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Challenges for smallholder market access: a review of literature on institutional arrangements in collective marketing

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  • Ton, Giel

Abstract

Purpose of the review: This review presents recent research on collective action in agricultural markets, focusing on the institutional settings that increase market access for smallholder farmers. It focuses attention on challenging research areas that try to understand and resolve the inherent contradictions that exist between members in the group and between the group and others. Findings: Collective action in agricultural markets is facilitated by institutional arrangements that effectively resolve the inherent tensions within groups as well as between farmers and other economic agents. Research explores the logic of collective marketing and the impact of trust and reputation on the mediation of opportunistic action in groups. Special attention is given to institutional arrangements on the interface between vertical and horizontal coordination in food chains, especially related to strategies of producer organisations to by-pass middlemen, to meet quality requirements in modern markets and to effectively use postharvest technologies. Research points to the importance of formal and informal rules and regulations in enabling farmers’ organisations to bulk and process agricultural products. Directions for future research: Informed decision making by value chain actors on replicating or upscaling institutional arrangements to improve the performance of their value chain needs information on its social embeddedness and its relation with the legal environment. More comparative research is needed on “workable models” and “best practices” for facilitating collaborative marketing in developing countries.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:33329
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    File URL: https://mpra.ub.uni-muenchen.de/33329/1/MPRA_paper_33329.pdf
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    References listed on IDEAS

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    1. Dorward, Andrew & Kydd, Jonathan & Morrison, Jamie & Urey, Ian, 2004. "A Policy Agenda for Pro-Poor Agricultural Growth," World Development, Elsevier, vol. 32(1), pages 73-89, January.
    2. Bernard, Tanguy & Collion, Marie-Hélène & de Janvry, Alain & Rondot, Pierre & Sadoulet, Elisabeth, 2008. "Do Village Organizations Make a Difference in African Rural Development? A Study for Senegal and Burkina Faso," World Development, Elsevier, vol. 36(11), pages 2188-2204, November.
    3. George Hendrikse & Jos Bijman, 2002. "Ownership Structure in Agrifood Chains: The Marketing Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 104-119.
    4. 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).
    5. Rashid, Shahidur & Cummings, Ralph Jr. & Gulati, Ashok, 2005. "Grain marketing parastatals in Asia," MTID discussion papers 80, International Food Policy Research Institute (IFPRI).
    6. World Bank, 2003. "Reaching the Rural Poor : A Renewed Strategy for Rural Development," World Bank Publications, The World Bank, number 14084, April.
    7. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, January.
    8. Platteau, Jean-Philippe & Seki, Erika, 2007. "Heterogeneity, social esteem and feasibility of collective action," Journal of Development Economics, Elsevier, vol. 83(2), pages 302-325, July.
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    Cited by:

    1. Ton, Giel & Vellema, Sietze & DeRuyterDeWildt, Marieke, 2011. "Credible evidence on complex change processes: key challenges in impact evaluation on agricultural value chains," MPRA Paper 32027, University Library of Munich, Germany.
    2. Ton, Giel & Klerkx, Laurens & de Grip, Karin & Rau, Marie-Luise, 2015. "Innovation grants to smallholder farmers: Revisiting the key assumptions in the impact pathways," Food Policy, Elsevier, vol. 51(C), pages 9-23.

    More about this item

    Keywords

    farmers’ organisations; markets; cooperatives; bulking; opportunistic behaviour; enabling policies;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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