Reassessing marketing boards as hybrid arrangements: evidence from Canadian experiences

In this article, we reassess the role of marketing boards and similar arrangements that have played an important role in numerous agro‐food sectors of developed countries over almost a century. Referring to transaction cost economics and to more recent contributions on the allocation of decision and property rights, we interpret these arrangements as hybrid modes of governance. We hypothesize that uncertainty is the leading force pushing toward these organizational solutions and we explore forms of uncertainty at stake and their impact in shaping various types of hybrids. We also explore the role of institutional embeddedness in providing marketing boards and the like their legitimacy. Using numerous examples from Canadian marketing boards, we discuss the benefits and point out flaws of these arrangements. We conclude on the need to assess comparatively the role of these solutions with respect to, for example, a system of bilateral contracts.     

Diet diversity,malnutrition and health: Evidence from Kenya

We investigate the effects of diet diversity on health outcomes indicated by the body-mass index (BMI) of Kenyan women in their reproductive age (15–49 years). We estimate the demand for diet diversity (which is a proxy for diet quality) and analyse its relationship with BMI by allowing the effect of diet diversity to vary along the conditional BMI distribution. Results show that diet diversity is associated with a beneficial effect on the lower and upper tails of the BMI distribution, that is, dietary diversity improves BMI for underweight individuals while, at the same time, it reduces BMI for overweight/obese individuals. Specifically, doubling the diet diversity is associated with a 14.7% increase in BMI for underweight women and a 7.0% reduction in BMI of obese women. These results support the hypothesis that diet diversity is associated with optimal BMI and, thus, better health, contributing to the policy discourse concerning the double burden of malnutrition in developing countries.     

An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia

Do rural households in developing countries make market participation and volume decisions simultaneously or sequentially? This article develops a two-stage econometric method to test between these two competing hypotheses regarding household-level marketing behavior. The first stage models the household's choice of whether to be a net buyer, autarkic, or a net seller in the market. The second stage models the quantity bought (sold) for net buyers (sellers) based on observable household characteristics. Using household data from Kenyan and Ethiopian livestock markets, we find evidence in favor of sequential decision making, the welfare implications of which we discuss.     

Market facilities and agricultural marketing: evidence from Tamil Nadu,India

This article analyzes the effect of facilities and infrastructure available at the marketplace on a farmer's decision to sell at the market. The econometric estimation shows that the likelihood of sales at the market increases significantly with an improvement in market facilities and a decrease in travel time from the village to the market. The results suggest that wealth reduces a farmer's cost of accessing market facilities more than it increases her/his opportunity cost of leisure. The policy simulation indicates that the marginal benefits from an improvement in market facility will favor the poorer farmers in the context of India.     

Interlinked credit and farm intensification: evidence from Kenya

This paper addresses the potential for interlinked credit/input/output marketing arrangements for particular cash crops to promote food crop intensification. Using panel survey data from Kenya, we estimate a household fixed-effects model of fertiliser use per hectare of food crops, using an instrumental variables approach for addressing the endogeneity of participation in interlinked credit arrangements. Results indicate that households engaging in interlinked marketing programs for selected cash crops applied considerably greater fertiliser on other crops (primarily cereals) not directly purchased by the cash crop trading firm. These findings suggest that, in addition to the direct stimulus that interlinked cash crop marketing arrangements can have on small farmer incomes, these institutional arrangements may provide spill-over benefits for the productivity of farmers' other activities such as food cropping.     

Perverse supply response in peasant agriculture: A review

Abstract

The long‐running debate concerning the special characteristics of peasant production in less developed countries which may lead to perverse supply responses in their agricultural sectors is explored. Four stages in the debate are identified. The first was based on casual observation and the target income or fixity‐of‐wants hypothesis. The second took account of peasant own‐consumption and focused on the marketed surplus. The third addressed the possible effect of uncertainty and risk aversion on supply response. The fourth is embodied in modern farm household models of peasant behaviour. Although the predictions regarding supply response derived from these models vary, they all suggest that agricultural supply response may be negative. The bulk of empirical evidence, however, for both total production and marketed surplus tends to refute the notion, whether it is theoretically consistent or not, that supply response in peasant agriculture is negative.     

Estimating the supply response of cotton and cereal crops in smallholder production systems: recent evidence from Mali

Cotton is one of the most important crops in West Africa and is a major catalyst of economic development in rural areas, but the sector has suffered from a decline in the world cotton price after 1999. This article exploits an unusual data set following 82 farmers over 14 years, from 1994 through 2007, to estimate a Nerlovian supply response model for cotton, maize, sorghum, and millet in long-term rotation. The resulting system of equations is estimated with two-stage least squares (2SLS), showing that this sample of Malian cotton producers have responded to prices in a relatively inelastic manner, with supply elasticities only about one-half of those estimated for producers in developed countries. Policy reforms could help producers respond more easily to prices changes, as well as to raise average productivity levels.     

Cap reform: modelling supply response subject to the land set-aside

This paper uses duality theory to develop a model of European Community agriculture. The model is used to investigate the impact of the land set-aside provision of the recent package of reforms of the Common Agricultural Policy. We assume that producers chose output and variable input levels that maximize difference between revenue and variable cost. By including first-order conditions for the allocation of land across its uses, we impose that the observed allocations are profit-maximizing allocations. To overcome the problem of incorporating many outputs into an estimable production structure, we imposed a priori the restriction that the technology was weakly separable in major categories of outputs. With this restriction, it was possible to model production decisions in stages using consistent aggregates in the latter stages.     

Land use policies and farming systems: Kenya, Tanzania, Zambia and Mozambique

Land use and farming systems are important considerations in the present African crisis. Evidence of land use problems in four selected African countries — Kenya, Tanzania, Zambia and Mozambique — and how these problems can be resolved are outlined. Policy options and recommendations available to the above four countries are analysed.     

城市供水价格的确定及模型——以兰州市为例

应用价值模糊数学模型和供求关系数学模型对兰州市城市自来水水价进行估算.选定水质、人均水资源量、人均国民生产总值、人口密度4项参数对兰州市的水资源价值进行评价,计算出兰州市城市供水的价格,将计算结果与兰州市的实际供水价格进行了比较,同时运用水资源供求关系模型,对用水量进行了测算,评估了供水价格的变化对城市用水量的影响,通过分析,找出了兰州市实际供水水价中可能存在的问题,为今后兰州市供水价格的调整提供依据.     

Population pressure and soil quality in Sub-Saharan Africa: Panel evidence from Kenya

Population pressure on farmlands can have two opposing effects on soil quality. It can negatively affect soil quality due to more frequent and intensive use of farmlands, but also can induce transition of farming methods towards more intensive farming in which more fertilizer and improved seeds are used in order to make smaller farmlands more productive. In Sub-Saharan Africa, the net effect is likely to be negative given the region’s current low fertilizer use. Recent studies, however, show evidence of agricultural intensification in regions with high population pressure. It is important to analyze the extent and speed of soil degradation and its relationship with population pressure. Nonetheless, empirical studies on this topic are almost non-existent, partly because soil quality is shaped over a long time horizon, and quality panel data on this issue are rare. We use unique panel data for rural households containing soil quality information from Kenya to elucidate the effect of population pressure on soil quality. We find that population pressure reduces soil quality and also induces agricultural intensification. This suggests that although farmers are trying to mitigate the negative effect of population pressure on soil quality, the rate of soil degradation is outpacing that of intensification.