1. Keys to inclusion of small producers in dynamic markets

2. A global programme of collaborative research and policy support to: To understand the keys to inclusion into restructured market in order to address implications and opportunities for small scale producers and enterprises To understand what is best practice in connecting small scale producers to dynamic markets To bring these findings into the wider policy arena with facts and recommendations, practical action for public sector policy and private sector strategies. Regoverning Markets

3. Program Components

4. Component 1: Studies of market restructuring 1.Horticulture Markets in China 2.Dairy Markets in India 3.Horticulture Markets in Indonesia 4.Strawberry Markets in Mexico 5.Dairy Markets in Poland 6.Horticulture Markets in South Africa 7.Tomato Markets in Turkey 8.Beef and Chicken Markets in Zambia

5. Component 2: Best Practice Case Studies Round 1: 15 cases selected from 39 proposals from 23 countries – 6 business models (eg Carrefour, China FFV, Haleeb Food, Pakistan, Dairy) and 7 collective action (Morakert, Hungary, FFV; NorminVeggies Phil, Vegetables) Round 2 (on going): 15 case studies selected from 81 proposals

6. Component 3: Policy Dialogues and Learning Platforms 8 Reference Group (RG)- 1 for each country with component 1 research RG is a multi-stakeholder group who provides advice, feedback and helps champion policy and c3 initiatives 4 Policy and Institutional Mapping workshops (Turkey, Indonesia, South Africa and Morocco) Policy and Institutional Mapping Toolkit/Manual/Learning Workshop

7. Modern Markets

8. Re-governance and market inclusion: Conceptual framework

9. The rapid rise of both supermarkets and wholesale markets in China (sales, $ bn) Supermarkets Wholesale Source: CCAP

10. Retail strategy as practice.. Cash and Carry investor in Pakistan Cash and Carry investor - 2 stores in 2006, 5 more in 2007 which each store costing $30-40m Suppliers must have tax number, fax machine etc.. Success of C&C depends on inefficiency of wholesale. Eg tomatoes. Rp 20 at farm, and Rp 140 in city 5 days later, with up to 5 people involved along chain. Broker (arthi) provide very little service other than pre- financing. 40-45% losses -- packing, logistics, grading. C&C can buy for Rp40, sell for Rp60 and still get enough margin.

11. Types of strawberry producers in Michoac á n, Mexico 1996 1.Traditional system 2.Traditional system with higher input use 2006 1.Traditional system –Cost = $7,500/ha –80% of farmers / 25% production 2.Medium tech system –Cost = $20,000/ha –15% of farmers / 40% of production 3.High tech system –Cost = $45,000/ha –5% of farmers / 35% of production

12. The Market Divide Traditional Market - Traders Fastfood chains Processors Modern, dynamic market chains Hotels & Restaurants Supermarkets Consolidators

13. Fragmenting farms (Roy 2006)

14. Average Farm size: expanding block (source: Roy, 2006)

15. Regulation of below-cost selling? –Eg Germany: Restraints on Competition Act (1999) Regulation of supplier relations? –Eg Germany: Reform of competition legislation, July 2005. Large companies now prohibited from using market power to demand “unjustified and repeated” special terms and conditions from suppliers Codes of Conduct on supplier relations? –Voluntary?. Eg UK, March 2002 –Mandatory? Eg Argentina, Australia –Europe-wide? Regulating buyer power? Any impact? Transferable from N  S?

16. (service) Independent growers NGOs & POs- (Small farmers) Corporate farms Input/service providers Honorary members (Marketing) Sweet peaCarrots Lettuce Tomato Squash CLUSTERS Bell pepper Cabbage

17. Regoverning Markets programme in short.. Can the new agrifood business drivers be partners in development? Can smaller scale producers and their organisations be partners in new business? Can anticipatory public policy make any difference?

18. Strong link between research and policy and learning platforms