Processor driven integration of small-scale farmers into value chains in Eastern Europe and Central Asia
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In transition countries small-scale farmers and households are effectively excluded from direct participation in markets. In general, they face pressures from larger processors and retail chains to supply raw materials in required quantities and quality. These demands often pose a great challenge for integration into value chains. At the same time, local, often small and medium-sized processors, challenged by global and regional competition and the need to comply with international regulations, are also experiencing difficulties in establishing their position in the supply of multinational retail chains. This paper explores these small and medium-sized food processors and proposes recommendations for policy and support options that can contribute to establishing group based producer-processor linkages. It also aims to identify driving factors that can improve small farmer processor business linkages, and contribute to the improved competitiveness of small agri-processors.