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Empowering Smallholder Farmers in Markets: Changing agricultural marketing systems and innovative responses by producer organizations


  • Onumah, Gideon
  • Davis, Junior
  • Kleih, Ulrich
  • Proctor, Felicity


Though some producer organizations have enabled developing country farmers to exploit new opportunities and/or cope with emerging challenges through developing and/or taking advantage of innovative mechanisms and institutions, there are many farmers who lack sustainable access to inputs and services as well as to remunerative output markets. This paper is intended to generate a better understanding of the conditions which make producer organizations capable vehicles by which farmers, especially small-scale farmers in developing countries, can reach markets in a dynamic and demanding trading environment, and respond to the needs of their clients and members. It aims at identifying lessons on the forms of organizations as well as the innovative mechanisms and institutions that producer organizations can adopt and/or help promote in response to challenges in the changing agricultural marketing systems, in particular, to strengthen the bargaining position of farmers.

Suggested Citation

  • Onumah, Gideon & Davis, Junior & Kleih, Ulrich & Proctor, Felicity, 2007. "Empowering Smallholder Farmers in Markets: Changing agricultural marketing systems and innovative responses by producer organizations," MPRA Paper 25984, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:25984

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    References listed on IDEAS

    1. John Baffes, 2006. "Restructuring Uganda's Coffee Industry: Why Going Back to Basics Matters," Development Policy Review, Overseas Development Institute, vol. 24(4), pages 413-436, July.
    2. Winter-Nelson, Alex & Temu, Anna, 2002. "Institutional Adjustment and Transaction Costs: Product and Inputs Markets in the Tanzanian Coffee System," World Development, Elsevier, vol. 30(4), pages 561-574, April.
    3. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    4. Tschirley, David L. & Muendo, Kavoi Mutuku & Ayieko, Miltone W. & Weber, Michael T., 2004. "Improving Kenya’s Domestic Horticultural Marketing System: Competitiveness, Forces of Change and Challenges for the Future," Food Security Collaborative Policy Briefs 54644, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
    6. Hardesty, Shermain D. & Salgia, Vikas D., 2004. "Comparative Financial Performance of Agricultural Cooperatives and Investor-Owned Firms," 2004 Annual Meeting, November 2-3 31797, NCERA-194 Research on Cooperatives.
    7. Jayne, Thomas S., 2000. "Improving Smallholder and Agri-Business Opportunities in Zambia’s Cotton Sector: Key Challenges and Options," Food Security Collaborative Working Papers 54456, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Davis, Junior, 2006. "How can the poor benefit from the growing markets for high value agricultural products?," MPRA Paper 26048, University Library of Munich, Germany.
    9. Baffes, John, 2004. "Cotton : Market setting, trade policies, and issues," Policy Research Working Paper Series 3218, The World Bank.
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    Cited by:

    1. Sjauw-Koen-Fa, August R. & Blok, Vincent & Omta, S.W.F. (Onno), 2016. "Critical Success Factors for Smallholder Inclusion in High Value-Adding Supply Chains by Food & Agribusiness Multinational Enterprise," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(1).
    2. Salifu, Adam & Francesconi, Gian Nicola & Kolavalli, Shashidhara, 2010. "A review of collective action in rural Ghana," IFPRI discussion papers 998, International Food Policy Research Institute (IFPRI).
    3. Verhofstadt, Ellen & Maertens, Miet, 2013. "Cooperative membership and agricultural performance: Evidence from Rwanda," Working Papers 157389, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    4. repec:bla:asiaec:v:31:y:2017:i:2:p:211-232 is not listed on IDEAS
    5. Francesconi, Gian Nicola & Wouterse, Fleur, 2011. "The renewed case for farmers' cooperatives: Diagnostics and implications from Ghana," IFPRI discussion papers 1129, International Food Policy Research Institute (IFPRI).
    6. Ryan Nehring & Ana Carla Miranda & Andrew Howe, 2017. "A case for institutional demand as effective social protection: supporting smallholders through procurement and food assistance programmes," Working Papers 157, International Policy Centre for Inclusive Growth.
    7. Trebbin, Anika, 2014. "Linking small farmers to modern retail through producer organizations – Experiences with producer companies in India," Food Policy, Elsevier, vol. 45(C), pages 35-44.
    8. Bikkina,Nalini & Turaga, Rama Mohana & Bhamoriya, Vaibhav, 2015. "Farmer Producer Organizations as Farmer Collectives: A Case Study from India," IIMA Working Papers WP2015-01-05, Indian Institute of Management Ahmedabad, Research and Publication Department.

    More about this item


    agricultural marketing systems; producer organizations; innovative rural finance;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance


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