Supporting Product Distribution Decisions of Smallholder Farmers

Smallholder farmers are usually very constrained in terms of market access, due to, among other factors, the low production volumes and subsequent lack of economies of scale, variable quality, difficulty in planning and unavailability of distribution channels. In some countries, alternative markets have emerged, in order to facilitate smallholder farmers’ access to markets. These can take the form of government feeding programs, that aim at providing an outlet for the smallholder farmer products, giving them priority in supplying public sector organisations. Such a program is the PNAE in Brazil, where local smallholder farmers can supply schools with raw materials for meals. This work aims to support smallholder farmers in distribution related decision-making. More specifically, it aims to allow farmers to maximise the profit from their participation in the government feeding programs through guiding them in the complex supply decision-making and product distribution planning processes. The paper presents the related method developed, as well as the results from a preliminary application of the method in a case study of a rural settlement in Brazil.