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The Evolution of Agricultural Value Chains in Africa

In: African Farmers, Value Chains and Agricultural Development

Author

Listed:
  • Alan de Brauw

    (International Food Policy Research Institute)

  • Erwin Bulte

    (Wageningen University and Research)

Abstract

Agricultural value chains evolve over time in a non-linear process but generally change from traditional to transitional and then more complex forms. The type of firms found in each value chain type differs, and farmers may produce for different types of value chains. The evolution process is driven by several factors, including changing relative prices, income and population growth, urbanization, and technological change. These factors create opportunities for new types of firms along agricultural value chains, and new forms of institutional arrangements, such as contract farming and value chain finance, can begin to replace more traditional institutions like relational contracting and informal moneylenders. We finally consider the role of imported food in shaping opportunities within agricultural value chains, depending both on local factors and transaction costs.

Suggested Citation

  • Alan de Brauw & Erwin Bulte, 2021. "The Evolution of Agricultural Value Chains in Africa," Palgrave Studies in Agricultural Economics and Food Policy, in: African Farmers, Value Chains and Agricultural Development, chapter 0, pages 59-81, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-3-030-88693-6_4
    DOI: 10.1007/978-3-030-88693-6_4
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