Fragmentation of rural population means that most of the supply chains cannot be cost effective for smallholders

Upstream challenges

Individual farmers cannot get sufficient scale to take their produce to the market, thus getting very low price realization from local brokers (“Coyotes”)

Suppliers of goods and services (e.g. agrochemicals, fertilizers, training, credits, insurance and consumer goods) have difficulties reaching rural communities due to the individual size and dispersion, causing the farmers to pay higher prices to local distributors, or even leaving these offerings out of their reach.

Farmers also are unable to carry out banking activities because of sensitive cost

Downstream challenges

For large buyers of agriproducts, the fragmentation and dispersion of farmers implies limited chances of scale benefits, difficulties for standard quality of products, and lack of traceability due to the various intermediary players.

Information flows are unreliable and very fragmented (e.g. marketing growth programs and/or extension services)

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