Factors affecting the smallholder farmers' participation in the emerging modern supply chain in developing countries

Abstract

PurposeDespite the availability of new buyers and the possibility to receive higher prices, still large numbers of smallholder farmers do not participate in the modern supply chains. This study aims to understand the factors that affect smallholder farmers' participation in a newly emerging modern supply chain context.Design/methodology/approachData were collected from 6 focus groups of farmers (67 farmers in total) and 14 interviews with market actors and key informants such as government officials and donor organisations.FindingsInfluential factors of farmers' participation in the modern chain include buyer attributes and transaction conditions. High prices and prompt payment are the key motivators, with the main inhibitors being personal relationships with buyers and strict market requirements related to quality and quantity supplied.Practical implicationsIn order to encourage smallholder farmer participation in modern chains, an expansion of the marketing of high-quality vegetables by implementing quality control mechanisms and the encouragement to adopt safe marketing practices is needed. These results are particularly relevant for practitioners and policymakers.Originality/valueMost research to date concentrates on farmers' socioeconomic characteristics and are based in countries with advanced modern chains, and rarely focus on farmer participation in countries where modern chains are relatively new. This study addresses this gap by analysing farmer preferences to engage in the context of a country experiencing the emergence of trade through modern vegetable supply chain system.