Determinants of the choice of multi-modes of governance by producers and processors of paddy in Benin

This research aims at analyzing the factors that influence the choice of the multi-modes of governance by producers and processors of paddy in Benin. Unlike previous researches, it analyzes these factors simultaneously for both producers and processors. Furthermore it explains the multiple choices of governance modes by actors. Finally, this research analyses the influence of institutional environment on the governance mode choice by the actors. Data were collected in Benin from 320 producers and 140 processors of rice selected randomly. The results indicate that the majority of producers (78.04%) and processors (92.69%) use the spot market to sell and procure paddy against 32.78% and 26.43% of producers and processors respectively for the contractual marketing and procurement. Nearly 26.35% of producers use at least two modes of governance to market the paddy, against 19.70% of the processors to procure paddy. Producers and processors that belong to an innovation platform use more formal contracts and farmer associations to market and to procure paddy. The quantities of paddy sold by producers and purchased by processors are unstable on the spot market and through informal contracts. In opposite, these quantities are stable for formal contracts. Knowledge of traditional institutions by the actors positively influences participation in formal and informal contracts. Knowledge of modern institutions negatively affects participation in informal contracts. The innovation platforms can be used to facilitate contracts between farmers and rice processors. Modern and traditional institutions may also be used to assist stakeholders in the enforcement of contracts