Linking Farmers to Markets –Agro-Empresas
Background Eco-Efficient Agriculture for the Poor
CIAT has been working on themes related to post-harvest processing and market linkages since 1985. In the 1980’s, post-harvest cassava research
identified three interrelated conditions needed to assist small-holder farmers with market access.
Based on the experience with cassava, CIAT established the rural “Agro Enterprise Development Project” in 1995 to apply the lessons learned across a
variety of small-holder products in the tropics. The major focus of this work was the development of methods and tools. In 2002 CIAT published the
Territorial Approach to Rural Enterprise Development guide series. These tools have been used extensively by a range of partner organizations in Latin
America, Africa and Asia.
Today, our Linking Farmers to Markets research aims to understand how to integrate small farmers in developing countries can be offered more market
opportunities to decrease rural poverty in the tropics and strengthen sustainable agriculture practices. Our research supports the practices and policies
from which capable farmers, willing buyers, and engaged policy-makers can impact and influence the lives of the rural poor.
Building Capable Farmers
CIAT, as an international research organization, does not have the
skills or the staff necessary to reach the millions of farmers who could
benefit from increased entrepreneurial skills. As a result, we continue
to work closely with our Learning Alliance partners globally to develop
and disseminate methods and tools that assist international NGOs and
their local partners become better skilled at supporting farmer
associations as they move from a production oriented mindset to a
market oriented mindset. Major partners in this work include CRS,
Oxfam Great Britain, SNV, Swisscontact, Rainforest Alliance, CATIE,
IDRC and others.
Working towards an
Enabling Environment Collaborating with
An effective enabling environment supports increased linkages Willing Buyers
between capable farmers and willing buyers. Here the specific focus As farmers become more capable and attractive partners, it is necessary
of CIAT is twofold. First, in terms of public policy, we are examining that buyers also adjust their purchasing and payment practices to nurture
how public policy and in particular supply chain policy can drive sustainable relationships. In collaboration with the Sustainable Food Lab,
inclusiveness for the rural poor. Latin America as a region leads the CIAT continues to conduct targeted action research based on concrete
development of global public policy in the south on supply chains demands from private sector companies. To date work has included the
and, as such, provides a rich laboratory to assess specific policy Costco and Green Mountain Coffee Roasters example cited above as well
options and how their implementation enables or excludes the poor as Unilever, Sysco and ongoing can conversations with Wal-Mart Central
from attractive supply chains. A corollary to work on public-sector America. The objective of this work is to provide private sector
policy is that of donor policy. Throughout the developing world, companies – especially chain captains – with information on how their
donors and development agencies are faced with a range of state business affects the livelihoods of the rural poor, how they can augment
capacity. In many cases, as state capacity declines donor power positive outcomes and minimize negative ones while running a profitable
increases. As a result, in some countries there is a de facto link business. While information is not in itself sufficient to drive change we
between donor decision-making and final public policy. As a result, have found that access to additional knowledge about how business
we are exploring how to better assist donor agencies in finding practices are playing out up the supply chain is useful for opening spaces
appropriate roles to support effective enterprise solutions to poverty of dialogue among actors. Through facilitated dialog and exchange, it is
in the context of weak states. feasible to develop better business practices that support improved rural
livelihoods at scale.
Putting out Research into Practice
CIAT has done applied research work with New Business Models for
leading private sector partners in the food Sustainable Trading Relationships
industry. Partners have included Costco,
Unilever, Green Mountain Coffee Roasters, When capable farmers, willing buyers and an effective enabling environment come
and Sysco. together, it is possible to establish trading relationships that are both sustainable over
time and beneficial for the farmers and the buyers. This hypothesis is being tested
In 2005, CIAT markets and livelihood research through a collaborative project in Africa funded by the Bill and Melinda Gates
foundation involving partners such as by IIED, the Sustainable Food Lab, CRS,
helped contribute to the launch of a Costco/
Rainforest Alliance, ACOS Spa, Hershey's, Kraft, Mars and ASDA Wal-Mart. In Latin
small farmer French bean purchase project.
America, similar work is being carried out with Sysco, Superior Foods and Oxfam in
In the end, the project resulted in a direct Guatemala. From results thus far, a series of design principles for sustainable new
commitment to increase purchasing from the business models between small-holder producers and large buyers are emerging.
poorest members of the supply chain; which, These principles are being testing and adapted with the aforementioned firms in Africa
by 2009, included over 5,000 small producers. and Latin America.
Additional research supported the initiation of
a commercially funded social investment Contact:
instrument targeted at health and education f Mark Lundy
or women in producer communities. Researcher, m.lundy@cgiar.org