Analysis of the Level of Preference of Soybean Producers with Agribusiness Cluster (ABC) Services in Benin

Abstract

Background: Contract farming provides many farmers with access to high-value crop markets, mitigating the risk of price fluctuations. However, a common perception is that the legal framework for contract farming is weak, often leading to the manipulation of farmers. Households involved in contract farming express dissatisfaction with the system's performance, often feeling disillusioned Aims: The present study analyzes producers' preferences for the services offered by Agribusiness Clusters. Study Design: A structured questionnaire was administered to 360 soybean producers using the KoboCollect application. The questionnaire was designed using the Best-Worst Scaling (BWS) method in R software. Methodology: A Mixed Multinomial Logit model was used to analyze the quantitative field data, also employing BWS modeling. A simple random sampling was used to identify the smallholders for this research. Results: The results indicated that credit, machinery, technical support, training, and seeds are the services most preferred by producers, while the provision of inputs was less favored. The analyses also revealed that technical training held the largest market share of services with 9.61%, followed by agricultural machinery 9.37%, technical support 9.25%, and agricultural credit 8.78%. Finally, a random effect was observed among producers regarding certain service options, such as initial training and agricultural credit. These findings could inform the implementation and scaling up of Agribusiness Clusters by prioritizing service options like technical support, training, and facilitating access to agricultural credit. Conclusion: Policymakers should also consider de-emphasizing agricultural inputs, specifically chemical fertilizers and plant protection products. The ultimate recommendation is for policymakers to better structure the market for producers within agribusiness clusters (ABC).