This project is innovative in its aim to examine
the impact of agro-processing on the functioning of agricultural
markets, household welfare and environment. In addition, the role
of markets in maintaining the sustainable utilization of Crop
Genetic Resources (CGR) is also analysed for the case of Bolivia.
One output of the project is an insightful analysis
of the food-value chain as well as of the institutional settings,
which looks at actions taken by players involved and barriers
encountered by small farmers. It describes and analyses the transaction
costs, the nature of risks involved in the chain and the structure
of information. The overall goal of the project is to develop
feasible policy advice that will create opportunities for poverty
alleviation through the changes caused by increased agro-processing
and market integration. In addition, an examination of the role
of markets on access, availability and distribution of CGR is
conducted.
The project seeks to examine the dynamic processes associated
with the new agricultural economy in order to understand how to
enhance opportunities and the capacity of smallholders to benefit
from such changes while conserving the natural resource base.
Empirical analysis has been conducted in the
form of case studies in the two Andean countries selected: Ecuador
and Bolivia. The Andean region is ideally suited for such an investigation
because it is the point of origin and centre of genetic diversity
for a number of important crops, particularly potatoes. Moreover,
Andean agriculture relies on a resource base that is somewhat
fragile because of its topography. Large indigenous populations
live in this region with widespread poverty, particularly in rural
areas.
The specific objectives of the project are as follows:
- To understand the structure of dynamic markets and the position
and role of smallholders;
- To identify the circumstances and mechanisms which promote
or inhibit small farmers’ entry into the new agricultural
economy and the actions that can be taken to improve the benefits
of such entry;
- To understand the role of social capital or other institutional
norms that could determine farmers’ decision making behaviour
and influence their choice to participate to the market and
in which form;
- To ascertain conditions under which such participation allows
the flow of information and at the same time the conservation
of the natural resource base with special regard to crop genetic
diversity and reduced use of pesticides.
A. Initial Workshops
Initial workshops with stakeholders have been held in both case
study sites. They involved decision makers identified in each
country from the environmental and agricultural development sectors,
as well as collaborators on the project. The goals of the workshops
were to present the motivations, concepts and approaches of the
project and to start a dialogue with the stakeholders on their
interests in the outcomes.
B. Development of methodologies
The project includes the development of a methodology for how
to study the impact of selected agro-processing interventions
on small-farmers as well as on identified environmental issues
including crop genetic resources and the use of pesticides. The
methodology has been developed also in connection to the project
"Using market to Promote the sustainable utilization of CGR".
Activities include: i) focus group exercises;
ii) rapid rural appraisals; iii) key informant interviews; iv)
household survey with a set of carefully designed survey instruments,
and sample selection.
For the case of Ecuador: va) a plan
for analyzing the impact of selected agro-processing intervention
on pesticide use;
For the case of Bolivia: vb) clear definitions
of indicators and measures for potato genetic diversity at the
farm and market level.
C. . Evaluation of impacts of agro-processing activities and of markets on smallholders
The project has mapped the value chains (the set of all linkages)
through which crops (potato) produced by smallholder farmers reach
the consumer. In selected value chains, the project used participatory
market chain analysis to identify the different market chain actors
and to assess the impact of these formal linkages on the choices
of seeds produced by farmers. Data arising from the value chain
analysis has contributed to the economic study conducted to understand
farmers’ decision-making processes. The value chain analysis
has also identified the potential demand for local potato varieties
and it has been conducted through informal interviews with key
informants and farmer focus groups.
D. Evaluation of impacts
of agro-processing activities and of markets on smallholders
The evaluation of the impact of agro-processing and of markets
on smallholders has been conducted primarily by means of focus
groups’ discussions and through the collection of primary
data by means of household and market surveys. For the household
survey, the questionnaires have been administered to approximately
1,000 households, part of which participate in some form of identified
agro-processing or trade activities linked to outside markets.
The data has been entered in a computerized data base and are
being analyzed using appropriate econometric techniques.
E. Assessment of impacts
of selected agro-processing or market intervention on potato genetic
diversity and on pesticide use
The evaluation of the impact of agro-processing or market
interventions on potato genetic diversity and pesticide use has
been carried out using focus groups’ results and household
survey data. Specific questions on diversity and pesticide have
been asked as part of the focus group activity and in the survey.
F. Final stakeholder workshop
Results of the analysis undertaken will be disseminated by means
of articles, presentations, and publications. In addition, a final
stakeholders’ workshop is being organized to present results,
discuss policy implications as well as possible follow-up activities.
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