By Laura Romero
The Growth Lab has estimated economic complexity, a measure of knowhow agglomeration, for several countries worldwide. However, measuring complexity in the agricultural sector poses a significant challenge. What is more, measuring it for smallholder farmers around the world is even more complex. Through our work, we have laid the groundwork for future measures of complexity for this population.
I joined the Growth Lab Agriculture Initiative last October, aware of how challenging it would be to answer this question. We started with the basics: Who are the small farmers? If you ask someone in India and someone in Albania, I assure you that the answers will diverge. In fact, the literature recognizes that smallholder farmers are a heterogeneous group (Ethical Trading Initiative, 2005; FAO, 2012). Some of the variables in which they differ include the following:
Typically, smallholder farmers produce relatively modest volumes of goods on small plots of land. They are generally less well-resourced, vulnerable in supply chains, and have limited access to markets and services. The most common criteria used to define smallholder farmers globally is land size, with a consensus that they work on land plots smaller than 2 hectares (Committee on World Food Security, 2016; FAO, 2012).
With this in mind, we explored worldwide data on these population. The most comprehensive datasets are published on the FAOSTAT statistics website, which contains information for over 145 countries. Relevant databases include Structural Data From Agricultural Census and Production Crops and Livestock Products (FAO, n.d.). By calculating comparative advantage indicators to get information on the productive capabilities, we determined that some countries have comparatively more smallholder farmers than others. These countries include Guatemala, Albania, Lebanon, Jordan, Egypt, Namibia, and India, among others.
Furthermore, using a programming function, we were able to determine the revealed comparative advantage (RCA) by crop and country for three time periods: 1990, 2000, and 2010. We also estimated which crops were the top five produced by each country and analyze whether these had comparative advantages with respect to the region.
Since worldwide information about country and hectares harvested for each crop is not available by land size, the next step was to compare the top five most produced crops by country and its RCAs with national information. For a subset of six countries, we analyzed which crops were most commonly harvested by smallholder farmers, using Agricultural Censuses of National Surveys. The countries are Guatemala, Colombia, Albania, Ethiopia, Namibia, and South Africa.
Guatemala and Albania stand out as countries with relatively more smallholder farmers’ land with respect to their respective regions, as well as to the set of developing countries in the world. In the case of Guatemala, coffee, sugar crops and maize are three out of the five most produced to display a comparative advantage with respect to Latin America. According to the country’s national survey, coffee and maize are among the most harvested crops by smallholder farmers (Instituto Nacional de Estadistica [INE], 2013). In the case of Albania, there are comparative advantages for cereals, pulses, and wheat, all produced by smallholder farmers (Institute of Statistics [INSTAT], 1998).
Colombia also has relatively more smallholder farmers’ lands compared to the other countries in the continent. Coffee, fruit, and rice are some of the most harvested crops in the country, with comparative advantages over other crops. From these, coffee, banana, and plantain are the most frequently harvested crops by small farmers (Departamento Administrativo Nacional de Estadistica [DANE], 2014).
Top 5 crops produced by country: Share and RCA - 2000
In Africa, Ethiopia and Namibia are highlighted as countries that have relatively more smallholder farmers’ land concerning their respective regions, as well as the set of developing countries in the world. In Ethiopia, cereal crops and wheat are two of the most produced to show a comparative advantage. According to the country’s Agricultural Census, cereals like teff, sorghum, barley, and wheat are among the most harvested crops by smallholder farmers (Central Statistical Agency [CSA], 2012). In the case of Namibia, there are comparative advantages for edible roots, cereals, and specifically millet. Indeed, millet is one of the most commonly harvested crops by smallholder farmers, along with sorghum (Ministry of Agriculture, Water and Rural Development [MAWRD], 1995).
Finally, South Africa stands out from other African and developing countries due to its relative lack of smallholder farmers’ lands. The countries’ top five harvested crops have a comparative advantage compared to the region. There are sunflower seeds, wheat, sugar cane, cereals, and maize. From these, smallholder farmers produce maize and sugar cane (Statistics South Africa, 1997).
Top 5 crops produced by country: Share and RCA - 2000
There have already been initiatives aimed at prioritizing specific products for smallholder farmers to integrate into local and global markets. One example is Japan's One Village, One Product program, which was developed in 1979 to increase the value of locally produced goods and boost household and national income. The program targeted farmer groups and cooperatives, with one village sometimes prioritized. This public policy has been replicated in several countries (FAO, 2013).
More recently, the FAO launched the One Country Priority Product (OCOP) initiative to promote special agricultural products with unique qualities and characteristics. This project places smallholders and family farming at the center of interventions to improve access to stable markets and serve as a key entry point for achieving their defined priorities (FAO, 2022). Numerous countries have already defined which products to prioritize, taking comparative advantages into consideration. From the countries we analyzed, Guatemala prioritized coffee and Ethiopia prioritized teff.
Overall, we have laid the groundwork for future measures of complexity for smallholder farmers around the world. We have developed a methodology that uses comparative advantages to identify existing capabilities in different economies. We identified who the smallholder farmers are, where their lands are predominantly located, which crops are most harvested, and whether they display comparative advantages. Additionally, we have presented some initiatives that propose the prioritization of certain products to integrate smallholder farmers into local and global markets. Mapping the existing capabilities of different types of farmers and crops that diverge in productivity is a crucial first step in discussing economic complexity in smallholder farmers.
References
Central Statistical Agency. (2012). Statistical report on the 2010-2011 agricultural sample survey. Volume I: Statistical report on crops (private peasant holdings). Addis Ababa, Ethiopia. Retrieved from https://catalog.ihsn.org/catalog/1389/related-materials
Committee on World Food Security. (2016). Connecting smallholders to markets. Food and Agriculture Organization of the United Nations. Retrieved from https://www.fao.org/3/bq853e/bq853e.pdf
Departamento Administrativo Nacional de Estadística. (2014). Censo Nacional Agropecuario 2014: Resultados nacionales. Retrieved from https://www.dane.gov.co/files/images/foros/foro-de-entrega-de-resultados...
Ethical Trading Initiative. (2005). Recommendations for Working with Smallholders. Retrieved from https://www.ethicaltrade.org/sites/default/files/shared_resources/eti_sm...
FAO. (2012). Coping with the food and agriculture challenge: smallholders’ agenda. Retrieved from https://www.fao.org/fileadmin/templates/nr/sustainability_pathways/docs/...
FAO. (2013). Global application of the One Village One Product Movement concept: Lessons from the experiences of the Japan International Cooperation Agency. Rome, Italy: FAO. Retrieved from http://www.fao.org/3/a-i3251e.pdf
FAO. (2022). The Global Action on Green Development of Special Agricultural Products: One Country One Priority Product Action Plan 2021-2025. Retrieved from http://www.fao.org/3/cb5506en/cb5506en.pdf
FAO. (n.d.). FAOSTAT. Retrieved March 23, 2023, from https://www.fao.org/faostat/en/#data
Institute of Statistics. (1998). Albania - Agricultural Census 1998 - Main Results. Retrieved from https://www.fao.org/fileadmin/templates/ess/documents/world_census_of_ag...
Instituto Nacional de Estadística. (2013). Guatemala – Encuesta Nacional Agropecuaria 2013. https://www.ine.gob.gt/encuesta-nacional-agropecuaria/
Ministry of Agriculture, Water and Rural Development. (1995). Namibia Agricultural Census 1995 - Main Results. Retrieved from https://www.fao.org/publications/card/es/c/8dc4e39c-6b78-4ddf-889c-18038...
Statistics South Africa. (1997). South Africa Rural Survey 1997. Retrieved from https://microdata.worldbank.org/index.php/catalog/1602