CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The nexus between agribusiness development and rural livelihoods has garnered significant interest from scholars and policymakers alike due to its potential for transforming rural economies and improving the well-being of rural communities (Patel et al., 2015). Agriculture and rural life are always inseparable. Furthermore, agriculture plays a central role in rural community, accounting for 26% of gross domestic product (GDP) and 50% of employment in every small society (Boughton et al., 2020). Rural livelihoods, on the other hand, encompass the diverse set of activities, assets, and strategies that rural households engage in to secure their well-being and sustain their livelihoods (Abebe, 2014).  Agriculture often forms the backbone of rural livelihoods, and the development of agribusiness can have profound implications for rural communities. It has the potential to generate employment opportunities, increase incomes, improve market access, foster innovation, and enhances the overall socio-economic conditions of rural areas (Ahmadzai et al., 2021).

Agricultural development in term of agricultural productivity, access to market and employment creation are the primary roots that greatly influence rural livelihoods in most local community (Sekaran et al., 2021), these three primary roots agricultural productivity, access to markets, and employment creation interact and reinforce each other to shape rural livelihoods. Improving agricultural productivity leads to surplus production, which, when combined with access to markets, enables farmers to sell their products at favorable prices (Sekaran et al., 2021), the resulting increased income and profitability create a positive cycle, encouraging further investment in agricultural productivity and diversification. White, (2012) employment creation in the agricultural sector and related industries not only provides income but also promotes skills development and human capital accumulation, contributing to long-term sustainable livelihoods.

Enhancing agricultural productivity plays a crucial role in improving rural livelihoods. By adopting modern farming techniques, utilizing improved seeds and fertilizers, implementing efficient irrigation systems, and incorporating sustainable agricultural practices, farmers can increase crop yields and overall agricultural output (Andrianarison et al., 2022). Higher productivity directly translates into increased incomes for farmers, allowing them to improve their standard of living, invest in education and healthcare, and meet other essential needs. Moreover, improved agricultural productivity contributes to food security, both at the household level and within the broader community, reducing the vulnerability of rural populations to hunger and malnutrition (Andrianarison et al., 2022).

Access to reliable and competitive markets is vital for rural communities to benefit from their agricultural produce, effective market linkages enable farmers to sell their products at fair prices, leading to increased profitability and income generation (Nugroho, 2021).  Infrastructure development, such as roads, transportation networks, and storage facilities, is essential to facilitate the smooth flow of agricultural commodities from rural areas to markets (Nugroho, 2021).   According to Nandi et al. (2021) the establishment of market information systems and the provision of market intelligence empower farmers to make informed decisions regarding crop selection, pricing, and timing of sales. Access to markets not only enhances the economic well-being of rural communities but also stimulates entrepreneurship, fosters innovation, and encourages value addition through processing and packaging activities (Nandi et al., 2021).

Agricultural development has the potential to generate significant employment opportunities in rural areas (Osabohien et al., 2019), beyond the direct employment in farm activities, such as cultivating, harvesting, and animal husbandry, there are indirect employment opportunities in agro-processing, marketing, distribution, and other related sectors (Osabohien et al., 2019). The growth of agribusiness enterprises can create jobs along the entire agricultural value chain, contributing to rural economic diversification and reducing unemployment rates. Increased employment opportunities provide rural populations with a stable income source, alleviate poverty, and contribute to local economic development by stimulating consumption and fostering entrepreneurship within the community (Dhyani et al., 2007).

In the world context, Patterns of agricultural development in Myanmar reflect the country’s wide diversity of ecologies. These can be broadly grouped into lowland and hilly zones, with the former divided into coastal, inland delta, and the dry zone. In 2015, despite a reduction in poverty rates from 48.2% to 32.1% during the previous decade, an estimated 13.8 million poor people (87% of the total poor population) lived in rural areas compared to 2 million poor people in urban areas (MOPF, 2017). Since agriculture is the backbone of any rural economy, diagnosing the causes of low performance in agriculture will go a long way to understanding the drivers of rural poverty. Key features underlying Myanmar’s relatively high rural poverty rate are small average farm size, skewed distribution of land access and high rates of landlessness, low levels of production per unit of land and labour, very high interest rates for informal credit sources, and limited diversification away from low-value staple crops to higher-value enterprises like fruits, vegetables, aquaculture, and livestock production (Haggblade et al., 2014).

In the Indian context, where average farm-size is very small, and poverty and food-security continue to be preponderant among small landholders, the notion of sustainable agriculture ought to be viewed in the context of need for enhancement of productivity, production and profitability of agriculture and above all, for improvement in the economic conditions of farmers such as access to market, creation of job opportunities in the agricultural sector. All these need a development of the agricultural sector (Kumar et al., 2006).

In developing countries, where a majority of families derive their livelihoods from agriculture, sustainable agriculture cannot be discussed in isolation of sustainable rural livelihoods. Sustainable rural livelihood is a multifaceted concept and refers to maintenance or enhancement of access of rural families to food and income-generating activities on a long-term basis. It encompasses secured ownership of, or access to, resources, assets and income-earning activities to offset risks, ease shocks and meet contingencies.

Africa as a continent is mainly identified by subsistence farm households; non-farm income sources already account for as much as 40–45% of average household income (Bryceson, 2019). Empirical studies in Ethiopia also indicated that 20–35% of total farm household income was found to be generated from non-farm livelihood diversification activities (Gebru & Beyene, 2012). Non-farm activities have the potential to help households reduce poverty by granting them with a form of insurance against the threats of farming and minimising reliance on natural resources (Deininger & Jin, 2006; Hilson, 2016; Martin & Lorenzen, 2016).

In Cameroon, land is a major resource for rural women, who are largely dependent on agriculture as a major source of livelihood. The rise in large scale land acquisition by local investors has made land scarcer, affecting the livelihoods of women and the rural population. Because the poor and women are less likely to own land independently, they are more vulnerable, become landless with limited livelihood options, and bear the disproportionate costs of land deals. This can lead to increased poverty and food insecurity among these marginalized groups. Efforts to secure land rights for women and the rural population are crucial in order to ensure their economic empowerment and overall well-being (Defo, 1997).

According to Fonjong et al. (2017), the place of women’s subsistence agricultural production also calls to mind the significance of women’s access, use and control over production resources particularly land, for agricultural production. This has met with increased efforts to enhance small holder (women) farmer’s access to and control over land. The efforts to increase subsistence agricultural productivity however fall short of meeting the growing needs and demands of agricultural producers in general and rural and female subsistence producers in particular. Despite the predominant role of women in food crop production, they have limited access to and control over land. They lack ownership and inheritance rights though they can acquire use rights to cultivable land through male relatives. This limitation of increasing women’s access to and control over land is exacerbated by land grabbing that has been observed in parts of Sub-Saharan Africa including Cameroon.

1.2 Statement of the Problem

The availability of agricultural development services provides observable economic benefits among beneficiary rural communities. For example, in Afghanistan, researchers report that agricultural extension has a positive impact on the net revenue of the people who benefit from these services as they help to improve the managerial aspects of farming (Moahid et al., 2021). Within the South African context, smallholder farmers face numerous challenges that hinder them to optimize their farming enterprises. Examples include inadequate farm management and marketing skills, and the literacy required for farmers to comprehend and interpret market-related information that is necessary for production planning and marketing (Khapayi & Celliers, 2016). This contrast between Afghanistan and South Africa shows that the effective use of agricultural development services could be of significant value for South Africa’s economic emancipation of rural livelihoods (Swanepoel & De Beer, 2011).

In most rural communities in Cameroon, resource scarcity is one of the main limitations faced by rural communities. The cause of this can be attributed to the low socio-economic status that rural areas are often subjected to, the challenges that farmers faced included a lack of support from the government and the private sector, poor infrastructure, water scarcity, drought, lack of information (advisory services), and market inaccessibility. In support of this, the main limiting factors that are faced by farming households Bamenda include; poor physical infrastructures such as poor roads, lack of transportation to the markets from the farms, lack of marketing skills and information, poor market infrastructure, high transaction costs, insufficient land availability to expand production, lack of agricultural implements to better production, poor production and farm management skills, as well as low education levels which results in an inability to interpret market information to be used in production planning and marketing. However, it is the prerogative of extension personnel to ensure that agricultural development relating to these factors in rural communities is addressed. However, due to institutional challenges relating to governance, capacitation, and the technical, functional, and professionalising of the agricultural development services, the socio-economic improvement of rural communities’ livelihoods remains a challenge

Therefore, achieving these goals will require addressing the complex and interrelated challenges of agricultural development. This study aims to assess the nexus between agribusiness development and rural livelihoods in Bamenda II subdivision, with the goal of informing evidence-based policies to promote sustainable agricultural development and equitable improve rural livelihoods in the subdivision.

1.3 Research Question

1.3.1 Main Research Question

What is the nexus between agribusiness development and rural livelihoods in Bamenda II subdivision?

1.3.2. Specific Research Questions

1. What is the nature of the relationship between agricultural production and rural livelihoods in Bamenda II subdivision?
2. What is the nature of the relationship between market access and rural livelihoods in Bamenda II subdivision?
3. What is the nature of the relationship between employment creation and rural livelihoods in Bamenda II subdivision?

1.4 Research Objective

1.4.1 Main Research Objective

To assess the nexus between agribusiness development and rural livelihoods in Bamenda II subdivision.

1.4.1 Specific Research Objective

1. To investigate the nature of the relationship between agricultural production and rural livelihoods in Bamenda II subdivision.
2. To assess the nature of the relationship between market access and rural livelihoods in Bamenda II subdivision.
3. To examine the nature of the relationship between employment creation and rural livelihoods in Bamenda II subdivision.