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Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?

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  • Fischer, Elisabeth
  • Qaim, Matin

Abstract

Collective action has become an important strategy for smallholders in developing countries to remain competitive in rapidly changing markets. However, within farmer groups, the commitment of individual members can vary, as the expected net benefits are not the same for all individuals, and opportunities to free-ride exist. Since the benefits of collective action emerge primarily through the exploitation of economies of scale, low participation rates in joint activities may put a serious threat to the success and viability of farmer groups. This article investigates determinants of smallholder participation intensity and free-riding, using the example of banana groups in Kenya. The results suggest that family labor availability and previous benefits that members received through the groups positively influence their intensity of participation in group meetings and collective marketing. Free-riding can mostly be attributed to structural and institutional conditions, such as group size and the timing of payments. More diversified farmers are less likely to sell collectively. Since smallholders are often highly diversified in their agricultural activities, farmer groups should also diversify, focusing on more than a single crop. Further policy implications are discussed.

Suggested Citation

  • Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Proceedings of the German Development Economics Conference, Berlin 2011 28, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec11:28
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    1. Wollni, Meike & Fischer, Elisabeth, 2012. "Commitment in Collective Marketing Relationships: Evidence from Coffee Cooperatives in Costa Rica," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126884, International Association of Agricultural Economists.
    2. Florence Nakazi & Paul Aseete & Enid Katungi & Michael Adrogu Ugen, 2017. "The potential and limits of farmers’ groups as catalysts of women leaders," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1348326-134, January.
    3. Mukundi, Eric & Mathenge, Mary K. & Ngigi, Margaret, 2013. "Sweet Potato Marketing Among Smallholder Farmers: The Role of Collective Action," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160679, African Association of Agricultural Economists (AAAE).
    4. Mignouna, D.B. & Abdoulaye, T. & Alene, A. & Akinola, A.A. & Manyong, V.M., 2015. "Drivers of Market Participation Decisions among Small-scale Farmers in Yam Growing Areas of Nigeria and Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 230219, International Association of Agricultural Economists.
    5. Mailu, Stephen & Will, Margret & Mwanza, Rosemary & Nkanata, Kinyua & Mbugua, David, 2014. "Milk supply contracts and default incidence in Kenya," MPRA Paper 57381, University Library of Munich, Germany, revised 10 Apr 2014.

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    Keywords

    collective action; participation intensity; smallholder farmers; Kenya;
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