CHAPTER ONE

INTRODUCTION

1. Background to the Study

Agriculture is one of East Africa's most important sectors, with about 80percent of the population living in rural areas and depending on agriculture for their livelihoods (East African Community (EAC, 2015). Despite this, the region is categorized amongst the poorest in the world with more than 60% of the population living below the poverty line (EAC, 2015). Poverty here is defined according to the human rights approach, in terms of a range of interrelated and mutually reinforcing deprivations, and drawing attention to the insecurity, stigma, discrimination, and social exclusion. The manifestation of poverty includes: low income and productive resources sufficient to ensure sustainable livelihoods; hunger and malnutrition; ill health; limited or lack of access to education and other basic services; increased morbidity and mortality from illness; homelessness and inadequate housing; unsafe environments; social discrimination and exclusion; characterized by lack of participation in decision making and in civil, social and cultural rights (EAC, 2015).

Smallholder farmers face several challenges in increasing productivity. However, access to requisite financing has been noted to be a critical challenge in many developing countries (Anang, Sipiläinen, Bäckman and Kola, 2015). Therefore, bridging the financing gap of these farmers must become a priority. Where this is absent, farmers often rely on informal instruments, which although are accessible and flexible they are also inefficient and costly in the short term and do not always offer the support needed to help transform subsistence farming into a profitable business (Okonjo-Iweala and Madan, 2016). 

VCA is an enhancement of product chain from production to end-users and along the chain value is added (Wen-Lung et al., 2018). It is a means to create a match between demand and supply of products and/or services at every stage along the value chain (Eric-Boyd et al., 2019). Although there is a bulk of literature that empirically validated outcomes of VCA to provide superior values to end users (Andreassen et al., 2018).

Accordingly in Kenya, evidence suggests that dairy co-operatives approach played a significant role in fostering dairy development, primarily by providing a stable market environment and delivering services to farmers. However, dairy co-operative development was heavily dependent on good co-operative management, honest and effective investment of resources and accountability to the interests of the farmer members. (Abdulsamad and Gereffi, 2016).

1. Statement of the Problem

Bettering the lives of smallholder farmers is therefore crucial to alleviating global poverty. Although other sources of income (e.g., labor) are critical for smallholder famers and the poorest (Mueller and Chan, 2015), sales of agricultural output remain important.

Barry (2015), in the current risky economic environment, credit should be managed as closely and as carefully as other production inputs as, similar to seeds and chemicals, agricultural credit is changing and expanding with new and innovative products.

Plaintain has been argued as one of the most cost-effective and nutritionally vital native African tubers (Collins et al., 2015). Plantain is a recurrent, vegetative bred shrub, cultivated through the plain tropics. It is a dearth resilient crop grown mostly in temperate areas and adds appreciably to the nourishment and livelihood of many African farmers. Cassava can be transformed into a considerable number of commodities varying from conventional and innovative food products, to livestock feedstuffs, ethanol and starch and its many derivatives. It is deemed as the most extensively farmed crop in Nigeria and it is largely cultivated by small-scaled farmers that depend on seasonal rainfall (Ganeshkumar et al., 2017).

From the above scholars views and the existence in gaps, this study therefore is to examine the relationship that exist between participants (producers, processors and marketers) and activities in the Plantain value chain,to knowthe Comparative advantage and Competitiveness along each stage of Plantain Value Chain and the entire commodity chain, to find outthe effects of various Government Policies on Comparative advantage and Competitiveness along each stage of Plantain value chain and the whole commodity chain, and to assess the effect of changes in policy indicators on comparative advantage and competitiveness on the whole commodity chain.

1. Research Questions

Research questions to address in this study are as follows:

1. What is the relationship that exists between participants (producers, processors and marketers) and activities in the Plantain value chain?
2.  What are the Comparative advantage and Competitiveness along each stage of Plantain Value Chain and the entire commodity chain?
3. What are the effects of various Government Policies on Comparative advantage and Competitiveness along each stage of Plantain value chain and the whole commodity chain?
4. What are the effect of changes in policy indicators on comparative advantage and competitiveness on the whole commodity chain?

1. Research Objectives

Rising from the research questions, the following are the research objectives to the study:

1. to determine the relationship that exists between participants (producers, processors and marketers) and activities in the Plantain value chain
2.  to examine the Comparative advantage and Competitiveness along each stage of Plantain Value Chain and the entire commodity chain
3. to assess the effects of various Government Policies on Comparative advantage and Competitiveness along each stage of Plantain value chain and the whole commodity chain
4. to examine the effect of changes in policy indicators on comparative advantage and competitiveness on the whole commodity chain.
   1. Research Hypotheses
5.  

1.6 Significant of the Study

The study is imperatively justified due to the need to attain better understanding of functions and connections between participants in Plantain Value Chain. This is expected to reveal the form in which plantain is handled and transported in the value chain and the quantum of produce handled at each stage. The domineering participants and the level of value addition and employment creations shall be estimated as well.

The study shall reveal the status of comparative advantage and competitiveness Southwestern Nigeria has and the levels of upgrading and intervention required. This is necessary because it will show the extent to which the zone will be able to participate in domestic, regional and international trade; show the zone level of self-sufficiency in the production of the commodity and the extent to which the zone utilizes scarce resources in the production of the commodity.

Ultimately, policies to raise entrepreneurial and employment levels shall be suggested with enhanced incomes at private, corporate and government levels. Further, efficient policies that will offset market failures and lead to promotion of Plantain Value Chain shall be suggested.