Abstract
This study aims to analyse the factors that influence the selection of governance structures by rice producers and processors in Benin. Unlike previous studies, the factors that influence the selection of governance structures are identified simultaneously for both producers and processors of paddy. Data were collected in Benin from about 300 producers and 140 processors of paddy randomly selected. The results indicate that 78% of producers and 92% of the processors use spot market for paddy transaction. Around a quarter of producers use at least two governance structures to sell paddy. Producers and processors belonging to an innovation platform are more likely to use formal contracts in their transactions. Also, producers and processors are more likely to use credit payment mechanism with formal contract. The findings suggest that innovation platforms can be used to facilitate contractual relationships between paddy producers and processors. Key words: Multivariate probit, market dynamics, African rice value chains, governance mechanisms.  
Highlights
Global agri-food systems are undergoing significant changes due to the globalization of supply and marketing, the use of quality standards, and product differentiation (Reardon et al, 2009)
This study focused on the socioeconomics characteristics and information, search, and bargaining cost to explain the choice of governance structures
Innovation platforms were created in response to rice producers and processors unequal access to information and resources that are necessary for the development for rice value chain (Hinnou et al, 2018)
Summary
Global agri-food systems are undergoing significant changes due to the globalization of supply and marketing, the use of quality standards, and product differentiation (Reardon et al, 2009) These responses to liberalization have led to the opening of domestic markets to imported products. Actors of domestic value chains, especially those in developing countries, need to organize their activities to effectively cope with the competition from imported products In this sense, buyers in domestic value chains often look for suppliers that can abide by the requirements of quality, quantity, and delivery time in order to cope with market demand (Weatherspoon and Reardon, 2003; Poulton and Lyne, 2009). These constraints include a limited access to credit and production inputs (e.g. seeds and fertilizers) as well as a lack of information on production technologies (Bijman, 2008; Reardon et al, 2009; Barrett et al, 2012)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
