As the global population has become increasingly larger and more urbanized, and as incomes continue to rise, agricultural markets have changed drastically. The demand for high-value agricultural products and the emphasis placed on foreign trade means that poor rural farmers are often left out of the market. Smallholder farmers may not be able to compete with larger farmers who can provide consistent quantities of high-quality products. These barriers to entry may be due the inability of small farmers to exploit economies-of-scale in procuring inputs and marketing their goods, as well as to their inability to commit to a contract. Small farmers face challenges in all sections of the value chain, from production and transportation to processing and marketing. Addressing the obstacles that poor rural farmers face is critical in strengthening the economies and food security of the developing world.
For more information on how value chains can be improved to benefit the small farmer, download a presentation by IFPRI Division Director Maximo Torero.
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