Table I

Interacting agents in value chains involving smallholders

AgentsParticipation in value chainFunding sourcesObjectives in value chain participationConflicting interactions between agents
Value chain actors
SmallholdersOn farm production, with surplus for chain; artisanal or collective processingSales of raw materials or semi-finished products
Non-farm income
Sufficient income to meet basic needsProduction gluts, price collapse
Cooperatives and other forms of collective smallholder businessesAggregation of production; provision of farming inputs; technical, business and financial services provided to members (including marketing and credit)Membership fees, donor projects, selling services to membersSupport to smallholders by sharing costs, building social and other capital, and negotiating higher pricesElite capture, free-riders, gender bias
Buyers and processorsTransformation and marketing for downstream buyersValue added to raw materials or semi-finished productsMarket share, growth in share pricePrice-wars, price-fixing, lobbying government, taxation
ConsumersDemand for productsSubsidies, tax reductionsUtility, value for moneyChanging tastes and preferences
Support service providers
Non-governmental organizationsProvision of technical, business and financial servicesAccess to funding from bilateral donors, government agencies; revenues from sales of products and servicesInstitutional growth, mission advancementCompetition with the private sector, crowding out
Policies
GovernmentsRegulatory bodyTax revenue, electoral support from smallholders and farmer organizationsRe-election, political legitimacyConflicts between government ministries (e.g. Finance, Agriculture)

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