By Dr. Nellie Manalili, Regional Adviser for Asia on Market Access, Vredeseilanden (VECO)
Much of the problems in the agricultural sector exist because we do not understand what is going on. That is why we need to understand what are agricultural chains and how these are linked to the market.
In a simple marketing system, there is the producer and the buyer. Goods are transferred from one to the other and it is through information and communication that a decision to buy/pay for a product is made. In reality, however, things are not as simple because of intermediaries in between. Products pass through these intermediaries and value is added to the chain where products take on a different form, e.g. from raw coconut to desiccated coconut or copra. The more intermediaries or participants there are in the chain, the greater chances for problems or distortions to happen. Farmers can also decide to add value (join the chain) if they determine that this will be more profitable for them. Otherwise, because of lack of the right information, they will be unable to benefit from the agricultural chain.
Continue reading Understanding Agricultural Chains towards Enhanced Market Access….