LINKING SMALL-SCALE FARMERS TO MARKET THROUGH AN EFFICIENT SUPPLY CHAIN MANAGEMENT

Abstract

With increasing affluence and the expansion of modern retailing and food processing, fresh produce buyers are forging enduring long-term relationships with their preferred suppliers. Such relationships will only develop where there is an equitable sharing of value in the exchange, an element of trust and long-term commitment. For smallholder farmers, their participation in such value-added chains is contingent upon the formation of formal or informal groups, thereby providing some economies of scale and a greater capacity to meet the needs of their downstream customers. Trust and social capital is instrumental in the formation of these groups.