Characteristics of agricultural entrepreneurs and their agribusinesses in sub-Saharan Africa: evidence from Benin

Entrepreneurship in the sub-Saharan African agricultural sector has been growing in recent years because of increasing unemployment and underemployment. In Benin, policies and programs are encouraging individuals to start their own agribusinesses. To further sharpen these policies and programs to improve agricultural entrepreneurship's contribution to the economy, it is essential to avail information on the entrepreneurs, their businesses, and the typologies of agribusinesses. Such information is limited, which reduces the ability to develop evidence-informed policies and programs. This research aims to fill the gaps by describing the features of agricultural entrepreneurs in Benin. A random sample of 819 agricultural entrepreneurs was used, and data were collected on entrepreneurs and their businesses. Descriptive analysis and hierarchical clustering of principal components were performed. The study found that women’s participation in agricultural entrepreneurship in terms of new business formation is still low. Also, the agricultural entrepreneurs are more driven by necessity than opportunity, although they have a highly positive personality, mainly in terms of optimism and risk. At the enterprise level, most agribusinesses have been in operation for more than three years, but only one out of ten entrepreneurs felt that their business was at a mature phase. The research also evidenced that informality in the agribusiness sector is high because almost half of the agribusinesses were not registered with any formal governmental entity, and only three out of ten complied with tax regulations. Agricultural entrepreneurs were active in knowledge networks to expand their activities and improve their performance. Three categories of agribusiness were defined with the cluster analysis: ‘informal agribusinesses’ essentially built for profit, not registered, and owned by not highly educated adult entrepreneurs; ‘professional new agribusinesses’ were mainly operated by young entrepreneurs with a university education and agricultural professional training; and ‘mature agribusinesses’ were mostly formally registered and owned by highly educated entrepreneurs. This research will be instrumental for policymakers and practitioners to better understand agricultural entrepreneurship and improve its economic outcomes. It provides a strong evidence base to support the ongoing motivation of policymakers to provide solutions to unemployment and underemployment through agricultural entrepreneurship

Efficacite technique des producteurs de mais participant au warrantage dans le nord-est du Benin

Face au bradage massif des productions agroalimentaires en période de récolte, le warrantage a été promu pour faciliter l’accès des producteurs au crédit agricole, aux marchés des facteurs de production et de produits agricoles afin d’améliorer leur efficacité technique et leurs revenus agricoles. La présente étude vise à mesurer le niveau d’efficacité technique des producteurs de maïs participants et non participants au warrantage dans une région du Bénin et à déterminer les facteurs qui influencent cette efficacité. L'approche d'estimation en une seule étape de la frontière stochastique de production et du modèle qui détermine les facteurs d'inefficacité technique a été appliquée à un échantillon aléatoire stratifié de 314 producteurs de maïs dont 157 producteurs participants au warrantage. Les résultats ont montré que les producteurs n’opèrent pas tous sur la frontière de production. Le niveau moyen d’efficacité technique a été de 74 % avec 78 % pour les bénéficiaires et 70 % pour les non bénéficiaires. Le niveau actuel moyen de leur production annuelle qui est de 16 014 kg pourrait être encore amélioré de 33 % avec les mêmes ressources productives. L’accès au warrantage, le sexe, l’utilisation de la semence améliorée de maïs, l’appartenance à un groupement de producteurs hors warrantage et la possession d’un moyen d’information sont les facteurs qui influencent positivement l’efficacité technique des producteurs. Ainsi, il est important que l’évaluation de l’impact du warrantage soit réalisée afin d’améliorer sa promotion. English title: TECHNICAL EFFICIENCY OF MAIZE PRODUCERS PARTICIPATING IN WARRANTAGE IN THE NORTHEASTERN OF BENIN Abstract Faced with the massive sell-off of agri-food production during the harvest period, warrantage was promoted to facilitate producers’ access to agricultural credit, production factors and agricultural products markets in order to improve their technical efficiency and farm income. This study aims to measure the level of technical efficiency of maize producers participating and not participating in warrantage in a region of Benin and to determine the factors that influence this efficiency. A one stage stochastic frontier production which incorporates a model for the technical ineffiency effects was applied to a stratified random sample of 314 maize producers, including 157 producers participating in warrantage. The results showed that the producers do not operate on the production frontier. The average level of technical efficiency is 74% with 78% for beneficiaries and 70% for non-beneficiaries. The current average level of their annual production, which is 16,014 kg, could be further improved by 33% with the same productive resources. Access to warrantage, gender, use of improved maize seed, membership in a non-warrantage producers’ group and possession of a means of information are the factors that positively influence the technical efficiency of producers. Thus, it is important that the impact of warrantage be evaluated in order to improve its promotion. Maize; technical efficiency; warrantage; stochastic production frontier; Beni

Efficacite technique et rentabilite financiere de la production piscicole au Benin

Description du sujet. Le poisson représente une source de protéines ainsi que de revenus pour les populations du Bénin. Cependant, on observe un écart croissant entre l'offre locale et la demande de poisson. Dans ces conditions, la pisciculture peut permettre de réduire significativement le volume des poissons importés. Une étude récente a montré que les pisciculteurs du Bénin sont inefficaces techniquement, les indices  d'efficacité technique variant entre 2% et 81% avec une moyenne de 46%.Objectif. La présente étude a complété ces résultats en analysant la  rentabilité financière en fonction des groupes de pisciculteurs identifiés sur la base de leurs niveaux d'efficacité technique afin de formuler des recommandations de vulgarisation pour mieux accompagner les pisciculteurs les moins efficaces.Méthode. L'analyse des données a été réalisée sur un échantillon aléatoire de 649 exploitants piscicoles du Bénin. Les indices d’efficacité technique ont été estimés par la méthode des frontières de production stochastiques.Résultats. Les pisciculteurs dont les indices d'efficacité technique sont inférieurs au premier tercile (38,5%), n'ont pas réussi à créer de richesse. Seuls les producteurs dont le niveau d'efficacité technique est supérieur ou égal au deuxième tercile (56,1%) ont obtenu une marge brute positive.Conclusion. Il existe une corrélation positive entre le niveau d’efficacité et la rentabilité de la production piscicole. Il est donc important d'enseigner aux pisciculteurs les moins efficaces les bonnes pratiques agricoles développées par les pisciculteurs les plus efficaces.Mots clés : Pisciculture, analyse de groupe, efficacité technique, valeur ajoutée, marge brute.  Technical efficiency and financial profitability of fish production in Benin Description of the subject. Fish represents a source of protein as well as income for the people of Benin. However, there is a growing gap between local supply and demand for fish. In these conditions, fish farming can significantly reduce the volume of imported fish. A recent study showed that fish farmers in Benin have low technical efficiency, with scores ranging from 2% to 81% and an average of 46%.Objective. This study completed these results by analyzing financial profitability of different groups of fish farmers identified based of their efficiency score in order to formulate extension recommendations to better help those who are not doing well.Method. Data collected on a random sample of 649 fish farms in Benin were analyzed using cost-benefit analysis. The fish farmers' groups  were defined using terciles on the basis of the estimated technical efficiency scores.Results. Fish farmers whose technical efficiency scores are lower than the first tercile (38.5%), have negative margin. Only producers with a level of technical efficiency greater than second tercile (56.1%) obtained a positive gross margin.Conclusion. There is a positive correlation between the level of  efficiency and the profitability of fish production. It is therefore  important to train the least efficient fish farmers the best agricultural practices used by the more efficient fish farmers to improve their income.Keywords: Fish farming, group analysis, efficiency, added value, gross margin, Benin.

L'impact d'un Système Public d'Information sur l'intégration et l'efficacité des marchés : une application du modèle "Parity Bounds" au cas du maïs au Bénin

Measuring the impact of Public Market Information Systems on market integration and efficiency: an application of the Parity Bounds Model in maize markets in Benin. During the 1990s, agricultural market reforms prevailed within the economic liberalization undertaken in many sub-Saharan countries. In these countries, government intervention in the commodity markets through marketing boards or parastatal organizations was abandoned in favor of new market reforms. Public Market Information Systems (PMIS) thus emerged as part of these reforms. Even though great positive impacts were expected from these reforms, little empirical work has been carried out to evaluate their effects. This article investigates how PMIS has affected the market performance of maize, a major staple food crop in Benin. We use a modified version of the Parity Bounds Model (PBM). This method allows the estimation of the rates of spatial market efficiency or integration, but also the estimation of the rates of market arbitrage, autarky, profitable opportunities and the violation of market arbitrage conditions. Results showed that Benin's agricultural sector suffered from a lack of quality training in how to follow the government-supported market information system implemented in the early 1990s. Subsequently, PMIS did not significantly improve the degree of market integration, although the reforms did induce new marketing opportunities. Results also showed that the impact of PMIS is limited by other market imperfections, such as entry barriers for non-residents or for persons not in local informal trade organizations, and the non-transparent enforcement of formal regulations. This study therefore recommends the implementation of more efficiency-raising policies in order to encourage competition and to allow PMIS to fulfill the expectations of farmers and consumers. Improving food producers and traders' access to reliable information will allow them to better exploit the market opportunities induced by the reforms

Efficacité technique des producteurs de soja du Bénin

Le soja est devenu la première légumineuse au Bénin par son importance dans la réduction de la malnutrition observée surtout en milieu rural. Sa demande de plus en plus importante devient difficile à satisfaire. En même temps, les rendements obtenus par les producteurs au cours de ces dernières années sont faibles par rapport aux rendements potentiels. La présente étude vise à mesurer le niveau d’efficacité technique des producteurs de soja et à déterminer les facteurs qui influencent cette efficacité. La méthode des frontières stochastiques de production a été appliquée à un échantillon aléatoire de 93 producteurs de soja. Les résultats obtenus ont montré que le rendement moyen des producteurs de soja interviewés est de 886 kg/ha, faible par rapport au rendement espéré. Les indices d'efficacité technique varient entre 5% et 92% avec une moyenne de 61 %. Ce qui montre que la production pourrait être nettement améliorée avec les mêmes quantités de ressources productives que celles utilisées actuellement. Les producteurs les plus efficaces, ceux qui ont obtenu un score d'efficacité technique compris entre 0,80 et 0,92, ont atteint un rendement moyen de 1410 kg/ha et constituent 29% de l'échantillon. Le producteur le plus efficace a obtenu un rendement de 2500 kg/ha. L’utilisation de semences de soja de bonne qualité, l’application d’insecticides chimiques pour réduire la pression parasitaire et le sexe ont été les facteurs qui influencent positivement l’efficacité technique des producteurs de soja. Il importe donc de bien former les producteurs pour faciliter le respect des recommandations relatives aux itinéraires techniques, de promouvoir l'accès aux semences de soja de bonne qualité et la lutte intégrée des ravageurs avec l'utilisation des insecticides biologiques pour éviter l'usage excessif des pesticides chimiques nuisibles à la santé humaine.Mots clés: soja, efficacité technique, rendement, frontière de production stochastique, BéninEnglish Title: Technical efficiency of soybean producers of BeninEnglish AbstractSoybeans has become the first leguminous in Benin because of its importance in reducing the high rate of malnutrition observed especially in rural areas. Its increasingly high demands become difficult to satisfy. At the same time, the yields obtained by the producers in recent years are low compared to the potential yields. This study aims to measure the level of technical efficiency of soybean producers and to determine the factors influencing this efficiency. The stochastic frontier production was applied to a random sample of 93 soybean producers. The results showed that the average yield obtained by the interviewed farmers was 886 kg/ha. This is low compared to the potential yield. The technical efficiency indices range from 5% to 92% with an average of 61 %. This shows that production could be significantly improved even with the same use of productive resources. The most efficient producers, those who achieved a technical efficiency score between 0.80 and 0.92, had an average yield of 1410 kg/ha. The most efficient producer obtained a yield of 2500 kg/ha. The use of good quality seeds, the use of chemical insecticide to reduce parasitic pressure and gender positively influence the technical efficiency of soybean producers. It is therefore important to amplify farmers training to improve their level of management, to promote access to good quality soybean seeds and integrated pest management with the use of biological insecticides to avoid the excessive use of chemical pesticides that are harmful to human health.Keywords: soybean, technical efficiency, yield, stochastic production frontier, Beni

CHARACTERISTICS OF AGRICULTURAL ENTREPRENEURS AND THEIR AGRIBUSINESSES IN SUB-SAHARAN AFRICA: EVIDENCE FROM BENIN

Entrepreneurship in the sub-Saharan African agricultural sector has been growing in recent years because of increasing unemployment and underemployment. In Benin, policies and programs are encouraging individuals to start their own agribusinesses. To further sharpen these policies and programs to improve agricultural entrepreneurship's contribution to the economy, it is essential to avail information on the entrepreneurs, their businesses, and the typologies of agribusinesses. Such information is limited, which reduces the ability to develop evidence-informed policies and programs. This research aims to fill the gaps by describing the features of agricultural entrepreneurs in Benin. A random sample of 819 agricultural entrepreneurs was used, and data were collected on entrepreneurs and their businesses. Descriptive analysis and hierarchical clustering of principal components were performed. The study found that women's participation in agricultural entrepreneurship in terms of new business formation is still low. Also, the agricultural entrepreneurs are more driven by necessity than opportunity, although they have a highly positive personality, mainly in terms of optimism and risk. At the enterprise level, most agribusinesses have been in operation for more than three years, but only one out of ten entrepreneurs felt that their business was at a mature phase. The research also evidenced that informality in the agribusiness sector is high because almost half of the agribusinesses were not registered with any formal governmental entity, and only three out of ten complied with tax regulations. Agricultural entrepreneurs were active in knowledge networks to expand their activities and improve their performance. Three categories of agribusiness were defined with the cluster analysis: ‘informal agribusinesses' essentially built for profit, not registered, and owned by not highly educated adult entrepreneurs; ‘professional new agribusinesses' were mainly operated by young entrepreneurs with a university education and agricultural professional training; and ‘mature agribusinesses' were mostly formally registered and owned by highly educated entrepreneurs. This research will be instrumental for policymakers and practitioners to better understand agricultural entrepreneurship and improve its economic outcomes. It provides a strong evidence base to support the ongoing motivation of policymakers to provide solutions to unemployment and underemployment through agricultural entrepreneurship

Application of Portfolio and Stochastic Simulation Analysis for a Decision of Governance Structures Choice of Benin s Rice Producers

Prices volatility is one of the critical problems that highly affects smallholder producer s income and so, might contribute to deeper poverty. This study applies both portfolio and stochastic simulation analysis to decision of governance structures (GS) selection to find the income that can allow producers to maximize their revenue and minimize the risk of its fluctuation. Data were collected in Benin in 2015 about 300 rice producers. The respondents were randomly selected from forty-one (41) villages. The simulations of the incomes generated by the highest revenue portfolio and the lowest risk one indicate that for both a risk averse and a risk loving producer, the optimal portfolio consist of selling 17% and 83% of their production through spot market and formal contract, respectively, in the case of two GS. In the case of three GS, the best portfolio consists of selling 13%, 57%, and 30% of the production through spot market, formal contract, and farmer association. Finally, a portfolio that consist of selling 10%, 25%, 43%, and 22% of the production through spot market, informal contract, formal contract, and farmers association, respectively, is the best one in the case of four GS. Acknowledgement