Improving value chains of selected underutilized crops for the economic well-being of smallholder farmers in south-eastern Sri Lanka (original) (raw)

An analysis of constraints facing smallholder farmers in the Agribusiness value chain : a case study of farmers in the Limpopo Province

2010

This study focused on analysing the production and marketing constraints that often prevent smallholder farmers from accessing high-value markets in the agribusiness value chain. Access to markets is an essential requirement for the poor in rural areas to enjoy the benefits of agricultural growth. Limited access to agricultural markets by smallholder farmers in rural areas represents one of the most important challenges confronting policymakers in developing countries. Several studies have indicated how smallholder farmers can be linked to markets, but they have failed to address issues of how to increase the likelihood of smallholder farmers benefiting from high-value markets. Due to the stringent sourcing criteria of formal markets, small-scale farmers are excluded from the agricultural value chains. It may be easy to access the market, but it is very difficult for smallholder farmers to retain that market. This is attributed to the fact that smallholder farmers face various constraints along the value chain such as production and marketing constraints. v The main objective of this study was to identify and analyse the constraints confronting smallholder farmers in the Limpopo Province and to suggest different strategies that can be used to make it easier for smallholder farmers to access high-value markets in the agribusiness value chain. This was achieved through personal interviews in two districts, i.e. the Capricorn and Vhembe districts. Primary data was obtained through structured questionnaires in both districts. These two districts were chosen due to their uniqueness with regard to agricultural potential, with smallholder farmers in both districts being heterogeneous and confronting different constraints in producing and marketing their products. Producing for the market calls for production resources, including production means such as land, water, on-farm and off-farm infrastructure, labour force, capital, and good management of these resources. Poor access to these resources affects the way in which smallholder farmers can benefit from opportunities in agricultural markets, especially in terms of the volume of products traded and the quality and quantity of those products. Based on the surveys employed for purposes of this study, the participation of smallholder farmers in high-value markets is constrained as a result of poor access to comprehensive agricultural support services. There are relatively few direct linkages between smallholder farmers and fresh produce markets, supermarkets, and agroprocessors. The majority of sales by farmers are at either the local market or the farm gate level. Few farmers have access to basic production equipment and infrastructure. A range of impediments to participation in high-value markets were identified. These include lack of access to sufficient and productive land for expansion, sufficient water, modern irrigation systems, mechanisation, transport logistics, and market information. These constraints constitute the greatest barrier for smallholder farmers when it comes to accessing high-value markets, and overcoming these constraints is critical if smallholder farmers are to access lucrative markets. There is relatively low participation among farmers in collective action, more especially at production and marketing levels. vi The study found that smallholder farmers in the Vhembe district have a comparative advantage in terms of vegetable production compared to those in the Capricorn district. Smallholder farmers in the Vhembe district are better linked to agro-processors, freshproduce markets and supermarkets as compared to farmers in the Capricorn districteven though this is the case for only a few individual farmers. The study also found that individual producers have greater access to on-farm infrastructure and also perform better and have closer links to formal markets compared to projects owned by groups of households. The results of the study suggest that smallholder farmers who are currently not participating in high-value markets could improve their participation if they are given access to comprehensive agricultural support services. More attention must be given to supporting smallholder farmers in both districts to ensure that they engage in commercial production and participate in high-value markets on a sustainable basis. This could only happen if their constraints along the value chain are addressed. The major challenge confronting policymakers is to create an enabling environment for smallholder farmers and empower them to produce high volumes of good-quality products on a consistent and sustainable basis. vii

How Do Fruit and Vegetable Markets Operate in Rural India? A Qualitative Study of the Impact of Supply and Demand on Nutrition Security

Food and Nutrition Bulletin, 2019

Background: Diets in rural India are cereal based with low intakes of micronutrient-rich foods. The value chains for nutrition approach aims to study supply and demand of such foods. This may aid in development of interventions to improve diets and livelihoods. Objectives: (1) To identify how fruit and vegetables are accessed, (2) to describe and map the structure of value chains for exemplar foods, (3) to understand how foods are priced, and (4) to explore factors that affect decisions about which crops are grown, marketed, and sold. Methods: After stakeholder consultation, we identified 2 fruits (mango and guava) and 2 vegetables (shepu and spinach) as exemplar foods. Criteria for these exemplar foods were that they should be known to participants and there should be variability in intakes. We held 24 interviews with value chain actors including farmers, wholesalers, and vendors of the exemplar foods. Data collection was stopped when no new information emerged. We used inductive t...

The Experience of Farmers under the Rice Value Chain Programme in the Gambia

2019

This study on the assess the nature of the rice value chain programme; the experiences of rice farmers under the rice value chain programme in the Central River Region of the Gambia. The instruments used for data collection was Focus Group Discussion and in-depth interview. Simple random sampling was used to select sixteen (16) villages out of which three hundred and eighty-four (384) farmers were used for the study. The data collected were transcribed for all the focus group comments, the comments were rearranged to have answers grouped together for each interview protocol. The main ideas were organized into themes to generate an idea or ideas and quotations were identified for each theme. The findings were written in narrative to describe the themes with quotations. Regarding the quantitative analysis, simple descriptive statistics including frequency and percentages were used for the surveyed data collected from the rice farmers and key informants. From the findings it was revealed that, farmers from the study area. From these findings it is recommended that Non-Governmental Organizations and investors should supplement government efforts by providing sufficient and quality inputs (seed/fertilizer/machinery) and credit facilities to the rice farmers at a subsidized rate and on time and strengthen the linkages between farmer groups/cooperatives with buyers (Producer-Buyer linkage) for easy market access.

An Analysis of the Paddy/Rice Value Chains in Sri Lanka

Since rice is the staple diet and its cultivation is the main occupation of millions of small scale producers the prices of both paddy and rice significantly affects the welfare of the people in the country. Although these prices are fixed by the government their effectiveness is limited. It is contended that both the producers and consumers are exploited by the players involved in the

Cereal-Legume Value Chain Analysis: A Case of Smallholder Production in Selected Areas of Malawi

Agriculture

This article analyses the cereal-legume value chain in Malawi through a comprehensive VC Map, a SWOT exercise and a policy analysis. VC participation entails a number of challenges for smallholders. Limited access to land, technology and inputs, inadequate knowledge of market functioning, insufficient access to credit and extension services, combined with more general problems of poor infrastructures, often prevent smallholder farmers from accessing profitable market opportunities. The effectiveness of national policies (e.g., public extension service support, inputs subsidy system) oriented to increase smallholders’ market access is often constrained by inadequate financial capacity, an inefficient public extension services system and limited involvement of privates in the extension services scheme. VC interventions should distinguish between VC-ready farmers, namely those provided with the minimum conditions of external and internal factors, and non-value-chain-ready farmers. Mark...

An Analysis of the Paddy/Rice Value Chains in Sri Lanka An Analysis of the Paddy/Rice Value Chains in Sri Lanka 1

This paper examines whether the structure of the paddy / rice market in Sri Lanka is competitive and efficient particularly by undertaking two tracer surveys. From these surveys it was revealed that the profit margins accruing to almost all the players involved in the paddy/rice value chains of both Nadu and Samba varieties are not excessive when compared with the average bank lending rate of 15 percent. The results of the tracer surveys also show that both the Nadu and Samba paddy/ rice value chains are economically efficient. There are concerns however, about the poor quality of rice milled by most small and medium scale traditional rice mills in the country. It was also disclosed that there is no hard and fast evidence to prove the allegation that the rice millers and wholesalers exploit both the rice producers and consumers by using oligopsonic oligopolistic practices in both the producer and consumer markets such as 'cornering of the market' Key Words: paddy/rice value chain, profit margins of paddy/tice, market structure, Sri Lanka

A Value for Smallholder Farmers Participating in the Agricultural Value Chain

Journal of Agribusiness and Rural Development, 2020

Participation of smallholder farmers in the agricultural value chain is determined by their ability to capture value. There are different concepts of value that should be considered: those that drive an improvement in output value of a smallholder farmer, and those that pertain to smallholder farmers themselves, the functional (upgrading) and experiential value. Upgrading in the value chain takes three major areas of upgrading strategies: product, process and functions (Kaplinsky and Morris, 2008); the authors of this paper argue that these represent the functional value. The authors therefore claim that functional value refers to an improved or enhanced value in a more physical sense (e.g. higher prices per product sold). That leaves experiential value, which is intrinsically gained by the smallholder farmer, and is driven by improved learning and experience, confidence gained and control. Therefore, for a balanced analysis and understanding of the value for farmers participating i...

A Framework For The Analysis Of Integrated Agricultural Value Chains In The Context Of Smallholder Farmers

2020

Agriculture remains the best opportunity for the majority of people worldwide living in smallholder farms to trade their way out of poverty. Growth generated by agriculture is four times more effective in reducing poverty than growth in any other sectors. Future growth in the agriculture sector relies heavily on diversification and promotion of opportunities for the addition of value. Smallholder farmers rarely engage in single enterprises, but on agriculture as a complete economic system, where a couple of crops and different livestock are integrated on the same farm. However, the reality of smallholder farmers has been understood mostly from fragmented single value chain analysis. In this paper, we develop a theoretical framework that uses the transaction cost and system dynamics theories to study interdependent agricultural value chains. Relevant articles were downloaded from internet and value chain analyses theories were reviewed. We conclude that the integrated value chain pro...