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Access to Modernizing Value Chains by Small Farmers
in Indonesia and Nicaragua
| Principal Investigators: |
Thomas Reardon, Michigan State University
Ronnie S. Ntawidjaja, Pajadjaran University, Indonesia
Francisco J. Perez, Central American University, Nicaragua
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Problem & Objective
The agrifood industry has transformed extremely quickly and profoundly
over the past decade in developing regions, with rapid diffusion
of supermarkets, fast food chains, and large-scale processors. This
project will examine the asset-related determinant and the impacts
of the participation of small farmers and farmer organizations in
modern versus traditional market channels in Indonesia and Nicaragua.
The research is designed to identify the specific extent, nature
and determinants of the restructuring of the product value chains.
In addition, it will examine the determinants of inclusion or exclusion
of small farmers in the restructured market channels. Finally, it
will look at the asset and income effects of this participation,
with the goal of informing the organizational, policy and institutional
design to have maximum benefits of new markets to small farmers.
Research Context
In Indonesia, supply chain mapping studies will be undertake for
mangoes and mangosteen, both of which are priority products in the
Ministry of Agriculture’s long-term development plan and have
domestic and export market potential. In Nicaragua, researchers
will focus on the role of “second floor cooperatives”
that will help producers to access new markets, and inform the role
of government in this process.
Policy Relevance
In Indonesia this research will help inform the work of the Ministry
of Agriculture in the development of the horticulture division and
the creation of policy that encourages value chains that serve cities
and exports. In Nicaragua, the research will inform the new government
focus on investments in small and medium rural enterprises and farmers.
Publications
Trip Reports
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