Interacting agents in value chains involving smallholders
| Agents | Participation in value chain | Funding sources | Objectives in value chain participation | Conflicting interactions between agents |
|---|---|---|---|---|
| Value chain actors | ||||
| Smallholders | On farm production, with surplus for chain; artisanal or collective processing | Sales of raw materials or semi-finished products Non-farm income | Sufficient income to meet basic needs | Production gluts, price collapse |
| Cooperatives and other forms of collective smallholder businesses | Aggregation 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 members | Support to smallholders by sharing costs, building social and other capital, and negotiating higher prices | Elite capture, free-riders, gender bias |
| Buyers and processors | Transformation and marketing for downstream buyers | Value added to raw materials or semi-finished products | Market share, growth in share price | Price-wars, price-fixing, lobbying government, taxation |
| Consumers | Demand for products | Subsidies, tax reductions | Utility, value for money | Changing tastes and preferences |
| Support service providers | ||||
| Non-governmental organizations | Provision of technical, business and financial services | Access to funding from bilateral donors, government agencies; revenues from sales of products and services | Institutional growth, mission advancement | Competition with the private sector, crowding out |
| Policies | ||||
| Governments | Regulatory body | Tax revenue, electoral support from smallholders and farmer organizations | Re-election, political legitimacy | Conflicts between government ministries (e.g. Finance, Agriculture) |
| Agents | Participation in value chain | Funding sources | Objectives in value chain participation | Conflicting interactions between agents |
|---|---|---|---|---|
| Smallholders | On farm production, with surplus for chain; artisanal or collective processing | Sales of raw materials or semi-finished products | Sufficient income to meet basic needs | Production gluts, price collapse |
| Cooperatives and other forms of collective smallholder businesses | Aggregation 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 members | Support to smallholders by sharing costs, building social and other capital, and negotiating higher prices | Elite capture, free-riders, gender bias |
| Buyers and processors | Transformation and marketing for downstream buyers | Value added to raw materials or semi-finished products | Market share, growth in share price | Price-wars, price-fixing, lobbying government, taxation |
| Consumers | Demand for products | Subsidies, tax reductions | Utility, value for money | Changing tastes and preferences |
| Non-governmental organizations | Provision of technical, business and financial services | Access to funding from bilateral donors, government agencies; revenues from sales of products and services | Institutional growth, mission advancement | Competition with the private sector, crowding out |
| Governments | Regulatory body | Tax revenue, electoral support from smallholders and farmer organizations | Re-election, political legitimacy | Conflicts between government ministries (e.g. Finance, Agriculture) |
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