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Development, Economy, Global Poverty

Colombian Farmers Expand Their Markets

Colombian Small-holder Farmers Expand their Markets
Whoever uttered the phrase “it’s not what you know, it’s who you know” wasn’t kidding. In today’s times, connections are key, and for Colombians trying to make a living in farm-based agriculture, the size of your market makes a significant impact on your income.

In fact, many challenges exist for small-holder farmers in Colombia. Hindrances such as low productivity, distorted information about pricing and selling prospects, and limited marketing access all remain obstacles for this group of farmers who end up selling their goods at open-air markets where there is more competition.

This automatically decreases a seller’s profits, furthering a cycle that seems inescapable.

Being a small-holder farmer can prove to be a difficult existence, at times feeling closed off from the evolving international markets of the world.

Other setbacks faced by farmers include selling through intermediaries, steep transaction costs to reach distant markets, and finally, a lack of means to produce the “volume, quality, and timely delivery” which large agricultural producers are able to generate.

Ultimately, the inability to expand and grow has contributed to poverty in this rural sector.

However, significant strides have been taken for those who fall under this title. An article from the World Bank addresses the solutions underway to improve the livelihoods of these farmers.

“In an effort to support Colombia’s smallholder producers to build entrepreneurship and compete more effectively, the Rural Productive Partnerships Project has been addressing the above-mentioned challenges by establishing, strengthening, and promoting productive alliances between rural producer organizations and private agribusinesses.”

Since the Rural Productive Partnership Project’s launch in 2002, many groups have received support through a process where partnerships are formed by competitive bidding partnered with an independent evaluation procedure. Today, this program continues to flourish and build from where it started.

The World Bank describes the program’s goal as one which involves keeping “production, sales and productivity” up through “investment grants, technical assistance and business development training.”

Aside from financial assistance, this project also seeks to dispel inequality however it can by reaching people who may have been neglected within the system, such as women, indigenous people and Afro-Colombians.

Colombia’s Ministry of Agriculture and Rural Development (MADR) reports that between 2002-2014 more than 820 successful partnerships have been formed helping 55,000 households, with 72 percent of the productive partnerships continuing to work together after the conclusion of the program.

With the second phase of the program ending in June 2015, targets have been reached within the project with more than 9,900 female-headed households benefiting in the first phase, and more than 9,250 indigenous peoples and Afro-Colombian households receiving assistance.

These successes have not only helped one small sector of farmers—but have reached far-away consumers and provided support for the vulnerable who live in Colombia, ultimately endeavoring to keep both their community and the world’s economy thriving.

– Nikki Schaffer

Sources: World Bank, YouTube
Photo: Google Images

September 27, 2015
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