The export competitiveness of Mozambique's cashew nut industry: Applying Porter's diamond model

Export expansion propitiates scale economies, positive externalities, technological advancement, foreign currency earnings, and efficient resource use towards competitive advantage creation and consolidation. Fuelled by the export-driven economic growth hypothesis, some countries meet their export imperative through export promotion activities that enhance competitiveness. In this Thesis we analysed the factors influencing export competitiveness of the cashew nut industry in Mozambique. This industry is the main source of income for 1.4 million rural households. It reached in 1973 its peak global market share of 50%, having lost this position since 1975. International competitiveness analysis is needed to determine focus areas. We present results of the use of Porter’s Model whose determinants (factor conditions, demand conditions, and related industries) plus government (jointly exogenous constructs) interact and stimulate firm strategy representing competitiveness (endogenous construct). We analysed a quantitative longitudinal 80-observation secondary dataset, and a qualitative primary 310-observation dataset, collected through a structured questionnaire. We used a partial least squares structural equation modelling (PLS-SEM) on both datasets, applying SmartPLS 3.3.9 statistical tool. Results suggest all exogenous constructs influence positively competitiveness. Factor conditions’ impact leads with highest β coefficient of 0.265. Around 89% of respondents highlighted in-shell cashew nut availability, while 82% emphasised quality. Study recommends strategies to improve in-shell cashew nut availability and quality, electricity reliability, physical infrastructure, adherence to international standards, "Zambique" brand, traceability, R&D. Strategies need to be extended to upgrading and updating of labour legislation, taxation, fiscal incentives, and tackling economy’s informality, aiming to entice bigger and faster investments for Mozambique to regain market share.A expansão da exportação propicia economias de escala, externalidades positivas, avanço tecnológico, divisas e uso eficiente dos recursos para criação e consolidação da vantagem competitiva. Alimentados pela hipótese do crescimento económico induzido pela exportação, países realizam o imperativo de exportação realizando actividades de promoção da exportação que melhoram a competitividade. Nesta Tese analisamos os factores que influenciam a competitividade das exportações da indústria do caju em Moçambique. Esta indústria é a principal fonte de renda para 1.4 milhões de famílias rurais. Ela atingiu 50% da quota de mercado global, tendo perdido esta posição desde 1975. A análise da competitividade internacional é necessária para determinar as áreas de foco. Apresentamos resultados do uso do Modelo de Porter cujos determinantes (condições dos factores, condições da procura e indústrias relacionadas) mais governo (constructos exógenos) interagem e estimulam a estratégia da firma, representante da competitividade (constructo endógeno). Analisámos um conjunto de dados quantitativos secundários de 80 observações longitudinais e outro conjunto de dados qualitativos primários recolhidos via questionário estruturado. Usámos uma modelagem da equação estrutural dos mínimos quadrados parciais em ambos os conjuntos de dados, aplicando a ferramenta estatística SmartPLS 3.3.9. Os resultados sugerem que todos os constructos exógenos influenciam positivamente a competitividade. O impacto das condições dos factores lidera com o mais alto coeficiente β=0.265. Cerca de 89% dos inquiridos destacaram a disponibilidade da castanha com casca, enquanto 82% enfatizaram a qualidade. O estudo recomenda estratégias para melhorar a disponibilidade e qualidade da castanha com casca, fiabilidade da electricidade, infra-estruturas físicas, adesão aos padrões internacionais, marca "Zambique", rastreabilidade, pesquisa e desenvolvimento. As estratégias precisam ser extensivas ao melhoramento da legislação laboral, tributação, incentivos fiscais e combate à informalidade da economia, para atrair investimentos maiores e mais rápidos para Moçambique reconquistar a quota de mercado

CASHEW PRODUCTION TECHNOLOGY

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The Embeddedness of Global Value Chains - Institutions and Value Chain Restructuring in the Cashew Industries of India and Ivory Coast

The production, trade and consumption of agricultural commodities are in a constant state of flux. This is exemplified by the cashew industry, where the restructuring of production and processing has entailed a variety of organisational and geographical shifts over the past few decades, both between continents and within countries. This dissertation explores these processes by asking: How did the geography and organisation of the cashew industries in India and Ivory Coast evolve, and how can the restructuring be explained? I focus on the intersection of institutions and economic actors to achieve two goals. First, the study illuminates the institutional drivers of value chain restructuring within particular places. Acknowledging that value chains do not exist in a vacuum but remain embedded in geographically specific institutional settings, this study places a particular focus on the role of institutions at the state and sub-state level in shaping the geography and organisational structure of global production and trade. Second, this study develops general propositions about the relationship between the strategic behaviour of value chain actors and pressures arising from their institutional environment. For this purpose, I use an ‘institutionally enriched global value chain approach’ which links the agency of economic actors with pressures exerted by their institutional environment. Out of the interplay between firm strategies and institutional pressures, it is argued, emerge the drivers and developmental prospects associated with the globalisation of local economic activities

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Africa Agriculture Status Report 2015: Youth in Agriculture in Sub-Saharan Africa

This report launched on September 30 during the African Green Revolution Forum (AGRF) in Lusaka, Zambia. This third volume of the publication focuses on youth in agriculture, providing an in-depth analysis of barriers and challenges youth face to gaining secure and sustainable employment or self-employment in the agricultural sector. It also provides insight into opportunities, experiences, good practices and emerging innovations and concludes with forward-looking recommendations

Tilling the Soil in Tanzania: What Do Emerging Economies Have to Offer?

Close to 70% of Tanzanian farmers are small scale resource-poor subsistence operators, cultivating an average of less than 1 to 3 hectares of mainly rain-fed land, deteriorated by continuous cropping and lack of fertility management. In the farmers’ effort to move up the commercialisation continuum and alleviate poverty through increased output and incomes, innovation and technical change is key. However, liquidity constraints and prohibitive prices have in the past discouraged farmer investment in capital goods (power tillers and tractors). This is a limiting factor for increased cropping area and timeliness of operation which has the potential to positively affect crop output and incomes. In the face of these difficulties, the farmer is prepared to trade-off quality and variety, for relatively low priced capital goods, provided they are good enough and rely less on heavily built infrastructure. In recent decades, the capital goods market for power tillers and tractors has become dynamic with respect to cost, quality and origin of production. With new entrants like China, India and Pakistan joining Western Europe, USA and Japan in the supply of farm machinery, the range of choice for the Tanzanian farmer is increasing. Chinese, Indian and Pakistani power tillers and tractors have some distinctiveness in their engineering, acquisition cost, operational cost and their supply chains which may be useful in more ways to the small farmer in Tanzania. This thesis appraises the pro-poor nature of emerging economy tillage capital goods, placing particular emphases on how an optimal technological choice is made. It examines the role that cost innovators’ from emerging economies (China/India/Pakistan) are playing in meeting the farmers’ choice objective particularly with regard to cost, labour intensity and scale of operation. In as far as Tanzanian farmers are concerned the study discusses the role that local institutions can play to enhance choice, access and efficient use of such capital goods for higher productivity which may translate into increased incomes. The study draws on both qualitative and quantitative data to compare advanced country tractors and power tillers with those from emerging economies and finds that; First, aid/government support, trade and FDI/licencing are key conduits for technology imports into Tanzania. However, trade has been very important for emerging economy machines whilst aid/government support has been found to be key for advanced country machines. Second, in terms of penetration and extent of use among Tanzanian farmers emerging economy machines are more popular than advanced country ones when it comes to power tillers. Nevertheless, the total stock of advanced country tractors in Tanzania are known to be larger than emerging economy ones; though we are recently witnessing a recent rapid increase in the former than the latter. Third, advanced country machines are generally superior in terms of engineering performance and work efficiency when compared with emerging economy ones. That said, it is worth noting that the advanced country machines are capital intensive and involve higher maintenance costs because of higher spare parts and repair cost. Finally, emerging economy machines are more pro-poor than matured market ones since they create more opportunities for employment and capability building among capital constrained users and dealers

Volume 4, Number 9

Medical Care, M.E.G. Chows Down, Dr. Rudnicki, Zionism & Racism, Tenants Get Justice, Big Machttps://thekeep.eiu.edu/post_amerikan/1047/thumbnail.jp

Sustainable Production in Food and Agriculture Engineering

This book is a collection of original research and review papers that report on the state of the art and recent advancements in food and agriculture engineering, such as sustainable production and food technology. Encompassed within are applications in food and agriculture engineering, biosystem engineering, plant and animal production engineering, food and agricultural processing engineering, storing industry, economics and production management and agricultural farms management, agricultural machines and devices, and IT for agricultural engineering and ergonomics in agriculture

Industries without Smokestacks

Structural transformation in Africa has become a hot topic. One of the earliest stylized facts of development economics is that low-income countries have large differences in output per worker across sectors, and movement of workers from low- to high-productivity sectors—structural transformation is a key driver of economic growth. Between 1950 and 2006, about half of the catch-up by developing countries—led by East Asia—to advanced economy productivity levels was due to rising productivity within manufacturing combined with structural transformation out of agriculture. Manufacturing has the capacity to employ large numbers of unskilled workers, is capable of large productivity gains through innovation, and entails tradeable products that permit economies of scale and specialization. But manufacturing in Africa, rather than leading growth, has typically been a lagging sector. In 2014, the average share of manufacturing in GDP in sub-Saharan Africa hovered around 10 per cent, unchanged from the 1970s, leading some observers to be pessimistic about Africa’s potential to catch the wave of sustained rapid growth and rising incomes. This book challenges that view. It argues that other activities sharing the characteristics of manufacturing—including tourism, ICT, and other services as well as food processing and horticulture—are beginning to play a role analogous to the role that manufacturing played in East Asia. This reflects not only changes in the global organization of industries since the early era of rapid East Asian growth, but also advantages unique to Africa. These ‘industries without smokestacks’ offer new opportunities for Africa to grow in coming decades