Title: Trap in the system Post by: IPUXofficail on December 14, 2018, 05:09:33 AM TRAPPED INTO A SYSTEM
The traditional supply chain, market entry barriers and mechanism, lack of contacts, little negotiating power and organized systematic support, results in farmers being short changed. Selling to middle-men prevents them from capitalising on market opportunities. Additionally, organic farming may increase the crop production costs to a point beyond the threshold at which an intermediary is prepared to pay. Farmers are trapped in a system where they do not have the connections to sell direct and the financials of the current system lock them in to chemical-intensive farming. EDUCATION IS OUR FUTURE. ACCESSIBILITY IS KEY. Farmers lack access to information on industry advancements, commodity trade, consumer trends and demand forecast, which may impact the value of their crop. With farmers locked into a broken system, they often lack know-how and funds to make the transition to a more sustainable and profitable way – smart farming with direct to market trading. ASEAN's economic advantages from the booming agricultural sector are purchased at the expense of the small-scale subsistence farmers. An example of this can be seen in Thailand, where Farmers’ incomes in the north and northeast are reported to be half of those in the Central region of Thailand. Farmers in ASEAN face periodic drought, flash flooding and vast areas of low soil fertility, factors creating an agriculture inappropriate to the climate and terrain. Farmers are enslaved economically in to an agricultural system that is neither ecologically or socially sustainable. Many small farmers are unaware of the benefits of organic farming. Since the 1950s, a small community of organic farmers worldwide, operating at a grass roots level have devised, tested and shared production methods. They have codified a set of ideals into a pioneering best practice agricultural management system that addresses multiple community values. Added to which, the vision of Thailand’s late King Rama IX has lead the nation to follow his teachings of a sufficiency economy and a more sustainable approach to farming, with respect of the environment. Even 18 though there is a wealth of information available, it does not cascade down to the farming communities. CERTIFICATION Most small farmers in ASEAN wishing to switch to organics cannot justify the expense for organic certification. Some farmers use methods that are very well suited for their production and environment, but do not have funds to qualify for the organic label. Furthermore, current farming supply chains lack the ability to track food provenance. FUNDING With upstream traders often dictating prices of crops, farmers are locked into a closed system of market and price mechanism, where highest yield and quality are demanded along with lowest price. Often, small scale farmers, following the chemical intensive model, struggle to make ends meet. Without access to consumers, or short-term bridging loans to tide them over until their crop is ready for harvest, farmers may resort to informal lending and shark loans with adverse lending rates that may lead them into further financial distress. Natural product start-ups and SME’s also may occasionally need financial support when growing their business. However, these small enterprises may also not have access to institutional lending sources, leading them into informal financial disadvantage. |