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4 Opportunities for development Photo: ©FAO/Olivier Asselin / FAO 4 Opportunities for development through regional food commodity chains Fred Zaal, Jacqueline Sluijs and Roger Bymolt Introduction In this chapter we will reflect on the lessons derived from the case studies. As discussed in the first chapter, this book provides a practical approach to examining development through value chains by focusing on regional food commodity markets. Value chain research often focuses on high-value export markets of tropical products. We find that food commodity markets are different from these export markets and have different—but potentially very beneficial effects—on the incomes of the rural poor and smallholders in developing countries. Through the detailed review of several case studies in the previous chapter, we systematically examined these effects for a range of products and countries. One of the main issues we examine in this book is: How agricultural value chains in developing regions can be designed in such a way that economic, social and environmental goals are reached. The focus on the often neglected local food commodity value chains leads to questions regarding the impact on poor smallholders. 137
<strong>Regional</strong> <strong>Markets</strong> for Local Development This chapter will analyse the dimensions introduced in Chapter 1, based on the case study examples of regional market value chains, presented in Chapter 3. The chapter will end with a theoretical reflection on the governance model designed by Gereffi et al. (2005) and elaborated in Chapter 1, and with a brief set of recommendations. Pro-poor development The discussion on pro-poor economic development, and agricultural development in particular, is guided by an urgent question. To what degree do local markets offer opportunities for poor, small-scale producers to engage in marketing and improve their incomes? The answer depends on how inclusive present power and governance structures in those markets are. Vital concepts to bear in mind here are the importance of smallholder initiatives, the ethics of development interventions as employed by actors, and the degree to which empowerment forms the basis of market development. It should be emphasised that shifting the focus to regional markets is in itself not an immediate solution to the challenge of redesigning value chains for pro-poor development. Taking into account that a pro-poor approach should focus first and foremost on those most vulnerable, all the surveyed projects seem to follow this reasoning. Most organisations have the organisation of farmers, producers and smallholders at the core of their strategies. In the concluding part of this section we will come back to this point, and position the cases in a framework according to their pro-poor strategies. Promoting small-scale producers implies the strengthening of their economic power and enhancing their position—at the household and value chain level. The NGOMA case from Kenya has chosen the image of a ‘beating drum’ to emphasise the point of giving a voice to the vulnerable. We specifically chose the NGOMA case due to its success of in assisting the formation of about 1,000 autonomous farmers groups, cooperative societies and farmers federations (average membership is between 25 and 30 far mers, but larger farmers groups can have as many as 200 members). The estimated number of smallholders across these groups has surpassed 50,000 members. With average family size around seven persons, the estimated number of direct beneficiaries climbs to an impressive 350,000. This is notably more than the number of beneficiaries typically reached in a project with an export market focus. 17 It is very challenging to organise such a large number of farmers in a real chain (for example, through formal contracts). NGOMA has been able to overcome this hurdle by working at the level of networks of member organisations, with a focus on lobbying, rather than working on production support and contracting. It aims to help farmers’ organisations improve 17 In most cases, the number of famers involved in production for export market–oriented projects is less than 2,000. With outgrower schemes, cooperatives and policy-based interventions in niche markets, a larger number of people can be reached, as many as 14,000–15,000 farmers (KIT/ Faida MaLi/ IIRR 2006). 138
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Editors: Fred Zaal, Jacqueline Slui
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Regional Markets for Local Developm
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Acknowledgements Acknowledgements F
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Foreword Bart de Steenhuijsen Piter
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Photo: ©FAO/Paballo Thekiso / FAO
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1 Introduction The challenge is to
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1 Introduction in this publication
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1 Introduction agro-related service
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1 Introduction is used). Market kno
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1 Introduction their borders to foo
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1 Introduction When individual valu
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2 Inclusion of smallholder farmers
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3 Cases Photo: ©FAO/Daniel Hayduk
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3 Cases RUDI empowers micro-small e
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3 Cases The last type is the larger
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3 Cases Transport The two main mode
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3 Cases Impact of the intervention
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3 Cases Photo: Lora Forsythe 3.3 Ad
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3 Cases matter (e.g. dust) and—mo
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3 Cases the sun-dried HQCF VC. The
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3 Cases feedstock for processing in
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3 Cases (USD 39 to USD 46 per ton f
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3 Cases Photo: ©FAO/Simon Maina /
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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 Infrastructure and governan
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