Regional Markets

Regional Markets for Local Development
In most cases there was an expressed concern about improving the quality of the produce,
not just the quantity. It is difficult to scale up production and marketing without
achieving a certain level of quality, especially when seeking to enter urban and competitive
markets. The cases addressed the quality issue through different approaches:
improving storage (milk coolers in the NGOMA case); improving post-harvest
handling (the establishment of communal processing centres in the case of Coffee
Tanzania); reducing harmful toxins (sensitising farmers on prevention and control of
Aflatoxin in the Senegal groundnuts case); increasing vitamin and nutrient content
(mentioned in both the FoSHoL and Senegal cases); and even improving the quality of
the environment where the crop grows (Fairtrade).
There were different motivations behind each focus. Reducing post-harvest losses
(through better storage techniques) both improves quality and the volume of the produce
that can be marketed. The Zimbabwe banana case is a good illustration of how
improving quality can lead to improved access to commercial markets. Its higher grade
bananas easily found favourable markets in more distant cities.
However, little was said about two aspects of quality: certification and premium market
prices, both often seen as strategies to improve the value accruing to small farmers in
niche markets. With the exception of the Fairtrade case, little was said about whether certification
was important for guaranteeing quality and gaining access to markets. For example,
in the cotton case of Zimbabwe it is mentioned that farmers are effectively organic
producers because they cannot afford fertilisers and pesticides. However, a link between
certification and premium prices could not easily be established. The cases did not provide
information on whether buyers were willing to pay a price premium for quality products.
Producing good quality produce is generally presumed to be a ‘good thing’; however, usually
this requires additional costs which need to be recuperated in the marketing stage.
The Zimbabwe banana case is a positive example of higher quality translating into better
prices directly. With new, disease-free planting material and training to address quality
determining factors (such as grading standards, improved transport logistics, and better
packaging and ripening facilities) the produce did indeed become more attractive for both
the trading company as high quality tradable goods and for producers as productive crop.
In the Fairtrade case it should be emphasised that the Fairtrade label stands for quality,
for production that is fair, economically sustainable and environmentally friendly. For
producers operating in particularly remote areas—with limited access to technical support,
labour, production knowledge, farming techniques and inputs—it may be a significant
challenge to enter into the Fairtrade scheme. International Fairtrade buyers in the
Global North set very stringent quality and hygiene specifications. In these marginalised
regions, farmers often need significant additional assistance with investment, training
and targeted technical support to improve quality prior to engaging with Fairtrade.
150