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A Framework For The Analysis Of Integrated Agricultural Value Chains In The Context Of Smallholder Farmers

Volume 4 - Issue 4, April 2020 Edition
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David Muronda, Marian Tukuta, Stanley Marshal Makuza
keyword 1; smallholder farmers 2; integrated agricultural system 3; value chain 4; transaction cost theory 5: systems dynamics.
Agriculture remains the best opportunity for the majority of people worldwide living in smallholder farms to trade their way out of poverty. Growth generated by agriculture is four times more effective in reducing poverty than growth in any other sectors. Future growth in the agriculture sector relies heavily on diversification and promotion of opportunities for the addition of value. Smallholder farmers rarely engage in single enterprises, but on agriculture as a complete economic system, where a couple of crops and different livestock are integrated on the same farm. However, the reality of smallholder farmers has been understood mostly from fragmented single value chain analysis. In this paper, we develop a theoretical framework that uses the transaction cost and system dynamics theories to study interdependent agricultural value chains. Relevant articles were downloaded from internet and value chain analyses theories were reviewed. We conclude that the integrated value chain provide both income and food security for smallholders in a way which cannot be understood with the application of a single theory. We recommend the validation of the integration of these two theories in future research on smallholder value chains.
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