Trading Up Icco Feb 2009

Traders as partners in development Lucian Peppelenbos, KIT Royal Tropical Institute ICCO - DREO 3 February 2009 Utrecht

Trading Up: building cooperation between farmers and traders in Africa

The issue at stake ,[object Object],[object Object],[object Object],This results in distrust, inefficient food chains, adverse policies, and disappointing outcomes for farmers, traders and consumers alike

The challenge ,[object Object],[object Object],This creates demand for more and better farm products, thus helping to improve incomes and livelihoods on the countryside

Agricultural markets in Africa ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The trader ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Despite the harsh environment, traders manage to get daily fresh products to consumers in the city. The book provides real-life stories of traders:

Different types of traders ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Social networks in trading ,[object Object],[object Object],[object Object],[object Object],[object Object],Hence traders tend to build long-term relations with farmers, and organize with peers in (informal) trader associations

What is a “fair” profit margin for traders? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What is a “fair” profit margin for traders? ,[object Object],[object Object],[object Object],[object Object],Value shares in the chain

What are “good” traders? ,[object Object],[object Object],[object Object],[object Object]

Experiences in “Trading up” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Four types of trade relations FORMALIZED MARKETS CHAIN PARTNERSHIPS AD HOC SPOT TRADING STABLE TRADE RELATIONS stronger market institutions stronger chain relations 4

Onion trade Ghana – Burkina Faso ,[object Object],[object Object]

Onion trade Ghana – Burkina Faso stronger market institutions stronger chain relations 1 3 2 Individual farmer sells on the spot to the trader who bids the best price Farmers and traders get organized and start to coordinate their linkages Market information system, contracting, bank finance, and legal support

Strategies to improve trading (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Strategies to improve trading (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Lessons from the cases ,[object Object],[object Object],[object Object]

Many thanks to the more than 40 authors, resource persons, and facilitating staff A special word of gratitude to our donor-partners: And thanks for your attention!

Trading Up Icco Feb 2009

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Trading Up Icco Feb 2009