Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model?
The Government of Ghana (GoG) since 2007 has been providing subsidized agricultural machines to individual farmers and private enterprises established as specialized Agricultural Mechanization Services Enterprise Centers (AMSECs) to offer tractor-hire services to small-scale farmers across the count...
| Autores principales: | , , , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2013
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/153392 |
| _version_ | 1855535502491385856 |
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| author | Houssou, Nazaire Diao, Xinshen Cossar, Frances Kolavalli, Shashidhara Jimah, Kipo Aboagye, Patrick Ohene |
| author_browse | Aboagye, Patrick Ohene Cossar, Frances Diao, Xinshen Houssou, Nazaire Jimah, Kipo Kolavalli, Shashidhara |
| author_facet | Houssou, Nazaire Diao, Xinshen Cossar, Frances Kolavalli, Shashidhara Jimah, Kipo Aboagye, Patrick Ohene |
| author_sort | Houssou, Nazaire |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The Government of Ghana (GoG) since 2007 has been providing subsidized agricultural machines to individual farmers and private enterprises established as specialized Agricultural Mechanization Services Enterprise Centers (AMSECs) to offer tractor-hire services to small-scale farmers across the country. Current demand in the country is primarily focused on land preparation services, especially plowing. This paper assesses whether AMSEC enterprises are a viable business model attractive to private investors. Using firm investment theory and field-based data on costs, revenues, and tractor efficiency, this research examines the profitability of specialized agricultural mechanization service provision with a focus on land preparation. Findings suggest that the AMSEC model is not a viable business model, even with the current level of subsidy. Low operational scale is the most important constraint to the profitability of investment in specialized agricultural mechanization service provision. With such a low operational scale, it is essential to consider various options for introducing low-cost, small tractors suited to the current farming scale in the country. Also, a used tractor model is one of the options available for policymakers in the country. Tractor-hire services can play an important role in transforming smallholder agriculture, but with heavy subsidies on big and costly tractors, the subsidy policy can distort supply chain development. As a result, many better-suited and lower-cost machines are unlikely to be introduced into local markets. |
| format | Artículo preliminar |
| id | CGSpace153392 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1533922025-11-06T07:16:32Z Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? Houssou, Nazaire Diao, Xinshen Cossar, Frances Kolavalli, Shashidhara Jimah, Kipo Aboagye, Patrick Ohene farm equipment field preparation mechanization private investment smallholders The Government of Ghana (GoG) since 2007 has been providing subsidized agricultural machines to individual farmers and private enterprises established as specialized Agricultural Mechanization Services Enterprise Centers (AMSECs) to offer tractor-hire services to small-scale farmers across the country. Current demand in the country is primarily focused on land preparation services, especially plowing. This paper assesses whether AMSEC enterprises are a viable business model attractive to private investors. Using firm investment theory and field-based data on costs, revenues, and tractor efficiency, this research examines the profitability of specialized agricultural mechanization service provision with a focus on land preparation. Findings suggest that the AMSEC model is not a viable business model, even with the current level of subsidy. Low operational scale is the most important constraint to the profitability of investment in specialized agricultural mechanization service provision. With such a low operational scale, it is essential to consider various options for introducing low-cost, small tractors suited to the current farming scale in the country. Also, a used tractor model is one of the options available for policymakers in the country. Tractor-hire services can play an important role in transforming smallholder agriculture, but with heavy subsidies on big and costly tractors, the subsidy policy can distort supply chain development. As a result, many better-suited and lower-cost machines are unlikely to be introduced into local markets. 2013 2024-10-01T13:56:04Z 2024-10-01T13:56:04Z Working Paper https://hdl.handle.net/10568/153392 en Open Access application/pdf International Food Policy Research Institute Houssou, Nazaire; Diao, Xinshen; Cossar, Frances; Kolavalli, Shashidhara; Jimah, Kipo; Aboagye, Patrick Ohene 2013. Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? GSSP Working Paper 30. https://hdl.handle.net/10568/153392 |
| spellingShingle | farm equipment field preparation mechanization private investment smallholders Houssou, Nazaire Diao, Xinshen Cossar, Frances Kolavalli, Shashidhara Jimah, Kipo Aboagye, Patrick Ohene Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? |
| title | Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? |
| title_full | Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? |
| title_fullStr | Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? |
| title_full_unstemmed | Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? |
| title_short | Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? |
| title_sort | agricultural mechanization in ghana is specialization in agricultural mechanization a viable business model |
| topic | farm equipment field preparation mechanization private investment smallholders |
| url | https://hdl.handle.net/10568/153392 |
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