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Pathways to Commercialisation

Onions on sale in a MarketThis theme examines the question of how to raise productivity in the agricultural sector, and how smallholder farmers can participate in markets and improve livelihoods. Recognising that the liberalisation orthodoxy focusing on markets has not worked (or at least only partially), we focus on institutional questions, particularly in conditions where markets are weak, thin and interlocking.

Questions we are pursuing include:
  • What pathways to which types of commercialisation are open to smallholder producers?
  • What market and institutional innovation in supply chains might help smallholder producers?
  • How do labour markets and institutions affect agricultural growth and poverty reduction?
  • How can coordination failures in finance, input and output supply be remedied?
  • How can agri-business be developed and regulated?

Productivity and food prices: the missing link?

FAO Food price index, 7 Feb

High and unstable food prices have been high on international agendas in recent years, amid concerns about population, demand and environmental constraints.

A new paper by Andrew Dorward argues that much greater attention needs to be paid to understanding and monitoring the links between food prices, poverty, and  agricultural labour – in the context of increasing global constraints on high external inputs to agriculture.

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Will there be a global food crisis in 2013?

ethiopianmarket

FAC Commercialisation theme convenor Steve Wiggins is quoted in an IRIN article considering the outlook for global food security in 2013.

After the 2012 drought affecting the USA, maize prices fell slightly, but from a relatively high position. Cereal prices have declined by a modest 2.4 percent, largely the result of lower demand as economies stagnate, the Food and Agriculture Organization (FAO) reported in early January 2013. But we are already in an era of high prices.

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Food, finance and speculation

villageproducemarket

A new FAC Working Paper, Food price volatility and financial speculation (pdf), looks at the link between different forms of speculation on financial markets, and unstable or inaccurate food prices.

In a post on the FAC blog, the paper's author, Stephen Spratt, suggests that despite the existence of financial mechanisms to stabilise prices, speculation should still be a cause for concern.

Blog: Why we should worry about speculation in food markets by Stephen Spratt, 23 January 2013

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Getting on with the job: connecting smallholders to markets in eastern Africa

Group photo from the workshopOver 30 agricultural development practitioners from four eastern African countries participated in a ‘Smallholder Café’ in Nairobi on 11 July 2012.

The event was the second of three regional workshops, organised by Future Agricultures Consortium, and co-hosted by the Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN), the Overseas Development Institute (ODI), and Agriculture for Impact (A4I) at Imperial College London.

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Further Reading

Market Coordination

Supermarkets and Standards