Smallholders as well as programs that support the sector face significant challenges that hinder their participation in new marketing opportunities. Markets in the developing world are characterized by pervasive imperfections such as lack of information on prices and technologies, high transaction costs, and credit constraints. Moreover, procurement systems often expect larger supply volumes, favouring larger farmers. With the increasing number of free trade agreements affecting both national and international commodity markets, smallholder farmers are forced to compete not only with their local peers, but also with farmers from other countries as well as domestic and international agribusinesses.
The following discussion outlines SEIDA Economic Livelihoods program. It is rooted in our acknowledgement of the importance of building economic resilience as the foundation for mitigating economic vulnerability and food and nutritional insecurity, and promoting economic self-sufficiency. Without providing this critical foundation, more advanced microeconomic interventions that focus specifically on improving business performance and market access will collapse under the weight of the inevitable health and economic setbacks that inflict the vulnerable poor households.
