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Book Review
01.11.2011
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Grain storage in Africa: Learning from past experiences
01.11.2012
Rising food prices have once again drawn attention to the issue of postharvest losses and to the role that good-quality storage can play in reducing those losses. Donor support in this area is increasing. However, evidence from past interventions in Africa during the last wave of enthusiasm for work in the post-harvest area gives some cause for concern that investments in storage improvement may not be too effective. This paper briefly reviews past experiences with grain storage upgrading, from farm-level stores up to large-scale infrastructure for marketing boards and food reserves. Lessons from those experiences emphasize that storage development must not be carried out as isolated ad hoc interventions but must be seen within the context of the operations of the entire supply chain, taking full account of the way marketing systems function, the relationships within those systems, and the economic viability of proposed interventions. -
Reviews
01.11.2012
Grain Reserves and the Food Price Crisis: Selected Writings from 2008-2012 , by Institute for Agriculture and Trade Policy (IATP) reviewed by ANDREW W. SHEPHERDHandbook of Herbs and Spices, Volumes 1 and 2 (2nd edition) Edited by K.V. Peter reviewed by TONY SWETMAN -
The practice of contract farming in India: making it inclusive and effective
01.10.2013
Agricultural marketing reforms are central to changing the agricultural/agribusiness sector. The Amended APMC Act in India, which permitted contract farming, direct purchase from farmers, and setting up of private wholesale markets, was seen as the way forward to kick start the process of modernizing markets and giving better market access and choice to primary producers. The practice of contract farming, which is one of the new institutions as a result of the policy reforms, leaves much to be desired in India's smallholder context as there is exclusion of small farmers who make up most of the farming population. In this context, this paper examines the extent and nature of small producer exclusion, reasons thereof, and various policy options to encourage more inclusive and effective contract farming so that these mechanisms could be leveraged for inclusive and market-oriented sustainable agricultural development. -
Smallholder attrition in contract farming schemes in India: extent, causes, and concerns
01.10.2013
This paper maps the extent and causes of farmer exit from contract farming arrangements in southern India using survey data for five schemes: cotton, gherkins, papaya, marigold, and broiler chickens. The paper finds that farmer attrition is quite widespread and that poorer farmers from marginalized social groups are more likely to exit these arrangements. While this is an important policy concern, the study also distinguishes between voluntary exit, where the farmer opts out, versus involuntary exit, where the contracting firm drops the farmer as a supplier because of constraints in delivering quality produce, or the firm's interaction with the farmer forces the farmer out. The paper also highlights the episodic nature of farmer participation, wherein farmers leverage opportunities to contract occasionally as part of a dynamic portfolio of alternatives. The paper emphasizes that while involuntary exclusion is of serious concern, voluntary exit and episodic participation are perhaps less important issues from a policy perspective. -
Two islands - two outcomes: food, fruit, and fuel in multi-contractual farming supported by the tobacco industry
01.10.2013
The contract farming of seasonal crops raises the question of how farmers can be supported when they are not producing the contracted crop. Farmer incomes and relationships between company and farmers can be enhanced if the company can provide additional incomeearning opportunities. This approach is particularly pertinent in those developing countries where management, technical, and marketing linkages are weak. In addition, many farming communities have little access to short-term finance to fund their cropping cycle, apart from sometimes avaricious money lenders. The specific focus of this study is to introduce the recent experiences of five multi-contractual projects sponsored by two tobacco organizations: PT Sadhana Arifnusa Corporation (Sadhana) in Indonesia and the Southern Development Company (SDC) in Fiji. As tobacco is a six-month crop, both companies considered that broadening their cropping base during the ‘off season’ would provide additional income for their farmers. It would also offer additional employment to seasonal workers who are employed only during the delivery, processing, packing, and storage of crops. The outcomes of this paper can act as a template for a detailed analysis that can determine the successes and constraints of multi-cropping under contract, and the promotion of farmer-company relations, including how they can restrict side-selling, a major constraint of contract farming. -
Contract farming for biofuels: a literature review
01.10.2013
An apparent contributory factor to the upward trend in food prices in recent years has been the rapid explosion in biofuel production in some countries, which has usually occurred as a result of government blending mandates and subsidies. Lacking suitable land in developing countries for large-scale operations, companies seeking supplies of appropriate feedstock have often turned to contract farming as a way of securing supplies. This article reviews the available literature covering this topic, noting that significant difficulties have been experienced with biofuel contract farming operations, with few, if any, real successes. These problems are attributed to a lack of understanding on the part of the companies of the capacities of smallholders, the general lack of experience of biofuel companies with contract farming including suitable price-setting methods, the impact of biofuel production on farmers’ food production, and, finally, the lack of appropriate policies. The enthusiasm for subsidizing the sector has contributed to the difficulties. The paper concludes that there is a need to re-examine the costs and benefits of subsidies and their impact on successful commercial operations involving small farmers. Further, companies need to take lessons from experiences with more traditional contract farming operations. -
Conference report: The 2013 G8 Summit: questioning the New Alliance
01.10.2013
Earlier commitments by the G8 to support agriculture in the wake of the 2007-08 food price crises have been partly forgotten. However, last year's G8 Summit saw the launch of the ‘New Alliance for Food Security and Nutrition’, and a year on, ‘Nutrition for Growth’ attracted donor focus at a meeting leading up to this year's summit. Yet doubts exist about whether the New Alliance, under its current design, risks harming rather than helping Africa's smallholder farmers.