Market Linkage
Smallholder farmers play a foundational role in global food supply chains. These small, often family-led entities serve as cornerstones for rural communities and contribute heavily to the economies of developing countries.
Improving market linkages helps to support investment, develop better farming practices, shift the power balance in the supply chain, and stem post-harvest losses due to better market coordination and logistics. This article discusses the importance of market linkages for smallholders, the impact that improved connectivity can have on supply chains, and strategies to improve market linkages.
we can identify three main types of linkages associated with resource extraction:
Developing smallholder agriculture can be effective in reducing poverty and hunger in low-income countries but only through sustainable access to markets can poor farmers increase the income from their labor and lift themselves and their families out of poverty. Agriculture remains the best opportunity for the estimated 1.5 to 2 billion people worldwide living in smallholder households to work and trade their way out of poverty. For primary producers in developing countries, both vertical and horizontal linkages must be considered. Vertical links between smallholders and larger companies can provide access to capital, technology, new skills, and specialized knowledge. Horizontal links between smallholders can also prove beneficial. Larger enterprises rarely deal directly with individual farmers due to low production volumes and the logistical complexities involved in coordinating with numerous small suppliers.
Strengthening market linkages is vital for reducing post-harvest losses, creating a more equitable distribution of power within the supply chain, encouraging investment, and generally advancing agricultural practices. It is also beneficial to all stakeholders across the food supply chain. Consumers can enjoy more choices and access to fresh locally sourced items, leading to healthier and are varied diets.
Establishing market linkages can be a complex process. Smallholders often wholly depend on their farms for their livelihood making them change and the causes for smallholder isolation can vary from lack of access to finance and market information to inadequate infrastructure and logistical challenges.
The vulnerability and subsistent nature of many smallholders often means that they cannot form robust market linkages themselves. Consequently, links between farmers and markets are primarily developed by governments and NGOs. Governments must develop policies and institutional supports that improve market access, and increase production capabilities.
Group lending systems and producer associations can go a long way to empowering smallholders. Governments can also support market linkages by investing in rural infrastructure, securing land tenure and property rights, and enacting regulations regarding pesticide use, food standards, and seed quality.
Smallholder farmers play a foundational role in global food supply chains. These small, often family-led entities serve as cornerstones for rural communities and contribute heavily to the economies of developing countries.
Improving market linkages helps to support investment, develop better farming practices, shift the power balance in the supply chain, and stem post-harvest losses due to better market coordination and logistics. This article discusses the importance of market linkages for smallholders, the impact that improved connectivity can have on supply chains, and strategies to improve market linkages.
we can identify three main types of linkages associated with resource extraction:
Developing smallholder agriculture can be effective in reducing poverty and hunger in low-income countries but only through sustainable access to markets can poor farmers increase the income from their labor and lift themselves and their families out of poverty. Agriculture remains the best opportunity for the estimated 1.5 to 2 billion people worldwide living in smallholder households to work and trade their way out of poverty. For primary producers in developing countries, both vertical and horizontal linkages must be considered. Vertical links between smallholders and larger companies can provide access to capital, technology, new skills, and specialized knowledge. Horizontal links between smallholders can also prove beneficial. Larger enterprises rarely deal directly with individual farmers due to low production volumes and the logistical complexities involved in coordinating with numerous small suppliers.
Strengthening market linkages is vital for reducing post-harvest losses, creating a more equitable distribution of power within the supply chain, encouraging investment, and generally advancing agricultural practices. It is also beneficial to all stakeholders across the food supply chain. Consumers can enjoy more choices and access to fresh locally sourced items, leading to healthier and are varied diets.
Establishing market linkages can be a complex process. Smallholders often wholly depend on their farms for their livelihood making them change and the causes for smallholder isolation can vary from lack of access to finance and market information to inadequate infrastructure and logistical challenges.
The vulnerability and subsistent nature of many smallholders often means that they cannot form robust market linkages themselves. Consequently, links between farmers and markets are primarily developed by governments and NGO’s. Governments must develop policies and institutional supports that improve market access, increase production capabilities.
Group lending systems and producers associations can go a long way to empowering smallholders. Governments can also support market linkages by investing in rural infrastructure, securing land tenure and property rights, and enacting regulations regarding pesticide use, food standards, and seed quality.
