Over the past three decades the globalization in agri-food sector has been accompanied by a dramatic restructuring, liberalization and privatization of markets often with serious adverse consequences for small farmers in developing and transition countries. Consequently, governments and the international donor community have markedly shifted their development policies from traditional technology transfer approaches towards more market-driven approaches of linking farmers to markets. The international agricultural development literature has begun exploring the appropriate structure of third-party facilitated institutions and enforcement mechanisms to support linking small farmers to markets. Based upon a series of long-term qualitative and quantitative analyses of the instrumental case of USDA Marketing Assistance Project in Armenia, we use a grounded theory approach to develop a dual strategic model for the establishment of sustainable third party facilitated market linkages between producers and processors. Our results and model indicate that if donors pursue a dual strategy of concurrent facilitation of private enforcement on the processing level and institutional arrangement on the producer level in the design and implementation of third-party market linkage programs, they are likely to achieve higher program impact, improved trust among channel participants, and long-run economic sustainability of market linkages. -- Market Linkages ; Small Farmers ; Institutions ; Governance ; Enforcement ; Armenia

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.

"The role of producer organizations in market chains has received increasing attention in recent years, both from governments and donors. In order to lower transaction costs, markets demand that smallholder farmers operate in an organized manner. However, though the policy openings for support seem promising, smallholder market access through farmer-led economic organisations is not easy. This book presents various approaches to support producer organisations in terms of providing economic services to their members, with a focus on developing countries. Markets are increasingly fragmented in value chains that link farmers with specific processors, retailers and consumer segments. Several contributions in this book analyse these dynamics in specific value chains, such as the fair trade and organic agriculture and their potential to provide market outlets for smallholder farmers. This book is the result of a Dutch partnership between policy makers, researchers and practitioners designed to confront ideas with realities. Organized in a platform called Agri-ProFocus, members aim to provide more and better support to producer organisations in the South. Through so-called expert meetings, staff from donor organisations and knowledge centres, government officials, and business representatives, share their experiences and lessons learned. The experiences presented in this book are not recipes for instant success, but instead, highlight that support processes are often more fragile and slower moving than policy makers realise. This book is essential reading for scholars, practitioners and researchers interested in supporting and facilitating trajectories of change led by producer organisations in developing countries."

The majority of the poor and hungry people in the world live on small farms and struggle to subsist on too little land with low input - low yield technologies. At the same time, many other smallholders are successfully intensifying and succeeding as farm businesses, often in combination with diversification into off-farm sources of income. This book examines the growing divergence between subsistence and business oriented small farms, and discusses how this divergence has been impacted by population growth, trends in farm size distribution, urbanization, off-farm income diversification, and the globalization of agricultural value chains. It finds that policy makers need to differentiate more sharply between different types of small farms than they did in the past, both in terms of their potential contributions towards achieving national economic growth, poverty alleviation, and food security goals, and the types of assistance they need. The book distinguishes between smallholders that are business oriented, subsistence oriented, and at various stages of transition to the non-farm economy, and discusses strategies appropriate for assisting each type. The book draws on a wealth of recent experience at IFAD and elsewhere to help identify best practice approaches.