The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya

Pervasive threats of climate change and land degradation have compounded the inherent low farm productivity problem in sub-Saharan Africa. Though sustainable agricultural intensification practices have been shown to improve the resilience of farm production in the face of these emerging threats, the...

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Autores principales: Mulwa, C.K., Muyanga, M., Visser, M.
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/114714
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author Mulwa, C.K.
Muyanga, M.
Visser, M.
author_browse Mulwa, C.K.
Muyanga, M.
Visser, M.
author_facet Mulwa, C.K.
Muyanga, M.
Visser, M.
author_sort Mulwa, C.K.
collection Repository of Agricultural Research Outputs (CGSpace)
description Pervasive threats of climate change and land degradation have compounded the inherent low farm productivity problem in sub-Saharan Africa. Though sustainable agricultural intensification practices have been shown to improve the resilience of farm production in the face of these emerging threats, they suffer low adoption rates typical of any technology adoption in these regions. Recent evidence points to an emergence of large traders in smallholder grain markets of countries in sub-Saharan Africa. Given their big financial and operational capacities, the hypothesis is that they can drive the elusive transformation in agri-food systems by enhancing sustainable production and marketing for smallholder farmers. This study tests this hypothesis using a decade-long large-panel dataset from Kenya. A dynamic random effects Probit model and a control function approach are used to evaluate the dynamism in adopting sustainable agricultural inputs and the effect of large grain traders in enhancing the adoption of these inputs at the farm level. Results indicate that sales to large grain traders lead to higher adoption of inorganic fertilizer and improved seed, key agricultural intensification inputs. Land ownership is also shown to be a key success factor for entry into large-grain-trader markets. Lastly, the adoption of improved seed and organic manure is persistent across time, indicating state dependence in using these inputs. These results suggest that strategies to foster engagements between large grain traders and farmers can enhance the uptake of sustainable intensification inputs. Such strategies should be accompanied by efforts to improve access to these markets by resource-poor farmers who are primarily smallholders.
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spelling CGSpace1147142025-02-19T13:42:17Z The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya Mulwa, C.K. Muyanga, M. Visser, M. sustainable intensification smallholders kenya Pervasive threats of climate change and land degradation have compounded the inherent low farm productivity problem in sub-Saharan Africa. Though sustainable agricultural intensification practices have been shown to improve the resilience of farm production in the face of these emerging threats, they suffer low adoption rates typical of any technology adoption in these regions. Recent evidence points to an emergence of large traders in smallholder grain markets of countries in sub-Saharan Africa. Given their big financial and operational capacities, the hypothesis is that they can drive the elusive transformation in agri-food systems by enhancing sustainable production and marketing for smallholder farmers. This study tests this hypothesis using a decade-long large-panel dataset from Kenya. A dynamic random effects Probit model and a control function approach are used to evaluate the dynamism in adopting sustainable agricultural inputs and the effect of large grain traders in enhancing the adoption of these inputs at the farm level. Results indicate that sales to large grain traders lead to higher adoption of inorganic fertilizer and improved seed, key agricultural intensification inputs. Land ownership is also shown to be a key success factor for entry into large-grain-trader markets. Lastly, the adoption of improved seed and organic manure is persistent across time, indicating state dependence in using these inputs. These results suggest that strategies to foster engagements between large grain traders and farmers can enhance the uptake of sustainable intensification inputs. Such strategies should be accompanied by efforts to improve access to these markets by resource-poor farmers who are primarily smallholders. 2021-03 2021-08-21T06:00:28Z 2021-08-21T06:00:28Z Journal Article https://hdl.handle.net/10568/114714 en Limited Access Wiley Mulwa, C. K., Muyanga, M., & Visser, M. (2021). The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya. Agricultural Economics. ISSN 1574-0862. 52(2), 329–341.
spellingShingle sustainable intensification
smallholders
kenya
Mulwa, C.K.
Muyanga, M.
Visser, M.
The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya
title The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya
title_full The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya
title_fullStr The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya
title_full_unstemmed The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya
title_short The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya
title_sort role of large traders in driving sustainable agricultural intensification in smallholder farms evidence from kenya
topic sustainable intensification
smallholders
kenya
url https://hdl.handle.net/10568/114714
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