Backward and Forward market linkages
Due to their limited capacity and capabilities, smallholders often have difficulties to explore new market opportunities. Therefore, they need support that aims to organize and coordinate smallholder production and establishes new market linkages.
Development interventions need to be motivated by market demand, because development interventions are more sustainable if they are commercially viable. That is why production activities need to be assessed in relation to the entire value chain.
CultivAid’s projects aim to support the development of better market linkages between small producers and the market. Logistical support for smallholders is provided through the AITEC farms which is also capable of understanding and directing market forces.
- Backward production linkages refer to linkages from the farm to the part of the non-farm sector that provides inputs for agricultural production, for example agrochemicals, fertilziers and improved seed varieties
- Forward production linkages refer to the part of the non-farm sector that uses agricultural output as an input. The distribution and processing of agricultural outputs are fundamental components of forward production linkages.