This article investigates determinants and impacts of cooperative organization, using the example of smallholder banana farmers in Kenya. Farmer groups are inclusive of the poor, although wealthier households are more likely to join. Employing propensity score matching, we find positive income effects for active group members. Yet price advantages of collective marketing are small, and high-value market potentials have not yet been tapped. Beyond prices, farmer groups function as important catalysts for innovation adoption through promoting efficient information flows.
The use of mobile phones has increased rapidly in many developing countries, including in rural areas. Besides reducing the costs of communication and improving access to information, mobile phones are an enabling technology for other innovations. One important example are mobile phone based money transfers, which could be very relevant for the rural poor, who are often underserved by the formal banking system. We analyze impacts of mobile money technology on the welfare of smallholder farm households in Kenya.
Many developing countries are experiencing a rapid expansion of supermarkets. New supermarket procurement systems could affect farming patterns and wider rural development. While previous studies have analyzed farm productivity and income effects, possible employment effects have received much less attention. Special supermarket requirements may entail intensified farm production and post-harvest handling, thus potentially increasing demand for hired labor. This could also have important gender implications, because female and male workers are often hired for distinct farm operations.
Mobile phone based money services have spread rapidly in many developing countries. We analyze micro level impacts using panel data from smallholder farmers in Kenya. Mobile money use has a large positive net impact on household income. One important pathway is through remittances, which contribute to income directly but also help to reduce risk and liquidity constraints, thus promoting agricultural commercialization. Mobile money users apply more purchased inputs, market a larger proportion of their output, and have higher farm profits.
Supermarkets and high-value exports are currently gaining ground in the agri-food systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on farming efficiency have hardly been studied. Using a survey of Kenyan vegetable growers and a stochastic frontier approach, we show that participation in supermarket channels increases mean technical efficiency by 19%. This gain is bigger at lower levels of efficiency, suggesting the potential for positive income distribution effects.