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2
Case Studies
Inthischapter, wedescribethetwelve casestudiesthatcompriseourinves-
tigation on supply chains, agriculturalexports, and poverty in sub-Saharan
Africa.Thecasestudieswereselectedfollowingtwocriteria.First,theexport
crophadto have the potentialtoeradicate poverty,and, second,the micro-
dataneededforthepovertyanalysishadtobeavailableinthetargetcountry.
We investigate twelve case studies covering four crops, namely cocoa, cof-
fee,cotton,andtobacco,ineightcountries,namelyBenin,BurkinaFaso,Côte
d’Ivoire,Ghana,Malawi,Rwanda,Uganda,andZambia.
Theobjectiveofthischapteristodocumentourselectionofthecasestud-
ies. To this end, we begin in Section 1 by looking at export data to assess
how important different exportcropsare for different countries. Given the
nature of our analysis, we only focus on crops that are a major source of
cashincomefortheeconomy(thusleavingasidefoodcrops).InSection2,we
explore the availability of householdsurveysin sub-Saharan countriesand,
forthosecountrieswherethisdataisavailable,wecheckwhethertheselected
export crops are grown by a significantly large number ofhouseholds and
whetherthosecropsgenerate asignificantshare oftotalhouseholdincome.
Todocumentthis,wedescribesummarystatistics(samplesize,genderstruc-
ture,anddemographiccomposition)fromthehouseholdsurveysusedinthe
analysis. Finally, in Section 3, we use the microdata from these surveys to
characterizethosefarmersthatproducetheexportcrops.
1 EXPORTS
To get a sense of the overall importance of the export crops for the local
economy, we begin with a description of the export structure of each tar-
get country. Table A2.1 provides the summary statistics. In general, all the
selectedcropsareveryimportantfortheeconomyofatleastoneofthecoun-
tries.Cocoaisa crucialforeignexchangegeneratorbothin Côted’Ivoireand
Ghana,whereitraisesbetween20and25percentofallexportrevenue.Coffee
exportsaccountformorethan10percentofthetotalexportsinbothRwanda
andUganda.Cottonaccountsformorethanone-thirdoftotalexportsinBenin
andBurkinaFaso.Finally,tobaccoaccountsformorethan70percentofexport
earningsinMalawi.
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10
SupplyChainsinSub-SaharanAfrica
1.1 Benin
Cotton is the main agriculturalexport ofBenin,which,afterMaliandBurk-
inaFaso,isthelargestcottonexporterinWestAfrica.Historically,cottonhas
representedaround70percentofthevalueofagriculturalexportsandmore
than30percentoftotalexportvalue(TableA2.1).However,theexportvalue
recently collapsedfrom $208 million in 2004 to $113 million in 2006. Part
of this reduction was due to a decrease of 30 percent in the total volume
exported.Thiscropgeneratesrevenuesforsome325,000smallholders.Cot-
tonlintconstitutes92percentofthecottonexportvalue,followedbycotton
seedoil(6.8percent)andseeds(1.1percent).Themain exportsmarketsfor
Benin in 2007 were China (24.7percent), India (8.2 percent), Niger (6.6per-
cent),Togo(5.4percent),Nigeria(5.3percent),andBelgium(4.6percent).The
totalvalueofexportsofgoodsandservicesonlyrepresentsaround13per-
cent of Benin’s GDP. This low number may indicate that there is room for
furtherincreasesintheshareoftheexternalsectorinBenin’seconomy.
1.2 BurkinaFaso
BurkinaFasoisoneofthe mainproducersandexportersofcottoninAfrica.
In2006,cottonexportsgenerated$235million.Thisaccountedfor81percent
oftheagriculturalexportsandfor35percentofalltherevenuegeneratedby
exports(TableA2.1).Otherimportantagriculturalexportsarecattle,sesame
seed,andmangoes,buttheirexportvalueismarginalincomparisonwithcot-
ton.AsinthecaseofBenin,cottonlintconstitutesthebulkofcottonexports
(96percentoftheexportvalue),followedbycottonseedoil(2.7percent)and
seeds(1.1percent).The maindestinationforBurkinaFaso’sexportsin2007
were China (29.6 percent), Singapore (15.7 percent), Thailand(7.2 percent),
Ghana (6.4 percent), andNiger (4.8 percent). Exportsof goods andservices
remain low,astheyaccountfor11percentofGDPonaverage.
1.3 Côted’Ivoire
After oil, cocoa is the most important source of foreign revenue in Côte
d’Ivoire,followedbyrubber,coffee,bananas,cashewnuts,andcotton.Cocoa
productsaccountfor more than 60 percentoftotalagriculturalexportsand
for morethanone-fifth oftotalexportrevenue (Table A2.1).Thissectorhas
generatedaround$2billionperyearofexportincomeinrecentyears.Cocoa
beansaccountfor73percentoftotalcocoaexports,followedby cocoapaste
(12percent),cocoabutter(9percent),husksandshell(3.5percent),andpow-
derandcake(2percent).Côted’Ivoireisthelargestworldwidecocoaproducer
andexporterfollowedbyGhanaandIndonesia.
Coffee is the second most importantcash crop for the Ivorian economy.
Coffee exportsamounted to $166million in 2006 (5.3 percent oftotalagri-
cultureexportsand1.8percentoftotalexports)upfrom$130millionin2004.
One-thirdofthecoffeeexportsarecoffeeextracts,whiletheothertwo-thirds
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CaseStudies
11
correspondto greencoffee. Côted’Ivoireisthe thirdlargestcoffee exporter
inAfricaafterEthiopiaandUganda.
Cotton isalsoanimportantcashcropintheIvorianEconomy.Theexports
ofthesectorwere$121millionin2006(1.3percentoftotalexportincome).
Most of the exports are cotton lint (93 percent), followed by cotton seed
(5.1 percent) andcotton oil(1.3percent). Côte d’Ivoire is the fourth largest
cottonexporterinsub-SaharanAfricaafterBurkinaFaso,Mali,andBenin.
The external sector is of vital importance for the Ivorian economy, with
exports of goods and services accounting for more than 50 percent of the
country’sGDPinrecentyears.ThemainexportpartnersareFrance(23.7per-
cent),theNetherlands(10.8percent),theUnitedStates(10.2percent),Nigeria
(7.5percent),andItaly(4.8percent).
1.4 Ghana
CocoahastraditionallybeenthemainsourceofforeignincomefortheGhana-
ian economy.This may change in the futureasthe country startstoexport
the recent oil discoveries. In 2006, cocoa generated $1.2 billion in exports
revenue.Thisamountedto79percentofagriculturalexportsandone-fourth
ofallexportrevenue(TableA2.1).Ghanaisthesecondlargestproducer and
exporter of cocoa after Côte d’Ivoire. Cocoa beans are the main exporting
product(86.6percent)followedbycocoabutterandcocoapaste(botharound
6percentofcocoaexports).
The exportingsector accountsfor more than one-third oftotalGDP, and
thishighlightstheimportanceofthecocoasectorfortheGhanaianeconomy.
Themain markets for Ghanaian exportsare the Netherlands(12.5percent),
the United Kingdom (8.3 percent), the UnitedStates (6.7 percent), Belgium
(5.8percent),France(5.6percent),andGermany(4.4percent).
1.5 Malawi
TobaccoisthemostimportantexportfromMalawi,followedbymaize,sugar,
tea,andcotton.In2006,itgeneratedalmostthree-fourthsofallexportincome
($432million,upfrom$258millionin2004,seeTableA2.1fordetails).Malawi
is the third largest exporter of tobacco after Brazil and the United States.
However,themain differencebetweenthesetwocountriesisthatalmostall
Malawianexportsareunmanufacturedtobacco.
CottonisanotherimportantcashcropfortheMalawianeconomy,generat-
ing$32.6millionin 2006(around5percentofallexportincome).Cottonlint
accountsfor 94 percentofall cotton exports,with the remaining 6percent
comingfromcottonseeds.
Exportsare roughly one-fifth of totalGDP andthe main exports markets
for Malawi are South Africa (12.6 percent), Germany (9.7 percent), Egypt
(9.6percent),the UnitedStates(9.5percent),Zimbabwe(8.5percent),Russia
(5.4percent),andtheNetherlands(4.4percent).
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12
SupplyChainsinSub-SaharanAfrica
1.6 Rwanda
Coffee isthe main agriculture export in Rwanda, accounting for60 percent
ofallagriculturalexportsin2006and17.5percentoftotalexportrevenues.
Thesectorgeneratedexportsfor$48millionin2006(TableA2.1).In2007,the
totalexportvaluedecreasedto$32million,remainingaheadoftea,thesecond
largestagriculturalexportwith $30 million.Almostallexports ofRwandan
coffeearegreen coffee.
Major export markets for Rwanda in 2007 were the United Kingdom
(18.7 percent), Kenya (18.6 percent), Belgium (14 percent), China (12.5 per-
cent),andSwitzerland(4.7percent).
1.7 Uganda
AsinRwanda,coffeeisthemostimportantcashcropinUganda.Otherimpor-
tant crops are tobacco and tea. Total coffee exports (99 percent of them
green coffee) amounted to almost $190 million in 2006. This amount cor-
responded to 42 percentofallagricultural exports and 12.5 percent of all
exports (Table A2.1). Uganda is the second largest coffee exporter in sub-
SaharanAfrica.
In 2008,thethree largestmarkets for exports were Sudan (14.3 percent),
Kenya(9.5percent),andSwitzerland(9.0percent).
1.8 Zambia
Cotton and Tobacco are the two most important cash crops in Zambia.
Togethertheygeneratedalmosthalfofthe agriculturalexports(TableA2.1).
However,theyonly accountforlessthan 2percenteachoftotalexportrev-
enues as copper is by far the most importantforeign revenue generator in
Zambia.Almostalltobaccoexports($75millionin2006)areunmanufactured.
Cotton lintexportsare thelargest exportingcotton item (91.5percent) fol-
lowedbycottonseed(7percent)andcardedandcombedcotton (1percent).
The three main destinations for Zambian exports are Switzerland, South
Africa,andEgypt.
1.9 FinalRemarks
Fromthisanalysis,itfollowsthatmostoftheagriculturalexportsinthecoun-
triesthatwestudyinvolvelittlelocalprocessing.Thisismoreclearlyseenin
TableA2.2,whichshowsthecompositionofexportsofcotton,tobacco,coffee,
andcocoaforeach countryfor2006.
In the top panel, we observe that more than 90 percent of the cotton
exported by our target countries is cotton lint. Unfortunately, we do not
havedetailedandreliableinformationoncottonyarnexports.However,these
countrieshavea low spinninginstalledcapacity given their cottonpotential
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CaseStudies
13
production.BurkinaFaso,Benin,andCôted’Ivoireareamongthetoptwenty
worldexporters of cotton lintbut none of them are among the top twenty
exportingcountriesofcottonyarnorapparel.
Almost all of the tobacco exported by the two tobacco-producing coun-
tries in our study is unmanufactured(second panel). This isquite common
amongdevelopingcountries.InBrazil,thelargestexporter,98percentoftheir
tobaccoexportsareunmanufactured.
The composition of coffee exports is presented in the third panel of
TableA2.2.Greencoffeeaccountsformostcoffeeexports.Thisisnotunusual,
however, since other large coffee exporters(Brazil, Vietnam, andColombia)
also sellmostly green coffee. Roastedandinstantcoffee is producedin the
consumingcountries.
Finally, the bottom panel of Table A2.2 shows the composition of cocoa
exportsinCôted’IvoireandGhana.Mostoftheirexportsareintherudimen-
tary form of beans:85 percentin Ghana and75 percentin Côte d’Ivoire in
comparison with 69 percentin Indonesia and1 percentin Brazil(the other
two big international producers of cocoa). Brazil exports 65 percent of its
cocoaproductionascocoabutter.Noneofthetopfiveexportersofcocoaare
amongthetoptwentyexportersofchocolate.
2 THEHOUSEHOLDSURVEYS
Inordertoperformthepovertyanalysis,weneedhouseholdsurveydatawith
detailed information on crop production andincome. The available house-
holdsurveysfortheeighttargetcountriesinsub-SaharanAfricaarelistedin
TableA2.3.
In the case ofBenin, we use the “Questionnaires desindicateursde base
du bien-être” conductedin 2003.The survey covered 5,350households out
of a population of1.4 million households. Rural householdsaccountedfor
61.5percentoftotalrespondents.InBurkinaFaso,weusethe“EnquêteBurk-
inabesurlesconditionsdeviedesménages,”alsofrom2003,whichsurveyed
8,500households(0.48percentofthetotalpopulation)ofwhich69.4percent
were locatedin ruralareas. In Côte d’Ivoire, we utilize the “Enquête niveau
de vie ménages” studying 10,801 of the existing 3.2 million households in
the country. Households classified as rural were 47.9 percent of the total.
In Ghana, we use the “Ghana livingstandards survey” of1998. This survey
reviewedthestandardoflivingof5,998Ghanaianhouseholds,63.3percentof
themresidinginruralareas.InformationaboutMalawianhouseholdsistaken
from the “Integratedhouseholdsurvey”of2004. Thissurvey covers 11,280
households(coveragerateof0.42percent),87.2percentofwhichwereinrural
areas.In Rwanda,themostrecentavailablesurvey isthe “Enquêteintégrale
surlesconditionsde viedesménages” from 1998.Thissurvey covers6,420
households amounting to 0.4 percentof the householdpopulation. House-
holdsinruralareasare82.1percentofthetotalhouseholdsinterviewed.The
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14
SupplyChainsinSub-SaharanAfrica
“Uganda nationalhousehold survey” of 2005interviewed 7,425households
froma populationof5.2million households.The share ofruralhouseholds
is77.12percent.Finally,inthecaseofZambia,weusethe“Livingconditions
monitoringsurveyIII”from2003.Thissurveycovers4,837households(acov-
eragerateof0.23percent)ofwhich47.9percentwerelocatedinruralareas.
Table A2.4 presents a brief demographic characterization of the target
countries.Allofthese countries are relatively smallin termsofpopulation.
Beninisthesmallestcountrywith6.7millioninhabitantsand,withapopula-
tionof28.9million,Ugandaisthelargest.In allcountriestheaverageage of
thepopulation isvery low, rangingfrom 19.5yearsin Ugandato 24.4 years
in Burkina Faso. Except for the case of Burkina Faso, where they are about
the same, in all the other countries the rural population largely surpasses
the urban population. The rural population ison average younger than the
urban population,exceptin Côted’Ivoire,Malawi, Rwanda,andZambia.The
national male share oscillates between 0.464 in Rwanda and0.498 in Côte
d’Ivoire. There is no discernable pattern for male shares across urban and
rural areas. The male share is larger than the female shares only in urban
areasofBurundiandMalawi.
AveragehouseholdsizeanditsagecompositionarepresentedinTableA2.5
atthenational,urban,andrurallevel.Ghanahasthesmallestaveragehouse-
holdsize,with4.4members;BurkinaFasohasthelargest,with5.6members.
Rural households are, on average, larger than urban households, exceptin
Rwanda andZambia.Ruralhouseholdsize rangesfrom 4.7 to5.9 members
(with an average of 5.2)while urban householdsize rangesfrom 4.0 to 5.5
members (with an average of4.8). For the countries in the study, the 0–15
age groupcomprises49.1 percentof allhouseholdmembers in rural areas
and 42.5 percentin urban areas. The 16–29 age group represents 22.5per-
centand29.8percentoftheruralandurbanhouseholds,respectively.Those
betweenthirtyandforty-nineyearsofagerepresent,onaverage,17.7percent
and 19.8 percent of the household members in ruraland urban areas. The
lastagegroup,thosefiftyyearsoldorolder,representsonly9.6percentand
7.3percentofthemembersofruralandurbanhouseholds,respectively.The
demographicagestructureofruralandurbanhouseholdsissimilaracrossall
targetcountrieswiththeexceptionofBurkinaFasowherethe16–29agegroup
hasalargersharethanthe0–15groupinthemembersofurbanhouseholds.
3 THEDISTRIBUTIONOFINCOMEANDEXPORTCROPINCOME
Inwhatfollows,weusethehouseholdsurveydatatocharacterizethedistri-
butionofincomeinthetargetcountries.Sinceweareinterestedintheimpact
onpovertyofchangesinthesupplychaininexportagriculture,webeginhere
byplottingdensitiesofpercapitaexpenditures.Thesedensitiesareestimated
nonparametricallywithkernelmethods(Deaton1997;PaganandUllah1999).
CaseStudies
15
TheresultsarereportsinFiguresA2.1–A2.8,withonefigureforeachcoun-
try in the study. Each figure has three panels. Panel (a) reports the density
for per capita expenditures for the total population at the national, rural,
andurban level. Since we are alsointerested in gender-specific impacts,we
estimate those densitiesfor male-headed andfemale-headed householdsin
panels(b)and(c),respectively.
There are three key conclusions that emerge from the examination of
the per capita expenditure densities. First, there are significant differences
betweenurbanandruralhouseholds.Theurbandensitiesarealwaysshifted
to the rightofthe ruraldensities, both in male-headedand female-headed
households. Thisis particularly evidentin the case of Burkina Faso,Ghana,
Malawi,andRwanda.Second,theruraldensityissimilartothenationalden-
sityinmostcases(withtheexceptionofCôted’Ivoire),againregardlessofthe
genderofthehouseholdhead.ThisisconsistentwiththedatainTableA2.4,
whichshowsthattheruralpopulationismuchlargerthantheurbanpopula-
tion formostofthecountriesin our study.Third, male-headedhouseholds
typically enjoy higher levels ofper capita expenditure level, both for urban
andruralhouseholds,thanfemale-headedhouseholds.
We now turn to the analysis of households’ income shares. Results are
reportedin TablesA2.6–A2.13.We presentthe descriptivestatistics for the
total population of households (panel (a)) and separately for male-headed
(panel (b)) and female-headed households (panel (c)). The bottom panels
present the summary statistics for the subsample that includes only those
householdsthatproduceatleastoneofthe cropsunderstudy.Thefirstcol-
umnineachtablereportsstatisticsfromthenationalsample,thesecondcol-
umnreportsstatisticsfrom theurbansample,andthethirdcolumn reports
statistics from the rural sample. Since our focus is mainly on rural house-
holds,wealsoreportstatisticsacrossquintilesofpercapitaexpenditurefor
ruralhouseholds. In each table, the firstrow reports the averageper capita
expenditures and the following rows report the average income shares (in
percentage). We identify the share ofincome derived from agriculture and,
within this category, we alsoreportthe sharederived from the exportcrop
under study.For completeness,wereportthe share ofincomederivedfrom
home-production activities as well as from other sources (wages, nonfarm
businesses,andtransfers).
Data for Benin isin Table A2.6. The share of agricultural income in total
incomeforruralhouseholdsis34percentforthewholesampleand56.3per-
centfor those householdsthatproduce cotton, the main exportcropofthe
country. Cotton generates 6.6 percentoftotalincome for the average rural
household,and33.8percentfortheaverageruralcottonproducer.Thiscrop
isparticularly importantforthepoorestfarmerssinceitgenerates10.4per-
cent and 7.1 percent of total income for households in the first and sec-
ondquintilesoftheincomedistribution,respectively.Amongproducers,cot-
ton generates about one-third of the total income in each of the quintiles.
16
SupplyChainsinSub-SaharanAfrica
Panels(b)and(c)highlightsomeofthedifferencesinincomesharesbetween
male-headedandfemale-headedhouseholds.Cotton ismostly an important
source ofincome forfemale-headedhouseholds,accountingfor 7.6 percent
oftheirtotalincome—incontrastto1.1percentinmale-headedhouseholds—
forthetotalruralpopulation.Conditionalofbeingacottonproducer,cotton
incomeaccountsfor33.3percentand21.8percentoftotalincomeinfemale-
headedandmale-headedhouseholds,respectively.
Table A2.7 presents income shares for the case of Burkina Faso. In our
data, agricultural sales play a minor role, relative, for example, to income
fromhome production.However,ifwe consideronlythesubsampleofpro-
ducers,agriculturalincomeamountsto70.5percentofthetotalruralhouse-
holdincome. The mostimportantcropiscotton,which generates 1.31per-
cent of the income of the average rural household and56.4 percentof the
income ofthe average cottonproducer.Amongproducers, cotton is amore
importantsourceofincomeformale-headedhouseholds(56.4percent)than
for female-headedhouseholds (17.7 percent). For male-headedhouseholds,
cotton generatesasimilarshareofincomeacrossquintiles. Instead, female-
headedhouseholdsinthesecondquintileearnasignificantlyhighershareof
income from cotton than the restofthe quintiles (31 percent oftheir total
income).
ThecaseofCôted’IvoireispresentedinTableA2.8.Around52percentof
thetotalincomeofruralhouseholdscomesfromagriculture;forexportcrop
producers(anyofthethreemajorcropsinCôted’Ivoire),agricultureaccounts
for 77 percent of total income. The relevant export crops are cocoa (with
an income share of 17.1 percent), coffee (6.8 percent), and cotton (4.2 per-
cent).Conditionalon beingan exportcropproducer,the income sharesare
38.5percent,15.3percent,9.5percent,forcocoa,coffee,andcotton,respec-
tively.Theshareofcocoaissimilaracrossthefirstfourquintiles,butdeclines
for the richestrural households.Coffee is particularly importantfor house-
holdsinthefirstandsecondquintiles.Incontrast,theimportanceofcotton
asan income generator increaseswith householdincome:whilehouseholds
in the firstquintile only derive0.8percentoftheir incomefrom cotton,the
cotton share for households in the last quintile is 8.6 percent. On average,
ruralmale-headedhouseholds dependmore heavily on agriculturalincome
(64.6percent).Ruralfemale-headedhouseholdsonlyget36.8percentoftheir
income from agriculture, cocoa being the only significant contributor (with
4.1percentofthehouseholdincome).Conditionalonbeingaproducer,agri-
culturalincomeisimportantforbothgenders(78.1percentformale-headed
and63.2percentforfemale-headedhouseholds).
RuralhouseholdsinGhana(TableA2.9)receive29percentoftheirincome
fromagriculturalactivities(45.9percentiftheyarecocoaproducer).Agricul-
turalincomeisparticularlyimportantforthefirsttwoquintiles,wherehouse-
holds get one-third of their income from agriculture; these shares decline
sharply forhouseholds in the lastquintile,whogetonly 23 percentoftheir
CaseStudies
17
incomefromthisactivity.Conditionalonbeingacocoaproducer,theaverage
ruralhouseholdgets a similar share ofincome from agriculture regardless
of the quintile. For the average ruralhousehold, cocoa contributes 4.8 per-
centofthe total income in male-headedhouseholds and2.8percentof the
incomeinfemale-headedhouseholds(24.1percentand22.2percentrespec-
tively forthesubsample ofproducers).For both genders,householdsin the
thirdquintilearetheonesthatmoreheavilydependoncocoawith6.3percent
(male-headed)and4.2percent(female-headed).
Malawi (Table A2.10) is one of the countries in our study with the low-
estincome share comingfrom agriculturalsales,with only 11.6 percentfor
the averageruralhousehold(34.3percentfor producers).Thisshare iseven
smallerforfemale-headedhouseholdsat7percent(29.4percentforproduc-
ers). Mostof the income of rural householdscomes from home-production
activities. This source of income declines with the level of consumption of
thehouseholdandtheshareofagriculturalincomeincreasesupto15.4per-
cent for the average rural household in the last quintile (42.3 percent for
producers).Tobacco(withashare of3.8percent)andcotton(with ashareof
0.5 percent),arethe mostimportantcrops(thefiguresare21.8percentand
2.7percentrespectivelyforproducers).
On average, Rwandan rural households get 18.8 percentoftheir income
fromthecommercializationofagricultureproducts(TableA2.11).Thisshare
increasesto28.3forthehouseholdsproducingtheexportcropsinourstudy.
Thesharefor male-headedhouseholdsisslightly higher,at20.1percent.As
inthecaseofMalawi,theshareofagricultureincomeincreaseswiththelevel
ofhouseholdconsumption.Thoseinthelastquintileget25.8percentoftheir
income from agriculture. Among producers, the agriculture share does not
drasticallychangeacrossquintiles.Coffeeisthemaincashcrop,contributing
slightly less than 1 percent of total household income. Among producers,
instead,coffee—withan averageshareof8 percent—isan importantsource
ofhouseholdincome,inparticularforhouseholdsinthefirstquintile(witha
shareof11.57percent).
ThecaseofUganda(TableA2.12)isverysimilartothecaseofRwanda.On
average,aruralhouseholdgenerates15.1percentofitsincomefromagricul-
turalproductsbutthisaverageisverydifferentacrossquintiles.Theshareof
agriculturalincomeforruralhouseholdsinthefirstquintileisonly5percent,
while, for those in the fifth quintile,the share is 25.7 percent. Amongpro-
ducersweobserve asimilar pattern, butthesharesare higher.Male-headed
householdsrelymoreonagriculturalincomethanfemale-headedhouseholds.
Coffeeisalso the main cash crophere,contributing2.4 percentofthe rural
householdincome(8.2percentifthey areproducers).
ThelastcountryinouranalysisisZambia (TableA2.13).Aroundone-fifth
ofruralhouseholdincomecomesfromthecommercializationofagricultural
products (36.4 percentamongproducers). Thispercentageis similaracross
quintiles,with slightly highersharesforthe pooresthouseholdsin thetotal
18
SupplyChainsinSub-SaharanAfrica
sample, and slightly higher (21.8 percent and 2.7 percent respectively for
producers) shares fortherichesthouseholdsamongproducers. Cotton and
tobacco are the main sources ofagriculturalincome.Cotton contributes, on
average,3.2 percent(23.3 percentamong producers)of the totalincome in
male-headedruralhouseholdsand2.1percent(23percentforproducers)in
thecaseoffemale-headedhouseholds.Thecontributionoftobaccois0.8per-
cent and 0.4 percentfor male-headedand female-headedruralhouseholds
(5.9percentand4.6percent,respectively,forthesubsampleofproducers).
To showtheimportance ofthe relevantcropsfor the ruralhouseholdsin
the eighttargetcountries acrossthe entire income distribution more effec-
tively, Figures 2.9 to 2.16 display nonparametric regressions of the income
sharesderivedfromdifferentexportcropsonthelogofpercapitahousehold
expenditures. These regressions are estimatedusing local polynomials (see
Pagan andUllah1999). Foreach crop–country pair,weestimatethis regres-
sion for the totalruralsample, andforthesubsamplesofmale-headedand
female-headedhouseholds.
In Benin (Figure A2.9), the share of income coming from cotton declines
withthelevelofpercapitaexpenditureofthehousehold.Thedeclineismore
pronouncedin thecaseoffemale-headedhouseholds.Ontheotherhand,in
thecaseofBurkinaFaso (Figure A2.10), theimportance oftheincome share
derived from cotton grows with the levelof per capita expenditure (partic-
ularly for male-headed households). The share of coffee and cocoa decline
with percapitaexpenditureinCôted’Ivoire (FigureA2.11);cottonshares,in
contrast, monotonically increase. In Ghana, the share of cocoa income first
increaseswithincome,butthendeclinesattherighttailoftheincomedistri-
bution(FigureA2.12).FigureA2.13showsthattheshareofincomegenerated
by tobacco increaseswith the levelof per capita expenditure ofthe typical
Malawianruralhousehold,whereasthe shareofincomecomingfromcotton
has an invertedU-shape.In Rwanda(Figure A2.14), on average, the share of
incomefromcoffeeincreaseswiththelevelofexpenditureoftheruralhouse-
hold. We observe a similar pattern for coffee in Uganda (Figure A2.15) but
withadeclineintheshareofcoffeefortherichestruralhouseholds.InZam-
bia(FigureA2.16)boththeshareofincomefromtobaccoandcottonincrease
withthelevelofpercapita consumptionoftheruralhousehold.
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