IDEAS home Printed from https://ideas.repec.org/p/ags/eaa149/244791.html
   My bibliography  Save this paper

Determinants of the choice of multi-modes of governance by producers and processors of paddy in Benin

Author

Listed:
  • Codjo, Ogoudélé Simon
  • Fiamohe, Rose
  • Kpenavoun, Sylvain
  • Acclassato, Denis
  • Biaou, Gauthier

Abstract

This research aims at analyzing the factors that influence the choice of the multi-modes of governance by producers and processors of paddy in Benin. Unlike previous researches, it analyzes these factors simultaneously for both producers and processors. Furthermore it explains the multiple choices of governance modes by actors. Finally, this research analyses the influence of institutional environment on the governance mode choice by the actors. Data were collected in Benin from 320 producers and 140 processors of rice selected randomly. The results indicate that the majority of producers (78.04%) and processors (92.69%) use the spot market to sell and procure paddy against 32.78% and 26.43% of producers and processors respectively for the contractual marketing and procurement. Nearly 26.35% of producers use at least two modes of governance to market the paddy, against 19.70% of the processors to procure paddy. Producers and processors that belong to an innovation platform use more formal contracts and farmer associations to market and to procure paddy. The quantities of paddy sold by producers and purchased by processors are unstable on the spot market and through informal contracts. In opposite, these quantities are stable for formal contracts. Knowledge of traditional institutions by the actors positively influences participation in formal and informal contracts. Knowledge of modern institutions negatively affects participation in informal contracts. The innovation platforms can be used to facilitate contracts between farmers and rice processors. Modern and traditional institutions may also be used to assist stakeholders in the enforcement of contracts.

Suggested Citation

  • Codjo, Ogoudélé Simon & Fiamohe, Rose & Kpenavoun, Sylvain & Acclassato, Denis & Biaou, Gauthier, 2016. "Determinants of the choice of multi-modes of governance by producers and processors of paddy in Benin," 149th Seminar, October 27-28, 2016, Rennes, France 244791, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa149:244791
    DOI: 10.22004/ag.econ.244791
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/244791/files/Codjo%20et%20al_149EAAE_Rennes.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.244791?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    3. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    4. Matty Demont & Amy C. Rizzotto, 2012. "Policy Sequencing and the Development of Rice Value Chains in Senegal," Development Policy Review, Overseas Development Institute, vol. 30(4), pages 451-472, July.
    5. Moustier, P., 2012. "Organisation et performance des filières alimentaires dans les pays du Sud : le rôle de la proximité. Synthèse des travaux pour l’habilitation à diriger des recherches," Research serial MoISA, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France, number 201207, April.
    6. Vakis, Renos & Sadoulet, Elisabeth & de Janvry, Alain, 2003. "Measuring Transactions Costs from Observed Behavior: Market Choices in Peru," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7p81h66q, Department of Agricultural & Resource Economics, UC Berkeley.
    7. repec:bla:devpol:v:21:y:2003:i::p:333-355 is not listed on IDEAS
    8. Mandy Ryan & Verity Watson, 2009. "Comparing welfare estimates from payment card contingent valuation and discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 389-401, April.
    9. William M. Dugger, 1996. "The Mechanisms of Governance," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 1212-1216, December.
    10. Polson, Rudulph A. & Spencer, Dunstan S. C., 1991. "The technology adoption process in subsistence agriculture: The case of cassava in Southwestern Nigeria," Agricultural Systems, Elsevier, vol. 36(1), pages 65-78.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meilin Ma & Richard J. Sexton, 2021. "Modern agricultural value chains and the future of smallholder farming systems," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 591-606, July.
    2. Hou, Jianyun & Huo, Xuexi, 2015. "Transaction Costs and Farm-to-Market Linkages: Empirical Evidence from China Apple Producers," 2015 Conference, August 9-14, 2015, Milan, Italy 211746, International Association of Agricultural Economists.
    3. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    4. Oreoluwa Ola & Luisa Menapace, 2020. "Revisiting constraints to smallholder participation in high‐value markets: A best‐worst scaling approach," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 595-608, July.
    5. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    6. Chamberlin, Jordan & Jayne, T.S., 2013. "Unpacking the Meaning of ‘Market Access’: Evidence from Rural Kenya," World Development, Elsevier, vol. 41(C), pages 245-264.
    7. Tray, Bunthan & Garnevska, Elena & Shadbolt, Nicola, 2021. "Linking smallholder producers to high-value markets through vegetable producer cooperatives in Cambodia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(6), February.
    8. Ola, Oreoluwa & Menapace, Luisa, 2020. "Smallholders' perceptions and preferences for market attributes promoting sustained participation in modern agricultural value chains," Food Policy, Elsevier, vol. 97(C).
    9. Cristina Romero Granja & Meike Wollni, 2018. "Dynamics of smallholder participation in horticultural export chains: evidence from Ecuador," Agricultural Economics, International Association of Agricultural Economists, vol. 49(2), pages 225-235, March.
    10. Herforth, Nico & Theuvsen, Ludwig & Vásquez, Wilson & Wollni, Meike, 2015. "Understanding participation in modern supply chains under a social network perspective – evidence from blackberry farmers in the Ecuadorian Andes," GlobalFood Discussion Papers 197709, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    11. Peter G. Klein & Michael E. Sykuta, 2010. "Editors’ Introduction," Chapters, in: Peter G. Klein & Michael E. Sykuta (ed.), The Elgar Companion to Transaction Cost Economics, chapter 1, Edward Elgar Publishing.
    12. Alain de Janvry & Elisabeth Sadoulet, 2019. "Transforming developing country agriculture: Removing adoption constraints and promoting inclusive value chain development," Working Papers hal-02287668, HAL.
    13. Chandra Sekhara Rao Nuthalapati & Yogesh Bhatt & Susanto K Beero, 2020. "Is the Electronic Market the Way Forward to Overcome Market Failures?," IEG Working Papers 387, Institute of Economic Growth.
    14. Phan, Thu-Ha Dang & Brouwer, Roy & Hoang, Long Phi & Davidson, Marc David, 2017. "A comparative study of transaction costs of payments for forest ecosystem services in Vietnam," Forest Policy and Economics, Elsevier, vol. 80(C), pages 141-149.
    15. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    16. Tanski Nilda Catalina & Clérici Cármen & Báez Lucio, 2011. "La Gobernanza en la gestión asociativa entre pymes: sector de la forestoindustria y actividades relacionadas. provincia de misiones, Argentina," Dimensión Empresarial, Universidad Autónoma del Caribe, May.
    17. Cadot, Olivier & Olarreaga, Marcelo & Dutoit, Laure, 2005. "How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?," CEPR Discussion Papers 5392, C.E.P.R. Discussion Papers.
    18. Masud Rana & Keshav Lall Maharjan, 2022. "Participation of Brinjal Farmers in Large and Small Wholesale Markets: Factors Influencing Farmers’ Decisions and Impact on Producers’ Prices," Sustainability, MDPI, vol. 14(4), pages 1-20, February.
    19. Neda Trifković, 2014. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 949-961, July.
    20. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).

    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Farm Management; Production Economics;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaa149:244791. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.