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The groundnuts Fairtrade arrangement and its spillover effects on agricultural commercialization and household welfare outcomes: Empirical evidence from central Malawi

Author

Listed:
  • Kaiyatsa, Stevier
  • Matita, Mirriam
  • Chirwa, Ephraim
  • Mazalale, Jacob

Abstract

We use a unique panel dataset of smallholder farmers that were collected in central rural Malawi in 2006/07 and 2017/18 agricultural seasons to test whether there are spillover effects of groundnut Fairtrade arrangement on small-scale agricultural commercialization and household welfare for smallholder farmers that did not participate in the arrangement. Our findings reveal that implementation of groundnuts the Fairtrade arrangement in Mchinji district has 29% spillover effect on commercialisation intensity for smallholder farmers that did not participate in the arrangement. However, the arrangement did not contribute to the improvement of agricultural income and asset value of non-participants. Based on our results, we recommend government’s support to smallholder farmers to allow them continue commercialising farming, and improve their welfare.

Suggested Citation

  • Kaiyatsa, Stevier & Matita, Mirriam & Chirwa, Ephraim & Mazalale, Jacob, 2020. "The groundnuts Fairtrade arrangement and its spillover effects on agricultural commercialization and household welfare outcomes: Empirical evidence from central Malawi," 94th Annual Conference, April 15-17, 2020, K U Leuven, Belgium (Cancelled) 303707, Agricultural Economics Society - AES.
    • Handle: RePEc:ags:aesc20:303707
    DOI: 10.22004/ag.econ.303707
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    Keywords

    Agricultural and Food Policy; Farm Management; International Relations/Trade;
    All these keywords.

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