2. Linking smallholder farmers to high quality food chains: appraising institutional arrangements

Abstract

Although markets for high quality products might represent an interesting outlet for smallholder farmers from developing countries, access to those markets is challenging, as appropriate institutions helping farmers to comply with quality requirements are often missing. To overcome the institutional constraints and to link smallholders to markets, three types of institutional arrangements are often proposed: contract farming, producer organisations and partnerships. While many publications have explored the merits of each of these arrangements, a systematic comparison and evaluation of all three has not been done, particularly from the perspective of the constraints that smallholders face when seeking to improve product quality. In this chapter, we seek to make such evaluatory comparison. To do so, we first identify the most limiting institutional constraints faced by smallholder farmers related to quality improvement. Second, we provide an overview of each arrangement's ability to address these constraints. Third, we determine how combinations of the three arrangements can be used effectively in quality improvement in smallholder value chains.

Intensification and Upgrading Dynamics in Emerging Dairy Clusters in the East African Highlands

“…(iii) As membership of cooperatives consists of resource-endowed smallholders with a relatively large feasibility space, supporting them through the cooperatives has a large potential to grow agricultural output [58] but excludes resource-poor smallholders. (iv) The quality of public services generally is insufficient for dairy farming upgrading, which requires dependable pre-production inputs and services [6].…”

Sustainable Competitive Advantage of SMEs through Resource and Institutional-Based Management: An Empirical Study of Batik SMEs in Central Java, Indonesia

“…Besides the weak internal environment, they also face other challenges related to the access to input and output markets, access to information and loan facilities, and technical innovation assistance. The term "institutional challenge" emphasizes that the solutions to the challenges of batik entrepreneurs cannot be expected solely from them, but that a communal eff ort is required in the form of cooperation (Royer et al, 2016). From the aspect of input, the challenges relate to the lack of resources and poor access to fi nance and technology.…”

“…Nevertheless, batik SMEs have diffi culties competing because of limited economic scale and access to resources (EIM Business & Policy Research; 1999). The theory of new institutional economics (NIE) (Royer, Bijman & Bitzer, 2016) suggests that SMEs can cooperate to achieve mutual governance in accessing resources (raw materials, information, markets, fi nance, technology, innovation, and design), and to increase economic scale to be more competitive in the free trade era. Despite a number of empirical studies that have been conducted (Lieberman & Dhawan, 2005; Mahendra, Zuhdi & Muyanto, 2015; Zhu, Wittmann & Peng, 2012; Singh, 2008;Petrovic & Milos, 2011), business practices of SMEs, particularly in developing countries, have not become eff ective yet.…”

SEPIA XVII Mesa Tematica: Experiencias latinoamericanas de aplicacion del enfoque de cadenas de valor inclusivas.

“…A pesar de los riesgos asociados con los mercados de alto valor, los cambios del entorno del sector agrícola pueden contribuir en el desarrollo de mejores servicios de apoyo para los agricultores, tales como tecnología, extensión y apoyo fi nanciero. Pequeños productores con acceso a servicios de apoyo técnico se han mostrado dispuestos a adoptar nuevas tecnologías e invertir para aprovechar las oportunidades de mercado (Royer et al 2016).…”