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Farmer organization, collective action and market access in Meso-America

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  • Hellin, Jon
  • Lundy, Mark
  • Meijer, Madelon

Abstract

"The global agricultural economy is changing. Commodity prices are declining, and producers increasingly supply complex value chains. There is growing interest in how farmers can benefit from emerging market opportunities. Farmers are encouraged to produce high value crops and engage in value-adding activities such as agro-processing. Farmer organization and collective action are often seen as key factors in enhancing farmers' access to markets. Often too little attention is directed at a) the most appropriate types of organization, b) whether the public and/or private sector is best placed to support their formation, and c) the conditions necessary for ensuring their economic viability. This paper reports on research in Mexico and Central America that explored these issues for commodity maize and high value vegetables respectively. The benefits of farmer organization are more evident in the vegetable sector characterized by high transaction costs associated with market access. The research suggests that farmer organizations established by and directly linked to supermarkets may be more economically sustainable as opposed to organizations supported by non-governmental organizations. However, the most representative vegetable producer organizations in both Honduras and El Salvador include fewer than 5 percent of total horticultural producers. This is due to producer organizations' limited business skills and non-replicable organizational models for linking producers to markets. There is less incentive for maize farmers to organize themselves to access output markets as the transaction costs associated with market access are relatively low: there are so many buyers and sellers that farmer organizations would have little impact on, for example, prices. The benefits of farmer organization are clearer when it comes to accessing credit, seed, and fertilizer. Farmer organization is a critical factor in making markets work for the poor particularly in high value products, but the role and timing of the substantial public and private investment needed to establish and maintain these organizations is poorly understood." authors' abstract

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  • Hellin, Jon & Lundy, Mark & Meijer, Madelon, 2007. "Farmer organization, collective action and market access in Meso-America," CAPRi working papers 67, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:worpps:67
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    2. Tanguy Bernard & Fo Kodjo Dzinyefa Aflagah & Angelino Viceisza, 2015. "Communication and coordination: Experimental evidence from farmer groups in Senegal," Working Papers hal-02146177, HAL.
    3. Catherine Ragasa & Jennifer Golan, 2014. "The role of rural producer organizations for agricultural service provision in fragile states," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 537-553, September.
    4. Aflagah, Kodjo & Bernard, Tanguy & Viceisza, Angelino, 2022. "Cheap talk and coordination in the lab and in the field: Collective commercialization in Senegal," Journal of Development Economics, Elsevier, vol. 154(C).
    5. Cooper, G.S. & Shankar, B. & Rich, K.M. & Ratna, N.N. & Alam, M.J. & Singh, N. & Kadiyala, S., 2021. "Can fruit and vegetable aggregation systems better balance improved producer livelihoods with more equitable distribution?," World Development, Elsevier, vol. 148(C).
    6. Ton, Giel, 2008. "Challenges for smallholder market access: a review of literature on institutional arrangements in collective marketing," MPRA Paper 33329, University Library of Munich, Germany.
    7. Hellin, Jon & Lundy, Mark & Meijer, Madelon, 2009. "Farmer organization, collective action and market access in Meso-America," Food Policy, Elsevier, vol. 34(1), pages 16-22, February.
    8. Moustier, Paule & Tam, Phan Thi Giac & Anh, Dao The & Binh, Vu Trong & Loc, Nguyen Thi Tan, 2010. "The role of farmer organizations in supplying supermarkets with quality food in Vietnam," Food Policy, Elsevier, vol. 35(1), pages 69-78, February.
    9. Chiaraah Anthony & Mahama Inusah, 2017. "Willingness of Local Rice Producers to Supply and Participate in the Ghana School Feeding Programme Market: A Case Study of Selected Districts in Northern Ghana," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 3(11), pages 257-271, 11-2017.
    10. Felkner, John S. & Lee, Hyun & Shaikh, Sabina & Kolata, Alan & Binford, Michael, 2022. "The interrelated impacts of credit access, market access and forest proximity on livelihood strategies in Cambodia," World Development, Elsevier, vol. 155(C).
    11. Kirui, Oliver K. & Njiraini, Georgina W., 2013. "Determinants of agricultural commercialization among the rural poor: Role of ICT and Collective Action Initiatives and gender perspective in Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161618, African Association of Agricultural Economists (AAAE).

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    Keywords

    Small-scale farmers; maize; High value agricultural products; Pro-poor growth; business development services; value chains; Collective action; small farms; Markets;
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