Top

Published in:

2021 | OriginalPaper | Chapter

4. The Evolution of Agricultural Value Chains in Africa

Authors : Alan de Brauw, Dr. Erwin Bulte

Published in: African Farmers, Value Chains and Agricultural Development

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

Agricultural value chains evolve over time in a non-linear process but generally change from traditional to transitional and then more complex forms. The type of firms found in each value chain type differs, and farmers may produce for different types of value chains. The evolution process is driven by several factors, including changing relative prices, income and population growth, urbanization, and technological change. These factors create opportunities for new types of firms along agricultural value chains, and new forms of institutional arrangements, such as contract farming and value chain finance, can begin to replace more traditional institutions like relational contracting and informal moneylenders. We finally consider the role of imported food in shaping opportunities within agricultural value chains, depending both on local factors and transaction costs.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

inform now

previous chapter Economic Theory and Value Chain Governance

next chapter Smallholders and Markets

Figures here are from Odjo and Zaki (2020) and the World Development Indicators (2021).

African Development Bank. (2016). Feed Africa: Strategy for agricultural transformation in Africa, 2016–2025. Abidjan: African Development Bank.

Ambler, K., de Brauw, A., & Godlonton, S. (2018). Agriculture support services in Malawi: Direct effects, complementarities, and time dynamics (No. 1725). IFPRI discussion papers. International Food Policy Research Institute (IFPRI). https://ideas.repec.org/p/fpr/ifprid/1725.html. Accessed 23 June 2020.

Ambler, K., De Brauw, A., & Godlonton, S. (2019). Lump-Sum transfers for agriculture and household decision making. Williams College Department of Economics working paper 2019–19.

Ambler, K., Jones, K., & O’Sullivan, M. (2021). Facilitating women’s access to an economic empowerment initiative: Evidence from Uganda. World Development, 138, 105224. https://doi.org/10.1016/j.worlddev.2020.105224CrossRef

Andersson, C. I. M., Chege, C. G. K., Rao, E. J. O., & Qaim, M. (2015). Following Up on Smallholder Farmers and Supermarkets in Kenya. American Journal of Agricultural Economics, 97(4), 1247–1266. https://doi.org/10.1093/ajae/aav006CrossRef

Arouna, A., Michler, J. D., & Lokossou, J. C. (2021). Contract farming and rural transformation: Evidence from a field experiment in Benin. Journal of Development Economics, 151, 102626. https://doi.org/10.1016/j.jdeveco.2021.102626CrossRef

Ashraf, N., Giné, X., & Karlan, D. (2009). Finding missing markets (and a disturbing epilogue): Evidence from an export crop adoption and marketing intervention in Kenya. American Journal of Agricultural Economics, 91(4), 973–990. https://doi.org/10.1111/j.1467-8276.2009.01319.xCrossRef

Bardhan, P. K., & Udry, C. (1999). Development microeconomics. Oxford University Press.

Barrett, C. B., Bachke, M. E., Bellemare, M. F., Michelson, H. C., Narayanan, S., & Walker, T. F. (2012). Smallholder participation in contract farming: Comparative evidence from five countries. World Development, 40(4), 715–730. https://doi.org/10.1016/j.worlddev.2011.09.006CrossRef

Barrett, C. B., Reardon, T., Swinnen, J., & Zilberman, D. (2020). Agri-food value chain revolutions in low-and middle-income countries. Journal of Economic Literature, 58, 1–67.

Bellemare, M. F., & Bloem, J. R. (2018). Does contract farming improve welfare? A review. World Development, 112, 259–271. https://doi.org/10.1016/j.worlddev.2018.08.018CrossRef

Bellemare, M. F., Lee, Y. N., & Novak, L. (2021). Contract farming as partial insurance. World Development, 140, 105274. https://doi.org/10.1016/j.worlddev.2020.105274CrossRef

Bouët, A., Cissé, B., & Traoré, F. (2020). Informal cross-border trade in Africa. In A. Bouët, S. P. Odjo, & C. Zaki (Eds.), Chapter 5 in Africa agriculture trade monitor 2020. Washington, DC: International Food Policy Research Institute. https://doi.org/10.2499/9780896293908

Casaburi, L., & Willis, J. (2018). Time versus state in insurance: Experimental Evidence from contract farming in Kenya. American Economic Review, 108(12), 3778–3813. https://doi.org/10.1257/aer.20171526CrossRef

Cockx, L., Colen, L., & De Weerdt, J. (2018). From corn to popcorn? Urbanization and dietary change: Evidence from rural-urban migrants in Tanzania. World Development, 110, 140–159. https://doi.org/10.1016/j.worlddev.2018.04.018CrossRef

Colen, L., Melo, P. C., Abdul-Salam, Y., Roberts, D., Mary, S., Gomez, Y., & Paloma, S. (2018). Income elasticities for food, calories and nutrients across Africa: A meta-analysis. Food Policy, 77, 116–132. https://doi.org/10.1016/j.foodpol.2018.04.002CrossRef

de Brauw, A. (2019). Migration out of rural areas and implications for rural livelihoods. Annual Review of Resource Economics, 11(1), 461–481. https://doi.org/10.1146/annurev-resource-100518-093906CrossRef

de Brauw, A., & Herskowitz, S. (2021). Income variability, evolving diets, and elasticity estimation of demand for processed foods in Nigeria. American Journal of Agricultural Economics, 103(4), 1294–1313. https://doi.org/10.1111/ajae.12139CrossRef

de Brauw, A., Mueller, V., & Lee, H. L. (2014). The role of rural-urban migration in the structural transformation of Sub-Saharan Africa. World Development, 63, 33–42. https://doi.org/10.1016/j.worlddev.2013.10.013CrossRef

de Brauw, A., & Swinnen, J. (2021). Building inclusive value chains for smallholders: The role of finance. mimeo, International Food Policy Research Institute.

Deb, R., & Suri, T. (2013). Endogenous emergence of credit markets: Contracting in response to a new technology in Ghana. Journal of Development Economics, 101, 268–283. https://doi.org/10.1016/j.jdeveco.2012.11.006CrossRef

Demirguc-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The global Findex database 2017: Measuring financial inclusion and the Fintech revolution. World Bank. https://doi.org/10.1596/978-1-4648-1259-0CrossRef

Dries, L., Germenji, E., Noev, N., & Swinnen, J. F. M. (2009). Farmers, vertical coordination, and the restructuring of dairy supply chains in Central and Eastern Europe. World Development, 37(11), 1742–1758. https://doi.org/10.1016/j.worlddev.2008.08.029

Fox, L., & Gaal, M. (2008). Working out of poverty: Job creation and the quality of growth in Africa. Washington, DC: World Bank. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/316891468212385709/Working-out-of-poverty-Job-creation-and-the-quality-of-growth-in-Africa

Fox, L., & Jayne, T. S. (2020, December 14). Unpacking the misconceptions about Africa’s food imports. Brookings. https://www.brookings.edu/blog/africa-in-focus/2020/12/14/unpacking-the-misconceptions-about-africas-food-imports/. Accessed 21 June 2021

Herforth, A., & Ahmed, S. (2015). The food environment, its effects on dietary consumption, and potential for measurement within agriculture-nutrition interventions. Food Security, 7(3), 505–520. https://doi.org/10.1007/s12571-015-0455-8CrossRef

Jayne, T. S., & Sanchez, P. A. (2021). Agricultural productivity must improve in sub-Saharan Africa. Science, 372(6546), 1045–1047. https://doi.org/10.1126/science.abf5413CrossRef

Kherallah, M., Delgado, C. L., Gabre-Madhin, E. Z., Minot, N., & Johnson, M. (2002). Reforming agricultural markets in Africa: Achievements and challenges. Baltimore: Johns Hopkins University Press.

Macchiavello, R., & Miquel-Florensa, J. (2019). Buyer-driven upgrading in GVCS: The sustainable quality program in Colombia (SSRN Scholarly Paper No. ID 3464455). Rochester, NY: Social Science Research Network. https://papers.ssrn.com/abstract=3464455

Meemken, E.-M., & Bellemare, M. F. (2020). Smallholder farmers and contract farming in developing countries. Proceedings of the National Academy of Sciences, 117(1), 259–264.

Michler, J. D., & Wu, S. Y. (2020). Relational contracts in agriculture: Theory and evidence. Annual Review of Resource Economics, 12(1), 111–127. https://doi.org/10.1146/annurev-resource-101719-034514CrossRef

Minot, N., & Sawyer, B. (2016). Contract farming in developing countries: Theory, practice, and policy implications. In A. Devaux, M. Torero, J. Donovan, & D. E. Horton (Eds.), Chapter 4, Innovations for inclusive value chain development (pp. 127–158). Washington, DC: International Food Policy Research Institute. https://doi.org/10.2499/9780896292130_04

Minten, B., Randrianarison, L., & Swinnen, J. F. M. (2009). Global Retail Chains And Poor Farmers: Evidence from Madagascar. World Development, 37(11), 1728–1741. https://doi.org/10.1016/j.worlddev.2008.08.024CrossRef

Minten, B., Woldu, T., Abebe, G., Engida, E., & Tamru, S. (2016). Food processing, transformation, and job creation: The case of Ethiopia’s enjera markets (ESSP II Working Paper 96). Washington, DC and Addis Ababa, Ethiopia: International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI). https://ebrary.ifpri.org/digital/collection/p15738coll2/id/130808

Odjo, S. P., & Zaki, C. (2020). Africa in global agricultural trade. In A. Bouët, S. P. Odjo, & C. Zaki (Eds.), Chapter 2 in Africa agriculture trade monitor 2020 (pp 17–40). Washington, DC: International Food Policy Research Institute. https://doi.org/10.2499/9780896293908

Otsuka, K., Nakano, Y., & Takahashi, K. (2016). Contract farming in developed and developing countries. Annual Review of Resource Economics, 8(1), 353–376. https://doi.org/10.1146/annurev-resource-100815-095459CrossRef

Prowse, M., & Moyer-Lee, J. (2014). A comparative value chain analysis of smallholder burley tobacco production in Malawi - 2003/4 and 2009/10: Smallholder burley tobacco production in Malawi. Journal of Agrarian Change, 14(3), 323–346. https://doi.org/10.1111/joac.12022CrossRef

Rao, E. J. O., & Qaim, M. (2011). Supermarkets, Farm Household Income, And Poverty: Insights from Kenya. World Development, 39(5), 784–796. https://doi.org/10.1016/j.worlddev.2010.09.005CrossRef

Reardon, T. (2015). The hidden middle: The quiet revolution in the midstream of agrifood value chains in developing countries. Oxford Review of Economic Policy, 31(1), 45–63. https://doi.org/10.1093/oxrep/grv011CrossRef

Reardon, T., Timmer, C. P., & Berdegue, J. (2008). The rapid rise of supermarkets in developing countries: Induced organizational, institutional and technological change in agri-food systems. In The transformation of agri-food systems: Globalization, Supply Chains, and Smallholder Farmers. London: Routledge.

Reardon, T., Tschirley, D., Liverpool-Tasie, L. S. O., Awokuse, T., Fanzo, J., Minten, B., et al. (2021). The processed food revolution in African food systems and the double burden of malnutrition. Global Food Security, 28, 100466. https://doi.org/10.1016/j.gfs.2020.100466CrossRef

Singh, S. (2002). Contracting out solutions: political economy of contract farming in the Indian Punjab. World Development, 30(9), 1621–1638. https://doi.org/10.1016/S0305-750X(02)00059-1CrossRef

Snyder, J., Ijumba, C., Tschirley, D., & Reardon, T. (2015). Local response to the rapid rise in demand for processed and perishable foods: Results of inventory of processed food products in Dar es Salaam. https://www.canr.msu.edu/resources/local-response-to-the-rapid-rise-in-demand-for-processed-and-perishable-foods-results-of. Accessed 21 June 2021.

Songwe, V. (2019). Trade policy for prosperity: The value of open markets. Chapter 9 in Women Shaping Global Economic Governance. New York: United Nations. https://www.un-ilibrary.org/content/books/9781912179237s006-c004

Ton, G., Vellema, W., Desiere, S., Weituschat, S., & D’Haese, M. (2018). Contract farming for improving smallholder incomes: What can we learn from effectiveness studies? World Development, 104, 46–64. https://doi.org/10.1016/j.worlddev.2017.11.015CrossRef

Tschirley, D., Reardon, T., Dolislager, M., & Snyder, J. (2015). The rise of a middle class in East and Southern Africa: Implications for food system transformation. Journal of International Development, 27(5), 628–646. https://doi.org/10.1002/jid.3107CrossRef

Van Campenhout, B., Minten, B., & Swinnen, J. (2019). Domestic versus export-led agricultural transformation: Evidence from Uganda’s dairy value chain (IFPRI Discussion Paper 01883). Washington, DC: International Food Policy Research Institute. https://doi.org/10.2499/p15738coll2.133502

Vandevijvere, S., Jaacks, L. M., Monteiro, C. A., Moubarac, J., Girling-Butcher, M., Lee, A. C., et al. (2019). Global trends in ultraprocessed food and drink product sales and their association with adult body mass index trajectories. Obesity Reviews, 20(S2), 10–19. https://doi.org/10.1111/obr.12860CrossRef

Title: The Evolution of Agricultural Value Chains in Africa
Authors: Alan de Brauw
Dr. Erwin Bulte
Publisher: Springer International Publishing
Book: African Farmers, Value Chains and Agricultural Development
Print ISBN: 978-3-030-88692-9

Electronic ISBN: 978-3-030-88693-6

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-3-030-88693-6_4

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Springer Professional "Technik"