PFID News

Small/Medium Farmer Organizations in the Era of Supermarkets: Seeking Adaptive Organizational and Institutional Innovations to Access Dynamic Retail Markets

Southern Africa Case Studies

A new set of six case studies by PFID-F&V now documents both the strategies and specific practices adopted by small farmer organizations (SFOs) in the fresh fruits and vegetables (FFV) sector to link to dynamic markets in selected developing countries in Southern Africa. The case studies provide qualitative information on SFOs in terms of the nature and adequacy of their contribution to small farmers meeting the requirements of the market, specifically they will help to answer the following central strategic question:

Can small/medium producers meet the requirements of dynamic markets (such as supermarkets) and under what conditions, using what technologies, organizational approaches and marketing strategies?

Findings from this study “…lead to the conclusion that the success of a business model from a development perspective (i.e., one with economic and social dimensions) requires at least three elements” (Neven et al. 2005:23): 

“First, the business model requires a partnership approach between experienced commercial farmers (who are directly and significantly involved in the model), NGOs (who provide the capacity building support) and the rural poor (who are selected on their managerial capacities, their level of motivation and their needs).

 

“…Second, the organizational and governance structures of the business model must balance business and development goals, i.e. [maintaining]… a focus on keeping the farm financially healthy on the one hand and providing sufficient capacity building job opportunities and monetary incentives for the rural poor on the other hand. In other words, a business model aimed at assisting a small farmer organization to link up with dynamic markets has to carefully walk the tightrope between economic and social development.

“…Third, business models aimed at integrating the rural poor in modern food supply chains imply a process and as such require a more holistic, long term approach with a strong focus on knowledge transfer. Long-term, knowledge integration is a key component of successful business models aimed at integrating the rural poor in modern marketing channels (Neven et al. 2005:23-25).” 

All six case studies, together with an associated policy brief and synthesis paper, are now available in the Publications section of this website (see links below):

Neven, David and Thomas Reardon

2005    South Africa’s Rural Poor in the Era of Supermarkets: Adaptive Organizational, Institutional and Technological Responses to Access and Compete in Dynamic Markets:  Policy Brief.  Michigan State University:  Partnership for Food Industry Development.

Neven, David, Thomas Reardon & Rose Hopkins

2005    Case Studies of Farmer Organizations Linking to Dynamic Markets in Southern Africa: The Fort Hare Farmers Group, South Africa.  Michigan State University:  Partnership for Food Industry Development.

Neven, David,  Marthinus Saunderson, Thomas Reardon & Rose Hopkins

2005    Case Studies of Farmer Organizations Linking to Dynamic Markets in Southern Africa: Lutouw Estate Ltd, South Africa.  Michigan State University:  Partnership for Food Industry Development.

Neven, David,  Thomas Reardon & Rose Hopkins

2005    A Case Study of Bouwland Landgoed Ltd, South Africa.  Michigan State University:  Partnership for Food Industry Development.

Neven, David, Jacky Goliath, Thomas Reardon & Rose Hopkins

2005    Case Studies of Farmer Organizations Linking to Dynamic Markets in Southern Africa:  The Haarlem and Ericaville Honeybush Producer Groups, South Africa.  Michigan State University:  Partnership for Food Industry Development.

Hopkins, Rose, David Neven & Thomas Reardon

2005    Case Studies of Farmer Organizations Linking to Dynamic Markets in Southern Africa: The Lubulima Agriculture and Commercial Cooperatives Union. Michigan State University:  Partnership for Food Industry Development.

Hopkins, Rose, David Neven & Thomas Reardon

2005    Case Studies of Farmer Organizations Linking to Dynamic Markets in Southern Africa: The Kafakumba Training Center, United Methodist Church Mission, Luanshya Province, Zambia.  Michigan State University:  Partnership for Food Industry Development.

Neven, David, Thomas Reardon, Dave Weatherspoon & Rose Hopkins.

2005    South Africa’s Rural Poor in the Era of Supermarkets:  The Role of Commercial Farmers in Adaptive Organizational, Institutional and Technological Responses to Access and Compete in Dynamic Markets:  Synthesis Paper.  Michigan State University:  Partnership for Food Industry Development.

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