Facilitating Smallholder Farmers’ Market Access
In the OIC Member Countries
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Using case studies from eight OIC members countries, this paper summarizes current
knowledge related to smallholders’ participation in crop-related markets, the constraints
to their participation, and strategies to improve their access to markets. Based on data
analysis and literature reviews, the case studies vary in their treatment of the issues but
highlight the many challenges involved in linking smallholder farmers to markets.
Objectives of the Study
The objectives of this study are to: i) identify and assess agricultural markets with a special
focus on smallholder farmers, and elaborate on the significance of smallholder farmers in
agricultural markets; ii) determine recent trends and regulations related to facilitating
smallholder farmers’ access to the agricultural markets in the world; iii) elaborate on the
current situation of agricultural markets in terms of the scale of agricultural holdings and the
recent trends for easing the market access of smallholder farmers in the OIC member
countries; iv) Evaluate the challenges faced by smallholder farmers in terms of their access
to agricultural markets in the OIC member countries; v) make recommendations for
creating a well-functioning agricultural marketing system and facilitating market access of
smallholder farmers in the OIC member countries.
Results of the Study
The case studies indicate that creating the right enabling environment is critical for
improving access to markets for all farmers, including smallholders. In general, reforms
that have encouraged the private sector’s role and reduced the government’s direct
involvement in agricultural marketing have had positive outcomes. But the case studies
also reveal that positive outcomes depend on certain conditions. If investments in public
goods such as irrigation, roads, agricultural research and development (R&D), and
extension are lacking, if major shortcomings are encountered in relevant policies and
institutional arrangements, or if macroeconomic conditions are unfavorable, efforts to
open up greater space for the private sector do not necessarily translate into greater
investment and benefits for smallholder farmers. Policies intended to prop up traditional
crops or to anticipate emerging winners will likely fail, but policies that support farmers
and investors along the value chain can provide a framework that promotes adaptation
and success for the sector as a whole. Exchange rate, trade, and price policies all
substantially affect the extent to which smallholder farmers participate in and benefit
from agricultural markets. While some OIC member countries such as Mozambique have
gone from taxing to supporting farmers on average, others such as Côte d’Ivoire still tax
farmers heavily.
In addition to macroeconomic and trade policies, the quality of other policies and
regulations that impinge on agriculture will influence markets’ effectiveness, their
efficiency, and smallholders’ participation. They include policies and regulations related to
agricultural inputs (seed, fertilizer, irrigation, and drainage), land, natural resources,
domestic marketing, agricultural R&D, extension, food safety, biosafety, grades and