employment in agro-industries.
Emerging Innovative Strategies to
Facilitate Linkages Among Agrifood
Sectors and with Small Farmers
The transformation of the agrifood sector in developing countries is having a rapid
and profound impact on the structure, conduct, and performance of the sector.
Consolidation within each of the three subsectors and synergies across them have
emerged far faster than earlier experiences in developed countries, with still poorly
understood consequences for the units that matter for welfare analysis, that is, consum-
ing households and small farms.
A number of policies and programs condition the speed and nature of the transforma-
formation on farmers, there is a welter of innovative development strategies emerging in
Governments, donors, NGOs, and the private sector are putting in place a vari-
ety of partnerships and programs to increase economies of agglomeration among
agrifood industry segments and reduction of the costs of transaction of their linkages
with farmers. hese strategies include: (a) corridors combining highways and other
government-supplied infrastructure, agrifood companies, and linkages with farmers,
or “parks” in which various companies and services cluster and include links with farm-
ers, such export platforms, new “mega food parks” or “integrated agrifood parks,” pri-
linkages” involving partnerships over the three segments of the agrifood industry, plus
a farmer cooperative, plus an input company, all supported by state-provided services.
A prime example is Carrefour, aided by the dedicated-wholesaler Bimandiri, and input
stores in the region.
These approaches tend to cluster companies and add the state and NGOs to pro-
vide the missing services (such as output procurement, processing/packing/cooling,
technical assistance, credit, insurance) and products (inputs and equipment of req-
“hub-and-spoke” model with collection centers or depots to which farmers deliver. This
approach is designed to meet the input and service needs of farmers, reduce transac-
tion costs by putting retailers and processors into rural areas, but provide the missing