There are approximately 1.5 billion smallholder farmers1 in the world, a figure that includes 75% of the world’s poorest people. Recent improvements in global commodity prices and growth in emerging economies are expanding domestic and export markets, creating opportunities for smallholder farmers who can consistently link high production with sales.
The expansion of high value horticulture across the developing world is also providing opportunities. Large corporations are starting to see farmers (including smallholder farmers) in sub Saharan Africa as potential new suppliers for international supply chains, as well as growing domestic and regional markets. Despite the risks associated with emerging markets, these changes may bring improved support services for farmers, such as technology, extension, finance and insurance.
Several global agencies have recently renewed their investments in these areas, recognizing that agriculture is the best way for the rural poor to escape poverty: income growth generated by agriculture is up to four times more effective in reducing poverty than growth in other sectors (Growth Commission, 2008). While these changes are encouraging, smallholder commercial prospects remain weak. Studies from Africa and Asia show that 50–70% of smallholders are not transitioning from subsistence to commercial farming.
Few developing economies are creating enough off farm jobs, which prevents the consolidation and acceleration of agricultural commercialization. Instead, millions of smallholders are locked in poverty with increasingly small parcels of land. Finding ways to link smallholder farmers to markets is key to reducing rural poverty and hunger.
Governments need to invest in local infrastructure, strengthen business services and improve farmers’ skills, while extension systems are needed to upgrade production and market performance.
This brief explores the changing role of agricultural extension services and the growing focus on smallholder farmers, outlining how agriculture can, over time, provide a pathway out of poverty. The techniques outlined can empower extension workers to find new ways to assist smallholder farmers, through business-oriented approaches that encourage self-sufficiency.
Introducting Agro-Market place
Agro marketplace drives agricultural transactions by providing market linkage between farmer and commodity aggregators / processors (Farmer to businesses). Agro Marketplace accommodates direct transactions between farmers and off-takers across the agricultural value chain.
Agro marketplace solution enables better foresight and planning of agricultural processors to make direct orders from farmers without the intervention of middlemen, enabling players in smoothening the process of connecting with farmers. The Agro Marketplace currently host vast and extensive agro-allied product types across diverse agro industries in over 40 sub-categories and 28 categories.
Our Unique Value Proposition
- Transparency – Direct transactions between farmers and industry/retail
- Traceability – Crop and livestock reliability through supply chain traceability User responsive – Reduce costs to buyers without losing reliability
All intermediate supply chain stages are covered by Agro marketplace and our Farmer partner network
To learn more visit www.agrodomain.com