Smallholder farmers’ access to credit in the Amathole District Municipality, Eastern Cape Province, South Africa

Provision of credit has being identified as an important instrument for improving the welfare of smallholder farmers directly and for enhancing productive capacity through financing investment by the farmers in their human and physical capital. This study investigated the individual and household characteristics that influence credit market access in Amathole District Municipality, Eastern Cape Province, South Africa, using a cross sectional data from smallholder farmers’ household survey. The aim is to provide a better understanding of the households’ level socio-economic characteristics, not only because they influence household’s demand for credit but also due to the fact that potential lenders are most likely to base their assessment of borrowers’ creditworthiness on such characteristics. The results of the logistic regression suggest that credit market access was significantly influenced by variables such as gender, education, households’ income, value of assets, savings, dependency ratio, repayment capacity and social capital. Implications for rural credit delivery are discussed.

Factors influencing the success of animal husbandry cooperatives: A case study in Southwest Iran

This survey study aimed at identifying the factors influencing the success of animal husbandry cooperatives in Southwest Iran. Using a questionnaire, the data were collected from 95 managing directors of the cooperatives who were chosen through a multi-stage stratified random sampling method. This study showed an essential need for a systemic framework to analyze the cooperatives’ success. The results showed that the “Honey Bee”, “Cattle (dairy)”, and “Lamb” cooperatives were the most successful among different kinds of the cooperatives. Also, among individual attributes, “interest”, “technical knowledge”, and “understanding the concept of cooperative”; among economic variables, “income” and “current investment”; and among external factors, “market access” have significant correlation with the success while structural variables have no significant relation. Furthermore, among all the factors, four variables (“interest”, “understanding the concept of cooperative”, “market access”, and “other incomes”) can explain the variations of the success.

Yield gap analysis and assessment of climate-induced yield trends of irrigated rice in selected provinces of the Philippines

This study describes a combined empirical/modeling approach to assess the possible impact of climate variability on rice production in the Philippines. We collated climate data of the last two decades (1985-2002) as well as yield statistics of six provinces of the Philippines, selected along a North-South gradient. Data from the climate information system of NASA were used as input parameters of the model ORYZA2000 to determine potential yields and, in the next steps, the yield gaps defined as the difference between potential and actual yields. Both simulated and actual yields of irrigated rice varied strongly between years. However, no climate-driven trends were apparent and the variability in actual yields showed no correlation with climatic parameters. The observed variation in simulated yields was attributable to seasonal variations in climate (dry/wet season) and to climatic differences between provinces and agro-ecological zones. The actual yield variation between provinces was not related to differences in the climatic yield potential but rather to soil and management factors. The resulting yield gap was largest in remote and infrastructurally disfavored provinces (low external input use) with a high production potential (high solar radiation and day-night temperature differences). In turn, the yield gap was lowest in central provinces with good market access but with a relatively low climatic yield potential. We conclude that neither long-term trends nor the variability of the climate can explain current rice yield trends and that agroecological, seasonal, and management effects are over-riding any possible climatic variations. On the other hand the lack of a climate-driven trend in the present situation may be superseded by ongoing climate change in the future.

The role of institutions as actors influencing Uganda’s cassava sector

We aim at mapping out a detailed framework that reveals the proportionate flow of cassava and its products along the value chain (VC). Furthermore, we aim at establishing the role of institutions and the linkages between institutions and other VC actors that influence the cassava VC in Uganda. We use both primary and secondary data obtained from four regions in Uganda. Results show that farmers, processors, transporters, traders, consumers and institutions are the major actors. There are four categories of institutions, viz, government, non-government, community based organisations and international agencies. Roles performed by institutions include: development and enforcement of policies, Research and Development (R&D), capacity building, and creation of market access linkages for cassava and its products. Findings reveal that there is no clear nexus and no coordination among farmers/producers, processors, traders, transporters and consumers. However, institutions are well coordinated and play various roles along the VC to influence the dynamics of actors. Policy-wise it is important to establish strong private-public partnerships to bridge the impaired linkages between the actors (farmers/producers, processors, traders, transporters, and consumers) and institutions. Strong partnerships are envisaged to reduce the associated transaction costs amongst the actors.

Socio-economic characterisation of date palm (Phoenix dactylifera L.) growers and date value chains in Pakistan

Increasing food production to feed its rapidly growing population is a major policy goal of Pakistan. The production of traditional staples such as rice (Oryza sativa L.) and bread wheat (Triticum aestivum L.) has been intensified in many regions, but not in remote, drought-ridden areas. In these arid, marginal environments dates and their by-products are an option to complement staples given their high nutritive value and storability. To fill knowledge gaps about the role of date palm in the household (HH) income of rural communities and the structure of date value chains, this project studied date palm production across six districts in four provinces of Pakistan. During 2012–2013 a total of 170 HHs were interviewed with a structured questionnaire using a snowball sampling approach. The results showed that most of the HH were headed by males (99 %) who were married (74 %) and often illiterate (40 %). Agriculture was the main occupation of date palm growers (56 %), while a few coupled agricultural activities with business (17 %) or extra-farm employment opportunities (government 9 %; private sector 8 %). Date sales contributed >50 % to the total income of 39 % of HH and 90–100 % to 24 % of HH. Overall farmers grew a total of 39 date palm cultivars and cultivated an average of 409 ± 559 mature date palms. The majority of the respondents sold dates to commission agents (35 %), contractors (22 %) and wholesalers (21 %), while 28 % of HH cultivated date palms only for self-consumption. Date palm growers had only limited knowledge about high quality date cultivars, optimized farm management and about effective post-harvest conservation. Changes in extension and marketing efforts are needed to allow farmers to better exploit value chains in date thereby reaping higher benefits from improved market access to secure their often marginal income.

Learning achievements of farmers during the transition to market-oriented organic agriculture in rural Uganda

Organic agriculture requires farmers with the ability to develop profitable agro-enterprises on their own. By drawing on four years of experiences with the Enabling Rural Innovation approach in Uganda, we outline how smallholder farmers transition to organic agriculture and, at the same time, increase their entrepreneurial skills and competences through learning. In order to document this learning we operationalised the Kirkpatrick learning evaluation model, which subsequently informed the collection of qualitative data in two study sites. Our analysis suggests that the Enabling Rural Innovation approach helps farmers to develop essential capabilities for identifying organic markets and new organic commodities, for testing these organic commodities under varying organic farm management scenarios, and for negotiating contracts with organic traders. We also observed several obstacles that confront farmers’ transition to organic agriculture when using the Enabling Rural Innovation approach. These include the long duration of agronomic experimentation and seed multiplication, expensive organic certification procedures and the absence of adequate mechanism for farmers to access crop finance services. Despite prevailing obstacles we conclude that the Enabling Rural Innovation approach provides a starting point for farmers to develop entrepreneurial competences and profitable agro-enterprises on their own.

Regional Labor Market Disparities

Regionale Arbeitsmärkte unterscheiden sich erheblich hinsichtlich wesentlicher Kennzahlen wie der Arbeitslosenquote, des Lohnniveaus oder der Beschäftigungsentwicklung. Wegen ihrer Persistenz sind diese Unterschiede von hoher Relevanz für die Politik. Die wirtschaftswissenschaftliche Literatur liefert bereits theoretische Modelle für die Analyse regionaler Arbeitsmärkte. In der Regel sind diese Modelle aber nicht dazu geeignet, regionale Arbeitsmarktunterschiede endogen zu erklären. Das bedeutet, dass sich die Unterschiede regionaler Arbeitsmärkte in der Regel nicht aus den Modellzusammenhängen selbst ergeben, sondern „von außen“ eingebracht werden müssen. Die empirische Literatur liefert Hinweise, dass die Unterschiede zwischen regionalen Arbeitsmärkten auf die Höhe der regionalen Arbeitsnachfrage zurückzuführen sind. Die Arbeitsnachfrage wiederum leitet sich aus den Gütermärkten ab: Es hängt von der Entwicklung der regionalen Gütermärkte ab, wie viele Arbeitskräfte benötigt werden. Daraus folgt, dass die Ursachen für Unterschiede regionaler Arbeitsmärkte in den Unterschieden zwischen den regionalen Gütermärkten zu suchen sind. Letztere werden durch die Literatur zur Neuen Ökonomischen Geographie (NÖG) untersucht. Die Literatur zur NÖG erklärt Unterschiede regionaler Gütermärkte, indem sie zentripetale und zentrifugale Kräfte gegenüberstellt. Zentripetale Kräfte sind solche, welche hin zur Agglomeration ökonomischer Aktivität wirken. Im Zentrum dieser Diskussion steht vor allem das Marktpotenzial: Unternehmen siedeln sich bevorzugt an solchen Standorten an, welche nahe an großen Märkten liegen. Erwerbspersonen wiederum bevorzugen solche Regionen, welche ihnen entsprechende Erwerbsaussichten bieten. Beides zusammen bildet einen sich selbst verstärkenden Prozess, der zur Agglomeration ökonomischer Aktivität führt. Dem stehen jedoch zentrifugale Kräfte gegenüber, welche eine gleichmäßigere Verteilung ökonomischer Aktivität bewirken. Diese entstehen beispielsweise durch immobile Produktionsfaktoren oder Ballungskosten wie etwa Umweltverschmutzung, Staus oder hohe Mietpreise. Sind die zentripetalen Kräfte hinreichend stark, so bilden sich Zentren heraus, in denen sich die ökonomische Aktivität konzentriert, während die Peripherie ausdünnt. In welchem Ausmaß dies geschieht, hängt von dem Verhältnis beider Kräfte ab. Üblicherweise konzentriert sich die Literatur zur NÖG auf Unterschiede zwischen regionalen Gütermärkten und geht von der Annahme perfekter Arbeitsmärkte ohne Arbeitslosigkeit aus. Die Entstehung und Persistenz regionaler Arbeitsmarktunterschiede kann die NÖG daher üblicherweise nicht erklären. An dieser Stelle setzt die Dissertation an. Sie erweitert die NÖG um Friktionen auf dem Arbeitsmarkt, um die Entstehung und Persistenz regionaler Arbeitsmarktunterschiede zu erklären. Sie greift dazu auf eine empirische Regelmäßigkeit zurück: Zahlreiche Studien belegen einen negativen Zusammenhang zwischen Lohn und Arbeitslosigkeit. In Regionen, in denen die Arbeitslosigkeit hoch ist, ist das Lohnniveau gering und umgekehrt. Dieser Zusammenhang wird als Lohnkurve bezeichnet. Auf regionaler Ebene lässt sich die Lohnkurve mithilfe der Effizienzlohntheorie erklären, die als theoretische Grundlage in der Dissertation Anwendung findet. Konzentriert sich nun die ökonomische Aktivität aufgrund der zentripetalen Kräfte in einer Region, so ist in diesem Zentrum die Arbeitsnachfrage höher. Damit befindet sich das Zentrum auf einer günstigen Position der Lohnkurve mit geringer Arbeitslosigkeit und hohem Lohnniveau. Umgekehrt findet sich die Peripherie auf einer ungünstigen Position mit hoher Arbeitslosigkeit und geringem Lohnniveau wieder. Allerdings kann sich die Lohnkurve in Abhängigkeit des Agglomerationsgrades verschieben. Das komplexe Zusammenspiel der endogenen Agglomeration mit den Arbeitsmarktfriktionen kann dann unterschiedliche Muster regionaler Arbeitsmarktdisparitäten hervorrufen. Die Dissertation zeigt auf, wie im Zusammenspiel der NÖG mit Effizienzlöhnen regionale Arbeitsmarktdisparitäten hervorgerufen werden. Es werden theoretische Modelle formuliert, die diese Interaktionen erklären und welche die bestehende Literatur durch spezifische Beiträge erweitern. Darüber hinaus werden die zentralen Argumente der Theorie einem empirischen Test unterworfen. Es kann gezeigt werden, dass das zentrale Argument – der positive Effekt des Marktpotentials auf die Arbeitsnachfrage – relevant ist. Außerdem werden Politikimplikationen abgeleitet und der weitere Forschungsbedarf aufgezeigt.