Regional Markets

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Photo: ©FAO/Paballo Thekiso / FAO 1 Introduction Fred Zaal, John Belt, Jacqueline Sluijs and Aad van Tilburg This publication outlines an alternative route to achieving sustainable economic development and food security in developing areas. Rather than on high-value, niche export markets for tropical products which attract a lot of attention, we want to focus on local and regional commodity markets. It is our intention to show how important these markets are for smallholders, and how vibrant and well-functioning markets can improve food security for both smallholder families and consumers at the regional and national level. Through several illustrative cases, this book highlights how various organisations are working to improve smallholder access to local and regional markets. They seek to realise this by helping farmers achieve higher productivity and production volumes as well as by working to improve marketing and provide stable economic development based on local conditions. The stories of small-scale producers are embedded in a theoretical framework, and by combining theoretical analysis and practical know-how, we aim to demonstrate the real potential of these ‘regional markets’ for promoting sustainable economic development and food security. 9
Regional Markets for Local Development Introducing the concept of ‘regional markets’ and the analytical framework Markets are an age-old phenomenon. Market systems, physical markets connected by trade relationships of producers, traders, brokers and consumers, have been the source of wealth since time immemorial. But often, the small-scale producer first finds him or herself on the local market. A local market is a (village) market close to the farm where local commodity production enters the market system, and where products from other regions can be found and purchased. A regional market is connecting bigger groups of suppliers and/or local markets to (inter-) national markets. These are the markets on which we want to focus here: regional markets represent trade networks that link local markets, with the produce of local small scale farms, to local and regional, and sometimes national consumer markets. A value chain focus for local economic development Agriculture is back on the agenda of policymakers as the principal engine for pro-poor growth (World Bank 2008). The aim is to trigger national growth in developing countries by strengthening the agricultural sector, which includes millions of producers and consumers of food commodities in these countries. By putting these often impoverished producers on a stable path to food security, the accumulated effects can kick-start other types of development (industrial, services etc.). In line with this revived neoliberal ideology, export earnings would provide both inputs and the means to finance this industrial development. Increasingly, the ‘trade not aid’ paradigm has been adopted as the new approach towards sustainable development. Public support for development policies in the North has declined, amid public questioning of the sustainability of aid donations and the expected improvements in quality of life and livelihood of those most in need. More and more, the role of the private sector is being recognised as important in this respect. Private enterprises and financial organisations are seen as sustainable sources of investment, incomes and products—both as foreign investors and as full-fledged actor in the value chain. The social impact of private sector interventions in agriculture is receiving much attention, but also environmental concerns are gaining in importance. Certifying agencies, such as Fairtrade International, the Rainforest Alliance and others, have established social justice benchmarks in the value chains of many products. The goal to achieve sustainability in social, environmental and economic terms for all stakeholders in the value chain has replaced the idea of promoting economic development in terms of Gross Domestic Product (GDP) growth. This new holistic focus links equity within the value chain with fairness (distribution of income and securing a minimum standard of living) at a broader level. 10
Page 1 and 2: Editors: Fred Zaal, Jacqueline Slui
Page 3 and 4: Regional Markets for Local Developm
Page 6 and 7: Acknowledgements Acknowledgements F
Page 8 and 9: Foreword Bart de Steenhuijsen Piter
Page 12 and 13: 1 Introduction The challenge is to
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Page 16 and 17: 1 Introduction agro-related service
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Page 24 and 25: 2 Inclusion of smallholder farmers
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Page 50 and 51: 3 Cases Photo: ©FAO/Daniel Hayduk
Page 52 and 53: 3 Cases RUDI empowers micro-small e
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3 Cases opportunities need to be co
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3 Cases (USD 39 to USD 46 per ton f
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3 Cases than 7,000 smallholders in
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3 Cases tices, productivity and qua
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3 Cases Abbreviations EAC EURO FDI
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