Facilitating Smallholder Farmers’ Market Access
In the OIC Member Countries
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no or only limited requirements to comply with particular grades and standards for
products that they sell to local traders or spot markets, particularly for traditional staples,
although requirements vary depending on the characteristics of each commodity. Even in
agriculture-based economies, however, smallholders catering to higher-end markets, the
agro-processing sector, or particular export markets are increasingly likely to be part of a
more structured value chain in which production must be coordinated and compliance
with certain grades and standards and other market specifications is required. These
issues are explored further through the case studies from Mozambique, Nigeria, and
Uganda in the next chapter.
In transition economies, with their growing urban populations, an increasing share of the
population begins to buy food from markets. Because a larger amount of produce must be
transported over greater distances to cater to populations in towns and cities, well-
functioning infrastructure and logistics become all the more important. As incomes grow
and consumers have more disposable income, they demand more high-value food
products (fruit, vegetables, fish, meat, and dairy), become more aware of and concerned
about certain attributes of food products, and increasingly demand better food quality and
safety. Post-harvest handling and investments in marketplaces become increasingly
important for the more perishable high-value products, and the need for investment in
better storage and logistics facilities can grow rapidly.
The case studies from Bangladesh, Indonesia, and Turkey in the next chapter illustrate
how investments in infrastructure (roads, power supply, warehouses, and cold storage)
and processing can make it easier to connect large numbers of smallholder farmers to
markets and help those farmers realize higher margins. The case study from Turkey also
demonstrates how the rise of agribusinesses, supermarkets, and restaurants induces
quality and food safety to become intrinsic aspects of the food that farmers produce. For
agribusinesses, an overall environment that promotes foreign direct investment can help
domestic suppliers adapt, since overseas partners can bring expertise and established
marketing channels along with capital. The risk is that smaller firms and farms may lack
the capital or knowledge to meet new standards. Here governments can play a vital role by
aggressively reaching out to producers and intermediaries.