Agricultural market knowledge: Systems for delivery of a private and public good

Abstract

Integration of developing-country farmers into commercial markets is a policy widely promoted in order to enhance liverlihoods and reduce poverty. However, agricultural producers in many countries tend to lack specialist agricultural-market knowledge. The trend towards ‘agricultural multifunctionality’ suggests that farmers should acquire commercial skills and knowledge. The need to overcome failures in agricultural-market knowledge in developing economies is acute, and the inability to do so is an important source of market failure and of losses to farmers. This article analyses the knowledge needs of agricultural smallholders from a theoretical and practical perspective, focuses on the ‘private good’ nature of some kinds of market knowledge, and evaluates information and communications technologies (ICT) with potential to deliver appropriate ‘private’ market information and thereby enhance market access. Using the appropriate medium for person-to-person transactions requires further work to ensure that new ICT solutions are introduced for maximum poverty alleviation.