Information for G03134
Commodity exchanges and smallholders in Africa - summary paper
In 2010 the Ethiopian Government mandated that all trade in white pea beans must be conducted through the newly-established commodity exchange. To better understand how to continue working with and benefiting small-scale producers in this new context, the New Business Models for Sustainable Trading Relationship project commissioned a study to look at the experiences of commodity exchanges in Africa. The overall objective of the short study was to determine the effectiveness of newly-developed commodity exchanges in Africa as a means of improving smallholder farmer linkages to markets, particularly formal markets, and the advantages in terms of new opportunities, more reliable trading relationships and improved incomes, compared with traditional commodity trading routes. This study is based on interviews in 2010 in Zambia, Kenya, Uganda, Malawi and Ethiopia with many experts having a national and regional understanding of the various commodity exchangebased market reform systems.
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Millions of farmers in Africa depend on export markets for their livelihoods. But recent market trends have led to declining small farmer participation. Yet, these farmers have the skill and soil to provide the high-quality products the food industry seeks. This collaborative initiative engaged with research, civil society and private sector partners to develop new business models across a variety of sectors that enable smallholders to participate in sustainable trading relationships with international businesses and thereby improve their livelihoods.
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New business models for sustainable trade