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    Value chain integration for rural co-operatives : comparative analysis in the rice sector in Sri Lanka : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Agribusiness at Massey University, Palmerston North, New Zealand
    (Massey University, 2021) Fernando, Prageeth Sanjaya
    Agri-food industry is transforming in developing countries due to trade liberalisation, globalisation and urbanisation trends. As a result, linking smallholder farmers to modern markets has been a concern among scholars, development agencies and policymakers. Although the transformation in agri-food industry has created many opportunities for smallholder farmers to elevate their income and welfare, they are confronted with many challenges such as poor access to technology, information, inputs, credits, and value-adding services. In this context; co-operatives are recognised to play an important role in improving smallholder farmers' market access. There is an ample amount of literature that discusses the advantages co-operatives are providing to their members/smallholder farmers. Most recent studies on co-operatives have compared members to non-members in terms of benefits and performance. Nevertheless, member benefits and performance of vertically integrated co-operatives gain less attention despite their importance. Vertically integrated co-operatives perform a range of activities related to supply of inputs, services and market information. Yet, there is scant information on how co-operatives' vertical integration benefits their members/smallholder farmers. This study aims to analyse and compare member benefits and performance of co-operatives vertically integrated into two levels: partially and fully integrated co-operatives. In particular, this study addresses whether there are better performance and members' benefits in fully integrated co-operatives than partially integrated co-operatives. This study was conducted in one of the main rice-producing provinces in Sri Lanka using a mixed-methods approach. Co-operatives involved in rice business activities in the province were studied and divided based on their level of vertical integration: partially or fully integrated. Partially integrated co-operatives centrally control some of the successive activities of a value chain (supply of inputs, provision of services and information, production, and assembling and marketing of primary products). Fully integrated co-operatives centrally control all the successive activities of a value chain (supply of inputs, provision of services and information, production, assembling and marketing of primary products, processing, wholesaling, and retailing). Cross-case comparisons of interview data complemented with financial data revealed that co-operatives' financial performance was not significantly different between partially and fully integrated co-operatives and was comparably unsatisfactory at both levels. Further, the financial performance of co-operatives was affected by their governance, managerial, technical and financial attributes. Survey data of 307 rice farmers were used to analyse and compare member-perceived benefits and performance between partially and fully integrated co-operatives. Exploratory factor analysis of data revealed five key areas of benefits: business and financial, livelihood, technology and information, low-cost inputs, and democratic control and education. It was found that business and financial, and technology and information benefits, were better among members in fully integrated co-operatives. Besides, propensity score matching analysis revealed better profits per kilogram of paddy rice and higher economic profit among members in fully integrated co-operatives. However, the regression analysis results showed varying financial performance among the members of co-operatives depending on their demographic and household, farm, and contextual factors. Findings in this study provided some important theoretical and practical implications. The benefits studied in this research provide directives for managers in formulating rice-related business strategies that are well-aligned with members' interests. Contradictions between members' perceived benefits and their actual financial performance in fully integrated co-operatives suggest a lack of awareness among members about the benefits of value-added activities and emphasise a need for improving member communication and engagement. Policymakers should be encouraged to promote vertically integrated co-operatives and provide training to their managers (including directors) on formulating and executing competitive strategies, good governance, and revisions concurrent to changing market forces.
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    Factors affecting smallholder paddy rice farmer's choice of marketing channel in the northern region of Ghana : a thesis submitted in partial fulfilment of the requirements for the degree of Master of AgriCommerce at Massey University, Palmerston North, New Zealand
    (Massey University, 2018) Adu, Eunice
    The scientific community advocates that enhancing smallholder farmers’ access to reliable, ready and direct market channel is a prerequisite to the attainment of sustainable food supply and poverty reduction in the developing world including Ghana. However, the smallholder farmers' access to direct marketing channels in Ghana has been a critical challenge; therefore, this study aims to analyse the factors that influence smallholder paddy rice farmers’ decision to participate in either the direct marketing channel specifically processors or the indirect marketing channel specifically, middlemen in the Northern Region of Ghana. Purposive sampling was used to select farmers from three rice growing districts in the Northern Region of Ghana. The study employed the Binary Logit regression model in the analysis of the factors affecting farmers’ choices of marketing channel. A t-test was also used to compare the mean yields and revenues generated by farmers who marketed their paddy rice outputs in the direct and indirect marketing channels. A five-point Likert scale was used to rank the constraints that affect the production and marketing of rice output among rice farmers. The study revealed that a lower percentage of farmers sold their paddy rice output to processors (direct channel). The Logit model showed that farm size, the price of paddy rice output per 85kg bag, access to market information and access to credit increased the farmers' participation in the direct marketing channel whereas payment period and ownership of bicycle reduced farmers' their participation. The t-test result revealed that the participation in the direct marketing channel raised farmers' revenue. The study further showed that limited access to credit, poor climatic condition, the high cost of labour, the high cost of farm inputs and low mechanisation were the top five production challenges they encountered in their rice production. Low market prices, post-harvest losses, the high cost of transportation, limited market option and low demand for local rice were the top-ranked marketing constraints reported by farmers. The study concludes that it is more profitable for farmers to sell their paddy rice output to processors instead of middlemen. Therefore, policymakers need to incorporate the significant factors of farmers’ choices of marketing channels in the formulation of agricultural policy that seeks to promote farmers’ access to direct marketing channels in developing countries including Ghana.
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    Collective action : improving smallholder rice farmers' value chain in Yogyakarta, Indonesia : a thesis presented in partial fulfilment of the requirements for the degree of Master of AgriCommerce, at Massey University, Manawatu, New Zealand
    (Massey University, 2017) Ahmad, Shaf Rijal
    Collective action has been widely accepted as one of the strategies to improve smallholder farmers’ capability to gain benefit from the agrifood value chain. This is also part of the working policy of the Government of Indonesia. Nevertheless, there is little empirical evidence for staple food farmers, particularly rice, in organising collective action and many such attempts have not met the policy’s implementation objectives. Considering the importance of rice agribusiness in Indonesia, therefore, there is a need to investigate experiences of smallholder rice farmers who work collectively and are able to improve their value chain and gaining benefit from it. The objectives of this study were to identify and describe what benefit captured through collective action and how, and; to identify and describe how these farmers act collectively within a group and why. The research question was answered and objectives addressed by using a qualitative single case study. A farmer group named Gapoktan Sidomulyo was selected, as it was identified by the central and local government as a well-developed collective farmers’ group. Data was collected through semi-structured interviews with farmers and other actors relevant to the group development. This study found that collective action helped smallholder rice farmers to build a competitive advantage. This action enabled them to improve production capacity and product quality, as well as human capability and bargaining power. This also helped them to reduce the number of intermediaries. Therefore, they can capture the potential value offered by the rice value chain. This study also highlighted essential factors for smallholder rice farmers’ collective action: Firstly, this action required incentives and support as well as a motivated group of farmers. Even when collective action was supported by government, it was essential to motivate farmers to act collectively and see the benefits for doing so. Secondly, trust and a shared vision between members of the farmer group was important element for collective action. These formed the basis for building horizontal relationships between farmers. This affected the reciprocity between them and their commitment. Thirdly, in a group that was heterogeneous, in terms of religion and reliance on farming as an income source, group cohesion could be achieved through effective group management, which means management that promoting transparency and active communication between farmers and the leadership team, and giving an opportunity for each actor within the group to play their role. These reduced the potential of conflict and maintain the farmers’ awareness on the group so that they keep engaged within the group. Fourthly, leadership with strong motivation, good interpersonal skills, social awareness, as well as administration and marketing skills were essential for the group’s development. Unlike to what has been identified in many studies, the leadership could also be provided by a team of people, instead of relying on an individual. Fifthly, maintaining the active members and the leadership team’s participation was essential as they were the key actors within the group. For the active farmers, this was achieved through: facilitating members to raise their voice and be involved in decision making, involving them to enforce rules, and conducting activity that attract them to attend regular meetings. Meanwhile, for the leadership team members, this could be achieved through conducting an appropriate leadership team selection process and acknowledging their effort in fostering the group. Lastly, despite there was a culture to work as a group, it was important for having trusted external agents to facilitate farmers and motivate them to act collectively, particularly when this required money in initiating the action. The support from external agents, such as technology and finance, was also important to build farmers capability in improving the value chain. In addition, this case highlighted that only some farmers were able to gain benefit through this action and they were who can produce consistently volume beyond their household requirements. Keywords: Smallholder farmers, collective action, rice value chain, agriculture, rice, Yogyakarta, Indonesia.
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    Factors affecting rice adoption in the Solomon Islands : a case study of Fiu village, central Kwara'ae constituency, Malaita province : a thesis presented in partial fulfilment of the requirements for the degree of Master of Agri-Commerce at Massey University
    (Massey University, 2012) Baete, Simon
    In 2006, the Solomon Islands (SI) Government implemented the National Rural Rice Development Programme (NRRDP) through the Rice Section of the Ministry of Agriculture and Livestock, aimed at promoting the adoption of rice growing by SI farmers. However, the low level of rice adoption raised questions relating to the successful implementation of this programme. To investigate the factors that have contributed to farmers‘ decision to adopt or not to adopt the rice technology, a single case study was used involving farmers of Fiu village, in Malaita Province. Data was collected between June and July 2010 through semi-structured interviews with selected farmers who adopted the rice technology including those that did not; FCRP leaders; and government officers (extension and the rice official). The findings of this study revealed that several factors influenced the adoption decisions of farmers and these were the characteristics of technology, internal factors, and external factors. The characteristic of the technology that influenced farmers‘ decision to adopt is relative advantage.The internal factors include personal characteristics of the farmer such as previous experience, proximity of the farm, land free of dispute, availability of a water source and cultural factors whereas external factors identified include government policy, infrastructure development in the area, agro-climatic condition, access to extension service and market. It was found that in late 2010, the adopters discontinued the use of the technology and their decisions were mainly influenced by factors such as poor leadership, poor implementation of the rice policy, and poor extension service. The results also revealed that many farmers did not adopt the rice technology in 2007 and their decisions were influenced by factors such as: relative disadvantage, complexity and incompatibility of the technology, input and labour intensive, land using, and risk. The study also shows that observability, poor leadership and the government‘s failure to implement the rice policy post 2007 influenced the non-adopters decision to continue with the non-adoption of the technology. This research suggests that for a community rice project such as the FCRP to be successful, the government should facilitate the availability of funds to the Ministry of Agriculture and Livestock to ensure that the ministry is able to provide the necessary support to the farmers thus promoting their confidence in government‘s ability to support the implementation of the project. In addition, the selection of leaders who have the right skills, knowledge, and attitudes to manage and drive the project was integral in ensuring the success of the project.