Solvency of producers in a rice value chain in Ivory Coast

2024-03-18 00:00:00

Résumés

This article analyzes the predictable factors of the solvency of small rice producers in a value chain in Côte d’Ivoire. Using a Probit regression carried out on data collected on a sample of 331 chain participants, the study shows that factors linked to producers, their environment and banking characteristics affect reimbursement rates. The study recommends the improvement of banking characteristics through the use of collection agencies, the installation of agricultural service SMEs, an online transplanting extension policy and the fixing of a purchase price for paddy rice. slightly competitive in agricultural contracts, to effectively combat cases of loan defaults.

This article analyzes the factors predicting the creditworthiness of small rice producers in a value chain in Côte d’Ivoire. Using a Probit regression on data collected from a sample of 331 chain participants, the study shows the factors related to producers, their environment and banking characteristics that affect repayment rates. The study then recommends improving banking characteristics using collection agencies, the installation of agricultural service SMEs, a policy of popularizing online transplanting and the setting of a slightly competitive paddy rice purchase price in agricultural contracts, to effectively combat cases of loan default.

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Access to text/excerpt

This document will be published online in full text in March 2024.

Plan

The value chain environment

Literature paper

Methodology

1. Study Sampling

2. Choice of variables and analysis model

Choice of variables

The dependent variable

Independent variables

Analysis model

Results and discussions

1. The dependent variable

2. Descriptive statistics of explanatory variables

3. Factors affecting the creditworthiness of input credits in the CV

4. Effect of participant demographic and economic characteristics

5. Effect of plot characteristics

6. Effect of producer environment

7. Effect of banking characteristics

Conclusion

Preview of the beginning of the text

Balanced and sustainable economic and social development relies, in its first stages, on solid agriculture. This involves the injection of capital, leading to a rise in agricultural credit (Brulé-Françoise et al., 2016). Agricultural credit is increasingly recognized as a powerful tool for lifting the rural poor out of absolute poverty. It plays a vital role in increasing agricultural productivity by creating productive assets. It also allows smallholders to invest in land improvement by adopting new agricultural technologies, such as high-yielding seeds and fertilizers, to increase their efficiency and income (Zeller and Sharma, 2000). According to an FAO report (2006), credit is an important tool that can directly smooth consumption and improve the well-being of the poor, thereby reducing their income vulnerability in the short term. This vulnerability is linked to the…

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To cite this article

Paper reference

Innocent Daniel Gniza, “Solvency of producers in a rice value chain in Côte d’Ivoire”, Rural economy387 | 2024, 33-48.

Electronic reference

Innocent Daniel Gniza, “Solvency of producers in a rice value chain in Côte d’Ivoire”, Rural economy [En ligne], 387 | January-March, posted online on 30 mars 2024consulted the 21 mars 2024. URL : DOI : https://doi.org/10.4000/economierurale.12302

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#Solvency #producers #rice #chain #Ivory #Coast