Value added and equity in the smallholder-produced teak (Tectona grandis L.f.) poles value chain in Southern Benin

Abstract

This article assesses the value added created, and equity in the smallholder-produced teak poles value chain in Southern Benin. The questions intended to be addressed were as follows: how well does the value chain contribute to create wealth? How fairly is the value added shared among chain participants? What are the opportunities for smallholder farmers to capture a wider share of the value added? The study was based on data from 103 teak planters surveyed in the Atlantique Department, and 89 teak poles traders operating in five major cities. The consolidated production-trading account of the value chain was elaborated. The level of equity in the value chain was analysed based on the costs borne, the contribution to the value added, and the share of value added received by each stakeholder. The value chain generated a positive value added. Traders were the main contributors, and the first beneficiaries of the value added. However, there was no sufficient evidence of inequity to the disadvantage of farmers. There is avenue for farmers to upgrade in the value chain by acquiring new functions, to increase the farm gate value of timber. The related policy implications were discussed.