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markets in other nearby countries, that they can’t get with further-lung exports. Local markets have always been
central to small producers’ livelihoods, but governments and development institutions are also starting to recognise their
importance. In fact, the potential of many nearby markets, both within and across borders, is only rising with economic
growth and urbanisation.
3.3.1 Opportunities in regional, national and local trade
Given that around 16 per cent of world food production by volume enters international trade Rabobank, 2010, national
and local markets are absorbing almost all the food farmers grow. And in developing and emerging economies these
local markets are expanding, as demand for agricultural products is rising faster than in the industrialised world.
Energetic campaigns to increase food exports may miss the burgeoning opportunities at home — especially the openings
for small farmers.
This growing demand can also make markets in nearby countries lucrative for small-scale producers. In Henry
Kinyua’s Learning Network case study of passion fruit production in Kenya, only 3 per cent of the fruit went to
global markets beyond East Africa, whereas 27 per cent was exported within the region, with nearly half of the regional
exports going to Uganda. Much of the exported fruit is sold to traders by small farms, which make up 75 per cent
of Kenyan passion fruit producers. The Learning Network also noted that Uganda, in turn, is currently enjoying new
marketing opportunities as the relative peace and stability in South Sudan and the Democratic Republic of the Congo has
opened trade at their borders.
Besides presenting growing demand, regional, national and local markets can be particularly small-farmer-friendly; they
impose fewer requirements and less stringent standards than global importers; and they can accept a variety of grades
of produce, which is what small farmers usually have to sell. In fact, they may have their own local ‘standards’ in
the forms of relationship networks and cultural norms that tend to resist global competitors see Section 3.5. Some
small-scale producers still face challenging competitors in local markets: the Learning Network’s Monterroso describes
producer groups in Central America competing locally with large businesses that have lower production costs and more
resources for promotion. However, with local and regional markets in the South growing more valuable and more
dynamic, Northern importers and food companies may increasingly have trouble outbidding local and South-South
trade, unless they have a dedicated supply network based on mutual trust and strong value-sharing practices. Moreover,
as discussed in Section 3.4, nearby markets may value the traditional qualities of some food products, which can give
small local farms a unique advantage.
Local oficials working with decentralised budgets often recognise the beneits of local agricultural markets and make
investments to expand or improve them. Multiple countries have farmers’ markets backed by local government, for
example, which can improve prices for farmers as well as consumers. One such market organised by city oficials in
Bogotá, Colombia, increased the prices obtained by farmers by 64 per cent in wholesale markets and 52 per cent in retail.
Urban consumers also beneited, paying prices 15 per cent lower, on average Green 2011.
3.3.2 Local marketing for food security
