Definition

Inclusive access to agricultural markets refers to the ability of all agricultural producers, especially smallholders, women, youth, and marginalized groups, to participate effectively, equitably, and sustainably in agricultural markets as both sellers and buyers. This includes not only physical access to markets but also access to timely and reliable market information, fair pricing mechanisms, appropriate infrastructure, and institutional arrangements that enable meaningful engagement with market actors.

Rationale

Although agriculture is the primary source of livelihood for rural residents, greater agricultural production does not necessarily translate into greater income. Many smallholders are unable to sell their products or make a profit due to limited access to market information and minimal interaction with market actors. Therefore, it is crucial to promote "inclusive access to agricultural markets" to enable these smallholders to produce and sell agricultural products based on market demand.

Key interventions

There are a number of business models that can provide smallholders with inclusive access to markets. These inclusive business models generally include producer-driven, buyer-driven, and intermediary-driven models.

• Producer-driven models are led by producer organizations, such as associations and cooperatives, and are motivated by the objective of improving market access through collective action.

• Buyer-driven models involve private sector actors, including retailers, processors, and traders, that organize farmers into supply networks. These arrangements may include the provision of inputs and technical assistance aligned with buyers’ requirements and are commonly referred to as contract farming or out-grower schemes. For such models to be inclusive, relationships between firms and farmers must be governed by fair, transparent, and responsible contractual arrangements.

• Intermediary-driven models are typically led by local non-governmental organizations (NGOs) and focus on strengthening smallholders’ market linkages through the provision of technical assistance and capacity development. These organizations are often funded and guided by governments, donors, or agencies of the United Nations.

There are some approaches that include elements from the different inclusive business models. For example, the Smallholder Horticulture Empowerment and Promotion (SHEP) approach includes elements from the producer-driven model, and the intermediary-driven model. It offers a series of capacity development training courses to the target farmers in a way that the farmer's motivation is raised through supporting their psychological needs. In this regard, agricultural extension activities for farmers are implemented following a four-step sequence: 1). Share goals with farmers, 2). Raising farmers’ awareness, 3). Farmers make decisions, and 4). Farmers acquire skills.