Transcript Slide 1

INTERNATIONAL FOOD
POLICY RESEARCH INSTITUTE
sustainable solutions for ending hunger and poverty
Ghana Strategy Support Program
Targeting smallholders for
agricultural growth in Ghana
Jordan Chamberlin
16 November 2007
Accra, Ghana
Pro-poor agricultural growth
• Ghana’s current development objectives place a
great deal of emphasis on broad-based, pro-poor
agricultural growth
• Emphasis on
• expansion of high-value & export-oriented cash crops
• improved production of food crops
• Transformation of smallholder agriculture
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 2
Who are Ghanaian smallholders?
• Data on small farms & staple agriculture
• Ghana Living Standards Survey 2005/6
• 8687 households
• regional & ecological zone inferences
• Production data
• SRID, Ministry of Agriculture: district data 19922006
• Field visits to maize producers (March 2007)
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 3
Smallholders dominate agriculture
• Two thirds of all farms less than 3 ha
forest 3.1 ha
Forest,
avg
savannah 4.0 ha
Savanna,
avg
.2
.4
.6
coastal2.3 ha
Coast,
avg
0
Ghana Strategy Support Program
0
5
10
15
20
0
5
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
10
15
holding size (ha)
20
0
5
10
15 Page 4 20
Smallholder crop portfolios
• Number of crops varies with farm size
• < 2 ha: average of 3.1 crops
• >=5 ha: average of 5.0 crops
• Maize & cassava most important in smaller farms
• The only crops produced by 12% of households
(median holding size 0.8 ha)
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 5
7.0
mean number of crops
Coastal
Forest
6.0
Savanna
5.0
4.0
3.0
2.0
< 0.5 ha
0.5-1 ha
1-2 ha
2-3 ha
3-4 ha
4-5 ha
> 5 ha
land holding size
median # crops
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 6
Smallholders do engage markets
• Less variation by holding size
• Commercialization rates lowest for smallest farms
• fewer marketed crops
• less likely to sell the crops they do produce
• More variation by geography
% of maize
farmers who
sell their
produce
holdings
< 0.5 ha
0.5-1 ha
1-2 ha
2-3 ha
3-4 ha
4-5 ha
> 5 ha
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
coast
57%
65%
69%
68%
62%
72%
57%
forest
savanna
53%
42%
60%
31%
64%
38%
62%
48%
58%
57%
70%
53%
56%
61%
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Upper East
Upper East
Upper West
Upper West
Northern
Northern
Brong Ahafo
Brong Ahafo
Volta
Volta
Ashanti
Ashanti
Eastern
Eastern
Greater Accra
Greater Accra
Western
Western
Central
Central
%
>6
0
0%
50
-6
0%
40
-5
0%
30
-4
%
<3
0
%
% of producers who sell
>6
0
0%
50
-6
0%
-5
40
-4
30
<
30
%
0%
% of hhs who produce
% of farmers using purchased fertilizer
• Yields are growing
but still low
• Fertilizer & other
input use is driven
by geography
• Anecdotal evidence
that fertilizers are
freq. used to
compensate for land
degradation rather
than to maximize
yields
Farm size ≠ poverty
Per capita consumption & hh landholding
• Relationship between
income and holdings is
weak and variable across
geographical space
• Positive in forest/transition
• Negative in coast
• Agrees with anecdotal
evidence that land is not
the chief limitation, but
rather access to labor
and other resources…
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 10
Characterizing smallholders
• Holdings are small, but size does not fully explain
farmer behavior
• Incomes and income sources vary widely
• Yields are low; input use is low
• Market participation is variable but staple
markets are widely engaged in (esp maize)
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 11
Characterizing smallholders
• Geography is more important than holding size
for capturing many smallholder characteristics,
including input use and many aspects of market
participation
• What are the key constraints faced by
smallholders and how do the conditions under
which they produce modify those constraints?
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 12
Constraints faced by smallholders
• Production technologies are not accessible
• factor market constraints: labor, mechanized traction
• Risk of production failure (rainfall variability)
• Uncertainty about market opportunities & prices
• Poor returns on productivity-related costs
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 13
High transactions costs & poor access
• For example,
consider these
costs along the
maize chain from
farm gate to
Accra retail –
equivalent to 80%
of producer price
for a producer
near Techiman
Source: Personal communication from Natural Resources Institute, 2006, as published in World Bank 2007: 119
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 14
High transactions costs & poor access
distance from market
< 2 hours of town Accra
2-4 hours of town Accra
4-6 hours of town Accra
6-8 hours of town Accra
> 8 hours of town Accra
total
rural poor
population
n
%
n
%
574,281
7% 4,215,670
22%
1,126,430
14% 2,917,100
15%
958,922
12% 3,719,900
19%
978,199
12% 2,193,920
11%
4,557,150
56% 6,185,420
32%
8,194,982
100% 19,232,010
100%
land area
sq.km.
%
8,325
3%
18,061
8%
20,731
9%
26,026
11%
165,329
69%
238,472
100%
• Much of the production
base and many of the
rural poor are located in
areas with poor access
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
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Rainfall
Rainfall variability
# of
domain
H-acc/H-dens
H-acc/L-dens
L-acc/H-dens
L-acc/L-dens
districts
18
46
0
45
avg total cereal production
area
yield
area
yield
production
growth
growth
growth contribution to contribution to
(MT) 2003-2005 1998-2005 1998-2005 1998-2005
growth 98-05
growth 98-05
162,668
9%
-3%
12%
-32%
132%
514,856
28%
26%
2%
94%
6%
0
0%
0%
0%
0%
0%
1,092,181
10%
11%
0%
102%
-2%
domain
(access | density)
High | High
High | Low
Low | High
Low | Low
n
19
29
0
39
Targeting smallholders
• The challenges faced by different types of farms
are heightened by production and market
environments
• Much production takes place under conditions of
high costs, poor information, risk
• many smallholders do not perceive benefits of
productivity investments
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
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Targeting smallholders
• Strengthening food markets (maize) is one of the
most important means of engaging the largest
portion of smallholders, and thereby increasing
productivity and income
•
•
•
•
•
Development of more profitable technologies
More efficient and competitive input markets
More efficient output marketing chains
Market information, weights and measures
Risk mitigation
• Continue to explore alternatives
• e.g. organic production; high-value non-perishables
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 20
Smallholders less likely to use some inputs
% holders using purchased inputs
* relative to average share for producers with smallest holdings
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
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Holding size may not well explain
food crop marketing
Share of production sold
Ghana Strategy Support Program
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Page 23