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Zeszyt 3 (41) 2016 , DOI: 10.17306/JARD.2016.50

Abebe Ejigu Alemu

DETERMINANTS OF SMALLHOLDERS’ PREFERENCE TO HYBRIDS – PROSPECT FOR UPGRADING TO HIGH-VALUE FOOD CHAINS

Uwarunkowania wyboru systemów hybrydowych przez właścicieli małych gospodarstw rolnych – perspektywa unowocześnienia łańcuchów żywności o wysokiej wartości

Abstract:

Hybrid coordination systems (marketing cooperatives and contracts) are in place in agriculture to link smallholder farmers to the global agri-food value chains. With the framework of transaction cost economics, this study, however, is particularly designed to investigate the key determinants pushing dairy farmers to hybrids (marketing cooperatives and contracts), viz. spot market channels in the local food chains. A household survey of 415 smallholder dairy farmers was designed. Data collection was administered using trained enumerators. A multinomial logistic regression model was employed to analyze data and to identify the signifi cant determinants. The results indicate that high transaction costs and resource constraints were found driving farmers to cooperative engagement and contracts, implying that hybrids were found to be a solution to farmers’ constraints of access to information and institutional absence, as well as resource constraints. Policy makers and development partners are advised to strengthen cooperative societies and contract enforcement mechanisms. Providing information and resources to increase smallholders’ capacity with resources appear to be interventions which will enable the agricultural marketing system to properly function by serving smallholders in linking to the global food chains.

Abstract in polish:

Koordynacja systemów hybrydowych funkcjonujących w rolnictwie (umów i współpracy rynkowej) umożliwia zaistnienie małych gospodarstw rolnych w globalnym łańcuchu żywnościowym. W niniejszym artykule, odnosząc się do ekonomicznych kosztów działalności, próbowano wskazać kluczowe czynniki, które decydują o współdziałaniu właścicieli małych gospodarstw rolnych w systemach hybrydowych, tj. w ramach łańcucha żywności dostarczanej na rynek lokalny. W trakcie badania przeprowadzono ankiety w grupie 415 właścicieli małych gospodarstw rolnych. Do analizy danych i w celu zidenty- fi kowania najważniejszych czynników zastosowano wielomianowy logistyczny model regresji. Wykazano, że wysokie koszty transakcji i ograniczone zasoby były głównym czynnikiem podejmowania współpracy i podpisywania umów, co oznacza, że systemy hybrydowe uznawano za dobre rozwiązanie wobec ograniczonego dostępu do informacji i zasobów oraz braku dzia- łania w ramach istniejących instytucji. Decydenci i partnerzy w dziedzinie rozwoju powinni zatem wspierać spółdzielczość i mechanizmy określone w umowach. Dostarczanie informacji i wspieranie pozycji właścicieli małych gospodarstw rolnych powinno umożliwić im dostęp do systemu rynkowego ułatwiającego właściwe funkcjonowanie, tak aby mogli uczestniczyć w globalnym łańcuchu żywnościowym.

Keywords: contract, cooperatives, hybrids, mlogit, smallholder

Keywords in polish: umowa, spółdzielnie, systemy hybrydowe, mlogit, małe gospodarstwo

PDF in in english Full text available in english in Adobe Acrobat format:
www.jard.edu.pl/vol41/issue3/art_50.pdf
http://dx.doi.org/.10.17306/JARD.2016.50
For citation:

MLA Alemu, Abebe Ejigu. "DETERMINANTS OF SMALLHOLDERS’ PREFERENCE TO HYBRIDS – PROSPECT FOR UPGRADING TO HIGH-VALUE FOOD CHAINS." J. Agribus. Rural Dev. 41.3 (2016): 237-247.
APA Abebe Ejigu Alemu (2016). DETERMINANTS OF SMALLHOLDERS’ PREFERENCE TO HYBRIDS – PROSPECT FOR UPGRADING TO HIGH-VALUE FOOD CHAINS. J. Agribus. Rural Dev. 41 (3), 237-247
ISO 690 ALEMU, Abebe Ejigu. DETERMINANTS OF SMALLHOLDERS’ PREFERENCE TO HYBRIDS – PROSPECT FOR UPGRADING TO HIGH-VALUE FOOD CHAINS. J. Agribus. Rural Dev., 2016, 41.3: 237-247.
Corresponding address:
PhD, Abebe Ejigu Alemu, College of Graduate Studies UNISA, Tshwane, South Africa; Mekelle University, Mekelle Tigray, 231 Tigray, Ethiopia
Authors email:
alemuae@unisa.ac.za

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