Articles
LINKING SMALL-SCALE AFRICAN GROWERS TO VALUE MARKETS: DEVELOPMENT OF A CO-OWNED PRODUCE MARKETING ORGANISATION AS THE STANDARDS HOLDER
Article number
895_23
Pages
185 – 192
Language
English
Abstract
International experience has shown that growers who grow and market horti-cultural products earn more income than cereal or pulse growers.
However, for this potential to be realised, these growers need ready and efficient access to markets.
In the case of small-scale growers, this is particularly difficult.
Barriers include size and scale of operation, as well as insufficient knowledge of grades and standards and related technical skills.
Appropriate procurement and business models need to evolve to improve smallholder growers access to markets.
Within domestic markets in Zambia, initiatives have been developed to market agricultural products via producer marketing organisations (PMO) such as farmer cooperatives.
The co-owned PMO model proposed in this study operates as a company limited by guarantee and has been extended to allow for co-ownership by actors closer to the end market as well as by smallholder growers.
Such a PMO was established in 2007 with the aim of initially developing the Zambian export market for baby corn.
The export crop was changed to avocados and potentially melons due to changes in global markets.
The institutional arrangements for this PMO are intended to ensure that product and production process quality standards are met through the required certification, extension, finance and the provision of transparent market information.
This paper discusses the evolution and implementation of this model from initial concept to current activities.
However, for this potential to be realised, these growers need ready and efficient access to markets.
In the case of small-scale growers, this is particularly difficult.
Barriers include size and scale of operation, as well as insufficient knowledge of grades and standards and related technical skills.
Appropriate procurement and business models need to evolve to improve smallholder growers access to markets.
Within domestic markets in Zambia, initiatives have been developed to market agricultural products via producer marketing organisations (PMO) such as farmer cooperatives.
The co-owned PMO model proposed in this study operates as a company limited by guarantee and has been extended to allow for co-ownership by actors closer to the end market as well as by smallholder growers.
Such a PMO was established in 2007 with the aim of initially developing the Zambian export market for baby corn.
The export crop was changed to avocados and potentially melons due to changes in global markets.
The institutional arrangements for this PMO are intended to ensure that product and production process quality standards are met through the required certification, extension, finance and the provision of transparent market information.
This paper discusses the evolution and implementation of this model from initial concept to current activities.
Publication
Authors
N. Munyeche, S. Story, R.N. Baines, W.P. Davies
Keywords
small-scale producers, value chains, private standards, market access
Online Articles (37)