Intermediaries perform important functions in the African agriculture sector, such as linking producers to information, markets and finance. They often rely on their social network capital (SNC) to perform these functions. This study examines the relationship between the use of information and communication technologies (ICTs) by intermediaries, social network capital and the functioning of agricultural markets, with a focus on coordination and information exchange. To this end, 1571 extension agents, output dealers and input dealers were surveyed in Ghana, Kenya, Mali and Nigeria. The results show that all intermediaries use ICTs to facilitate networking, coordination and information exchanges, albeit to differing degrees. Dealers use ICTs primarily to facilitate bonding capital within their intermediary group, but also bridging capital with producers. Extension agents use ICTs most extensively to facilitate both bonding and bridging capital with the widest range of actors. Easier sharing of information, in particular about prices and to a lesser extent potential trading partners, is the main SNC-related benefit in marketing. Regarding coordination activities, ICTs are generally perceived to be more useful in facilitating existing rather than increasing marketing networks. The utility differs by dealer type, however. Output wholesalers benefit the most from increases in network size as a result of using ICTs, in particular to expand linkages with buyers. Digital marketing platforms should build on existing trading relationships and ICT use, and capitalize on intermediaries' digital skills, technological capacities and digitally enabled networks to improve service delivery and cover the last mile to producers.
An enabling, evidence-based decision-making framework is critical to support agricultural biotechnology innovation, and to ensure farmers’ access to genetically modified (GM) crops, including orphan crop varieties. A key element, and often a challenge in the decision-making process, involves the balancing of identified potential risks with expected economic benefits from GM crops. The latter is particularly challenging in the case of orphan crops, for which solid economic data is scarce. To address this challenge, the International Food Policy Research Institute (IFPRI) in collaboration with local economists analyzed the expected economic benefits to farmers and consumers from the adoption of GM crops in 5 sub-Saharan African countries. This paper focuses on case studies involving insect-resistant cowpea in Nigeria and Ghana; disease-resistant cassava in Uganda and Tanzania; and disease-resistant banana in Uganda. Estimations from these case studies show substantial economic benefits to farmers and consumers from the timely adoption and planting in farmers’ fields of GM orphan crops. Our analysis also shows how the benefits would significantly be reduced by regulatory or other delays that affect the timely release of these crops. These findings underscore the importance of having an enabling policy environment and regulatory system—covering, among other elements, biosafety and food/feed safety assessment, and varietal release registration—that is efficient, predictable, and transparent to ensure that the projected economic benefits are delivered and realized in a timely manner.
Since oil prices’ decline in 2014, agriculture has received renewed interest in Nigeria as a key sector for achieving sustainable growth and generating foreign exchange. One of the identified obstacles to achieving these goals is the need to improve agricultural productivity. Cowpea is one of the priority crops identified for productivity improvement. Currently cowpea yields are below 900 kg/ha, but it has been shown that with the right technology, these yields could potentially double. One of the main biotic constraints for cowpea is the infestation of the insect pod borer (Maruca Vitrata). No conventional variety has been developed to resist this pest, but with the use of biotechnology and the sustained collaboration of national and international partners over many years, there is now a genetically modified pod-borer-resistant (or more generally insect-resistant) cowpea. This paper estimates the potential economic benefits of adopting this new technology and the cost that Nigeria will incur if this adoption is delayed. The analysis is conducted using an economic surplus partial equilibrium model run with the newly developed DREAMpy software, data drawn from the Nigeria General Household Survey 2015–2016, estimations using these data, and other local sources. The estimations show that if the insect-resistant cowpea is planted in 2020, the net present-value benefits for producers and consumers would be around US$350 million, 70 percent of which would be accrued by producers. The distribution of benefits by region show that Sudan-Sahel will accrue the most benefits, given the relative concentration of cowpea in this region and the estimated higher adoption rates and yield changes. Almost half of producers’ total benefit will go to large producers, who represent only 20 percent of all cowpea producers, while small producers, representing half of all cowpea producers, will receive 24 percent of the benefit. Additionally, the analysis shows that a five-year regulatory delay will decrease the estimated benefits by around 35 percent. While Nigeria already has in place a competent biosafety system that will most likely ensure that these regulatory delays will not materialize, these estimations highlight the importance of having an evidence-based, efficient, predictable, and transparent regulatory system to ensure that the expected economic benefits are realized.
This paper reviews the constraints hindering growth of agricultural productivity in Nigeria by providing an overview of the policy environment that affects agricultural productivity, establishing how the policy environment affects productivity improvement, and proposing lessons relevant for future research and policymaking to promote productivity growth in Nigeria
community-driven development (CDD) approach has become increasingly popular because of its potential to develop projects that are sustainable, are responsive to local priorities, empower local communities, and more effectively target poor and vulnerable groups. The purpose of this study is to assess the impacts of Fadama II, which is a CDD project and the largest agricultural project in Nigeria. This study used propensity score matching (PSM) to select 1728 comparable project beneficiaries and non-beneficiaries. The study also used double difference methods to compare the impact indicators. Our results show that Fadama II project succeeded in targeting the poor and women farmers in its productive asset acquisition component. Participation in the project also increased the income of beneficiaries by about 60 percent, which is well above the targeted increase of only 20 percent in the six year period of the project. Regarding rural infrastructure investments, we found that the Fadama II project had positive near-term impacts on beneficiaries' access to markets and transportation costs, although the study revealed surprising effects on beneficiaries' commercial behavior and statistically insignificant impacts on nonfarm activities. We also observed that Fadama II increased the demand for postharvest handling technologies but did not have a significant impact on the demand for financial management and market information. Fadama II reduced the demand for soil fertility management technologies. The decline likely reflects the project's focus on providing postproduction advisory services and suggests the need for the project to increase its support for soil fertility management and thus limit the potential for land degradation resulting from increased agricultural productivity. Overall, the Fadama II project has achieved its goal of increasing the incomes of the beneficiaries in the first year of its operation. The project has also succeeded in targeting the poor and vulnerable in its productive-asset component, even though that did not appear to increase significantly short-term household incomes among the poorest asset tercile. The unique feature that could have contributed to the significant impact of the project in a short time is its broad-based approach, which addresses the major constraints limiting the success of CDD projects that address only one or two constraints. This has implications on planning poverty reduction efforts in low-income countries. Given that the poor face numerous constraints, a CDD project that simultaneously addresses many constraints will likely build synergies that will lead to larger impacts than will a project that addresses only one or two constraints. This suggests the need for the government and donors to pool resources and initiate multipronged CDD projects rather than many isolated projects. from Author's Abstract
: This study aims at analyzing economics of vertical integration in poultry industry in Ogun and Oyo States. The study examines the production systems and analyses costs and returns to non-integrated and vertically integrated poultry farms. Primary data were generated using structured questionnaires in a field survey of 100 non-integrated poultry farms, 70 partially integrated poultry farms and 40 fully poultry integrated farms. The analytical techniques employed include descriptive statistics and stochastic production frontier function. Predicted technical efficiencies range between 65% and 97%. The results show that about 49% of the sampled poultry farms have technical efficiencies greater than 90% operating close to the technology frontier. The higher the level of vertical integration the greater the technical efficiency. Key words: Poultry industry, Ogun and Oyo States, production systems
Enhanced agricultural productivity is the key issue being presently discussed by agricultural stakeholders as being imperative to the attainment of food security, reducing the present high rate of unemployment and the diversification of Nigeria’s economy from being oil dependent. This study therefore attempts to isolate factors that drive agricultural crop productivity in Nigeria. The study made use of panel data from 36 states and Federal Capital territory between 1995 and 2006. Livestock, Fisheries and forestry data were not readily available and therefore not analyzed in this report. The econometric model used in this paper is a panel data model that takes into consideration OLS random and fixed effects as well as GLS with fixed state effect models. The results indicate that increase in agricultural crop production in Nigeria is based on land expansion. The share of the female labour is positively associated with productivity suggesting higher productivity of the female labour. The results confirm the important role that female farmers play in food production and ensuring food security. Fertilizer use was positively associated with productivity but the association was not significant. The non-significant impact of fertilizer on crop productivity might be due to inadequate use of fertilizer, while the positive association is an indication that it is a yield enhancing technology.The results of the models with year dummies show that crop area has a slightly negative and significant association with value of production. The finding of this paper makes it imperative to suggest the need for adoption of technologies that will bring about productivity gains in crop production through less of land expansion practices. It is also recommended that farmers’ capacity in terms of right quantity use of fertilizer should be enhanced, while female farmers’ participation in crop production should be encouraged.