Economics at your fingertips  

Agribusiness Firms and Rural Dairy Development. A Case of FrieslandCampina Dairy Development Programme in Nigeria

Khadijat Amolegbe and Matthew Olaniyi Adewumi

AGRIS on-line Papers in Economics and Informatics, 2022, vol. 14, issue 1

Abstract: Rural development interventions funded by private agribusiness firms may positively or negatively affect rural farmers' welfare. A positive effect is that such interventions may provide farmers with market access. The negative effect could be that such firms may be solely motivated by profit and may exploit the farmers. In this paper, we explore the role of FrieslandCampina Dairy Development Programme, a multinational firm with headquarters in Europe, in improving the welfare of rural dairy farmers in Nigeria. We use a two-wave panel survey of 122 programme participants and 95 non-participants. We focus on two outcome measures – annual dairy income and daily milk yield - and use a pooled ordinary least squares method to understand the programme effect. We also explore the mechanism of effect by assessing the programme effects on farmers' sustainable dairy management practices using a negative binomial regression method. Our results suggest that the programme has positive welfare effects on farmers. We attribute these effects to farmers' access to reliable markets offered by the programme and the informal business arrangement between the farmers and the agribusiness firm. Potential policy implications include that governments should encourage other private agribusiness firms to set up similar development programmes.

Keywords: Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... e%20in%20Nigeria.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.22004/ag.econ.320335

Access Statistics for this article

More articles in AGRIS on-line Papers in Economics and Informatics from Czech University of Life Sciences Prague, Faculty of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

Page updated 2023-06-15
Handle: RePEc:ags:aolpei:320335