New World Development Report calls on governments and private sector to help smallholders meet supermarket requirements

The new World Bank World Development Report 2008, for the first time in 25 years, is dedicated to agriculture. The WDR includes a call to action in response to the modernisation of procurement systems in integrated supply chains and supermarkets, so that small farmers can share in these growth opportunities.

Chapter 5 of the WDR --"Bringing Agriculture to the Market" -- includes the recommendation that "The government and the private sector can help smallholders expand and upgrade their range of assets and practices to meet the new requirements of supermarkets and other coordinated supply chains. The options include public good investments to increase farmers' productivity and connectivity to markets, policy changes to facilitate  trade and market development, and public private efforts to promote collective action and build the technical capacity of farmers to meet the new standards."

The report continues "Many producer organizations do not have the capacity to provide their members with the technical assistance required for ensuring collective compliance with quality, quantities, and timing. Well-targeted technical and fi nancial support from donors, governments, or nongovernmental organizations is often necessary for producer organizations to overcome these initial hurdles and become professional entrepreneurs. The support must be provided with a long-term commitment but with a clear phase-out strategy and a view to empower."

The Chapter includes case material from the Philippines-NORMIN and China-watermelon case studies from The Regoverning Markets programme.

The full text of the WDR is available here.

See also "Response from a Slow Trade - Sound Farming Perspective" by Sophia Murphy and Tilman Santarius here