Public & Private Roles in Promoting Small Farmers' Access to Non-traditional Markets: Case Studies from Central America

By Pilar Jano and Denise Mainville

IAMA 2006 Conference, Buenos Aires, Argentina

Abstract. This paper investigates public and private roles in promoting small farmers' access, competitiveness, sustainability, and benefits of selling to supermarkets, using case studies from Guatemala and Nicaragua. It addresses the impediments to inclusion of small farmers in supermarket channels, the necessary conditions for sustained participation, and the potential roles of public and private agencies in promoting small farmer participation in these markets. The required investments needed to enable small farmers to accrue the benefits of selling to supermarkets are analyzed at three levels, the market-level, supplier-buyer and supplier-supplier. The appropriate public role in promoting inclusion and participation of small farmers is to promote the generation of infrastructure (market level) and capital (firm level) that alleviates the capital, information, and risk constraints that cause "market failure" and impede small farmers' participation in these markets. Also, development programs and agencies focused on helping small growers access markets should not ‘circumvent' initial efforts related with capacity building and human and social capital strengthening, which is a precondition for sustained success of participating in these markets. In addition, enhancing the benefits of small farmers' inclusion can be achieved by promoting the "public" aspects of some capital goods or services that otherwise might be private (such as finance, education, etc.) to reduce the asset specificity of the relationships.

Full paper at http://www.ifama.org/conferences/2006Conference/SymposiumFinal/1095_Paper.pdf