Cover_Rebuilding West Africas Food Potential

338 Rebuilding West Africa’s food potential

By taking into account whether the farmers received financial support to make these investments (no=0,

partly=0,5 and yes=1), we were able to calculate the Net Investment Index for smallholders in the different

case studies. Figure 6 below displays the results. Effectively it shows that the net investments made by the

farmers in the intensive contract farming case are lower since a large part is paid for by the lead firm. For

the traditional model in Benin, the net investments are not different from the gross investments, which

demonstrates that the farmers do not receive any support that is external or internal to the chain.

The producer associations in both Ghana and Burkina Faso appear to be making the highest net

investments, compared to the other models. This can be explained by the positive effect of the

co-operative structure on the risk assessment of the producers. Membership in the association reduces

business risks, for example by more assured marketing of produce and higher access to training and

new technologies, as well as economies of scale and opportunities for collective investments such as

certification. In contrast to the outgrower scheme, the initiatives lie with the producers themselves. We

expect that this higher level of ownership results in a higher net investment and consequently a more

sustainable effect on the mango businesses.

Figure 6. Net Investment Index of smallholders in different chain models

The second proxy we selected to measure business performance was the contribution of mango farming

to total income. We measured the contribution of mango to total income, relating this to the mean

area under cultivation. Based on these data we can make an assessment of the importance of mango

production relative to the income of smallholders.

As Table 9 shows, under the intensive contract farming scheme, farm income accounts for most of the

total income. This is because these farmers engage essentially in subsistence farming and not much cash

crop farming. The relative increase of their income is therefore higher compared to producers who are

already selling their mangoes on the market.

The results also show that the producers supplying processing industries (COOPAKE Association and

semi-intensive contract farming) have a slightly higher mean area under mango cultivation compared to

the other cases.

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

Tradional (B)Intensive contract

farming (GH)

Dangwe West

Associaon (GH)

COOPAKE

Associaon (BF)

Semi-intensive

contract farming

(BF)

NET INVESTMENT INDEX