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Magazinenumber 7, Augus These women sell part of their produce at the market of Los Chillos César Jaramillo Avila The Economics of Urban Agriculture MAGAZINE NUMBER 7, AUGUST 2002 AUGUST NUMBER 7, Urban agriculture provides multiple functions and benefits America, and many of them incorporate to urban dwellers and cities. Political support is growing and agriculture as part of their livelihood further research and financial support to enhance the strategies. Although the contribution of contribution of urban agriculture to sustainable urban urban agriculture to the GDP (Gross development is necessary. In this issue of the UA-Magazine Domestic Product) may be small, its we focus on the analysis and understanding of the importance to many city inhabitants is economics of urban agriculture, during periods of economic substantial, especially in difficult times recession as well as in times of a well developing economy. (see the Buenos Aires, Quito and Harare case studies). he Economics of Urban Agriculture is Urban agriculture arises not only out of a wide area of study. Moustier (2001) crisis situations, but also exists because of T discusses the following indicators to nearness to urban markets and the show and measure the economic impacts comparative advantages this location of urban agriculture: employment (popu- provides for delivery of fresh perishable lation involved), income and income dis- products as milk (Nairobi), eggs, meat and tribution, cash readiness, contribution to fresh vegetables (Kumasi), the availability household food, added value, contribu- of productive resources (water, compost tion to urban food supply, and share in of urban organic wastes), closeness to market(s). Various case studies are pre- institutions providing credit, technical sented in this issue analysing such factors advice and market information, etc. Editorial at household and/or municipal level. Urban agriculture complements rural Next to the analysis of the socio-econom- agriculture and increases the efficiency of www.ruaf.org ic impacts of urban agriculture, strategies the national food supply in terms of to further develop the economic contribu- producing niche products, or may tion of urban agriculture are presented substitute food imports (leading to and reviewed. foreign exchange savings). The contribution to urban food supply varies, Rapid urbanisation in developing coun- relative to rural agriculture, depending on tries and migration of rural populations product and season (see Ouagadougou). places high demand on cities to provide When the economy improves urban jobs and adequate living conditions. The agriculture also may take on other numbers of urban poor and those operat- functions for the urban citizens: César Jaramillo Avila ing in the informal sector are increasing gardening for leisure and physical Municipality of Quito, Ecuador throughout Africa, Asia and Latin exercise, offering of recreational services René van Veenhuizen ETC-RUAF URBAN AGRICULTURE to urban tourists, maintenance of the periurban landscape and biodiversity and reduction of the urban ecological food print (as explained in the London case). Nugent (2001) suggests the following key questions concerning the socio-economic impacts of urban agriculture in economic Income of Farming Systems Around Kumasi PAGE 5 analysis: Market proximity is a major incentive for the intensification of farming ❖ Who are the important stakeholders, systems or change of systems to more profitable ones. A common and how do they relate? example is the production of perishable products, such as vegetables ❖ What are the impacts of urban agri- in urban and periurban areas. Around Kumasi, many rainfed maize- culture on the community, and why are cassava farmers started dry-season vegetable production along these impacts positive or negative, tem- streams to generate additional income, while in the city itself year- porary or permanent, and how do they round open-space vegetable production is common, especially in bot- change over time? tomlands with water access for irrigation. ❖ Are these impacts on the community better (overall) than other uses of space, and how can choices be made about The food produced often represents mined by management and available tech- alternative uses? important savings on food expenditures. nology; access to market or other buyers ❖ How do factors outside the communi- Poor urban consumers can spend 60 to and subsequent prices obtained, which in ty relate to the community and urban 80 percent of their income on food. Self- turn depend on cash needed, ability to agriculture? production of food makes little cash store, process and preserve products, and income of the household available for on outside factors such as supply and ECONOMIC IMPACTS OF URBAN other expenditures. Furthermore, demand of the products. The cases on AGRICULTURE improved access to food and income pos- Kumasi, Nairobi, Mexico D.F. and In the Special issue of the UA-Magazine itively affects people’s capacity to work Ouagadougou in this issue demonstrate on food security, prepared for the FAO and invest. The article on Ouagadougou that urban farmers made rational pro- World Food Summit-five years later and in this issue shows that the positive eco- duction decisions by taking up higher risk available at www.ruaf.org, the impact of nomic impact and food security for the intensive vegetable production (Kumasi), urban agriculture on the nutritional status cultivators weighed up against the risks or obtaining better returns per dollar of households is given for a number of of practising home gardening, but that invested by maintaining diversity and countries, showing that producing for the level of these benefits depend on sea- using fewer external inputs (Mexico). household consumption raised food secu- sonal variations and external factors These cases also show the importance of rity and provided them with a healthier the use of local resources and its positive diet than those without access to crop and Urban agriculture creates self-employ- impact on the economies of small-scale livestock production. Self-produced food ment and income, especially for the urban farmers in a periurban setting. represents anywhere from 18 percent poor lacking access to other jobs and as a (Jakarta) to 60 percent (Harare) of total complementary source of income to low In Africa, Latin America and Asia, espe- food consumption in low-income house- and middle income households. Income cially women are active in urban agricul- holds, while studies in two slum areas of earned by urban farmers is found to a sig- ture, seeking improved diets for their Nairobi found very high benefits from nificant, but an often uncertain, contribu- families and/or additional income. For urban farming including: at least 50 per- tor to household maintenance. In Dar Es many women, urban agriculture provides cent of food consumed derived from the Salaam, Tanzania, urban agriculture is the an attractive and flexible alternative to farmers own production (UA-Magazine second largest employer (20 percent of badly paid wage labour in households Special, 2002, Mwangi, 1995). those employed, Sawio, 1998). In Nairobi, and other informal jobs far away from Kenya Urban agriculture provides the their houses (with related costs of bus highest self-employment earnings in fares and people tending their children). small-scale enterprises and the third high- In order to understand the role of urban est earnings in all of urban Kenya (House agriculture in the survival strategies of REFERENCES et al., 1993). In Lomé the mean monthly poor urban households, various factors - Abutiate W.S. 1995. Urban and Periurban Horticultural Activity in Ghana: an overview. In: NRI (eds.) Peri-Urban Interface Research: work- income of a market gardener was found must be analysed. Urban agriculture can shop proceedings (ODA), Kumasi, Ghana, 1995. to equal ten minimum salaries or that of a have an important positive economic - Henn P and Henning J. 2001. The Value of Urban Agriculture. The Contingent Valuation Method applied in Havana, Cuba. UA-Magazine 5 senior public servant (Abutiate, 1995). impact on urban households, but very (December 2001): 49-50. - House W. Ikiara. G. and McCormick. D. 1993. Urban Self-employment in often as part of a broader array of strate- Kenya: panacea or viable strategy? World Development 21 (7)” 1205-1223 Nugent (2000) describes the factors influ- gies. As the examples of Ouagadougou - Moustier P. 2001. Assessing the Socio-Economic Impact. UA-Magazine # 5 (December 2001): 47-48. encing net income of a household as: the and Haroonabad in this issue illustrate, - Nugent RA. 2001. Using economic analysis to measure the sustainability farming effort (type of activity, amount of there is relatively little use of wage labour of urban and periurban agriculture: A comparison of cost-benefit and contingent valuation analyses. Presentation at workshop on Appropriate time spent, etc); the availability and cost of in urban agriculture production, with Methodologies in Urban Agriculture, Nairobi, Kenya. - Sawio. C. 1998. Managing Urban Agriculture in Dar Es Salaam. Cities basic inputs; the yields, which are deter- exception of the peak periods. Feeding People Report 20. Ottawa: IDRC. UA-Magazine, Special Issue on Food Security. June 2002. 2 UA-Magazine In this issue 4Micro Credit and Investment 5Income of Farming Systems Around Kumasi Employment is also created by the small was estimated at 1.6 the annual minimum 7 Municipal Strategies for the Primary Sector scale enterprises
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