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Wageningen University (2009)

Linking smallholders to bio-energy markets : comparing different governance structures and assessing the role of producer organizations

Baren, S. van

Titre : Linking smallholders to bio-energy markets : comparing different governance structures and assessing the role of producer organizations

Auteur : Baren, S. van

Université de soutenance : Wageningen University

Grade : Master of Science (MS) 2009

Résumé
Mozambique is characterized by an abundance of arable land. This in combination with a good climate makes Mozambique very suitable for the production of biofuel crops. The world wide demand for fuel is expected to increase in the future. Besides fulfilling the domestic and foreign demand for fuel the production of biofuel can generate income for small producers. This research focused on the successful participation of small producers in production of Jatropha for bio diesel. Small producers face problems with participation in supply chains due to high transaction costs. Generally there are five dimensions of transactions : asset specificity, uncertainty and complexity, frequency, difficulties in measurement, and connectedness of transactions. Governance forms are an answer to these causes of transaction costs. Governance structures are forms of organization which can vary between two extremes : on the one hand spot markets and on the other hand vertically integrated firms. When the transaction costs are relatively low, spot markets are in favor and when the transaction costs increase more (vertical) coordinated forms of governance structures as hybrids and vertical integration are preferable. For small producers in Mozambique transaction costs depend on product and transaction characteristics and constraints in the institutional environment. A contractual arrangements like contract farming is an institutional response to imperfections in markets for credit, insurance, information, factors of production, and raw product ; and in transaction costs associated with search, screening, transfer of goods, bargaining and enforcement. In contract farming five different models can be distinguished : the centralized model, the nucleus estate model, the multipartite model, the informal model and the intermediary model. These models differ in the type of contractor, the type of product, the intensity of vertical coordination between farmer and contractor, and the number of key stakeholders involved. Within these models two different types of contracts can be discerned : marketing contracts and production management contracts. These contracts differ in their main objectives, transfer of decision rights, and transfer of risk. In this research the Jatropha supply chain is analyzed on contractual arrangements, transaction characteristics, product characteristics and the institutional environment. The analysis has resulted in a number of challenges for Jatropha for a successful participation of small producers in the supply chain. The different governance structures are assessed on how they deal with these challenges of Jatropha. The assessment is presented in Table 1 were the five contract farming models are on the horizontal axis and the challenges of Jatropha on the vertical axis.

Mots clés : bioenergy / contract farming / peasant farming / small farms / agricultural production / crops / agribusiness / mozambique / biofuels / governance / supply chain management

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Page publiée le 8 février 2015, mise à jour le 12 octobre 2018