15 pages, Food security and agricultural-led industrialisation are pivotal development objectives in Ethiopia. One of the main challenges this country faces is increasing agricultural productivity by integrating smallholder farmers into a high-value agricultural commodity supply chain. This paper examines an integrated project—the Agricultural Value Chains Project in Oromia (AVCPO)—that aims to improve the livelihoods of smallholders in the Bale Zone by involving them in the production of high-quality durum wheat and linking them to the pasta industry via farmers’ cooperatives. Using primary data collected in 2014 and retrospective information, this paper investigates the AVCPO’s effects on the quantity of cereal production, the share of cereals that have been sold through cooperatives, food security, and education. In order to account for potential violations of the exclusion restriction assumption, an instrumental variable approach is applied, together with three additional estimation strategies.
The results suggest that the project has had a large and positive effect on gross and net values of cereal production per hectare, as well as on the share of production sold to pasta makers through cooperatives. These benefits accrue equally to land-rich and land-poor farmers. Furthermore, our analysis suggests that the AVCPO has improved educational outcomes and reduced food insecurity, without affecting crop rotation practices. Overall, our findings point to the effectiveness of the project. Before replicating or scaling up this intervention, however, it is necessary to understand how to better involve poorer farmers and which adjustments are needed if the areas selected have a lower potential than Bale Zone.
22 pages, Smallholder farmers in developing countries encounter multiple barriers in access to inputs and technology, which prevent them from reaping the benefits from market participation. Women farmers face additional constraints due to gender norms that further limit their engagement in productive activities. While collective action has been shown to improve access to markets and economic outcomes for farmers overall, the evidence on the effects of cooperative membership for women smallholders remains limited. We investigate empirically the economic benefits of collective action for women farmers in the honey sector in Ethiopia. Relying on a rich data set on women honey producers, both cooperative members and non-members, we evaluate the effects of belonging to a cooperative on three outcome variables through coarsened exact matching and regression analysis. Our results indicate that cooperative membership significantly increases the market price and the production quantity and, while the average effect on the share of product marketed is statistically insignificant, significant differences emerge for women with given characteristics. These results are shown to be robust to a number of tests that address biases from selection on observables and unobservables. An analysis of the heterogeneous effects of household membership in multiple groups finds that membership of self-help groups or farmer associations amplifies the positive outcomes from belonging to a formal cooperative. Finally, qualitative findings derived from the same communities indicate self-reported improvements in agency and self-esteem among women members, thus reinforcing the importance of the quantitative findings.
21 pages, In this study we explain the concepts, determinants and imperatives of boundary in smallholder producers’ cooperatives both conceptually and empirically. The conceptual framework indicates the importance of the type of goods (being a club good or not) and range of activities that a cooperative provides to its members in defining a competitive boundary. Using unique organisational and market level data from Ethiopia, we then test empirically whether the observed (weak) performance of producers’ cooperatives in Africa is explained by their organisational boundary – the type and range of goods or services they provide to members. The empirical results confirm that the competitiveness of producers’ cooperatives is significantly correlated with the type and number of services – i.e. cooperatives that provide club goods and a limited range of services are found to be more competitive. The results also suggest that a considerable number of cooperatives in Ethiopia engage in markets where they do not have competitive advantage. Overall, we demonstrate the importance of properly defining a viable boundary – proper selection of services (or markets) and limiting the range of services – for improving the competitiveness of membership-based producer cooperatives in Africa.
