African Journal of Marketing Management
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Article Number - DF37F5B61781


Vol.8(4), pp. 32-43 , November 2016
DOI: 10.5897/AJMM2016.0506
ISSN: 2141-2421



Impact of the business services for farmers’ organizations (ESOP) contract farming model on paddy producers’ well-being in Dangbo District of Benin



Barthelemy, G. Honfoga*
  • Barthelemy, G. Honfoga*
  • School of Economics, Socio-Anthropology and Communication for Rural Development, University of Abomey-Calavi, Benin.
  • Google Scholar
Rodrigue, S. Kaki
  • Rodrigue, S. Kaki
  • School of Economics, Socio-Anthropology and Communication for Rural Development, University of Abomey-Calavi, Benin.
  • Google Scholar
Anselme, A. Adegbidi
  • Anselme, A. Adegbidi
  • School of Economics, Socio-Anthropology and Communication for Rural Development, University of Abomey-Calavi, Benin.
  • Google Scholar
Anick A. Kemonou Davo
  • Anick A. Kemonou Davo
  • Independent Expert in Business and Management Monitoring, Benin.
  • Google Scholar







 Received: 13 September 2016  Accepted: 15 November 2016  Published: 30 November 2016

Copyright © 2016 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


The importance of rice is increasing in peoples’ diets in Benin, but access of locally-produced rice to domestic and foreign markets remains limited due to low quality products and unreliable supply chains. Contract farming for rice processing and exportation promises to ensure secure market access, and lift paddy farmers up from poverty.  This study aimed to identify the determinants and assess the impact of participation to the “Business Services for Farmers’ Organizations” (ESOP) contract farming model on producers’ well-being.  Sixty paddy producers (30 participants and 30 non-participants), were randomly selected and interviewed in three villages of Dangbo district in Southern Benin. A logistic regression model and the Average Treatment Effect (ATE) method were utilized to elicit the determinants and assess the impact. Size of household, paddy producer price, producer’s experience, yield of paddy and access to credit appeared to be the main determinants of producers’ participation in the ESOP model, leading to a significant (at 5% level) increase in annual net income and food consumption score, respectively by 42.51 and 24.35%. Therefore, the ESOP model had a significant positive impact on producers’ well-being. Therefore, not ignoring some observed competition shortfalls, we recommend a large-scale dissemination of the model, with dedicated attention to paddy producer price, technology, training and credit support as critical levers for policy intervention. Businessmen should be trained to provide key marketing services that enhance contract farming in a competition environment, and advocacy should be undertaken towards the government and credit agencies for the required support to farmers.

Key words: Impact, contract farming, ESOP model, net income, food security, paddy rice.

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APA Barthelemy, G. H., Rodrigue, S. K., Anselme, A. A., & Anick, A. K. D. (2016). Impact of the business services for farmers’ organizations (ESOP) contract farming model on paddy producers’ well-being in Dangbo District of Benin. African Journal of Marketing Management, 8(4), 32-43.
Chicago Barthelemy, G. Honfoga, Rodrigue, S. Kaki, Anselme, A. Adegbidi and Anick A. Kemonou Davo. "Impact of the business services for farmers’ organizations (ESOP) contract farming model on paddy producers’ well-being in Dangbo District of Benin." African Journal of Marketing Management 8, no. 4 (2016): 32-43.
MLA Barthelemy, et al. "Impact of the business services for farmers’ organizations (ESOP) contract farming model on paddy producers’ well-being in Dangbo District of Benin." African Journal of Marketing Management 8.4 (2016): 32-43.
   
DOI 10.5897/AJMM2016.0506
URL http://academicjournals.org/journal/AJMM/article-abstract/DF37F5B61781

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