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Smallholder agriculture and market participation: lessons from Africa, the Caribbean and the Pacific










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    Project
    Improve the Competitiveness and Increase Post-Harvest Value Chain of Smallholder Farmers - TCP/URT/3604 2020
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    The United Republic of Tanzania is a low-income rural economy, with most citizens participating in agriculture for household income generation. Agriculture represents about 23 percent of gross domestic product (GDP) and 30 percent of export earnings, and employs 66.9 percent of the working population. In 2000/01 agriculture accounted for 31 percent of GDP but has since fallen to 23 percent despite an annual GDP growth rate of 5-6 percent. The poor performance of the sector is caused by several factors, including poor extension services, financial illiteracy and inadequate access to financial services by smallholder farmers. In collaboration with MoA, the project aimed to address these challenges by improving the competitiveness and enhancing the post-harvest management capacity of VC (smallholder farmers and processors), building the management capacity of producers’ organizations, creating sustainable linkages with other agricultural VC actors, and improving post-harvest practices to enhance farmers’ competitiveness. The project also built linkages between farmer organizations (FOs) and other service providers, encouraging the development of a long-term market strategy and contributing to the national objective to increase agricultural productivity and reduce rural poverty. The project was further expected to increase and stabilize the incomes of smallholder farmers producing paddy in Iringa district, building capacity in post-harvest handling and strengthening the commercial relationships between FOs and other rice VC actors. Market linkages between producer and other value chain actors such as traders and processors were established by the project, with 15 new linkages being forged.
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    Project
    Strengthening Capacities of Smallholder Rice Producers in Iringa District - GCP/URT/148/EC 2021
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    Agriculture is a prominent sector for the United Republic of Tanzania’s economic development, contributing around 24 percent of GDP, and employing 65 percent of the working population. In this context, rice is the second most important crop in the country, and is mostly grown by farmers as a cash crop for local and regional markets. However, farmers have difficulty accessing important extension, storage and financial services, which would enable their inclusion in the growing agricultural markets. The challenges to access these and other services are even greater for women and youth smallholder farmers, who lack ownership of major means of production, such as land. Against this background, the project aimed to increase rice value chain competitiveness and reduce post harvest losses in Iringa region, by improving managerial capacity, creating sustainable rice value chains with public private partnerships, and enhancing post harvest handling, storage and management, among other things.
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    Document
    Impact of international voluntary standards on smallholder market participation in developing countries
    A review of the literature
    2014
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    Over the past twenty years, international voluntary standards have gained prominence in global trade. These standards are developed and used by both private and public actors to ensure quality, food safety, social protection and environmental conservation that go beyond mandatory regulation. Concerns have been consistently raised about the ability of international voluntary standards to increase the market access of small-scale producers and exporters in developing countries. This publication pr esents the results of a literature review conducted by FAO in 2012 on the impact of voluntary standards on smallholders’ ability to participate in markets. The results are based on an analysis of 101 studies containing 123 cases. Cumulatively, these cases presented evidence for 19 voluntary standards that were implemented in 14 commodity sectors and in 40 countries. Despite this broad scope, the authors find that the majority of the empirical evidence for impacts comes from studies of just three standards: GlobalGAP, Fairtrade and organic. Moreover, most studies focus on two commodities: coffee and horticulture products. While there is a decent range of geographic cover, the majority of studies focus on a handful of countries: Mexico, Kenya, Peru, Costa Rica and Uganda. This study adopts an impacts pathway model to organize and analyse the trends found in the empirical evidence. The results can be summarized as follows: first, equitable and sustainable supply chain linkages, increased access to assets, and support for cooperative development are incentives for complying with standards. Second, both public and private actors have comparative advantages for supporting voluntary standards and are most effective when combined. Finally, governments can provide services, for example infrastructure and proper legislation, which facilitate the inclusion of smallholders in certified value chains. The study concludes by making policy recommendations on how the public sector can mediate the effects of voluntary standards.

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