The challenges of aligning aggregation schemes with equitable fruit and vegetable delivery: lessons from Bihar, India

Abstract

PurposeAgricultural aggregation schemes provide numerous farmer-facing benefits, including reduced transportation costs and improved access to higher-demand urban markets. However, whether aggregation schemes also have positive food security dimensions for consumers dependent on peri-urban and local markets in developing country contexts is currently unknown. This paper aims to narrow this knowledge gap by exploring the actors, governance structures and physical infrastructures of the horticultural value chain of Bihar, India, to identify barriers to using aggregation to improve the distribution of fruits and vegetables to more local market environments.Design/methodology/approachThis study uses mixed methods. Quantitative analysis of market transaction data explores the development of aggregation supply pathways over space and time. In turn, semi-structured interviews with value chain actors uncover the interactions and decision-making processes with implications for equitable fruit and vegetable delivery.FindingsWhilst aggregation successfully generates multiple producer-facing benefits, the supply pathways tend to cluster around urban export-oriented hubs, owing to the presence of high-capacity traders, large consumer bases and traditional power dynamics. Various barriers across the wider enabling environment must be overcome to unlock the potential for aggregation to increase local fruit and vegetable delivery, including informal governance structures, cold storage gaps and underdeveloped transport infrastructures.Originality/valueTo the best of the authors’ knowledge, this study is the first critical analysis of horticultural aggregation through a consumer-sensitive lens. The policy-relevant lessons are pertinent to the equitable and sustainable development of horticultural systems both in Bihar and in similar low- and middle-income settings.

Identifying value chain trade-offs from fruit and vegetable aggregation services in Bangladesh using a system dynamics approach

“…Aggregation schemes, which collect and transport agricultural produce on behalf of multiple farmers [ 24 ], provide one such market intervention that can mitigate the lack of market integration, and high transportation costs to increase consumption and the nutritional intake of vulnerable groups [ 13 , 23 ]. However, given the volume of horticultural produce created by pooling multiple farmer loads and the reliance on developed transport infrastructure, aggregation schemes may preferentially supply wholesale and urban markets rather than underdeveloped rural and isolated markets [ 25 , 26 ]. Given these constraints, our study aims to identify to what extent aggregation and marketing schemes can benefit farmers whilst also improving the availability and affordability of vegetables in smaller, rural, and neglected markets.…”

“…i) Number of traders in Rabi, Kharif-2, and Kharif-1 ii) Traders (retailers)in local consumer markets: Rabi (110), Kharif-1 (90), and Kharif-2 (100) iii) Traders in small local markets: Rabi(35); Kharif-1(20) and Kharif-2(25). iv) Traders in large local markets: Rabi (160), Kharif-1 (120) and Kharif-2 (130).…”

Market Diversification and Competitiveness of Fresh Grape Exports in Peru

“…Globally, challenges associated with the production and marketing of horticultural products are influenced by multifaceted and heterogeneous factors [2], shaping the dynamics of trade and competitiveness on the international stage [3]. International trade, with its complex network of agreements, regulations, and market fluctuations, represents a significant arena for the agricultural sector, particularly for the export dynamics of fruits [4]. The latter is a vital component of the economy of many countries, whose competitiveness is influenced by multiple factors, including product quality, innovation in production and marketing processes, and the ability to adapt to global market standards and demands [5].…”

“…On the other hand, the theory of competitiveness in the context of exports emphasizes the importance of establishing and maintaining a strong export presence in international markets with high demand. This theory highlights the need to adapt to the needs and preferences of target markets, emphasizing that competitiveness goes beyond low-cost production or traditional comparative advantages [4]. Instead, it focuses on product differentiation, innovation, and added value as key elements to stand out in a global market [46].…”