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Determinants of Economic Gains from Crop
                       Production in Africa: The Case of Smallholder Group
                          Farmers in the Democratic Republic of Congo
                          E. Birachi , D.Ochieng , G.Owuor , R.Buruchara , J. Ochieng , S. Mapatano ,
                                                  1                            2                         2                                 1                        2                                  3

                                                                                   1. International Center for Tropical Agriculture (CIAT);
                                                                 2. Department of Agricultural Economics, Egerton University, Platform DIOBASS, DRC


Introduction                                                                                                                                       be reinvested in agriculture to increase productivity and
                                                                                                                                                                                                            -
                                                                                                                                                   ence of off-farm income on economic gain could only be
Measures to alleviate poverty among smallholder farmers in Africa                                                                                  substituted if future interventions incorporate more income
have focused on individual farmers all through the 21st century. How-                                                                              generating activities along with the technology package to
ever, these have not yielded much success, forcing research and de-                                                                                enable the resource poor farmers afford improved technol-
velopment organizations to focus their efforts on technological innova-                                                                            ogies whose adoption seemed low.
tions and other interventions through farmer groups.
                                                                                                                                                   In line with the regression results, more credit needs to
The potential gain in productivity through group interventions is a major                                                                          be availed to the farmers to increase economic gains.
factor underlying the need for developing countries to promote groups.                                                                             This could be done through innovative ways to enable
Group actions are analyzed within the concept of collective action.                                                                                the resource poor farmers access credit, for example
                                                                                                                                                   credit in kind (input provision) given the risk averse na-
Based on the new institutional economics approach, collective efforts                                                                              ture of smallholder farmers. Financial institutions should
solve societal problems, and focus on the conditions under which                                                                                   however issue more credit in kind to reduce loss of the
groups of people with common interests choose to act to achieve                                                                                    funds; the credit could be in form of material inputs nec-
                                                                                                                                                   essary to increase agricultural productivity. The lending
of the gaps generated by this situation for example in input and out-
put marketing.                                                                       South Kivu Province, DRC                                      periods given the nature of agricultural production in
                                                                                                                                                   Congo that is characterized by risks of crop failure, erratic
                                                                                     whether there is need to upscale the efforts or not. The      rainfall and pest invasion.
Agricultural set up                                                                  need to link with other institutions depends on the success
                                                                                     of the existing group efforts and without impact assess-      Membership to farmers’ organizations was also ob-

in the DRC                                                                           group efforts. This study contributes to research on agri-
                                                                                     cultural technology interventions aimed at improving pro-
                                                                                                                                                   It should be encouraged among smallholders in order
                                                                                                                                                   to boost productivity and incomes as observed in the
Annual decline in productivity in DR Congo has been estimated at                     ductivity and economic gains among smallholder farmers        mean differences in these variables between group and
0.98% while low annual increment in agricultural production at 2%                    in the DRC.                                                   non-group farmers.
compared to the demographic rise of 3.3% (Vandamme, 2008 and
Mastaki, 2006). Efforts to improve and sustain the sector’s productiv-
ity therefore would be crucial to the nation’s economic development
and the welfare of the people.                                                                                                                     Conclusions
Most farmers have limited access to improved crop varieties of ma-                                                                                 • To achieve improved economic welfare, group efforts
jor crops like maize, cassava, sweet potatoes, bananas and common                                                                                    should be promoted
beans. The decline in productivity has also been partly attributed to                                                                              • The issue of credit access and provision needs a clos-
reduction in soil fertility and high levels of soil erosion such that an es-                                                                         er consideration
timate of 80 kg/ha of nitrogen, Phosphorus and Potassium are lost an-
                                                                                                                                                   • Dissemination of technologies need to reach the high-
nually (Kasereka, 2003).There is a shortage of animal manure due to
                                                                                                                                                     est possible number of farmers and radio appears to
reduction in livestock holdings (Lunze, 2000), that could be used as or-
                                                                                                                                                     offer a better option
ganic fertilizer. Family manpower has reduced following the emigration
of active men and women to urban centers in search of alternative op-

                                                                                                                                                   References
                                                                     mi and
Mashika, 1999).



The research issue                                                                 Discussions 1                                                   Cirimwami, K.J.P., and Mashika B.K.A. (1999). La
                                                                                                                                                      maîtrise de l’espace rural en vue de la sécurité ali-
                                                                                                                                                      mentaire à Kabare-centre: analyse des stratégies
                                                                                   Results show that there were differences in                        d’exploitastion du terroir local. Cahiers du CERPRU
Limited institutional support has been offered to farmers since in-                                                                                   13: 33-44
dependence in 1960 in terms of information, supply and credit re-                  economic gains between group and non-
garding fertilizers. Currently, collective efforts are being made to link          group farmers.                                                  Clague, C. (1997). The New Institutional Economics and
farmers to input and output markets by government, international                                                                                     Economic Development. Institutions and Economic
research institutions such as CIAT and other partners. A plan to en-                                                                                 Development; Growth and Governance in Less De-
hance productivity and economic gains among smallholder farmers in                                                                                   veloped and Post-Socialist Countries. John Hopkins
DRC has been followed by introduction of new improved production                                                                                     University Press, Baltimore and London. Pp. 13-36.
technologies such as new crop varieties, hybrid seeds and use of fer-
                                                                                                                                                   Greene. W.H. (2003). Econometric Analysis. Fifth Edi-
tilizers (inorganic and organic). This has been encouraged through a
                                                                                                                                                     tion., Pearson Education International., Upper Saddle
participatory approach to technology and agricultural information dis-             The changes in farm credit amounts, group member-                 River, New Jersey, USA.
semination that involves farmer groups, research institutions and de-              ship, frequency of listening to radio farmer programs and
velopment partners who initiate rural development projects in DRC.                                                                                 Kasereka, B. (2003). Aménagement du terroir et érosion
                                                                                   gains. Membership to farmer organizations is therefore            des terres autour de Bukavu. Communication person-
 Empirical evidence of the impacts of group efforts on productivity                important as a means of enhancing economic gains of               nelle. Séminaire sur la lutte anti-érosive autour de
and economic welfare of smallholders of the South Kivu territories                 smallholder farmers in the DR Congo                               Bukavu, tenu à Bukavu du 27au 29 mai 2003.
is limited. There is thus the need to bridge the information gap on
                                                                                   Regarding information access through farmer radio pro-          Lunze, L.(2000). Possibilités de gestion de la fertilité
                                                                                   grams, there is need to allocate more radio air time to           des sols au Sud-Kivu smontagneux. Cahiers du
                                                                                   the programs so as to improve the adoption of new agri-           CERPRU 14: 23-26
welfare gain of farmers
                                                                                   cultural technologies. The promising information access         Mastaki, L.N. (2006). Le rôle des goulots
Model                                  Beta           T                            strategy revolves around vigorous promotional activities          d`étranglement de la commercialisation dans
(Constant)                             0.347          0.287                        via radio and should be carried out by interested NGOs,
                                       0.015          0.152                                                                                          l`adoption des innovations agricoles chez les pro-
                                                                                   development partners and research institutions and oth-           ducteurs vivriers du Sud-Kivu (Est de la RD.Congo),
                                       0.086          0.804
                                                                                   er stakeholders to encourage the formation of farmers’            PhD dissertation originale, Université des sciences
                                       0.807          1.87**                       radio listening groups across the territories to allow for        agronomiques de Gembloux, Unité d’Economie et
programs
                                                                                                                                                     Développement Rural.
                                                                                   that improve productivity and economic welfare of small-
                                       0.006          0.055                        holder farmers.
                                       0.02           0.198                                                                                          Walungu, South Kivu, Democratic Republic of Congo.
                                       0.561          5.593***
                                                                                                                                                     Thesis, Katholieke Universiteit Leuven.
                                       0.022
                                       0.10
                                                      0.219
                                                      1.36*
                                                                                   Discussions 2                                                   Notes: The study was based on project interventions
R2                                     0.545                                                                                                       under: CSO-DIOBASS Project in South Kivu. Acknowl-
             2                         0.449                                       of the smallholder farmers as observed in off-farm in-          edgments and to Plateform DIOBASS with funding
                                       5.637***
                                                                                   come realized. Smallholder farmers spent more time in
                                                                                   off-farm activities like running small business enterprises
                                       2.367
                                                                                   to supplement their income. These off-farm activities can

                                                                                                                                                      For more information: e.birachi@cgiar.org

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Economic Gains from Crop Production in DR Congo

  • 1. Determinants of Economic Gains from Crop Production in Africa: The Case of Smallholder Group Farmers in the Democratic Republic of Congo E. Birachi , D.Ochieng , G.Owuor , R.Buruchara , J. Ochieng , S. Mapatano , 1 2 2 1 2 3 1. International Center for Tropical Agriculture (CIAT); 2. Department of Agricultural Economics, Egerton University, Platform DIOBASS, DRC Introduction be reinvested in agriculture to increase productivity and - ence of off-farm income on economic gain could only be Measures to alleviate poverty among smallholder farmers in Africa substituted if future interventions incorporate more income have focused on individual farmers all through the 21st century. How- generating activities along with the technology package to ever, these have not yielded much success, forcing research and de- enable the resource poor farmers afford improved technol- velopment organizations to focus their efforts on technological innova- ogies whose adoption seemed low. tions and other interventions through farmer groups. In line with the regression results, more credit needs to The potential gain in productivity through group interventions is a major be availed to the farmers to increase economic gains. factor underlying the need for developing countries to promote groups. This could be done through innovative ways to enable Group actions are analyzed within the concept of collective action. the resource poor farmers access credit, for example credit in kind (input provision) given the risk averse na- Based on the new institutional economics approach, collective efforts ture of smallholder farmers. Financial institutions should solve societal problems, and focus on the conditions under which however issue more credit in kind to reduce loss of the groups of people with common interests choose to act to achieve funds; the credit could be in form of material inputs nec- essary to increase agricultural productivity. The lending of the gaps generated by this situation for example in input and out- put marketing. South Kivu Province, DRC periods given the nature of agricultural production in Congo that is characterized by risks of crop failure, erratic whether there is need to upscale the efforts or not. The rainfall and pest invasion. Agricultural set up need to link with other institutions depends on the success of the existing group efforts and without impact assess- Membership to farmers’ organizations was also ob- in the DRC group efforts. This study contributes to research on agri- cultural technology interventions aimed at improving pro- It should be encouraged among smallholders in order to boost productivity and incomes as observed in the Annual decline in productivity in DR Congo has been estimated at ductivity and economic gains among smallholder farmers mean differences in these variables between group and 0.98% while low annual increment in agricultural production at 2% in the DRC. non-group farmers. compared to the demographic rise of 3.3% (Vandamme, 2008 and Mastaki, 2006). Efforts to improve and sustain the sector’s productiv- ity therefore would be crucial to the nation’s economic development and the welfare of the people. Conclusions Most farmers have limited access to improved crop varieties of ma- • To achieve improved economic welfare, group efforts jor crops like maize, cassava, sweet potatoes, bananas and common should be promoted beans. The decline in productivity has also been partly attributed to • The issue of credit access and provision needs a clos- reduction in soil fertility and high levels of soil erosion such that an es- er consideration timate of 80 kg/ha of nitrogen, Phosphorus and Potassium are lost an- • Dissemination of technologies need to reach the high- nually (Kasereka, 2003).There is a shortage of animal manure due to est possible number of farmers and radio appears to reduction in livestock holdings (Lunze, 2000), that could be used as or- offer a better option ganic fertilizer. Family manpower has reduced following the emigration of active men and women to urban centers in search of alternative op- References mi and Mashika, 1999). The research issue Discussions 1 Cirimwami, K.J.P., and Mashika B.K.A. (1999). La maîtrise de l’espace rural en vue de la sécurité ali- mentaire à Kabare-centre: analyse des stratégies Results show that there were differences in d’exploitastion du terroir local. Cahiers du CERPRU Limited institutional support has been offered to farmers since in- 13: 33-44 dependence in 1960 in terms of information, supply and credit re- economic gains between group and non- garding fertilizers. Currently, collective efforts are being made to link group farmers. Clague, C. (1997). The New Institutional Economics and farmers to input and output markets by government, international Economic Development. Institutions and Economic research institutions such as CIAT and other partners. A plan to en- Development; Growth and Governance in Less De- hance productivity and economic gains among smallholder farmers in veloped and Post-Socialist Countries. John Hopkins DRC has been followed by introduction of new improved production University Press, Baltimore and London. Pp. 13-36. technologies such as new crop varieties, hybrid seeds and use of fer- Greene. W.H. (2003). Econometric Analysis. Fifth Edi- tilizers (inorganic and organic). This has been encouraged through a tion., Pearson Education International., Upper Saddle participatory approach to technology and agricultural information dis- The changes in farm credit amounts, group member- River, New Jersey, USA. semination that involves farmer groups, research institutions and de- ship, frequency of listening to radio farmer programs and velopment partners who initiate rural development projects in DRC. Kasereka, B. (2003). Aménagement du terroir et érosion gains. Membership to farmer organizations is therefore des terres autour de Bukavu. Communication person- Empirical evidence of the impacts of group efforts on productivity important as a means of enhancing economic gains of nelle. Séminaire sur la lutte anti-érosive autour de and economic welfare of smallholders of the South Kivu territories smallholder farmers in the DR Congo Bukavu, tenu à Bukavu du 27au 29 mai 2003. is limited. There is thus the need to bridge the information gap on Regarding information access through farmer radio pro- Lunze, L.(2000). Possibilités de gestion de la fertilité grams, there is need to allocate more radio air time to des sols au Sud-Kivu smontagneux. Cahiers du the programs so as to improve the adoption of new agri- CERPRU 14: 23-26 welfare gain of farmers cultural technologies. The promising information access Mastaki, L.N. (2006). Le rôle des goulots Model Beta T strategy revolves around vigorous promotional activities d`étranglement de la commercialisation dans (Constant) 0.347 0.287 via radio and should be carried out by interested NGOs, 0.015 0.152 l`adoption des innovations agricoles chez les pro- development partners and research institutions and oth- ducteurs vivriers du Sud-Kivu (Est de la RD.Congo), 0.086 0.804 er stakeholders to encourage the formation of farmers’ PhD dissertation originale, Université des sciences 0.807 1.87** radio listening groups across the territories to allow for agronomiques de Gembloux, Unité d’Economie et programs Développement Rural. that improve productivity and economic welfare of small- 0.006 0.055 holder farmers. 0.02 0.198 Walungu, South Kivu, Democratic Republic of Congo. 0.561 5.593*** Thesis, Katholieke Universiteit Leuven. 0.022 0.10 0.219 1.36* Discussions 2 Notes: The study was based on project interventions R2 0.545 under: CSO-DIOBASS Project in South Kivu. Acknowl- 2 0.449 of the smallholder farmers as observed in off-farm in- edgments and to Plateform DIOBASS with funding 5.637*** come realized. Smallholder farmers spent more time in off-farm activities like running small business enterprises 2.367 to supplement their income. These off-farm activities can For more information: e.birachi@cgiar.org