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Ensuring Informed and Empowered Participation in Markets for the Small Producers.

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Presentation on theme: "Ensuring Informed and Empowered Participation in Markets for the Small Producers."— Presentation transcript:

1 Ensuring Informed and Empowered Participation in Markets for the Small Producers

2 High transactions costs High price risks Monopolistic/oligopolistic conditions Significant risks of realizing payments All producers participate in markets in some manner. Smallholders in traditional, developing economies are weak participants in markets. This participation is characterized by

3 Information to product demand, seasonality, product features Reliable and affordable credit for financing stocks and working capital Logistics of weighment, grading,storage and transport Assurances for covering their survival costs to be able to take risks of new crops/markets Participation can be improved if small holders have access to:

4 Diversity in product type Homogeniety in the product Need for identity preservation Need for traceability Determinants of price discovery Fragmentation Transaction velocity Non-value adding transactions costs Attributes which influence the demands on the quality of the above access are:

5 Locating markets Identifying market intermediaries and players Current market institutions and its practices and procedures Availability of safeguards from monopolists Evolving ways of reducing and managing transactions costs Price discovery Demand trends Improvement of market access and hence of participation quality will require information on:

6 Identifying the right technology Localizing and adapting the technology to small holder needs and resource conditions Evolving package of practices appropriate to small holders Scaling down the technology in sizes appropriate to small holders Hand holding in initial stages of production and post-harvest practices Strengthening and fine tuning of production base of small holders will involve:

7 What do the existing players do? A. Market Linkage field AttribhuteCorporateNGOCo-ops Producer groups Individual service providers Remarks Primary motivation Market share, profits livelihoods Improving producer share in value Individual gain through collective efforts Own livelihoods Market links Some times weak Strong links yesNo price discovery yesnoyesnoNo LogisticsyespartiallySOSSOSNo Diversity and homogeneity management seldomnononoYes Identity preservation yesnono Need does not arise Yes

8 What do existing players do? B: About improving production and post harvest AttributecorporatengoCo-ops Producer groups Individual service providers Remarks Agronomy extension yesYesuncommoninformallyyes Adaptive R&D no Some times noyesSeldom TrainingrarelyYes no Yes, of a practical type Problem solving noNonoyesYes Sourcing technology and materials Yes, but at a large scale YesnoyesYes CreditnoYesyesnoNo AggregationyesYesyesyesNo Risk absorption and mitigation rarelyYesyesnoNo

9 Production and post harvest side: Adaptive R&D Problem solving during production Sourcing technology of the right scale and cost Risk mitigation Market side: Generating value using heterogeneity, diversity, preserved identity and traceability Costless price discovery Quality preserving logistics The most hurtful gaps:

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