having said that, it is important to highlight that the study also identified several cooperatives and some common patterns among them that outperformed both their cooperative and non-cooperative peers. Fourth, while this study adds to the evidence that smaller farmers within the smallholder group are at a disadvantage when it comes to PO participation and may, therefore, require differentiated support when it comes to interventions, it also identified several POs that work with some of the smallest farmers and still outperform their peers. Fifth, the study found that POs' access to financing is important for modern market access, in addition to meeting quantity and quality requirements.</p><p>The policy implications of these findings are considerable and recommendations for interventions conclude the paper (Chapter 6) after the discussion of this study's limitations (Chapter 5). The key policy findings include that cooperatives are not the panacea for development and policymakers should also consider other forms of producer organizations for support. Importantly, policymakers should rather consider linking their support to certain aggregator characteristics and activities, including services offered since some services appear to have stronger relationships than others with POs' ability to succeed. Among these services access to finance for farmers as well as research and development and innovation play crucial role and therefore deserve heightened attention from policymakers while access to finance at the PO level has also been found to be important. In addition, PO activities that help build collective identity are associated with POs' productivity and ability to scale.</p><p>In terms of the arguable trade-off between sustainability and smallholder inclusion, a finding of the present work is that smallholders have the potential to achieve significantly higher productivity than their larger counterparts and their POs can successfully access modern markets as long as they are provided with the necessary support related to sustainable intensification of their production and access to capital for making the necessary investments.</p> / Dissertation

Abstract: This study examines how differential accessibility to regional markets and natural resources affects smallholder livelihoods in the northeastern Peruvian Amazon, particularly in terms of household income diversification or specialization. A combination of qualitative and quantitative methods were applied to semi-structured smallholder household (N = 319) and community leader interview data collected in 40 communities in 2006-2007, in addition to change detection performed on Landsat satellite imagery (1987, 1993, and 2001). First, the dissertation explores changes in smallholder land use patterns across the study region during a period of profound macroeconomic changes and continual urbanization, finding that overall land use trends of agricultural abandonment reflected national reductions in agrarian subsidies. Second, based on interview data, household processes of income diversification and specialization were analyzed in two sections of the study area, the Itaya and Nanay basins. In the Itaya Basin, it was observed that smallholder livelihood specialization was aided by road development increasing transportation accessibility to important regional markets. In the more isolated Nanay Basin, livelihood choices were found to be influenced by processes of livelihood displacement caused by conservation efforts, in addition to remoteness and river seasonality. This study concludes by reflecting on the importance of the spatial relations of access to resources and markets in the region and in similar places in the developing tropics. This kind of information can help make national and regional policy decisions on such issues such as conservation, agrarian credits, road development, which may differentially affect smallholder livelihoods and their environments. / text

Magister Philosophiae (Land and Agrarian Studies) - MPhil(LAS) / This study explored the production and livelihoods of smallholder farmers in irrigation schemes in South Africa. The particular focus has been on the farming styles of smallholder farmers, the impact of irrigation scheme production on their income and livelihoods, and the issue of smallholder social differentiation. The New Forest irrigation scheme located in Bushbuckridge Local Municipality was used as a case study. The research methodology utilized a combination of extensive and intensive research designs. The farming style approach was compared with the livelihood strategies approach to determine the relationship between the farmers’ approach to farming and their livelihood development trajectory. The underlying assumption is that small-scale irrigation has the potential to make a positive contribution to the livelihoods of farmers. New Forest irrigation farmers face a number of challenges at the irrigation scheme such as neglect by government, inadequate irrigation water, and access to affordable crops inputs. The farmers were not organised to be able to purchase inputs, engage in co-operative marketing, and manage the irrigation scheme. The notion of investing in smallholder irrigation schemes in order to convert smallholders into commercial farmers is unrealistic. Those that were classified as ‘food farmers’, benefit from irrigation development and participation through meeting their household consumption needs. Those classified as ‘employers’, obtained negative gross margins per plot and hired most farm labour. Diversification by employers into other less risky livelihood activities on-farm and off-farm is an option. The ‘profit makers’, make high returns from crop production, and obtained the highest gross margins per plot. This thesis argues that support to farmers in smallholder irrigation schemes should be provided in the context of their farming objectives, and livelihood aspirations which are not only varied but evolve across time and individual circumstances.

Philosophiae Doctor - PhD / This thesis examines livelihoods in the wake of agricultural commercialization under the Revitalization of Smallholder Irrigation Schemes (RESIS) Programme and similar revitalization initiatives within the Olifants River Basin in Limpopo Province. The focus is on contractual joint ventures and strategic partnerships implemented within selected smallholder irrigation schemes. The thesis is based primarily on in-depth empirical studies conducted between October 2003 and March 2009 in three sites located in two Integrated Sustainable Rural Development Programme (ISRDP) poverty nodes namely, Greater Sekhukhune and Vhembe Districts. To a lesser extent, the thesis draws on findings from rapid appraisals of five additional study sites in Greater Sekhukhune District. Research findings showed that the performance of joint ventures and strategic partnerships had so far largely fallen short of expectations. With the exception of a minority of smallholders involved in RESIS-Recharge strategic partnerships, the promise of higher incomes and improved livelihoods had often remained elusive, while debts and potential losses of often meagre household assets loomed large, threatening to erode existing livelihoods and undermine government interventions. This was mainly because ‘viability’ in both the RESIS and RESIS-Recharge phases was narrowly seen in economic and technical terms, such that reduction of transaction costs often entailed the divesting of responsibilities to address issues of rural poverty and inequality. Subsistence production had largely given way to commercially-orientated farming, and weak monitoring of contract formulation and implementation meant that voices of marginalized poor and vulnerable people, particularly women and the elderly, were not being heard. Research findings further revealed that while RESIS-Recharge strategic partnerships increased incomes for a minority of smallholders, such arrangements did not meaningfully improve the productive, managerial and marketing skills of smallholders to ensure their effective participation in agriculture. Rather, strategic partnerships were creating a small class of black ‘arm-chair’ farmers, who played little or no active role and obtained few or no skills in commercial farming but perpetually depended upon and drew incomes from agribusiness initiatives run by externally-based agents. Adjunct to questions of sustainability for these farmers’ ability to participate in commercial farming, the thesis raises the question: What is the rationale for joint ventures and strategic partnerships in the context of South Africa’s Agricultural Sector Strategy objectives for support to black farmers? Contracts lacked mechanisms for equitable distribution of costs and benefits between contracted private partners and targeted smallholders, on the one hand, and the rest of members of local communities, on the other hand. Contracts also lacked provisions for postproject recapitalization of infrastructure and rehabilitation of degraded land. This raised questions about the longer term sustainability of productivity, natural resource base and livelihood security in smallholder irrigation schemes. The conclusion of this thesis is that the challenge of reducing rural poverty and inequality in smallholder irrigation schemes might not be resolved through existing institutional approaches to agricultural commercialization.

Agriculture is considered a critical sector in attaining economic growth for most economies in Africa. However, for the sector to play its role, it needs to be commercialised to enable smallholder farmers to participate in markets and, hence, improve their incomes and livelihoods. In most developing economies, smallholder farmers find it difficult to participate in markets because of the numerous constraints and barriers mostly reflected in the transaction costs that make access to input and output markets difficult. When analysing the effects of transaction costs on market participation, much attention has been accorded to farmers while ignoring middlemen/traders who are also part of the marketing system. Furthermore, studies on the effect of transaction costs on market participation tend to focus on grains and cereals while ignoring agrocommodities that are more perishable. The purpose of this study was to holistically examine the effects of transaction costs on participation of smallholder farmers and middlemen in banana markets of the Great Lakes region in central Africa. The study adopted a non-separable household model which incorporated fixed and proportional transaction costs in the function of maximising utility subject to resource constraints. The Heckman procedure was used to determine the factors affecting the discrete choice of smallholder farmers on whether to sell and quantities to sell while catering for selection biases. Probit analysis was used to determine the farmers’ choice of selling point while the ordinary least squares method was used to analyse the extent of participation of traders. Variables capturing transaction costs in regards to information gathering, negotiating, contracting, monitoring and enforcing of contracts were used in the analyses. The empirical analyses were based on secondary data availed for 2666 farming households and 494 traders located in Burundi, Democratic Republic of Congo and Rwanda. The results of the study indicate that fixed and proportional transaction costs distinctly affect the participation of smallholder farmers in markets. Belonging to farmer groups facilitates information exchange which reduces fixed transaction costs and, hence, increases the likelihood of farmers to participate in markets. The size of a household, distance to markets and ownership of transport means, which is linked to proportional transaction costs, influence the extent of farmer participation in markets. The choice of selling point was significantly influenced by household size, the gender of the household head, off farm revenue, access to price information and the extent of remoteness of household. The effects of transaction costs on market participation of smallholder farmers were more evident in the analyses for bananas than in the one for beans. The participation of traders was significantly influenced by gender, trading experience and supply distance which relate to the bargaining prowess, business networks and per unit transport cost, respectively. Interventions geared towards supporting associations for farmers may facilitate information exchange and enhance bargaining and contracting skills which subsequently reduce transaction costs. Policies aimed at supporting investment in rural infrastructure, in terms of feeder road networks and market places, can lead to reduction in transaction costs and thereby enhance participation of farmers and traders in markets. / Thesis (PhD)--University of Pretoria, 2011. / Agricultural Economics, Extension and Rural Development / unrestricted

This study focused on analysing the production and marketing constraints that often prevent smallholder farmers from accessing high-value markets in the agribusiness value chain. Access to markets is an essential requirement for the poor in rural areas to enjoy the benefits of agricultural growth. Limited access to agricultural markets by smallholder farmers in rural areas represents one of the most important challenges confronting policymakers in developing countries. Several studies have indicated how smallholder farmers can be linked to markets, but they have failed to address issues of how to increase the likelihood of smallholder farmers benefiting from high-value markets. Due to the stringent sourcing criteria of formal markets, small-scale farmers are excluded from the agricultural value chains. It may be easy to access the market, but it is very difficult for smallholder farmers to retain that market. This is attributed to the fact that smallholder farmers face various constraints along the value chain such as production and marketing constraints. The main objective of this study was to identify and analyse the constraints confronting smallholder farmers in the Limpopo Province and to suggest different strategies that can be used to make it easier for smallholder farmers to access high-value markets in the agribusiness value chain. This was achieved through personal interviews in two districts, i.e. the Capricorn and Vhembe districts. Primary data was obtained through structured questionnaires in both districts. These two districts were chosen due to their uniqueness with regard to agricultural potential, with smallholder farmers in both districts being heterogeneous and confronting different constraints in producing and marketing their products. Producing for the market calls for production resources, including production means such as land, water, on-farm and off-farm infrastructure, labour force, capital, and good management of these resources. Poor access to these resources affects the way in which smallholder farmers can benefit from opportunities in agricultural markets, especially in terms of the volume of products traded and the quality and quantity of those products. Based on the surveys employed for purposes of this study, the participation of smallholder farmers in high-value markets is constrained as a result of poor access to comprehensive agricultural support services. There are relatively few direct linkages between smallholder farmers and fresh produce markets, supermarkets, and agro-processors. The majority of sales by farmers are at either the local market or the farm gate level. Few farmers have access to basic production equipment and infrastructure. A range of impediments to participation in high-value markets were identified. These include lack of access to sufficient and productive land for expansion, sufficient water, modern irrigation systems, mechanisation, transport logistics, and market information. These constraints constitute the greatest barrier for smallholder farmers when it comes to accessing high-value markets, and overcoming these constraints is critical if smallholder farmers are to access lucrative markets. There is relatively low participation among farmers in collective action, more especially at production and marketing levels. The study found that smallholder farmers in the Vhembe district have a comparative advantage in terms of vegetable production compared to those in the Capricorn district. Smallholder farmers in the Vhembe district are better linked to agro-processors, fresh-produce markets and supermarkets as compared to farmers in the Capricorn district – even though this is the case for only a few individual farmers. The study also found that individual producers have greater access to on-farm infrastructure and also perform better and have closer links to formal markets compared to projects owned by groups of households. The results of the study suggest that smallholder farmers who are currently not participating in high-value markets could improve their participation if they are given access to comprehensive agricultural support services. More attention must be given to supporting smallholder farmers in both districts to ensure that they engage in commercial production and participate in high-value markets on a sustainable basis. This could only happen if their constraints along the value chain are addressed. The major challenge confronting policymakers is to create an enabling environment for smallholder farmers and empower them to produce high volumes of good-quality products on a consistent and sustainable basis. / Dissertation (MInstAgrar)--University of Pretoria, 2010. / Agricultural Economics, Extension and Rural Development / unrestricted

The recent threat of climate change has exacerbated the inherent risks in smallholder farming such as soil degradation, resulting in an unprecedented decline in agricultural yields in developing countries. This has threatened the livelihoods of large segments of populations that are heavily dependent on agriculture for survival in these regions. This dissertation focuses on identifying barriers and enablers of effective management of these risks, with an aim of coming up with potential policy interventions that can reduce vulnerability to the mentioned risks. To achieve this, the dissertation utilizes various methods and approaches as well as diverse datasets in two countries in sub Saharan Africa i.e. Namibia and Kenya. Diversification into non-farm activities is seen by many as a risk management strategy in rural areas where highly variable low farm incomes are transformed into stable high non-farm incomes, thus improving the welfare of the rural populations. While this theory of change is uncontested, the importance that the agricultural sector plays as a source of livelihood for rural populations, as well as food provisioning for urban populations, cannot be downplayed. This is more so given the limited non-farm opportunities in developing countries and the exponential population growth in these countries. The two factors combined impede on the envisioned transformation of rural production sectors and also create a sub-population of food insecure urban poor due to rural-urban migration. To mitigate these problems, rural agricultural development is still paramount and strategies that enhance resilience to risks in the sector are still vital. Chapter 2 of this dissertation focuses on this issue and addresses how farm diversification can be leveraged for improved food security in the rural areas, which has potential spill-over effects to other segments of the population. Focusing on northern Namibia, the study evaluates how different levels of diversification in both crop and livestock farming affect household food security outcomes i.e. per capita food expenditure and dietary diversity score. The study employs relatively new econometric methods in these type of studies to evaluate the joint determinants to both crop and livestock diversification, as well as their singular and joint effect on mentioned food security outcomes. The results show that high levels of diversification in either enterprise leads to high food security outcomes. Combined with climate change adaptation strategies that create resilience of agricultural production to climatic shocks, the use of sustainable agricultural intensification practices can further enhance productivity in the sector. Inputs like inorganic fertilizer, organic manure and improved seeds can further build on resilient systems to improve yields. Chapter 3 of this dissertation addresses this issue by looking at whether changes in the larger agri-food systems can be used to incentivize take up of such practices at the farm level. The study evaluates how the emergence of large traders in smallholder grain markets can drive the uptake of inorganic and organic fertilizer and improved seeds. The study thus expands the intervention space available to policy makers who have in the past resorted to potentially distortionary direct policies in the input markets e.g. through subsidy provision, as well as in the output markets e.g. through regulation of prices. To achieve this, the study uses a large panel dataset from Kenya spanning over a decade to evaluate how engagements between farmers and these market actors can be leveraged to drive adoption of these sustainable intensification inputs. Results show that engagements between large grain traders and farmers enhance use of inorganic fertilizer. There is no evidence that these engagements lead to enhanced use of improved seeds or manure. However, past use of improved seeds and manure are shown to affect their subsequent use, implying path dependency in the use of these sustainable inputs hence low dis-adoption rates. Traditional technology adoption studies show that access to information is a critical success factor for the uptake of new technology. Proxy variables for information access, for example proximity to extension services or frequency of extension contact, have consistently been shown to be positively correlated with technology adoption. In the context of climate change, access to weather information can be a critical factor to adoption of adaptation technology. Chapter 4 of this dissertation deals with this issue and assesses whether provision of weather information to farmers can enhance adoption of improved farming technologies that are resilient to climatic shocks. The study focuses on northern Namibia where access to such information, as the study shows, is very limited. A framed experiment approach is utilised to evaluate how climate change-induced uncertainty affects farmers' decision making in a farming season, based on their elicited behavioural attitudes towards risk and uncertainty. Further, the study tests whether providing weather information that reduces this uncertainty leads to adoption of technologies that are welfare improving. Lastly, the demand for weather information is assessed by eliciting the willingness to pay for information under various levels of weather uncertainty. Results indicate that high levels of uncertainty dampen uptake of welfare improving technologies, regardless of individual attitudes towards uncertainty. Availing of weather information leads to welfare improving technology choice, given the prevailing levels of weather uncertainty. There is also a high demand for weather information which is shown to increase with increase in the level of weather uncertainty. The chapters in the dissertation therefore identify key policy variables that can be used to manage vulnerability to risks emanating from climate change and unsustainable production in smallholder farming. Access to comprehensive climate information encompassing weather information and climate change-specific management information on both crop and livestock farming is shown to be a key factor in the uptake of adaptation strategies like use of resilient inputs and farm diversification. Interventions along the value chain like teaming up with large market actors in a private-public engagement is shown to be a potential pathway towards enhancing uptake of sustainable intensification inputs. Other policy variables like credit provision, high education and access to off-farm incomes are also key in explaining uptake of risk management strategies by smallholder farmers in Namibia and Kenya.

Access to financial services from financial institutions has often proved to be one of the major constraints to rural and smallholder agricultural development in Zimbabwe. However, the ICT revolution across the world leading to the development of branchless banking options has brought new financial inclusion opportunities in the rural areas. The purpose of this study was to determine the role of branchless banking in smallholder agriculture through investigating the user patterns and adoption rate of mobile banking by rural farmers in Zimbabwe. Zvimba District was used as the case study while mobile banking was the branchless banking option investigated. The study also sought to investigate the barriers to adoption of mobile banking, in addition to laying out the difference between traditional banking channels and mobile banking. A survey through a structured interview with rural smallholder farmers was the main means of data collection. The data collected was then used to quantify the adoption of mobile banking, the barriers to adoption, and the alternative financial service providers used in rural areas, making it possible to draw conclusions for the purposes of policy formulation. The findings from the study revealed a high rate of adoption of mobile banking among the rural people. According to the study, even though mobile banking was cheaper and more accessible, traditional banking channels were still cited as being an important need for rural people. The significant factors investigated as creating barriers to adoption of mobile banking included age, education, income, marital status and farming experience, while factors such as gender and farm size proved to be insignificant. In light of the findings, it was recommended that besides transactional uses, branchless banking should be further developed and enhanced to provide other services such as insurance services and credit needed by smallholder farmers. Furthermore, in order to enhance customer uptake, mobile network operators (MNOs) were recommended to consider a segmentation approach when extending services to appropriate segments in rural areas. / Dissertation (MInst (Agrar))--University of Pretoria, 2016. / Agricultural Economics, Extension and Rural Development / MInst (Agrar) / Unrestricted

MRDV / Institute for Rural Development / See the attached abstract below