Agricultural Value Chains Research Articles

Assessment of the Impact of Financial Intermediation on Gross Domestic Product in Nigeria from 1996 to 2022

This paper assesses financial intermediation in Nigeria and how it has impacted economic growth. The study sourced time series data between 1996 and 2022 from the Central Bank of Nigeria and utilized econometric techniques using Ordinary least square regression, Error correction model, and Pairwise Causality to assess the impact of the financial intermediation institutions on the growth of the nation's Gross Domestic Product. The paper focused on banks, capital markets, and the insurance industry being significant institutions in the financial system. The GDP is the dependent variable, while Credit to the Private Sector as a percentage of GDP (CPS/GDP) and Total Savings as a percentage of GDP (TS/GDP) were used as proxies for assessing banks' contributions to economic growth. Stock market capitalization was used as a proxy for the contribution of the capital market to economic growth, and Insurance industry assets were used as a proxy for the insurance industry's contribution to economic growth. The study revealed no co-integration and long-term relationship between economic growth and the financial intermediation variables. There was, however, a unidirectional causal relationship between economic growth and the banks and the capital markets. There was no causality between economic growth and insurance. We recommend that policymakers undertake periodic reforms to deepen the capacity of the institutions to support de-risking and funding small and medium enterprises and the agricultural value chain, which are vital channels for diversifying the economy. The regulatory authorities are pivotal in upscaling the institutions' contribution to economic development.

Agribusiness Risk Management in Nigeria - A Conceptual Analysis

The paper examines agribusiness risk management in Nigeria and discusses its role in transforming food production practices to attain food security and sustainable economic development. Risk is inherent in all the segments of the agricultural value chain. It is the responsibility of farmers to manage the adverse consequences of taking risks involved in food production, while financial institutions, governments, and donor agencies in developing nations play notable roles in ameliorating disasters considered beyond the control of the farmer. The reward for investing in agricultural business and bearing the risk is profit. The paper analysed the concept of agribusiness, various risks inherent in food production and ways to manage them effectively. It is recommended that the stakeholders in risk management, such as the farmer/producer, government, financial institutions, and donor agencies prevalent in developing nations, must work assiduously to identify, mitigate, transfer or cope with the risks in agribusiness to ensure food security in the country.

Access to land and youth involvement in agricultural value chains in Kenya

The study investigated the relationship between land accessibility and youth participation in the agricultural value chain in Kakamega County, Kenya. Utilizing a stratified questionnaire for data collection from 240 respondents, chosen through stratified and simple random sampling, the research analyzed data to generate frequencies, percentages, and correlations. Results showed that limited access to land is a significant barrier for youth involvement in agriculture, impacting all stages of the value chain except consumption. This study is novel in its comprehensive analysis of the entire agricultural value chain, from production to consumption, and its focuses on the youth, a crucial demographic in Kenya. The findings highlight the importance of land accessibility for the youth's active participation and the potential economic benefits thereof. The insights are valuable for policymakers and donor organizations in crafting strategies to improve land access for young people, thus enhancing their livelihoods and fostering entrepreneurial growth in the most promising segments of the agricultural value chain.

An narrative review of value chain financing on the profitability of edible oil in South Africa

The objective of this review was to look at the impact of agricultural value chain financing on the profitability of edible oil in South Africa. A historical review's aim is to find all narrative evidence which fits the pre-specified eligibility requirements to respond to a particular study question or hypothesis. The research used a historical narrative review as its analysis method. This included compiling and analysing more than 60 online resources relating to various and relevant the value chain financing on profitability from several past research. The research concentrates on some papers that looked at the impact of agricultural value chain financing on profitability, both nationally and internationally. Exploratory studies on the agricultural value chain financing, published from 2012 to 2022, were evaluated. According to the findings, just one paper failed to demonstrate an important association between agricultural value chain financing and profitability, whilst the others showed that agricultural value chain financing had a substantial effect on profitability. However, none specifically addressed the oil industry, indicating the necessity for narrative research to examine the link among agricultural funding and the profitability of the South African edible oil industry.

Differing impacts of the COVID-19 pandemic on farmers and intermediaries: insights into the Ecuadorian cocoa value chain

The COVID-19 pandemic generated diverse impacts and responses in agricultural value chains worldwide. Cocoa is a key crop for Ecuadorian exports, and the analysis of effects the pandemic had on value chain actors contributes to the understanding of their individual capacities to coping with a major shock. The purpose of this study was to assess the number and severity of impacts and responses implemented by two links in the cocoa value chain to the pandemic, based on a survey of 158 cocoa farmers and 52 cocoa intermediaries from the main cocoa-producing provinces of the northern coast of Ecuador in 2021. Surveyed farmers and part of the intermediaries form part of the sustainability program of a large Swiss chocolate manufacturer. The impacts and responses reported were grouped into seven resources according to the Activity System Approach. Then, a comparison between groups was applied using the Wilcoxon rank sum test for nonparametric data, determining the most severe impacts and effective resilience responses among the actors. The results reveal that farmers and intermediaries were similarly affected by the pandemic, reporting 21 and 16 negative impacts, respectively. Farmers experienced a higher number and severity of impacts on financial and social resources, while intermediaries on human and material resources. The strongest impact was the loss of sales, reported by 65% of farmers and 58% of intermediaries. Farmers implemented more social responses that they judged highly effective, while intermediaries implemented more human responses that they judged highly effective. Public policy should enhance the social resources of farmers by strengthening their associativity and the capacities of their members, as mechanisms to mitigate their vulnerability to future health and climate crises. The financial resources of both actors should be protected through public credit and agricultural insurance.

Determinants of farmers’ intentions to seek Agricultural Value Chain Financing in Tanzania

Determinants of farmers’ intentions to seek Agricultural Value Chain Financing in Tanzania

A Framework for Data Collection and Management to Support the Comprehensive Development of African Agriculture

Agriculture is a key source of food and health for humanity. However, the hazardous way this activity is still cared for in some developing countries like the Republic of Benin, with poor quality farming data collection mechanisms, can guarantee neither quality and sustainability of production, nor comprehensiveness and efficiency of agricultural interventions. Such shortcomings ineluctably contribute to the limited success of the Comprehensive African Agriculture Development Program (CAADP) promoted by the African Union and its regional chapters, in most African countries. Based on these preliminary remarks, this paper suggests a systematic and automated monitoring, evaluation, learning, and adaptation (MEL) framework that will further be tested, consolidated, validated, and promoted, first in the Republic of Benin, and later in other African countries. This framework is made of local, regional, and national geographic information systems (GIS) which will further serve as databases for planning and interventions in the agricultural sector. The proposed GIS superposes lands’ details (sizes, soils’ characteristics, rainfall data, etc.), stakeholders’ details (demographics, crops, livestock, agricultural practices, etc.), and agricultural value chains’ details. Local, regional, and national agricultural value chains’ development platforms will bring stakeholders together, and serve as sources and co-users of the GIS data. Local, regional, and national MEL and GIS management skilled AEAS agents will facilitate systematic data collection and GIS database management. The data collection and treatment tools should allow the use of all kinds of data formats, including voice and image records, given the oral orientation of most agricultural stakeholders. This original idea emerged from observations during national and regional field experiences, and from the literature that revealed the efficiency of automated real-time and quality data for comprehensive and evidence-based decision-making in development interventions.

Improving the Education and Training Policies of the Agri-Food and Forestry Sectors: Identifying New Strategies to Meet the Needs of the Sector and Farm-to-Fork Priorities

The current European agri-food and forestry (AFF) systems are perceived to be moving too slowly towards more sustainable agriculture, forestry, food and bio-based value chains. The European Green Deal and Farm to Fork (FtF) Strategy stress the importance of the sustainable transition of food systems that emphasize resilience and justice along food chains. In this direction, education and training (ET) are given a major role, constituting one of the pillars of the Agricultural Knowledge and Innovation Systems (AKIS) framework. This study aims to propose an extended version of the AKIS framework to focus on the transition of policies concerning the ET pillar and to use this framework as a conceptual background with which to identify strategies for the improvement of ET policies in the AFF sectors. Data collection was undertaken through a round of workshops, and the data were analyzed using a thematic analysis approach. The results revealed that the need for a high-quality educational policy and the need to enhance collaboration, entrepreneurship and innovative learning methods were among the most important for the sector, where urgent changes in pace and an approach in ET are necessary for the entire value chain, from farm to fork. These results emphasize that pivoting the transition of ET systems toward achieving the Green Deal, FtF and new CAP objectives requires the development of policies that support student-centered and interdisciplinary education, while also being flexible and supported by non-formal and lifelong learning approaches.

The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain

This paper identifies several governance factors that enable economic upgrading and the link between economic and social upgrading /downgrading of smallholders and Abusa sharecroppers in Ghana's cocoa value chain (GCVC). The findings are based on qualitative interviews and focus group discussions with various actors in GCVC. Our findings suggest two types of economic upgrading: process and product upgrading, achieved by smallholder producers and Abusa Sharecroppers in GCVC. While process upgrading is enabled by governance factors such as price stabilization and controlling opportunistic behavior, transparency in the sale of certified beans and premium management is key for product upgrading. Regarding the link between economic and social upgrading, we reveal that process upgrading leads to the same outcome of social upgrading and downgrading for smallholders and Abusa sharecroppers due to governance factors such as production and purchasing policies and lack of resources and capabilities. However, product upgrading links to social upgrading and downgrading for smallholders and Abusa sharecroppers respectively owing to governance factors such as controlling resources and bargaining power. We provide insights into key actors and their interests, drivers of change and effects of incentives that play crucial roles in shaping governance factors that influence economic and social upgrading of smallholders and Abusa sharecroppers in GCVC. In our conclusion, we identify how regulations, institutional support and conflicts of interest are key for enabling upgrading of developing countries’ agricultural value chains.

ФОРМУВАННЯ ТА ІМПЛЕМЕНТАЦІЯ СИСТЕМИ АГРАРНОГО МАРКЕТИНГУ В ДІЯЛЬНІСТЬ АГРАРНИХ ПІДПРИЄМСТВ

The article considers the definitions of the concept of "agricultural marketing", identified problems in the agrarian sphere of business, provided an organizational and methodological rationale for conducting marketing activities in agribusiness at the level of the state, regions, and enterprises, and formed the components of the agrarian marketing system for implementation in the activities of agrarian enterprises. Agricultural marketing can be defined as a set of interdependent organizational, technical, financial and commercial functions of the enterprise, aimed at ensuring the sale of agricultural products in accordance with consumer requests for the benefit of the enterprise. The main goal of agricultural marketing is to fully satisfy the rational standard of food consumption by the population while ensuring the effective activity of agribusiness entities. An effective marketing system uses market analysis to predict demand; will try to minimize blind entry into markets and instead promote a withdrawal regime. Increases income – a well-organized marketing system will increase the total amount of income received in the agricultural value chain. The agricultural marketing system contains a set of the most important market relations and information flows that connect the agricultural enterprise with the markets. As a result of the study, it was established that the organizational structure of the vast majority of agricultural enterprises does not correspond to the principles of marketing, which is manifested in the complexity of the internal interaction of services and departments, limited marketing tools for market analysis, ineffective management. It is proposed to introduce a marketing-oriented organizational structure of agricultural enterprises to optimize the relationship between services and divisions of the enterprise, and to use marketing tools for market research. It is recommended in modern conditions to make sales using the Internet as much as possible, that is, a digital platform that helps to optimize financial, labor and production resources and costs.

Fueling the fires – An exploration of the drivers and the scope for management of European wildfire risk under the Shared Socioeconomic Pathways

As socio-natural phenomena, wildfires are exacerbated by climate change and socioeconomic dynamics. However, the role of socioeconomic uncertainty in shaping future wildfire risk and management remains largely neglected. Building on the notion that risk emerges at the intersection of hazard, exposure and vulnerability, we conduct an integrative literature review to identify the most significant socioeconomic drivers of wildfire risk in the European geographical and institutional context and bring this together with the Shared Socioeconomic Pathways (SSP) perspectives on plausible socioeconomic dynamics. To our knowledge, this is the first study to bridge the gap between wildfire research and socioeconomic scenarios to establish a conceptual understanding of future wildfire risk. The resulting wildfire risk scenario space has two main applications: (i) it acts as a qualitative navigator for factoring socioeconomic uncertainty in model-based wildfire risk assessments, and (ii) it sets the boundary conditions for evaluating the feasibility of management strategies. Sustainable land use practices and profitable agricultural value chains can reduce future wildfire risk (e.g. SSP1), whereas land degradation (e.g. SSP4), and socioeconomic disparities (e.g. SSP3) may increase it. As a result, challenges to future wildfire risk management differ significantly across scenarios, leading to paradoxical situations. In scenarios where vulnerability reduction has significant potential to lower risk, socioeconomic challenges reduce the feasibility of implementing the necessary measures to achieve risk reduction. Similar dilemmas may arise in the context of hazard and exposure. By considering multiple plausible futures, this paper emphasizes the importance of accounting for socioeconomic dynamics in shaping wildfire risk and keeping the design of risk management strategies open and flexible in the face of changing circumstances.

중국의 식량안보와 경쟁력

Judging from existing research results such as grain strength and security index, China’s food security capabilities are on the rise. In order to explore the influencing factors of food security, this study investigated the competitiveness of China’s grain sector. As a result of analyzing China’s agriculture-related industries using the agricultural value chain framework, it was confirmed that China is improving the competitiveness of the food industry by cooperating in the front and back sectors of agriculture, similar to developed countries such as the United States. In particular, China is acquiring mature agricultural companies in developed countries and playing a global leadership role in the seed and chemical sectors, thereby improving domestic grain production and expanding the global influence of Chinese agricultural companies. The results show that with the high integration of my country’s grain sector industrial chain, my country’s food security capabilities are also constantly improving, and the improvement of China’s grain industry competitiveness is directly proportional to its food security capabilities.

Enhancing agricultural value chains through technology adoption: a case study in the horticultural sector of a developing country

BackgroundThe development of agricultural value chains in developing countries has been the focus of much international interest, prompting the exploration of technology adoption strategies. These strategies hinge upon a multitude of factors like farmer characteristics, farm structure, location, organizational and institutional elements, as well as information-related factors.PurposeIn this study, we delve into the influential social and productive factors that underpin technology adoption among small horticultural producers in Chile.Design/methodology/approachData pertaining to the five primary horticultural crops in Chile—namely, corn, lettuce, tomato, cucumber, and onion—were collected, considering their respective cultivated areas. A comprehensive evaluation of 13 technologies encompassing cultural practices, crop improvement, and irrigation was conducted. The methodological approach comprised two stages. Initially, an ordered probit model was employed to analyze the adoption intensity of cultural practices, crop improvement, and irrigation. Subsequently, a Kruskal–Wallis test was utilized to compare the means across technology adoption groups.ResultsThe findings reveal a positive correlation between technology adoption intensity and the level of education, composition of the family nucleus, and investment intensity. Moreover, the production system’s location emerged as the most critical determinant for technology adoption.ConclusionsThe factors under scrutiny furnish direct and indirect evidence of their impact on the productivity and competitiveness of agricultural value chains. Thus, this paper significantly contributes to comprehending the role of technology adoption in designing and executing rural development strategies within developing countries.

Threat or opportunity? An analysis of perceptions of cultured meat in the UK farming sector

BackgroundThe environmental and social impacts of cultured meat, and its economic viability, are contingent on its implications for food production and for agriculture. However, the implications of cultured meat production for farmers have not yet been thoroughly investigated and are poorly understood. The aim of this research was to engage with the farming sector in critically assessing cultured meat as a technology which could profoundly affect future farm livelihoods, land use, rural and farming communities and agricultural value chains. Ensuring farmers’ voices, and potential ‘counter-narratives’ inform the development of cultured meat is not only inclusive, but could identify unexpected impacts of this emerging technology and contribute to the framing of the social license of the industry developing them.MethodsSix focus groups were undertaken with 75 UK farmers from a variety of farming sectors and regions. Questions focused on what the term ‘cultured meat’ means to farmers, the potential impacts of cultured meat, and potential business scenarios arising for farmers. All meetings were recorded, transcribed, and thematically analyzed.Results and discussionFarmers expressed complex and considered reflections on cultured meat, raising several perceived opportunities and risks associated with the themes of ‘ethics and affective’ narratives, ‘environment-based’ narratives, and ‘socio-economic’ narratives. Aspects of foci of power, food system control and transparency associated with cultured meat emerged from the conversations, as well as cultured meat’s potential impacts on the environment and on jobs, farming/rural communities and connecting with the land.ConclusionGlobally, meat production underpins the livelihoods of many rural communities, so a transition to cultured meat is likely to have deep-seated ethical, environmental, and socio-economic impacts. Within the discourse on cultured meat the voices of farmers are often lost. While not claiming to be representative of all UK farming, this study engaged UK farmer perspectives as a way of starting the substantive process of greater stakeholder inclusion in cultured meat innovation pathways, and which should underpin responsible technology transitions in agriculture.

PROGRAM PENINGKATAN PEMASARAN HASIL PERTANIAN MELALUI DIGITALISASI DI DESA KRETEK, KECAMATAN TAMAN KROCOK, KABUPATEN BONDOWOSO

Kretek Village is a village where the majority of its inhabitants work as farmers. Agriculture plays a vital role in the global economy, and effective marketing is key to enhancing farmers' income and meeting the growing consumer demand. In an effort to address traditional marketing challenges and harness the potential of digital technology, a community engagement program has been implemented to enhance the marketing of agricultural products through digitalization. This program aims to empower farmers to leverage digital technology to optimize the marketing of their agricultural products. The outcomes of this program are expected to enable farmers, who typically market their products only to middlemen, to access broader markets and significantly increase sales opportunities. The success of this program underscores the positive potential of digitalization in strengthening the agricultural value chain and improving the welfare of farmers. However, challenges related to technological accessibility and infrastructure limitations also need to be considered. Therefore, sustainable measures have been recommended to ensure the continuity of this program and to expand its impact.

The Impact of the Internet on the Development of Agricultural Product Value Chain

With the popularization and rapid development of the Internet, the development of the value chain of agricultural products has also been profoundly affected. The purpose of this paper is to study the application of the Internet in the production, processing, circulation, consumption and extension of each link in the value chain of agricultural products, analyze the impact of the Internet on the development of the value chain of agricultural products, and point out the problems of information security and value chain financing of agricultural products in the process of promoting the development of the value chain of agricultural products, so as to put forward countermeasures and suggestions to promote the development of agricultural products e-commerce and cross-border e-commerce of agricultural products, improve the Internet application ability of farmers, and increase the support for the value chain financing of agricultural products. This is of great significance for promoting the deep integration of the Internet and agriculture and promoting the realization of agricultural modernization in China.

Marketing Strategies for MSMES in Agriculture: From Local to Global Markets

With evolving market dynamics and globalization, there is a growing need for MSMEs to adopt effective marketing strategies that enable them to transition from local markets to global markets. Because of their importance to rural economies, food supplies, and overall growth, micro, small, and medium-sized businesses (MSMEs) play vital share in the agricultural sector. The transition from local to global markets in today's interconnected world presents both opportunities and problems for MSMEs. This study investigates the best practices for advertising agricultural MSMEs so they can expand their operations beyond their current regional and national markets. Micro, small, and medium-sized companies (MSMEs) are discussed in terms of their contributions to the agricultural value chain and their potential to promote sustainable development. The boo then delves into the inner workings of both domestic and international agricultural markets, discussing what sets each apart in terms of production methods, consumer tastes, and government oversight. The paper highlights the importance of MSMEs in adapting their strategy to the ever-changing nature of the market. This is in response to the increasing importance customers place on transparency, accountability, and responsible practices.

Planting for food and jobs in post-COVID era: identifying the missing gaps for sustainable food production – a review

Agriculture is the backbone of the Ghanaian economy and serve as a source of employment, income generation and poverty reduction for many people in the agricultural value chain. Agriculture over the years has contributed significantly to Gross Domestic Product (GDP) until recently when the performance of the sector and the contribution to GDP began to dwindled. With the current economic challenges after COVID-19, high fuel costs and ravaging food prices, every effort should be put in place to increase food production to reduce food importation which put pressure on the local currency and drives food prices high. The introduction of the Planting for Food and Jobs (PFJ) policy was to boost agricultural productivity, eliminate hunger, reduce poverty, achieve food sufficiency and reduce unemployment. The policy is also to helps achieve the Sustainable Development Goal 1- No Poverty and Goal 2 - Zero hunger especially in this post-COVID era. This paper was carried out by reviewing policy documents, articles and interacting with certain stakeholders on the Planting for Food and Jobs initiative. The PFJ policy hinges on five pillars namely: improved seeds, fertilizer supply, dedicated extension services; market, and e-agriculture. However, the policy is flawed with many challenges. The review showed that the policy lacks clear direction as regards its implementation. Key implementation features such as provision of irrigation facilities, introduction of mechanization services, dedicated market for farmers’ produce and land tenure systems among others were major issues. It was also observed that there were poor monitoring and evaluation, corrupt practices such as the diversion of improved seeds and fertilizers, high cost of farm inputs and lack of sustainability plan as in the case of previous interventions. This article will, therefore, help policymakers and the government to review and focus on key areas of the policy that will improve food production, create jobs, ensure food security and transform the general economy.

'Is there value for us in agriculture?' A case study of youth participation in agricultural value chains in KwaZulu-Natal, South Africa.

Developing countries in Africa face an unemployment crisis, with many unemployed youth. Agriculture has been identified as a strategic sector for employment creation targeted at youth, including those who may not have agriculture-related qualifications. However, various challenges limit the effectiveness of youth participation in the agriculture value chain. The study aimed to (i) determine youth awareness of agricultural value-chain opportunities, (ii) determine their perception of their role in the value chain, (iii) determine their perception of agricultural programs targeting youth and their opinions on who is responsible for attracting youth into agriculture and, (iv) to characterise the dynamics of youth empowerment in agriculture. Data was collected using focus group discussions and an online survey and analysed using SPSS and NVivo. Poor knowledge, low levels of awareness of agricultural value-chain activities and careers, and not meeting the minimum requirements for employment in processing and retail businesses were identified as key challenges. Most youth were interested in non-primary activities such as agro-processing, which are less labour-intensive and have a quicker return on investment than agricultural production. However, support services and programs for promoting youth participation in agriculture mainly focus on primary activities, signifying a mismatch between youth aspirations and current support. Understanding youth aspirations, perceptions and dynamics underpinning youth empowerment and participation in value chains is critical for promoting participation and formulating relevant and responsive policies. Additionally, improving access to information and building awareness of agricultural value chains is crucial in reducing barriers to entry. Policymakers should integrate agriculture and food systems knowledge into the primary education curriculum to promote youth awareness and evoke interest in agri-food system careers at an early age.

Deep histories of food systems in eastern Africa and current patterns of food insecurity.

Central to successful attempts to address food insecurity in Africa are understandings of the historical contexts and meanings of food systems. However, much research into current challenges remains separated from deeper agrarian and alimentary histories. Using qualitative data on food within the historical record alongside the wider multidisciplinary record of the past, this Review traces long-term patterns and drivers of continuity and change in eastern African food systems. Considerable dynamism in place-based and regional trends in the integration of new foodstuffs, agricultural commercialization, resistance and transformations in diets, and diversification and specialization as livelihood strategies is found-each of which emerged within imbricated contexts of African agency, transoceanic exchanges and colonial incursions. Such historical data provide important deep-time perspectives for interventions to address modern food insecurity, as demonstrated through examples of agricultural value chains, 'under-utilized' crops and major infrastructure projects in southeast Africa.