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Functionality of markets and the
economic analysis of sustainable
intensification technologies
Julius Manda
International Institute of Tropical Agriculture (IITA)
Africa RISING ESA Project review and planning meeting
11 – 12 September 2019, Dar es Salaam, Tanzania
Introduction
• Consensus that market access for smallholder farmers lead to increased
adoption of agricultural technologies, income and food security leading
to poverty alleviation.
• Smallholder challenges: Lack of information on prices and
technologies, high transaction costs, collective action, underdeveloped
market infrastructure, and credit constraints.
• Collective action:
 Important in reducing transaction costs, secure access to new
technologies, and improve farmers’ bargaining power.
 linkages across the market chain and connect producers,
processors, and buyers into networks that would be beneficial for
all actors.
• Understanding the factors that determine collective action and market
participation important
Output 4.2: Collective action models and alternative approaches linking farmers to
markets developed and pilot tested
• Activity 4.2.1: Identify and evaluate existing mechanisms that inform farmers
about dynamic market needs
• Sub-activity 4.2.1.1. Examine mechanisms that inform farmers about
dynamic market needs and factors that influence collective action in market
participation
 Objective: To identify existing mechanisms that inform farmers about
dynamic market needs and factors that influence collective action in the
maize and common beans markets.
 Location: Babati, Kongwa and Kiteto districts
Research team & role Deliverables Means of
verification
Timeline SI domains, indicators and
metrics
Julius Manda (IITA):
Research design, data
collection and cleaning,
analysis and report write-
up
Gundula Fischer (IITA):
Gender analysis
Job Kihara & Bright
Jumbo
Existing mechanisms that
inform farmers about the
maize and beans markets
identified
Technical report,
draft manuscript
September
2020
Economic:
• Market participation: %
of produce sold
Social:
• Gender equity: Market
participation by genderDeterminants of maize
and beans collective
marketing, including
gender analyzed.
Technical report,
draft manuscript
September
2020
• Activity 4.2.2: Conduct an analysis of the existing baseline survey data and
supplement them with qualitative surveys from target regions.
• Sub-activity 4.2.2.1. Assess the welfare effects of participating in maize,
groundnuts, and pigeon peas markets in Malawi, Tanzania and Zambia.
 Objective: To examine the determinants, extent and welfare effects of
market participation in maize, groundnuts, and pigeon peas markets in
Malawi, Tanzania and Zambia.
 Location: Malawi, Tanzania and Zambia.
Research team & role Deliverables Mean of
verification
Timeline SI domains,
indicators & metrics
Julius Manda (IITA): Data
cleaning, analysis and draft
manuscript
Beliyou Haile & Carlo Azzarri
(IFPRI): Information on the
Malawi and Tanzania
baseline surveys
Gundula Fischer (IITA):
Gender analysis
Regis Chikowo;
Sieglinde Snapp (MSU) :
Information on the Malawi
panel survey
Munyaradzi (CIMMYT):
SIMLEZA data
Determinants and intensity of
participation in the maize,
groundnuts and pigeon pea
markets analyzed
Survey report
and draft
manuscript
September
2020
Economic:
• Market
participation: %
of produce sold
• Poverty: Per
capita
expenditure
Social:
• Gender equity:
Market
participation by
gender
Human Condition:
• Food security:
Food production
and availability
The extent to which female-
headed and male-headed
households exhibit differential
participation in maize,
groundnut and pigeon pea
markets established
Survey report
and draft
manuscript
September
2020
The effect of selling maize,
groundnut and pigeon pea at
farmgate, local and urban
markets on household food
security, household income,
and poverty estimated
Survey report
and draft
manuscript
September
2020
Output 1: Economic analysis of selected Sustainable Intensification technologies
conducted.
• Activity 1: Conduct an analysis of the economic returns of soil and water
conservation technologies in central Tanzania.
• Sub-activity 1.1 Assess the effect of TR/RTR and Fanya-juu’ terracing on
maize productivity, household income and food security.
 Objective: To estimate the effect of TR/RTR and Fanya-juu’
terracing on maize productivity, net returns, household income and
food security.
 Location: Kongwa and Kiteto districts.
Research team & role Deliverables Means of
verification
Timeline SI domains,
indicators and
metrics
Julius Manda (IITA): Design
data collection tools,
coordinate survey, data
analysis and draft manuscript
Francis Muthoni (IITA): GPS
measurement of plots &
sampling
Gundula Fischer (IITA):
Gender analysis
Lieven Claessens (IITA):
Systems analysis
Elirehema Swai: Information
and data on the SWC
technologies
Socio-economic and community
factors (including gender)
affecting the use and non-use of
tied ridging, residual tied ridging
and Fanya-juu terracing identified
Draft
manuscript
September
2020
Productivity:
• Crop productivity:
maize yield (kg/ha)
Economic:
• Profitability: Net
income ($/ha)
Environmental:
• Pesticide & herbicide
use: Amount of
pesticide and
herbicides used
Social:
• Gender equity:
Management control
by gender
Human condition:
• Food security: Food
production and
months of food
insecurity
The economic benefits of
conventional tied ridging and
residual tied ridging established
Draft
manuscript
September
2020
The effect of tied ridging/residual
tied ridging and Fanya-juu
terracing on maize yields, net
returns, household income, asset
ownership and food security
analyzed
Draft
manuscript
September
2020
• Activity 2: Analyze the factors affecting the joint adoption of sustainable
intensification practices and impact on maize productivity.
• Sub-activity 2.1: Determine the effect of the joint adoption of improved
maize varieties and maize-legume intercropping on maize productivity and
crop incomes in Malawi.
 Objective: To examine the effect of the joint adoption of improved maize
varieties and maize-legume intercropping on maize productivity and net
incomes in Malawi.
 Location: Dedza, Mangochi and Ntcheu districts.
Research team & role Deliverables Means of
verification
Timeline SI domains,
indicators and
metrics
Julius Manda (IITA): Data
cleaning, analysis, draft
manuscript
Regis Chikowo;
Sieglinde Snapp (MSU):
Data and details on the
panel survey
Determinants of the joint
adoption of improved maize
varieties and legume-maize
intercropping analyzed
Survey report
and draft
manuscript
September
2020
Productivity:
• Crop productivity:
maize yield (kg/ha)
Economic:
• Profitability: Net
income ($/ha)
Environmental:
• Pesticide & herbicide
use: Amount of
pesticide and
herbicides used
Social:
• Collection action:
Participation in
collection action
Human condition:
• Food security: Food
production
The yield and income effects of
the joint adoption improved
maize and intercropping
examined
Survey report
and draft
manuscript
September
2020
The land productivity and plot
size inverse hypothesis tested
Survey report
and draft
manuscript
September
2020
Moving forward as you prepare your workplans:
• Profitability analysis: Gross margin analysis is good for enterprise selection,
but we can go further:
 Cost-benefit analysis
 Marginal analysis (breakeven analysis): Breakeven yield and price
 Other indicators : Returns to labour and input use intensity
• Early adoption : Adoption constraints, dis-adoption and opportunities.
• Early impacts: Ex-post and ex-ante impacts.
 Ex-ante impacts with plot/field and household data.
Africa Research in Sustainable Intensification for the Next Generation
africa-rising.net
This presentation is licensed for use under the Creative Commons Attribution 4.0 International Licence.
Thank You

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Functionality of markets and the economic analysis of sustainable intensification technologies

  • 1. Functionality of markets and the economic analysis of sustainable intensification technologies Julius Manda International Institute of Tropical Agriculture (IITA) Africa RISING ESA Project review and planning meeting 11 – 12 September 2019, Dar es Salaam, Tanzania
  • 2. Introduction • Consensus that market access for smallholder farmers lead to increased adoption of agricultural technologies, income and food security leading to poverty alleviation. • Smallholder challenges: Lack of information on prices and technologies, high transaction costs, collective action, underdeveloped market infrastructure, and credit constraints. • Collective action:  Important in reducing transaction costs, secure access to new technologies, and improve farmers’ bargaining power.  linkages across the market chain and connect producers, processors, and buyers into networks that would be beneficial for all actors. • Understanding the factors that determine collective action and market participation important
  • 3. Output 4.2: Collective action models and alternative approaches linking farmers to markets developed and pilot tested • Activity 4.2.1: Identify and evaluate existing mechanisms that inform farmers about dynamic market needs • Sub-activity 4.2.1.1. Examine mechanisms that inform farmers about dynamic market needs and factors that influence collective action in market participation  Objective: To identify existing mechanisms that inform farmers about dynamic market needs and factors that influence collective action in the maize and common beans markets.  Location: Babati, Kongwa and Kiteto districts
  • 4. Research team & role Deliverables Means of verification Timeline SI domains, indicators and metrics Julius Manda (IITA): Research design, data collection and cleaning, analysis and report write- up Gundula Fischer (IITA): Gender analysis Job Kihara & Bright Jumbo Existing mechanisms that inform farmers about the maize and beans markets identified Technical report, draft manuscript September 2020 Economic: • Market participation: % of produce sold Social: • Gender equity: Market participation by genderDeterminants of maize and beans collective marketing, including gender analyzed. Technical report, draft manuscript September 2020
  • 5. • Activity 4.2.2: Conduct an analysis of the existing baseline survey data and supplement them with qualitative surveys from target regions. • Sub-activity 4.2.2.1. Assess the welfare effects of participating in maize, groundnuts, and pigeon peas markets in Malawi, Tanzania and Zambia.  Objective: To examine the determinants, extent and welfare effects of market participation in maize, groundnuts, and pigeon peas markets in Malawi, Tanzania and Zambia.  Location: Malawi, Tanzania and Zambia.
  • 6. Research team & role Deliverables Mean of verification Timeline SI domains, indicators & metrics Julius Manda (IITA): Data cleaning, analysis and draft manuscript Beliyou Haile & Carlo Azzarri (IFPRI): Information on the Malawi and Tanzania baseline surveys Gundula Fischer (IITA): Gender analysis Regis Chikowo; Sieglinde Snapp (MSU) : Information on the Malawi panel survey Munyaradzi (CIMMYT): SIMLEZA data Determinants and intensity of participation in the maize, groundnuts and pigeon pea markets analyzed Survey report and draft manuscript September 2020 Economic: • Market participation: % of produce sold • Poverty: Per capita expenditure Social: • Gender equity: Market participation by gender Human Condition: • Food security: Food production and availability The extent to which female- headed and male-headed households exhibit differential participation in maize, groundnut and pigeon pea markets established Survey report and draft manuscript September 2020 The effect of selling maize, groundnut and pigeon pea at farmgate, local and urban markets on household food security, household income, and poverty estimated Survey report and draft manuscript September 2020
  • 7. Output 1: Economic analysis of selected Sustainable Intensification technologies conducted. • Activity 1: Conduct an analysis of the economic returns of soil and water conservation technologies in central Tanzania. • Sub-activity 1.1 Assess the effect of TR/RTR and Fanya-juu’ terracing on maize productivity, household income and food security.  Objective: To estimate the effect of TR/RTR and Fanya-juu’ terracing on maize productivity, net returns, household income and food security.  Location: Kongwa and Kiteto districts.
  • 8. Research team & role Deliverables Means of verification Timeline SI domains, indicators and metrics Julius Manda (IITA): Design data collection tools, coordinate survey, data analysis and draft manuscript Francis Muthoni (IITA): GPS measurement of plots & sampling Gundula Fischer (IITA): Gender analysis Lieven Claessens (IITA): Systems analysis Elirehema Swai: Information and data on the SWC technologies Socio-economic and community factors (including gender) affecting the use and non-use of tied ridging, residual tied ridging and Fanya-juu terracing identified Draft manuscript September 2020 Productivity: • Crop productivity: maize yield (kg/ha) Economic: • Profitability: Net income ($/ha) Environmental: • Pesticide & herbicide use: Amount of pesticide and herbicides used Social: • Gender equity: Management control by gender Human condition: • Food security: Food production and months of food insecurity The economic benefits of conventional tied ridging and residual tied ridging established Draft manuscript September 2020 The effect of tied ridging/residual tied ridging and Fanya-juu terracing on maize yields, net returns, household income, asset ownership and food security analyzed Draft manuscript September 2020
  • 9. • Activity 2: Analyze the factors affecting the joint adoption of sustainable intensification practices and impact on maize productivity. • Sub-activity 2.1: Determine the effect of the joint adoption of improved maize varieties and maize-legume intercropping on maize productivity and crop incomes in Malawi.  Objective: To examine the effect of the joint adoption of improved maize varieties and maize-legume intercropping on maize productivity and net incomes in Malawi.  Location: Dedza, Mangochi and Ntcheu districts.
  • 10. Research team & role Deliverables Means of verification Timeline SI domains, indicators and metrics Julius Manda (IITA): Data cleaning, analysis, draft manuscript Regis Chikowo; Sieglinde Snapp (MSU): Data and details on the panel survey Determinants of the joint adoption of improved maize varieties and legume-maize intercropping analyzed Survey report and draft manuscript September 2020 Productivity: • Crop productivity: maize yield (kg/ha) Economic: • Profitability: Net income ($/ha) Environmental: • Pesticide & herbicide use: Amount of pesticide and herbicides used Social: • Collection action: Participation in collection action Human condition: • Food security: Food production The yield and income effects of the joint adoption improved maize and intercropping examined Survey report and draft manuscript September 2020 The land productivity and plot size inverse hypothesis tested Survey report and draft manuscript September 2020
  • 11. Moving forward as you prepare your workplans: • Profitability analysis: Gross margin analysis is good for enterprise selection, but we can go further:  Cost-benefit analysis  Marginal analysis (breakeven analysis): Breakeven yield and price  Other indicators : Returns to labour and input use intensity • Early adoption : Adoption constraints, dis-adoption and opportunities. • Early impacts: Ex-post and ex-ante impacts.  Ex-ante impacts with plot/field and household data.
  • 12. Africa Research in Sustainable Intensification for the Next Generation africa-rising.net This presentation is licensed for use under the Creative Commons Attribution 4.0 International Licence. Thank You