Trap in the system

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
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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.