African farmers’ market organizations and global value chains: competitiveness versus inclusiveness

Abstract

This conceptual paper discusses the challenges smallholder producer cooperatives in developing countries face while trying to access agricultural global value chains. We assess the problem of competitiveness related to lack of commitment and improper selection. Prioritization of open membership over selection is generally taken for granted in the policy debate on farmers' market organizations (FMOs).We argue that open membership may work in community-driven organizations, however, it becomes a major threat for entrepreneurial FMOs. Inclusion facilitates free riding, which forms a barrier for investments of members. This is one of the major reasons why so many of these organizations are so much resource constrained, i.e. are not able to compete in the market without external support. FMOs should take targeting and selection serious if entrepreneurial activities are intended. Otherwise, they miss the opportunity to create a committed member base willing to invest in a potentially competitive organization.

Foreign investment, organizational innovation and transformation in food supply chains : evidence from the Ethiopian barley sector

“…However, the positive impact of POs may come at the expense of inclusiveness. In order to compete in highly coordinated chains and improve efficiency POs may have to be selective towards their members (Lutz and Tadesse, 2017). Consistent with literature, we find that POs in barley value chains are becoming more selective in accepting members and membership seems to be particularly beneficial for innovative and entrepreneurial farmers.…”

“…Thus, for increased business performance POs tend to be selective of particular groups of ~ 135 ~ farmers. A similar result is reported by Lutz and Tadesse (2017), arguing that POs should take selection of members seriously to be able to engage in business activities and to achieve efficiency. 0.000*** MB stated quality 1.9 2.4 2.3 0.003*** Source: Author's calculation based on survey data; N = 78; * P < 0.10; *** P < 0.01…”

“…Thus, a business PO is more likely to be selective in allowing farmers to become members. Lutz and Tadesse (2017) discussed that for POs to access modern food chains and achieve efficiency, the following would be important: (a) commitment of members to sell through the PO to realise the required scale, (b) active participation in the decision-making in the PO, (c) commitment to invest in the PO, and (d) clearly specified (i.e., narrow) objectives. Most POs, however, combine several objectives, ranging from political to social and economic.…”

“…A business-oriented PO, on the other hand, focuses on generating economic benefits for its members. Although most POs in SSA are still community-oriented and contribute to rural development, the number of agricultural marketing POs is increasing(Lutz and Tadesse, 2017). In the last stage of thetransformation process (fourth column), we find new generation POs which are yet to emerge in the developing world.…”

Farmers’ Market Actors, Dynamics, and Attributes: A Bibliometric Study

“…The concept of a farmers market has been present in the literature since 1940 and mainly studied by researchers from the US and the UK [15]. In recent decades, there has been a proliferation of farmers' markets outside North America and Western Europe, mainly related to the organic movement [16], becoming a global tendency documented by several researchers under a situated knowledge approach (e.g., Central and Eastern Europe [3,17], Latin America [18][19][20][21], Asia [22,23], Oceania [24][25][26], and Africa [27]). Due to the increase in the proliferation of contributions, there is a need for understanding the common drivers of the global research with reference to farmers' markets.…”