The role of social networks in the inclusion of small-scale producers in agri-food developing clusters

Abstract

This paper discusses how network theory and social capital can help explain different patterns of inclusion of small and medium sized producers in agri-food clusters. We make the argument that despite the centralized nature of practices, the manner in which inclusion takes place can vary significantly depending on structural features of local networks and governance factors, especially social capital and the role of lead organisations. Social network analysis allows us to investigate how different patterns of bonding, bridging and centrality of key actors in agricultural clusters can influence diffusion of knowledge. We frame this discussion through a typology that allows us to identify diverse scenarios of inclusion of small producers. This is then used to guide an empirical analysis of two agri-food clusters of small producers in Peru (mango) and Colombia (palm oil). Judicious use of mixed methods and the typology can prove useful to explain diverse patterns of inclusion which have important implications for small-scale agricultural producers.

Social networks, rice value chain participation and market performance of smallholder farmers in Ghana

“…Building on the existing literature on the effects of social networks on technology adoption (e.g., Bandiera & Rasul, 2006), and on modern supply chain participation (e.g., Herforth, Theuvsen, Vasquez, & Wollni, 2015; Ramirez et al, 2018), we include in our analysis a variable representing farmer's horizontal social network relationship, which is assigned a value of one if a farmer belongs to such a network, and zero otherwise. In addition, a variable that captures the number of value chain participants in a farmer's social network is included in the analysis.…”

“…They facilitate vertical linkages, and foster governance of relationships between smallholder farmers and agribusinesses through written or verbal contracts within value chains for improved welfare gains (Devaux, Torero, Donovan, & Horton, 2018). Smallholder farmers have been recognized as important actors for the diffusion of value chain innovations such as information and technology (Ramirez, Bernal, Clarke, & Hernandez, 2018). With the underlying assumption that the behavior of social network members influences farmers' decision‐making with direct implications on welfare outcomes (Mano, Yamano, Suzuki, & Matsumoto, 2011; Wydick, Hayes, & Kempf, 2011), the important role of farmers' social networks in improving value chain efficiency and rural economic transformation needs to be highlighted in the empirical literature.…”

“…Within the context of value chains, social networks focus on horizontal and vertical relationships that exist among value chain actors (Trienekens, 2011). Horizontal social networks reflect cohesive social relationships that promote collective action for successful inclusion in value chains (Ramirez et al, 2018). They can draw upon their social capital to strengthen vertical relationships with buyers and other actors within the value chain (Bijman, Omta, Trienekens, Wijnands, & Wubben, 2006).…”

“…This is in line with the increasing calls for smallholder collective action (e.g., collective marketing) to improve farmers' bargaining power, while enhancing value chain efficiency (Bernard, Spielman, Taffesse, & Gabre‐Madhin, 2010; Dillon & Dambro, 2017). In addition, smallholder farmers often rely on their social connections and goodwill with other farmers in their communities to enjoy cost advantages associated with production and sales, as well as achieve optimum benefit from participating in agricultural value chains (Ramirez et al, 2018). Such social connections are based on agreed‐upon norms, and established trust, as well as facilitate sharing of value chain information, skills, labor, and financial resources.…”

The Significance of Short Food Supply Chains: Trends and Bottlenecks from the SKIN Thematic Network

“…The manner in which inclusion takes place can vary significantly depending on structural features of local networks and governance factors (Ramirez et al, 2018). A key element of SKIN is the collection of 'Good Practices' as well as the organization of six different thematic workshops identified as Innovation Challenge Workshops (ICWs).…”