LINKING SMALL PRODUCERS

Problem

Poverty and hunger are concentrated in rural areas in Latin America and the Caribbean, and more than 40% of the region’s population relies on agriculture for its economic activity. For agriculture to be a sustainable source of income and food, higher value markets need to be explored with stronger agricultural value chains. However, small farmers, often belonging to weak organizations, lack adequate access to productive finance, investment resources, education, and training.

Objective:

The MIF aims to catalyze the ability of smallholder farmers to access higher value markets by providing financial products, knowledge management, and technical expertise. To achieve this objective, MIF projects focus on enhancing quality and productivity, improving the capacity to manage agricultural and food production systems, and developing and expanding financial mechanisms with financial and non-financial entities.

MIF Solutions:

  • MIF projects provide technical assistance and finance to organizations where there is a demonstrated sustainability strategy, preferably accompanied by monitoring and evaluation systems, built in to their respective value chains.
  • MIF projects also develop and test models for accessing agricultural financing, as well as promote certification mechanisms that can enable small farmers to access higher value markets, partnering with and leveraging the resources and capacities of key actors (large companies, banks and donors) in global value chains..

Results and Impact:

  • The expected results are an increase in: adoption of technological solutions for agricultural processes; quality of agricultural production; number of products positioned in high value markets; high value markets accessed by small rural farmers and associations; and number of farmer associations strengthened.
  • The expected impact includes increased income of rural producers and new employment generated in the sector..

 

CADENAS DE VALOR

FINANCING AGRICULTURAL VALUE CHAINS

The report highlights Agricultural Value Chains Financing products and structures that various lead firms, agro-processors, banks, and non-bank financial institutions have designed and implemented to provide financing to producers either directly or through producer organizations, cooperatives, etc.

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CASE STUDIES: LINKING SMALL PRODUCERS TO MARKETS


The Center for Globalization, Governance and Competitiveness at Duke University analyzed five MIF projects in the region that aim at linking small producers to high value agricultural markets. These publications summarize common challenges and best practices implemented by the executing agencies.