10,893 research outputs found

    Rural institutions and producer organizations in imperfect markets: experiences from producer marketing groups in semi-arid eastern Kenya

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    "Many countries in sub-Saharan Africa have liberalized markets to improve efficiency and enhance market linkages for smallholder farmers. The expected positive response by the private sector in areas with limited market infrastructure has however been disappointing. The functioning of markets is constrained by high transaction costs and coordination problems along the production-to-consumption value chain. New kinds of institutional arrangements are needed to reduce these costs and fill the vacuum left when governments withdrew from markets in the era of structural adjustments. One of these institutional innovations has been the strengthening of producer organizations and formation of collective marketing groups as instruments to remedy pervasive market failures in rural economies. The analysis presented here with a case study from eastern Kenya has shown that while collective action – embodied in Producer Marketing Groups (PMGs) – is feasible and useful, external shocks and structural constraints that limit the volume of trade and access to capital and information require investments in complementary institutions and coordination mechanisms to exploit scale economies. The effectiveness of PMGs was determined by the level of collective action in the form of increased participatory decision making, member contributions and initial start-up capital. Failure to pay on delivery, resulting from lack of capital credit, is a major constraint that stifles PMG competitiveness relative to other buyers. These findings call for interventions that improve governance and participation; mechanisms for improving access to operating capital; and effective strategies for risk management and enhancing the business skills of the PMGs." Author's AbstractMarket imperfections, Transaction costs, Farmer organizations, Institutions, Collective action, Semi-arid tropics, Kenya, East Africa,

    Structural change in the EU dairy sector

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    The aim of this paper to determine how structure and governance in the dairy sector in four different regions in the European Union alter as a result of the change in EU’s dairy policy. For this purpose two models of structural change are developed and interviews are held. Results differ between the regions depending on whether or not they are export oriented, their growth in farm size and farm exit rates.structural change, dairy policy, governance, Agricultural and Food Policy, Farm Management, Land Economics/Use,

    TESTING FOR THE PRESENCE OF FINANCIAL CONSTRAINTS IN U.S.

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    It is commonly argued in the literature that agricultural cooperatives are financially constrained because they are unable to acquire sufficient risk capital to invest in productive assets. This study examines whether agricultural cooperatives' investment is constrained by estimating neoclassical and cash flow augmented Q investment models. Panel data regression results suggest that cooperative physical capital investment responds positively and significantly to both the marginal profitability of capital and cash flow. Results also indicate that all cooperative sub-samples face binding financial constraints when making investment decisions, but some cooperatives appear to be less financially constrained than others. The empirical analysis of the cooperative financial constraint hypothesis suggests that eliminating restrictions on residual claims might be a necessary condition for the attenuation of capital constraints in agricultural cooperatives.Agribusiness,

    Agriculture in the Face of Changing Markets, Institutions and Policies: Challenges and Strategies

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    Since the late 1980s, agriculture in Central and Eastern European Countries (CEECs) has been under considerable adjustment pressure due to changing political, economic and institutional environments. These changes have been linked to the transition process, as well as the ongoing integration into the European Union and the world market. Reduced subsidies, increased environmental and food quality demands, as well as structural changes in the supply, processing and food retailing sector call for major structural adjustments and the improvement of farmersâ managerial abilities. Though such changes always carry significant threats to farms, they also offer new opportunities for the farms' entrepreneurial engagement. Upcoming changes in the agricultural environment and their possible consequences for farm structures across Europe are thus still timely subjects. The objective of the IAMO Forum 2006 is to contribute to the success of agriculture in the CEECs, as well as their neighboring countries, in todayâs increasingly competitive environment. Concrete questions the conference focuses on are: What are the most suitable farm organizations, cooperative arrangements and contractual forms? How to improve efficiency and productivity? Where do market niches lie and what are the new product demands? This book contains 33 invited and selected contributions. These papers will be presented at the IAMO Forum 2006 in order to offer a platform for scientists, practitioners and policy-makers to discuss challenges and potential strategies at the farm, value chain, rural society and policy levels in order to cope with the upcoming challenges. IAMO Forum 2006, as well as this book, would not have been possible without the engagement of many people and institutions. We thank the authors of the submitted abstracts and papers, as well as the referees, for their evaluation of the abstracts from which the papers were selected. In particular, we would like to express our thanks to OLIVER JUNGKLAUS, GABRIELE MEWES, KLAUS REINSBERG and ANGELA SCHOLZ, who significantly contributed to the organization of the Forum. Furthermore, our thanks goes to SILKE SCHARF for her work on the layout and editing support of this book, and to JIM CURTISS, JAMIE BULLOCH, and DÃNALL Ã MEARÃIN for their English proof-reading. As experience from previous years documents, the course of the IAMO Forum continues to profit from the support and engagement of the IAMO administration, which we gratefully acknowledge. Last but not least, we are very grateful to the Robert Bosch Foundation, the Federal Ministry of Nutrition, Agriculture and Consumer Protection (BMELV), the German Research Foundation (DFG), the Haniel Foundation and the Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) for their respective financial support.Agribusiness, Community/Rural/Urban Development, Farm Management, Industrial Organization, International Development, Labor and Human Capital, Land Economics/Use, Productivity Analysis,

    Agricultural Land Markets and Land Leasing in the Former Yugoslav Republic of Macedonia

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    The aim of this study is to identify the driving forces that shape agricultural land structures, land market and land leasing in the Former Yugoslav Republic of Macedonia (FYROM). Institutional developments and land reforms have so far been modest in the FYROM, and have not contributed to significant changes in agricultural ownership, operational structures, or land market and land leasing arrangements. Land ownership and land use are bimodal, consisting of several small-scale family farms and a few large-scale agricultural enterprises. The small family farms own and operate land on several small parcels, which is one of the major obstacles to the modernisation of family farm production. They produce food for household subsistence with mixed crop, fruit, vegetable, grapevine and livestock production. A considerable portion of the land is uncultivated, which affects land market and land leasing values. Due to underdeveloped institutional frameworks and market institutions in support of small-scale farms, a large proportion of state-owned land is rented by agricultural enterprises.

    Rural finance policies for food security of the poor

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    The objective of IFPRI's multicountry research program on rural financial policies for food security of the poor is to identify policies and institutional arrangements that help the poor integrate themselves into sustainable savings and credit systems such that they have an increased capacity to invest, bear risk, and smooth consumption. The focus of the research on policy and program design and their effects on household investment and consumption requires field data collection at the institutional and household level. This paper presents the underlying conceptual framework and various methodological approaches that have been reviewed and tested by the team at IFPRI and at collaborating institutions. Methodologies are presented for analysis at the institutional level, mainly focusing on the determinants of the formation of financial institutions and the analysis of effects of program design on institutional conduct and performance, and at the household level, thereby addressing determinants of access to and participation in financial markets and related effects on household welfare.Food security Developing countries. ,Financial institutions. ,Households Economic aspects. ,
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