Commodity exchanges and smallholders in Africa

The overall objective of this short study is 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. Where possible to compare typical means of market linkage, whether this is through individual or farmer organisations, to wholesale markets and other trading relationships such as fair trade and contracting. The basis of the study being to determine whether commodity exchanges have provided a positive impact on farmer marketing channels, and have assisted in upgrading marketing institutions that support the smallholder community. The target commodities for the study are coffee, maize and beans.