Linking Smallholder Farmers to Growth Markets: A Latin-American Perspective

1. Linking Smallholder Farmers to Growth Markets: A Latin-American Perspective H. Riveros, G. Rodriguez, M. Garcia-Winder. IICA, PRODAR, CORPOICA Cairo, Egypt, September 2006

2. Objectives • Share the views and experiences of the Latin American countries on the subject • Share the methodology used in this process • To help in the implementation of a global initiative to link smallholder farmers to dynamic markets.

3. New Political Scenarios Social innequalities Agriculture Role Diversity Our Context

4. Methodology • Consultation with participation of 13 Countries in the region and over 40 participants. • Virtual Forum • Six weeks of consultations. • Basic questions. • Multi-institutional and multidisciplinary. • Key for Success • Moderation: Dr. Riveros. • Basic Document for Analysis and Discussion. • Network that has matured over 15 years of work.

5. Findings 1. Determinant factors that affect the linkages between smallholder farmers and the markets. • Structural. • Poverty, culture and education. • Endogenous • Lack of entrepreneurial capacity. • Lack of leadership and empowerment. • Low negotiating capacity. • Informality in the transactions • Reluctance to change • Exogenous • Macro policies. • Infrastructure • Innovation process • Lack of support systems (credit, insurance, risk management) • Inadequate technical support • Lack of accessible market information.

6. Findings 2 Existence of a variety of initiatives linking farmers to markets. a. Associated with market conditions b. Improve organizational and entrepreneurial capacities. c. Support Innovation and Technology. d. Devoted to improve credit access and risk mitigation

7. Findings a. Associated with market conditions • Niche markets. • Market access • Export Platforms • Market Instruments and organizations.

8. Findings b. Improve organizational and entrepreneurial capacities. • Agri-food chains • Local Productive alliances • Specialized Associations • Government and private efforts to create and improve capacities.

9. Findings c. Support Innovation and Technology. • Competitive funds. • Specialized Research and Science Centers. • Development of national, sub regional and regional networks. • Technological transfer and innovation by non-traditional agents. • Definition of research priorities by local agents. • Programs to increase the use of technology focused on small and medium size producers and enterprises.

10. Findings d. Devoted to improve credit access and risk mitigation • Micro credit and microfinance programs • Specialized banking systems for the rural and agricultural sector • Increased interest in implementing insurance programs (public-private) • Fiscal incentives to promote innovation, investment and technology • Guarantee funds. • Specifically oriented promotion funds and incentives.

11. Findings 3. Presence of integrated networks. • PRODAR • RURALTER • RIMISP • OIMA • PROCIS • FORAGRO

12. Findings 4. Overall, the impact has been small and most of these cases are isolated examples and to some extend they are only cases of remarkable dedication. Therefore there is a need for a coordinated and systemic effort.

13. Changes Expected during the Next Ten Years • Policies, institutions and instruments. • Goals: • Long term policies with clear vision and views. • Coherent with macroeconomic policies • Generate empowerment. • Actions: • Creation of a favorable environment. • Development of studies for policy makers. • Promote leadership development. • Strengthen collective actions around agrifood chains, clusters and territories.

14. Changes Expected during the Next Ten Years • Innovation • Goal: • to have innovation systems that allow small producers to give timely and correct responses to markets changes and signals. • Actions: • improve the participation of the small producers in innovation processes • Establish programs that focus on development of abilities • Strengthen current research and innovation systems for the understanding of market demands

15. Changes Expected during the Next Ten Years • Market Knowledge • Goal: • increase awareness of the small producers to market opportunities • Actions: • strengthen market information systems • improve access to market information systems by small producers • improve interaction between agricultural market information systems and those of technology, science and innovation • Improve access to communication infrastructure including internet and phone systems.