Transition to Sustainable Tropical Land Management

Following the example of Tiffen et al. on Machakos, Kenya, new macro-based evidence was collected in Machakos, the neighbouring Kitui district and in Benin, Cameroon and the Philippines, to assess the factors à la Boserup, inducing transitions towards sustainable land management, such as terracing, stone bands etc. We find that relative scarcity of land can be seen to induce technical changes, in the sense of Hayami & Ruttan, that correspond to the new relative scarcity, making higher man-land ratios the optimal choice.soil and water conservation, sustainable agriculture, induced innovation, Boserup, Malthus, Land Economics/Use, Q12, Q21, Q28,

More Market, Less Poverty, But Also More Sustainable Land Use?

The main question in this research is to what extent agriculture on fragile slopes would become more sustainable if the farmers were given more possibilities for selling their products and acquiring production resources. An empirical study conducted in northern Benin demonstrates that a more accessible market does not lead to substantial increase in soil erosion control measures. The results indicated clearly that a closer market has positive effects on the yields of grain, and provides farmers with more opportunities to grow other, more commercial, crops or to undertake other profitable activities. Investments in an improved infrastructure can therefore contribute to improved agricultural returns, and these higher returns increase the attractiveness of soil conservation.Food Security and Poverty, Land Economics/Use, Marketing,

Firm Size Distribution and Performance of Maize and Fertilizer Traders After Market Liberalisation: Evidence from Kenya

Improvement in the performance of agricultural markets was the ultimate goal of market liberalisation. In this paper, firm (trader) size distribution as a factor influencing market performance is analyzed using maize and fertilizer traders from Kenya. Firm size distribution was assessed by analyzing the normality of the distribution on volume traded. Performance was assessed by the level of competition (using Hirschman-Herfindahl index), marketing margins and marketing costs. Results show that firm size distribution for both commodities is log-normally distributed but positively skewed indicating a tendency towards smaller than larger firms. A plausible explanation is that faced with inadequate financial resources and inadequate business experience, new entrants opt to start small. These younger traders relative to time of market liberalisation still trade in small quantities compared to preliberalisation entrants, possibly implying difficulties still faced in firm expansion. The Hirschman-Herfindahl index of 0.11 for fertilizer traders and 0.20 for maize traders shows that there is fair competition among traders, implying increased market performance. This is further supported by low marketing margins and low marketing costs for marketing maize and fertilizer, as envisaged by proponents of market liberalisation. Both marketing margins and costs decrease with increasing trader size signifying economies of scale enjoyed by large traders. Place of purchase, pack size and distance from fertilizer-purchasing centres explain the observed spatial fertilizer prices.liberalisation, firm size distribution, costs, margins, Agribusiness, International Relations/Trade, D4, L1, Q12, Q13, Q18,

Determinant of smallholder farmer labor allocation decisions in Uganda:

"Although there is growing evidence of the increasing role of nonfarm activities in rural livelihoods, there is still relatively little empirical evidence regarding the factors that influence smallholder farmers to diversify into nonfarm activities. This study analyses the factors that influence household labor allocation decisions and demand for farm labor in Uganda. Data were collected from 660 households in three banana-based production zones with divergent production constraints and opportunities. The determinants of demand for hired labor were estimated with the Tobit model. Linear regression was used to estimate reduced-form equations for the time-allocation decisions of household members. Our findings show that household members respond positively to increases in wages, suggesting that they respond to economic incentives. Increased wage rates negatively affect the use of hired labor, but household size has no effect on the use of hired labor, indicating that the economic rationing of labor hiring has more to do with the market wage than family size or composition. Education and road access have positive effects on the amount of time allocated to off-farm activities. Access to off-farm opportunities, however, takes away the most productive labor from farm production. These findings suggest that investment in road infrastructure and education suited to smallholder production needs could help alleviate bottlenecks in labor markets and improve resource allocation between farm and nonfarm sectors." from authors' abstractSmallholder farmers, Labor demand, Non-farm employment, Land management,

CLUSTERING OF SMALL AGRO-PROCESSING FIRMS IN INDONESIA

Small-scale industries in Indonesia provide more than 65% of total manufacturing employment. Sixty-three percent of small-scale firm employment is in firms that are clustered. A cluster is defined statistically in Indonesia as at least 20 firms in a village. For some agro-processing industries, such as bamboo plaiting, clustering does not involve interaction among firms; for others, notably the furniture industry, clustering firms make joint marketing efforts, subcontract each other, and share large orders. This article uses two recent case studies in the agro-processing sector – the furniture and the palm sugar industries – in Central Java. We argue that the target market of the industry (local or international) influences the nature of the contracts and other forms of interaction in the clusters. Targeting an international market requires formal contracts, more focus on marketing, and separate roles for finishing firms and subcontracting firms. Policy should be directed at enabling clusters to shift to the international market by improving contract enforcement regulations, vocational training, and providing opportunities for group lending.Agribusiness, Industrial Organization,

Exchange Rates and Natural Rubber Prices, the Effect of the Asian Crisis

Demand and Price Analysis,

Do Tenure Differences Influence the Improvement of Quality of Rented Land? Empirical Evidence from Rural Ghana

The implications of migrant agricultural production for the environment have interested policy makers in sub-Saharan Africa of late. The impacts in the region of migrant destination may be short-term including initial felling of trees, intensive land use, and application of techniques. In the longer term, tenants are expected to adjust their techniques to that of the indigenous landowners. This paper explains how migrant tenants manage the quality of rented plots in the absence of clearly defined property rights with a survey data from rural area in Ghana. An empirical model explaining the probability to invest in land improvements is formulated. The empirical results indicate that tenure differences and income levels of migrants and indigenous landowners play a critical role in investments in land improvements.Land Economics/Use,

Influence of interlocked transactions on gum arabic production and marketing in Senegal

Interlocked relationships are characterised by traders’ supply of inputs and cash to producers on credit, to be reimbursed at sale time based on a pre-defined price which is often lower than the prevailing market price. The study analyses determinants of choice of interlocking in the gum sector in Senegal and the effect of interlocking on market participation and gum production. Data from 422 gum producers in Northern and Eastern regions of Senegal are used. About 41% of respondents are involved into interlocking with village shop-owners or mobile traders. Interlocking positively influences market participation and production as found through a Heckman selection model.Marketing,