Approaches to Linking Producers to Markets: A Review of Experiences to Date
Andrew W. Shepherd (2007)
How have NGOs and the private sector attempted to link farmers to new markets for agricultural goods? What are the features of successful linking initiatives?
This FAO Occasional Paper reviews examples of linkages between farmers and markets in contexts where traditional marketing channels are increasingly being replaced by co-ordinated links between farmers, processors, and retailers.
It mainly examines linkages developed by projects where donors and NGOs help farmers to work more closely with the private sector.
The review finds that:-
Trust, including a willingness to exchange information, is essential for the establishment and continuation of linkages.
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Given than education levels, leadership and management skills, proximity to markets and prior investment in irrigation are all linked to market success, the poorest farmers in remote areas may not be the appropriate beneficiaries of ‘linking’ interventions.
It recommends that:-
Small farmer development may be best served by working to promote local, domestic market development rather than focusing on export value chains.
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Donors should investigate whether there is any potential adverse impact of their activities – especially regarding subsidies and the role of traders / other ‘middle men’ - on non-participating farmers.
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Linking organizations should maximize the contact between farmers and buyers. Ideally, farmers should be involved in identifying buyers and in making initial business contacts.
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Organisations must be prepared to adopt a much more commercial approach, employing staff with a strong understanding of marketing and of the functioning of the private sector.
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