Family agriculture benefits from selling its products in nearby farmers’ markets

San Jose, Costa Rica, November 19, 2014 (IICA). The marketing of locally and sustainably produced fresh foodstuffs in “proximity circuits” has become a key factor in increasing the competitiveness of small-scale agricultural producers around the world, while consumers enjoy the benefits of healthier food available closer to home.

The term used to describe them may vary from country to country—ecological, proximity or organic markets, or simply farmers’ markets—but the fact is that short marketing circuits make a difference: they minimize marketplace intermediation and connect the local food supply to the demand.

This is the conclusion of an analysis that has just been published by the Inter-American Institute for Cooperation on Agriculture (IICA), the United Nations Food and Agriculture Organisation (FAO) and the Economic Commission for Latin America and the Caribbean (ECLAC).

The document, Fomento de circuitos cortos como alternativa para la promoción de la agricultura familiar (spanish only)explores the new trends in the consumption and marketing of agrifood products and highlights the experiences of different countries that have converted local markets and direct trade into tools for contributing to the economic and social development of territories.

Such initiatives demonstrate that, in addition to increasing the incomes of small producers, supporting these new forms of marketing has a positive impact on the eating habits of communities.

According to the report, the demand for transparency in the food chain is growing in Latin America, Europe and other parts of world, with consumers keen to know more about the origin of foodstuffs and the social and environmental impact of production processes.

“We need to appreciate family farming’s potential to meet the needs of our societies. Farmers’ markets, and short marketing circuits in general, help small producers integrate into the market. These channels make it possible to develop relations of trust, as value is attached to knowledge of a product’s origin and the rural area where it was produced,” observed Hugo Chavarría, a specialist with IICA’s Center for Strategic Analysis for Agriculture (CAESPA).

The document details successful initiatives in the region, including some in Chile, Peru and Brazil, among others, where farmers’ markets play a key role in the marketing of products locally, as the consolidation of the supply has made it possible to overcome the problem of low production volumes.

“Most smallholders in Latin America are unable to meet the requirements of the most formal commercial channels, such as those related to volume, payment methods and logistics. Short marketing channels have not only enabled producers to make direct cash sales to consumers but also allowed consumers to purchase seasonal, healthy, fresh products produced using sustainable methods in territories close to the point of sale,” pointed out the Manager of CAESPA, Miguel García.

The document offers a series of recommendations that the public and private sectors can implement to boost the performance of short circuits, such as strategies for marketing the products of family agriculture. They include:

• Identifying, connecting and strengthening the local food supply to the demand, to create links between producers and consumers of neighboring territories. This calls for the development of technology to establish information channels that promote interaction between them. 
• Implementing programs to improve food quality and safety and develop management, marketing and commercialization skills. 
• Promoting marketing mechanisms for family agriculture, such as local public purchases for schools, hospitals and prisons and the contracting of food services that facilitate the participation of local producers, which can be done by State and local governments. 
• Developing programs to promote the participation of associations of producers and consumers in the design of production and commercial initiatives and projects, to make such initiatives more sustainable. 

The document also underscores the importance of designing public policies to promote family production. Awareness raising campaigns should stress the benefits of consuming fresh foods and include the new generations, so they adopt a healthy lifestyle; and emphasize the importance of reassessing the value of the cultural, productive and food identities of rural territories.

This bulletin complements the publication, The Outlook for Agriculture and Rural Development in the Americas: perspective on Latin America and the Caribbean , which FAO, ECLAC and IICA produce every two years.

More information: 
hugo.chavarría@iica.int

Fomento de circuitos cortos como alternativa para la promoción de la agricultura familiar (Spanish only)
The Outlook for Agriculture and Rural Development in the Americas: perspective on Latin America and the Caribbean.