Market Chain Analysis Research Articles

Underutilized agroforestry food products in Amazonas (Venezuela): a market chain analysis

The worlds’ current food production system is focused on a limited number of crops. However, international food demand is increasingly looking for more diversified supplies. In the Venezuelan State Amazonas, the Piaroa indigenous people collect and cultivate several indigenous species with local, regional, national and even international potential. A participatory approach was used to select, in cooperation with these Piaroa people, a list of products for in-depth economic analysis and for introduction in agroforestry trials in a later phase. Seven agroforestry food products of this list were identified as underutilized. Primary data collected through consumer and trader surveys on the local markets and participatory exercises in selected Piaroa communities revealed that the main causes of underutilization are the general lack of transport, processing and market infrastructure in Amazonas; the lack of demand, due to a lack of product information; the lack of market information and cooperation between the different market chain actors; and the low productivity of the traditional slash and burn plots. Solutions to overcome the infrastructural constraints are sought by looking at the example set by a local NGO.

Collection and marketing of non-timber forest products in the far western hills of Nepal

Non–timber forest product (NTFP) use is an integral part of the rural economy of Nepal, but little is known about NTFP collection and marketing dynamics. This study investigated the intensity of NTFP collection, the financial benefits gained through the collection of a representative species, and the contextual factors influencing NTFP collection and sale in 12 villages of the Baitadi district of far western Nepal. Thirty-nine per cent of the economically active population collected a total of 24 NTFPs from 23 species, which contributed 0–90% of the total household income. A marketing chain and financial analysis of Valeriana jatamansi (sugandhwal) revealed that various trading and marketing channels existed from the village to district-level NTFP outlets. The price received by the collector depended on the length of the market chain and the political context of the market. Political instability resulting from the Maoist insurgency reduced profits from sugandhwal sale by 23–25%. The number of NTFP-selling outlets accessed by collectors was the most important variable determining the number of NTFPs collected and the overall contribution of NTFPs to the household. Physical accessibility of the village did not impact the contribution of NTFPs to the household livelihood. The strength of NTFP-related institutions (both government and non-governmental organizations) decreased the total NTFP contribution to livelihoods because at the time of the study the villages were in transition to domestication of NTFPs. In the future, the contribution of domesticated NTFPs to households in villages with strong NTFP-related institutions should be much greater than at present. Increasing access to NTFP-selling outlets may be achieved through information dissemination, empowerment of collectors and establishment of linkages between collectors and traders. In general, domestication is an important strategy to ensure a continuous supply of NTFPs. Middlemen traders are seen as important stabilizers of prices as long as fair trading practices are followed. Monitoring of these villages over time will also provide important new quantitative information on the process of transition in rural villages changing from a forest-collection NTFP procurement strategy to a domestication procurement strategy.

Mapping the market: participatory market-chain development in practice

Market mapping is an approach to describe the market systems involving small-scale producers: the value chain, together with support services and the business environment affecting the chain. This article describes a participatory approach to market-chain development that has evolved around market mapping processes,with the example given of the market map for aloe in Kenya. Practical Action has found a number of processes are effective in ensuring positive engagaement and outcomes. For example, ‘market opportunity groups’ are formed to represent and empower producers, enabling them to negotiate with other market chain actors with greater confidence. Interest forums, on the other hand, include decision-makers with influence at local, national and sometimes international levels. Four short case studies of market-chain development work in Zimbabwe, Kenya, Peru and Sudan are presented, which demonstrate how these elements can assist in participatory market-chain analysis, making the move from analysis to action more effective.

Arabica Coffee Farming and Marketing Chain Analysis in Manggarai and EastManggarai Districts

Arabica coffee has a unique flavour and very potential market. The purpose of this study was to analyse Arabica coffee farming and to investigate its performance of marketing chains in Manggarai and East Manggarai Districts, Flores, East Nusa Tenggara Province. This research was conducted in 2008-2010 by interviewing coffee farmers and coffee buyers; using open and close questions. The number of respondents were 100 people in each district. The result showed that land holding per household farmer in Manggarai and East Manggarai were 0.84 ha and 0.92 ha, respectively. Farmers in both districts were within the range of productive age, the farmers who were members of farmer groups in both study sites was £ 50%. Arabica coffee cultivation was still done in a traditional way. Fertilizing and controlling of pest and diseases had not been carried out inten sively. Arabica coffee farming in both district was feasible. BCR, NPV and IRR values in Manggarai were 4.2, Rp8,530,105, and 70.76% respectively, while BCR, NPV, and IRR value in East Manggarai district were 8.1, Rp2,465,833, and 27%, respectively. BEP production and coffee price in Manggarai were 94.2 kg/ha/th and Rp15,913/kg respectively, whereas BEP production and coffee price in East Manggarai were 78,2 kg/ha/th and Rp10,134/kg, respectively. In general, farmers sold their coffee in green bean form. In general, the marketing chains of Arabica coffee in both districts was farmer – collector - trader - exporter.Key words: Arabica coffee, potential market, farming analysis, feasible, marketing chains.