1. Research interested
“Contract-farming”(CF) in Staple Food Chains : The case of rice in Benin
2. Article / Journal
World Development
3. Presenter
: Chungmann Kim
4. When
2018. 06. 07. (Thu) - 11:30 ~ 13:00
5. Where
Seminar room 406, Graduate School of International Agricultural Technology
6. Main contents
○ Contract Farming in general
○ The rice sector in Benin
○ ESOP contract farming scheme
○ impact of contract farming in rice sector
7. Method-used
○ OLS, PSM-ATT, DID Comparison
○ Probit model
8. Results
A. Analyzed impact of smallholder participation in a CF in the rice Sector in Benin
B. CF results in
i. Expansion of the rice area
ii. Intensification of rice production
iii. Increased commercialization of rice
iv. Higher farm gate price
v. Rice output growth and increased h/h income
C. CF in general ESOP CF in particular can contribute to the development of the rice sector in Benin
D. Promoting and supporting the spread of CF in the sector might be an effective way to contribute to reaching the government aim of expansion and intensification of rice production, and quality upgrading in the sector.
E. CF in domestic and staple food crop sectors can be sustainable and beneficial for smallholder producers.
F. Contract for staple crops would not be feasible or sustainable due to contract - enforcement problems that stem from a low value of produce, low storage and transport costs, and a larger number of buyers in the chain.
G. Results show that even with a small price premium of 11%, CF in the sector is possible and beneficial
H. Factors that contribute the Success of ESOP CF in Benin
i. Rice is a staple crop for which some quality differentiation and associated added-values possible e price premium to avoid side-selling.
High degree of asset specificity related to leveling, flooding and drainage of land and more possibilities for quality differentiation in compasrison with other staple crops.
ii. Rice sector in Benin is still small, with a limited number of buyers, e avoid side selling
iii. 2008 food price crisis -> price increase in rice sector a ESOP
iv. ESOP business model farmers e resolved contract enforcement problems e Ownership structure