Policy Implications of Trends in Agribusiness Value Chains

Authors: 
Publication Type: 
Volume: 
18
Number: 
4
Page Numbers: 
572-592
Month/Season: 
Published On: 
2006

Production and export of non-traditional agricultural products offer potential for economic growth and poverty reduction in developing countries. However, market access for small farmers is being undermined by the increasing complexity of global value chains in agribusiness. Increasing vertical coordination in global agribusiness value chains changes the requirements placed on small farmers. Policies aimed at supporting such farmers need to be realistic about the prospects for small farmer upgrading by large firms in global value chains and about how to respond to the new challenges posed by public and private food safety standards. In the light of these challenges, consideration should be given to policies that shift small farmers away from the most demanding global markets and global buyers.