Several barriers stand in the way of Africa’s smallholder farmers gaining access to global markets. Farmers’ wages and quality of life are negatively impacted when they lack access to markets where their goods would fetch a reasonable price. While smallholder farmers in Africa face many obstacles to entering the market, there are various strategies that can help them succeed. Here are seven suggestions on how to do this:
Develop farmer cooperatives
Forming cooperatives is one strategy for helping smallholder farmers deal with obstacles to selling their produce in urban markets. When smallholder farmers band together, they can leverage economies of scale to increase their income and receive a higher price for their goods. In Rwanda, for instance, the Tuzamurane cooperative has been instrumental in providing its members with better access to markets and higher revenues since its inception in 2009.
Improve market information systems
It can be challenging for smallholder farmers to make educated decisions regarding when and where to sell their crops due to a lack of access to trustworthy market information. To help farmers make better decisions based on up-to-the-minute market data, we need to enhance our market information systems. As an example, farmers in East Africa can access market data and trade venues via the East African Exchange (EAX).
Invest in infrastructure
Smallholder farmers may have trouble getting their products to market due to a lack of reliable transportation. A more streamlined supply chain is the result of investments in infrastructure like roads, storage facilities, and markets that bring together producers and consumers. Investments in road infrastructure, for instance, have been made by the Zambian government to provide easier access to markets for smallholder farmers.
Build relationships with buyers
Relationship-building with potential customers can ease market entry for small-scale farmers. Farmers can better meet the needs of the market and improve the quality of their goods by establishing lasting connections with consumers. The Mango Growers Association in Kenya has, for instance, forged connections with foreign purchasers, which has led to a rise in the international market for Kenyan mangoes.
Promote value-added products
Produce from smallholder farmers can be given a higher market value by being transformed into value-added goods like jams, juices, and sauces. Thus, they will be able to enter more lucrative sectors and raise their standard of living as a result. The Shea Network Ghana, for instance, is working to increase the global supply of shea butter for use in both cosmetics and food.
Encourage government support
Governments can play a big role in helping small farmers get to markets. To this end, policies should be enacted to encourage investment in agricultural production, enhance market infrastructure, and foster the growth of farmer cooperatives. In Ethiopia, for instance, the government has enacted laws that promote agricultural investment and increase access to markets for smallholder farmers.
Provide access to finance
For smallholder farmers trying to break into new markets, lack of financial resources can be a major hurdle. Microfinance loans and other forms of financing for farmers can help them expand their operations and gain greater market access. In Tanzania, for instance, the Small Industries Development Organization (SIDO) supports smallholder farmers with microfinance loans.
To sum up, there are a number of solutions that can help smallholder farmers in Africa deal with barriers to market access. By forming cooperatives, improving market information systems, investing in infrastructure, building relationships with buyers, promoting products with added value, encouraging government support, and giving smallholder farmers access to credit, they can get to markets more easily and make more money.
Be the first to comment