Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes

The purpose of this study is twofold. On one hand, the objective is to assess the impact of new and more complex contracting schemes, as opposed to traditional marketing channels, on small farmers’ welfare. On the other hand, the study explores which may be the critical factors that determine the sm...

Descripción completa

Detalles Bibliográficos
Autores principales: Escobal, Javier, Torero, Máximo
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2006
Materias:
Acceso en línea:https://hdl.handle.net/10568/160466
_version_ 1855530473066856448
author Escobal, Javier
Torero, Máximo
author_browse Escobal, Javier
Torero, Máximo
author_facet Escobal, Javier
Torero, Máximo
author_sort Escobal, Javier
collection Repository of Agricultural Research Outputs (CGSpace)
description The purpose of this study is twofold. On one hand, the objective is to assess the impact of new and more complex contracting schemes, as opposed to traditional marketing channels, on small farmers’ welfare. On the other hand, the study explores which may be the critical factors that determine the small farmers’ participation in these institutional arrangements. In this context, two critical factors are stressed. The first one has to do with access to credit and the second one is the size of the agricultural plot. In order to examine the decision of farmers to access the dynamic markets, the paper follows the study of Lapar et al (2003). The paper also follows impact evaluation techniques to identify the differences in the performance of farmers with access to dynamic markets and those without access. As it can be seen, in all cases, the difference between farmers with access and those without access is positive. This implies that having access to dynamic markets has positive impacts on the welfare of farmers. The results show that the farmers linked to the dynamic markets gain two cents of a dollar more per kilogram of potato. ...Our simulations showed that increase of their plot size to a minimum of five hectares (optimal size according to the industry) increases their sales to dynamic markets in 16%. However, the impact of new and more complex contracting schemes, as opposed to traditional marketing channels, could reduce significantly the access gap to dynamic markets by reducing transaction costs, increasing productivity, and increasing scale production through coordination of smallholders.
format Artículo preliminar
id CGSpace160466
institution CGIAR Consortium
language Inglés
publishDate 2006
publishDateRange 2006
publishDateSort 2006
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1604662025-11-06T06:45:22Z Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes Escobal, Javier Torero, Máximo potatoes market access small farmers contract farming transaction costs field size production increase The purpose of this study is twofold. On one hand, the objective is to assess the impact of new and more complex contracting schemes, as opposed to traditional marketing channels, on small farmers’ welfare. On the other hand, the study explores which may be the critical factors that determine the small farmers’ participation in these institutional arrangements. In this context, two critical factors are stressed. The first one has to do with access to credit and the second one is the size of the agricultural plot. In order to examine the decision of farmers to access the dynamic markets, the paper follows the study of Lapar et al (2003). The paper also follows impact evaluation techniques to identify the differences in the performance of farmers with access to dynamic markets and those without access. As it can be seen, in all cases, the difference between farmers with access and those without access is positive. This implies that having access to dynamic markets has positive impacts on the welfare of farmers. The results show that the farmers linked to the dynamic markets gain two cents of a dollar more per kilogram of potato. ...Our simulations showed that increase of their plot size to a minimum of five hectares (optimal size according to the industry) increases their sales to dynamic markets in 16%. However, the impact of new and more complex contracting schemes, as opposed to traditional marketing channels, could reduce significantly the access gap to dynamic markets by reducing transaction costs, increasing productivity, and increasing scale production through coordination of smallholders. 2006 2024-11-21T09:50:52Z 2024-11-21T09:50:52Z Working Paper https://hdl.handle.net/10568/160466 en Open Access application/pdf International Food Policy Research Institute Escobal, Javier; Torero, Maximo. Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes. MTID Discussion Paper 99. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160466
spellingShingle potatoes
market access
small farmers
contract farming
transaction costs
field size
production increase
Escobal, Javier
Torero, Máximo
Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes
title Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes
title_full Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes
title_fullStr Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes
title_full_unstemmed Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes
title_short Access to dynamic markets for small commercial farmers: the case of potato production in the Peruvian Andes
title_sort access to dynamic markets for small commercial farmers the case of potato production in the peruvian andes
topic potatoes
market access
small farmers
contract farming
transaction costs
field size
production increase
url https://hdl.handle.net/10568/160466
work_keys_str_mv AT escobaljavier accesstodynamicmarketsforsmallcommercialfarmersthecaseofpotatoproductionintheperuvianandes
AT toreromaximo accesstodynamicmarketsforsmallcommercialfarmersthecaseofpotatoproductionintheperuvianandes