Market access for smallholder livestock producers under globalised food trade: an analysis of contract farming and other market-linking institutions in India, Thailand, Vietnam and the Philippines
Organization Pro-Poor Livestock Policy Initiative (PPLPI), Food and Agriculture Organization of the U.N., Animal Production and Health Division, Viale delle Terme di Caracalla, Rome, Italy
Under globalised food trade, agricultural production processes and marketing have become tightly linked along supply chains, making it more difficult for smallholder producers to remain integrated in mainstream markets as transactions costs of doing so increase. This paper provides an assessment of formal and informal contracts in efficiently integrating rural smallholder producers to mainstream markets of livestock products and looks into four country case studies. It finds that studies on contract farming have focused mainly on formal contracts that tended toward larger-scale farmers in peri-urban locations. Concerted efforts toward informal contracts and alternative directions would result in the opening up of more windows for smallholders that respond to evolving demand patterns for livestock products in domestic markets, rather than forcing the issue of enabling them to produce the high-end products for export and supermarkets whose tight product and process standards are extremely difficult for them to hurdle.
Publisher Looking east looking west: organic and quality food marketing in Asia and Europe. 2010. 173-181. 23 ref.
Keywords agricultural trade. animal products. contract farming. globalization. international trade. livestock farming. marketing. small farms. vertical integration.