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Impacts of Collective Action on Smallholders' Commercialisation: Evidence from Dairy in Ethiopia

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  • Francesconi, Gian Nicola
  • Ruben, Ruerd

Abstract

The impacts of collective action on smallholders' commercialisation are the subject of a heated global debate. This study aims at bringing some empirical evidence into this debate. To do so we collected a unique set of bio-economic data, in 2003 and 2006, comprising information from 50 cooperative farmers and 50 individual farmers located within the same milk-shed in proximity of Addis Ababa. This dataset allowed comparing commercial performance of individual and cooperative dairy farmers, across 2003 and 2006. The empirical findings obtained with an adapted difference in difference analysis suggest that dairy cooperative farmers outperform the otherwise similar individual producers in terms of quantitative performance (market access, herd size and productivity), but also that cooperatives have an overall negative impact on milk quality (fat and protein content) and safety (bacteria contamination) at the farm gate. Finally, between 2003 and 2006, cooperatives showed horizontal expansion (increased number of cooperative members and herds size), but coop-members appeared incapable to either upgrade or intensify their farming systems.

Suggested Citation

  • Francesconi, Gian Nicola & Ruben, Ruerd, 2007. "Impacts of Collective Action on Smallholders' Commercialisation: Evidence from Dairy in Ethiopia," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9418, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa103:9418
    DOI: 10.22004/ag.econ.9418
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    Citations

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    Cited by:

    1. Liverpool-Tasie, Lenis Saweda O., 2014. "Farmer groups and input access: When membership is not enough," Food Policy, Elsevier, vol. 46(C), pages 37-49.
    2. Gashaw Tadesse Abate & Gian Nicola Francesconi & Gian Nicola Francesconi, 2013. "Impact of agricultural cooperatives on smallholders' technical efficiency: evidence from Ethiopia," Euricse Working Papers 1350, Euricse (European Research Institute on Cooperative and Social Enterprises).
    3. Liverpool-Tasie, Lenis Saweda, 2012. "Farmer Groups, Input Access and Intragroup Dynamics: A Case Study of Targeted Subsidies in Nigeria:," IFPRI discussion papers 1197, International Food Policy Research Institute (IFPRI).
    4. Gashaw Tadesse ABATE & Gian Nicola FRANCESCONI & Kindie GETNET, 2014. "Impact Of Agricultural Cooperatives On Smallholders’ Technical Efficiency: Empirical Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 257-286, June.
    5. Bijman, Jos & Hu, Dinghuan, 2011. "The Rise of New Farmer Cooperatives in China: Evidence from Hubei Province," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 39(2), pages 1-15.
    6. Bardhan, D. & Sharma, M.L., 2012. "Determinants and Implications of Smallholder Participation in Dairy Co-operatives: Evidence from Uttarakhand State of India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 67(4), pages 1-20.
    7. Mukundi, Eric & Mathenge, Mary K. & Ngigi, Margaret, 2013. "Sweet Potato Marketing Among Smallholder Farmers: The Role of Collective Action," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160679, African Association of Agricultural Economists (AAAE).
    8. Wanglin Ma & Sanghyun Hong & W. Robert Reed & Jianhua Duan & Phong Luu, 2023. "Yield effects of agricultural cooperative membership in developing countries: A meta‐analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 761-780, September.
    9. Abate, G. T., 2013. "Impact of agricultural cooperatives on smallholders\u2019 technical efficiency: evidence from Ethiopia," IWMI Working Papers H045831, International Water Management Institute.

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    Keywords

    Farm Management;

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