Many farmers face difficulties accessing output markets for selling agricultural products, primarily due to high transaction costs resulting from poor infrastructure, market imperfections, a lack of price information, and weak connections between market actors. Producers collectively reorganize to diversify their commercial outlets in response to these challenges. Using a sample of 200 chili pepper producers randomly selected in Southern Benin, this study analyzes the impact of a collective marketing system on agricultural income. The results derived from the Endogenous Switching Regression (ESR) model show that collective marketing significantly enhances the income of participating pepper producers, an effect primarily facilitated by increased selling prices rather than cost reduction. The findings highlight the importance of human capital development and digital and financial inclusion in optimizing the advantages of collective marketing initiatives.
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