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 how potato seed and output markets are structured, and the role of smallholders in these markets
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. A 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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