Access to markets and marketing information by smallholder farmers depending on agriculture in developing countries have always been challenging. Factors such as poor road infrastructure, illiteracy, financial constraints, poor communication means and lack of access to information, all limited their access to markets. These smallholders depend on traditional means of communication and sell their produce at the farm gate and local markets. This has not been fruitful for these poor farmers as traders, intermediaries and other stakeholders in the chain take a large share of their produce. As a result, rural farmers remain poor and agriculture contributes little to their income, economy and welfare.

Smallholder Agriculture and Market Participation discusses the evolution of policies for smallholder development, including the role of value chains, and the linkages that exist with the Sustainable Development Goals. New, innovative financial mechanisms and linked initiatives are outlined, and their potential to improve the availability of financial services and reduce market transaction costs. Risk management for agricultural smallholders is covered, together with the increasing role of insura nce as a mechanism for risk management among smallholders. Empirical data are used to illustrate the more conceptual work. The last part of the book provides case studies of selected commodity value chain investments involving smallholders in Africa (Ethiopia, Tanzania and Zimbabwe) and South America (Peru), implemented by FAO. The lessons concern project design and targeting, product and market analysis, regulatory issues, sustainability and improved natural resources management.

Contract farming has received renewed attention recently as developing economies try to grapple with how to transform the agricultural sector and its associated value chains. This book examines different contract arrangements for selected crops, applying both qualitative and quantitative approaches in order to examine how contract farming affects smallholders and value chain dynamics in Tanzania. Major themes covered in the book include: contract farming policy; contract farming and value chain dynamics; contract farming adoption decisions; contract farming and income diversification. The authors also discuss alternative aspects of contract farming such as trust, conspiracy, empowerment and corporate social responsibility. The book presents original research from case studies conducted in Tanzania on sugarcane, tobacco, sunflower and cotton. These crops have a history of trials and errors with contract farming involving smallholders. Furthermore, they are targeted in national strategies as some of the main crops for establishment and upgrading of agro-industrial activities in Tanzania.