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Contract-farming in staple food chains: the case of rice in Benin

Author

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  • Velde, Katrien
  • Maertens, Miet
Abstract
Supply chain upgrading in domestic and staple food chains in developing countries is important for a more efficient supply to growing urban markets. Little research is done on institutional innovations, such as contract-farming, in these chains. Research on the impact of smallholder contract-farming largely focuses on export-oriented high-value commodities. In this paper, we assess the welfare implications of smallholder contract-farming in the rice sector in Benin, using farm-household survey data and applying propensity score matching and difference-in-difference estimation. We find that contract-farming is associated with higher rice incomes, higher yields, higher input use, increased commercialization and higher farm-gate prices.

Suggested Citation

  • Velde, Katrien & Maertens, Miet, 2015. "Contract-farming in staple food chains: the case of rice in Benin," 2015 Conference, August 9-14, 2015, Milan, Italy 212205, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:212205
    DOI: 10.22004/ag.econ.212205
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    Keywords

    Agricultural and Food Policy; Farm Management;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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