Linking Smallholder Producers To Modern Agri Food Chains Case Studies From South Asia Southeast Asia And China

This publication examines the processes and impact of market restructuring through comparative in-depth empirical case studies in selected Asian countries, namely, China,India, Indonesia, Philippines, Sri Lanka and Thailand. These countries represent both a broad geographic coverage and a range of stages of market concentration in the region. The country papers address important questions such as what determines the participation of producers in different channels, what is the impact of farmer participation on incomes and what institutional, technological, economic and other reforms are necessary to enhance their effective participation in the emerging and restructuring markets.The case studies attempt to identify major factors that affect smallholder producers’ access to output markets, input markets, e.g. seeds, fertilizers, agrochemicals, technology and services such as credit, extension, insurance. Each case study has tried to analyse one specific innovation and these innovations are specific arrangements built on public policies, business initiatives, collective/group action by small-scale producers, etc. that appear to have played a positive role in supporting greater inclusion. The studies aim to derive models, strategies and policy principles to guide public and private sector players in promoting greater participation of small-scale producers in dynamic markets.

From a country plagued with chronic food shortage, the Green Revolution turned India into a food-grain self-sufficient nation within the decade of 1968-1978. By contrast, the decade of 1995-2005 witnessed a spate in suicides among farmers in many parts of the country. These tragic incidents were symptomatic of the severe stress and strain that the agriculture sector had meanwhile accumulated. The book recounts how the high achievements of the Green Revolution had overgrown to a state of this ‘agrarian crisis’. In the process, it also brings to fore the underlying resilience and innovativeness in the sector which enabled it not just to survive through the crisis but to evolve and revive out of it. The need of the hour is to create an environment that will enable the sector to acquire the robustness to contend with the challenges of lifting levels of farm income and coping with Climate Change. To this end, a multi-pronged intervention strategy has been suggested. Reviving public investment in irrigation, tuning agrarian institutions to the changed context, strengthening of market institution for better farm-market linkage and financial access of farmers, and preparing the ground for ushering in technological innovations should form the major components of this policy paradigm.

Debates about public expenditure in the agricultural sector have reopened in many developing and emerging economies because of high budget deficits and changes in public opinion. As a result, agricultural policy in many of these countries is beginning to take a more market-oriented approach to agrarian problems, most notably through the introduction of contract farming. This book explores the policy issues around contract farming and its transformative potential and addresses the lack of empirical research on this topic by focusing on South Asia: principally India, Bangladesh and Nepal. The book first addresses the effects of contract farming (vertical coordination) on productivity, food security indicators (yield, consumption expenditures, prices), employment and input usage. Then it draws lessons from the South Asian case studies on the impact of institutional changes, like contract farming, on income and food security of smallholder households. The core of the book includes case study chapters on several commodities that are produced under contract farming, including vegetables and fisheries in Bangladesh, low-value crops in Nepal and coffee in India. Other chapters also explore contracts, storage, input usage and technical efficiency in these cases. This book serves as an essential guide to academics, researchers, students, legislative liaisons and think tank groups interested in agrarian issues, agricultural economics and agricultural policy in emerging economies and particularly in South Asia.

'There should be a good market for this book. The topic is very timely and a major theme of the new World Development Report 2008. The editors and contributors are world class.' Derek Byerlee, World Bank 'This is a topic of wide interest and high policy importance. The depth of coverage and excellent synthesis should ensure that the book will have a substantial market in high-level undergraduate and graduate courses in agricultural development. It will have a solid readership among development economists and policy makers as well.' Mark Rosegrant, International Food Policy Research Institute The driving forces of income growth, demographic shifts, globalization and technical change have led to a reorganization of food systems from farm to plate. The characteristics of supply chains - particularly the role of supermarkets - linking farmers have changed, from consumption and retail to wholesale, processing, procurement and production. This has had a dramatic effect on smallholder farmers, particularly in developing countries. This book presents a comprehensive framework for assessing the impacts of changing agri-food systems on smallholder farmers, recognizing the importance of heterogeneity between developing countries as well as within them. The book includes a number of case studies from Asia, Africa, Latin America and Eastern Europe, which are used to illustrate differences in food systems' characteristics and trends. The country case studies explore impacts on the small farm sector across different countries, local contexts and farm types. Published with FAO

The driving forces of income growth, demographic shifts, globalisation and technical change have led to a reorganisation of food systems from farm to plate. The characteristics of supply chains - particularly the role of supermarkets - linking farmers have changed, from consumption and retail to wholesale, processing, procurement and production. This has had a dramatic effect on smallholder farmers, particularly in developing countries. This book presents a comprehensive framework for assessing the impacts of changing agri-food systems on smallholder farmers, recognising the importance of heterogeneity between developing countries as well as within them. The book includes a number of case studies from Asia, Africa, Latin America and Eastern Europe, which are used to illustrate differences in food systems' characteristics and trends. The country case studies explore impacts on the small farm sector across different countries, local contexts and farm types

Agrifood systems in Asia and the Pacific can be strengthened by tapping on agrifood-tourism linkages. When tourism and agrifood systems interact, both synergies and competition appear. Agriculture and tourism compete between themselves and other sectors for land, water, labour, capital, and transport and logistics services. Cross-sectoral synergies arise when agriculture and tourism influence each other through their respective demand conditions and changes in the enabling environment. These cross-sectoral synergies can be instrumental in strengthening agrifood systems in the region and addressing interlinked crises in the post-pandemic era.Governments across Asia and the Pacific have acknowledged the potential of tapping into agrifood- tourism linkages to advance sustainable development in both urban (food tourism) and rural areas (mostly agricultural tourism), and are implementing efforts to develop this subsector.Agrifood-tourism linkages can create income-generating opportunities for farmers and tourism operators, boost employment and stimulate overall economic growth, promote the development of sustainable agrifood systems, prevent rural youth outmigration and help preserve culinary and agricultural heritage.This publication guides policymakers in the region in the preparation of a strategic plan aimed at developing agrifood tourism and the tourism food value chain as drivers of sustainable development. The successful positioning of a country or location as a culinary or agricultural tourism destination and the creation of synergies between the agriculture and tourism sectors requires a shared vision and coordination between policymakers, destination managers, tourism and agrifood businesses, chefs, farmers and other key stakeholders.

This handbook addresses the challenges that agribusiness companies face when working with smallholder suppliers in their value chain.

Linking smallholders in developing countries to modern food chains is considered important for reducing rural poverty and food insecurity. In sub-Saharan Africa, contract farming arrangements involving high-value export cash crops have been the traditional pathway for smallholder participation in modern food chains. In recent decades, however, domestic food chains in the sub-region are also modernizing. This dissertation analyzes the drivers and effects of smallholder participation in these domestic modern food chains in two sub-Saharan countries. Using case studies in the wheat and tomato sectors in Zimbabwe, the dissertation shows that contract farming arrangements can be differentiated by transaction cost characteristics and the intensity of vertical coordination. In the Malawian context, the dissertation shows that a soybean buyer concurrently sources through multiple contract farming arrangements due to ambiguity of transactions, but the persistence of plural governance is explained by the buyer’s strategic behaviour. Finally, the dissertation shows that soybean contract farming through producer organizations did not have statistically significant impact on smallholder economic outcomes or satisfaction with production and marketing arrangements. Among other reasons, this is attributed to plural governance by the contractor and low margins in the soybean chain.