Mercados y Comercio

Innovative business models for small farmer inclusion

Background paper for The State of Agricultural Commodity Markets (SOCO) 2020

Year of publication2020
AbstractFarmer participation in agricultural markets is of major importance for rural economic growth and poverty alleviation in developing countries. This paper discusses market failures and constraints in agriculture in low-income countries, focusing on how these failures and constraints affect small farmers, input sellers and output buyers. It then explores innovative models implemented to address these challenges, including: out- grower schemes; input bundling programmes; decommodification through quality product differentiation; information and communication technologies; distributed ledger technologies; and direct purchasing models. Finally, the paper reviews the existing evidence surrounding these innovative approaches and highlights evidentiary gaps.
Available inEnglish
ThemeAgricultural Commodities and Development
Product typeBook (stand-alone)
SeriesThe State of Agricultural Commodity Markets (SOCO)
Areas of workEmerging Trends, Challenges and Opportunities
Keywordssmallholders; agricultural products; commodity markets; economic growth; economic development; innovation; models; Developing countries