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  HOME > Market Linkages > Selecting Suitable Locations > Key Questions on Suitability of Locations for Smallholder Production  
Introduction
Elements for Successful Business
Overview
Why Buyer-Seller Linkages are Needed
Identifying Market Opportunities
Selecting Suitable Enterprises
Selecting Suitable Locations
Selecting Linkage Partners
Specifying the Partners' Roles
Forming and Managing Producer Groups
Designing Buyer-Seller Contracts
Designing Product Pricing Systems
Performance Monitoring and Recording
Non-Quantifiable Outcomes
Alternative Linkage Models
Providing Services to Smallholders
Agricultural and Environmental Practices
Quality Assurance & Human Health and Safety

Current and Future Trends

 


KEY QUESTIONS ON SUITABILITY OF LOCATIONS FOR SMALLHOLDER PRODUCTION

1. Can the expected yields and quality of production be achieved in the proposed location?
Considerations
2. Is there sufficient under-utilized land and water for producing the required quantities of crop without jeopardizing other economic activities?
Considerations
3. Is access to the area feasible throughout the growing season, for supplying inputs, servicing farmers and collecting their crops?
Considerations
4. Does the state of the infrastructure in the area (roads, electricity, water supply, telecommunications, markets, storage etc) allow sustained and co-ordinated production of perishable commodities?
Considerations
5. Are there enough smallholders in the area with the interest and resources needed for producing the amount of crop required, in addition to their other economic activities?
Considerations
6. Are the smallholders well organized in some kind of producer association or co-operative through which they can work together in the project?
Considerations
7. Do the smallholders have alternative income-earning opportunities, in addition to the horticultural crop or crops which the exporter is interested in?
Considerations

Related Information: Case studies show the effects of both suitable and unsuitable locations.


CONSIDERATIONS

1. Can the expected yields and quality of production be achieved in the proposed location?
Considerations
If the area has unsuitable soils, terrain, climate or water availability, it is obviously not an appropriate choice.
 
2. Is there sufficient under-utilized land and water for producing the required quantities of crop without jeopardizing other economic activities?
Considerations
If the crop can only be produced by taking away land normally used for food production or other essential economic activities, the supply is unlikely to be reliable.
 
3. Is access to the area feasible throughout the growing season, for supplying inputs, servicing farmers and collecting their crops?
Considerations
If the area is very far from the servicing and marketing centre, or if the access roads are impassable in the rainy season, the area is unlikely to be suitable
 
4. Does the state of the infrastructure in the area (roads, electricity, water supply, telecommunications, markets, storage etc) allow sustained and co-ordinated production of perishable commodities?
Considerations
Areas which lack good communications, power supplies, irrigation potential, storage facilities etc are difficult to develop as reliable sources of raw materials.
 
5. Are there enough smallholders in the area with the interest and resources needed for producing the amount of crop required, in addition to their other economic activities?
Considerations
If few smallholders have the necessary resources, or if they need to be given strong incentives to persuade them to participate, production is less likely to be sustained than in places where smallholders are clamouring for the opportunity to grow the crop.
 
6. Are the smallholders well organized in some kind of producer association or co-operative through which they can work together in the project?
Considerations
Servicing, communication and negotiation between growers and buyers is easier where the smallholders are unified and have a recognized leadership structure, than where they work as isolated individuals in a divided community.
 
7. Do the smallholders have alternative income-earning opportunities, in addition to the horticultural crop or crops which the exporter is interested in?
Considerations
If the proposed crops form only one of several income-earning opportunities that are open to smallholders in an area, it may be difficult to retain their loyalty and ensure a continuing supply to a particular buyer.
 

 

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Natural Resources Institute 2003