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Abstract

The main objective of this article is to review the research by agricultural economists over the past decade on linking smallholder farmers to agri-food supply chains in Southern Africa, and to consider international and local urban trends in the development of such supply chains. The research reviewed covers the constraints placed by transaction costs on access by smallholder farmers to input and product markets; the potential role of contracting in linking smallholders to agribusiness firms; linking smallholders to supermarkets; equity-share schemes; the role of trust in a business relationship; promoting investment in smallholder agriculture by developing rental markets in communal areas; and the role of collective action (e.g., the formation of cooperatives, investor-owned firms or trusts) in promoting access to input and product markets. The development of alternative food networks in urban areas, which face a growing influx of poor people, could provide opportunities for smallholders, as individuals or groups, to supply the communities with the products and services they desire.

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