Farm-level productivity in smallholder tea farming in Malawi: do contractual arrangements matter?
2006
E. W. Chirwa | J. Kyyd
This study investigates the relationships that exists between contractual arrangements in production and marketing of smallholder tea and productivity, taking into account gender differences and characteristics of farmers in Malawi. We find evidence that institutional arrangements matter – with smallholder farmers that have contracts with commercial estates producing more productively than those that have contractual arrangements with the reformed state-enterprise factory.These differences may be due to differential services offered by the factories with commercial estates offering extension services and the state-owned factory offering no extension services in addition to input credit. Bundled contracts with an array of services that improve input use among smallholder farmers may be important for productivity improvement in smallholder tea.
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