CULTURE CULTURE I VE MARKETS FOR FOR MARKETS VE I NABLE AGR NABLE I A INNOVAT SUST How innovations in market institutions encourage encourage institutions in market innovations How countries in developing agriculture sustainable INNOVATIVE MARKETS FOR How innovations in market institutions encourage FAO SUSTAINABLE AGRICULTURE sustainable agriculture in developing countries INRA INNOVATIVE MARKETS FOR SUSTAINABLE AGRICULTURE How innovations in market institutions encourage sustainable agriculture in developing countries Edited by Allison Loconto Anne Sophie Poisot Pilar Santacoloma Food And Agriculture Organization of the United Nations (FAO) and Institut National de la Recherche Agronomique (INRA) Rome, 2016 Recommended citation FAO/INRA. 2016. Innovative markets for sustainable agriculture – How innovations in market institutions encourage sustainable agriculture in developing countries, by Loconto, A., Poisot, A.S. & Santacoloma, P. (eds.) 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FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. iii Contents FOREWORD xiii PREfaCE xiv ACKNOWLEDGEMENTS xvi ABSTRACT xvii ABOUT THE AUTHORS xviii ACRONYMS xxi CHAPTER 1 Introduction 1 Allison Loconto, Anne Sophie Poisot and Pilar Santacoloma 1.1 Context 1 1.2 Justification 2 1.3 Institutional arrangements in innovation processes 4 1.4 Study methodology 7 1.5 Organization of the book 10 References 12 EMERGING INSTITUTIONAL INNOVATIONS CHAPTER 2 Business-oriented outreach programmes for sustainable cocoa production in Indonesia: an institutional innovation 17 Jeffrey Neilson and Fiona McKenzie 2.1 Introduction 17 2.2 Institutional landscape: cocoa farming in Sulawesi 20 2.3 Institutional innovation: a business-oriented and farmer-driven outreach programme 23 2.4 Results 30 2.5 Conclusions and recommendations 31 References 32 CHAPTER 3 Namibian Organic Association’s Participatory Guarantee System 37 Manjo Smith and Stephen Barrow 3.1 Introduction 37 3.2 Institutional landscape 39 3.3 Institutional innovation: NOA PGS 41 3.4 Results 51 iv 3.5 Conclusions 52 3.6 Recommendations 54 References 54 CHAPTER 4 Community-based farming scheme in Nigeria: enhancing sustainable agriculture 57 Jonathan J. Atungwu, Mure U. Agbonlahor, Isaac O.O. Aiyelaagbe and Victor I. Olowe 4.1 Introduction 57 4.2 Institutional landscape 59 4.3 Institutional innovation: community-based farming scheme for sustainable agricultural practices 61 4.4 Results 71 4.5 Conclusions 74 4.6 Recommendations 75 References 75 DEVELOPING INSTITUTIONAL INNOVATIONS CHAPTER 5 Familia de la Tierra participatory guarantee system in Colombia: Business innovation as a tool for social and productive change 79 Oscar Nieto 5.1 Introduction 79 5.2 Institutional environment 80 5.3 Institutional innovation: a network of families 82 5.4 Results and benefits 86 5.5 Conclusions and recommendations 87 References 89 CHAPTER 6 Strengthening local healthy food systems: An experiment in Ecuador’s central highlands 91 Ross M. Borja and Pedro J. Oyarzún 6.1 Introduction 91 6.2 Institutional landscape 94 6.3 Institutional innovation: linking producers with consumer groups 95 6.4 Results and benefits 102 6.5 Discussion and conclusions 108 6.6 Recommendations 109 References 110 v CHAPTER 7 Participatory guarantee systems: The case of smallholders in Indian markets 113 Ashish Gupta 7.1 Introduction 113 7.2 Institutional landscape 115 7.3 Institutional innovation: PGSOC and facilitation councils 116 7.4 Results: case studies of FCS in PGSOC 127 7.5 Conclusions 131 7.6 Challenges and recommendations 133 References 135 CHAPTER 8 Community-based organizations in sustainable production and marketing of agricultural products Integrated Pest Management Group in the Islamic Republic of Iran 137 Hossein Heidari and Alfredo Impiglia 8.1 Introduction 137 8.2 Institutional landscape 138 8.3 Institutional innovation: iranian integrated pest management and farmer field schools 142 8.4 Results 155 8.5 Conclusions 156 8.6 Recommendations 157 References 157 CHAPTER 9 Quezon Participatory Guarantee System in the Philippines Engaging smallholder farmers and other stakeholders in the development of sustainable agriculture 159 Carmen L. Cabling 9.1 Introduction 159 9.2 Innovation 161 9.3 Institutional landscape 162 9.4 Institutional innovation: Quezon Participatory Guarantee System 166 9.5 Results 174 9.6 Conclusions 177 9.7 Recommendations 178 References 180 vi CHAPTER 10 Moral Rice Network, Dharma Garden Temple, Yasothon province, Northeast Thailand 181 Alexander Kaufman and Nikom Petpha 10.1 Introduction 181 10.2 Institutional landscape 183 10.3 Institutional innovation: Moral Rice Network 186 10.4 Results 195 10.5 Conclusions 195 10.6 Recommendations 196 References 198 CHAPTER 11 Brasso Seco Paria community in Trinidad makes agritourism its business 201 Roxanne Waithe 11.1 Introduction 201 11.2 Institutional landscape 203 11.3 Institutional innovation: Brasso Seco TAC 205 11.4 Sustainability of results and benefits 214 11.5 Conclusions 216 11.6 Recommendations 216 References 217 CHAPTER 12 Facilitating social networks by linking smallholder organic farmers in Uganda to markets for sustainable products The Freshveggies Participatory Guarantee System 219 Julie M. Nakalanda and Irene B. Kugonza 12.1 Introduction 219 12.2 Institutional landscape 221 12.3 Institutional innovation 222 12.4 Results 230 12.5 Conclusions 233 12.6 Recommendations 234 References 235 vii CHAPTER 13 Role of cooperatives in linking sustainable agro-ecological farming practices to markets Kangulumira Area Cooperative Enterprise (KACE) in Uganda 237 Sylvia Nalubwama, Stephen Anecho, Muhammad Kiggundu, Norman Kwikiriza and Yahaya Wafana 13.1 Introduction 237 13.2 Institutional landscape 243 13.3 Institutional innovation: Kangulumira Area Cooperative Enterprise (KACE) 246 13.4 Results and benefits 254 13.5 Conclusions 255 13.6 Recommendations 256 References 257 CONVERGING INSTITUTIONAL INNOVATIONS CHAPTER 14 Songhai model of integrated production in Benin 259 Gaston Agossou, Gualbert Gbehounou, Godfrey Nzamujo, Anne-Sophie Poisot, Allison Loconto and Caterina Batello 14.1 Introduction 259 14.2 Institutional landscape 261 14.3 Institutional innovation: the Songhai model 263 14.4 Results: some advantages linked to the existence of the Songhai centre 274 14.5 Conclusions and recommendations 276 References 279 CHAPTER 15 Connecting producers and consumers through innovation mechanisms: short value chains and participatory guarantee systems Plurinational State of Bolivia 281 Hugo Chambilla S. and Eduardo López R. 15.1 Introduction 281 15.2 Institutional landscape 285 15.3 Institutional innovation: social control or peer review 288 15.4 Results and benefits 299 15.5 Conclusions and recommendations 299 References 300 viii CHAPTER 16 Institutional collaboration for sustainable agriculture: learning from the tea sector in the Southern Highlands of the United Republic of Tanzania 303 Filbert Kavia, Allison Loconto and Emmanuel Simbua 16.1 Introduction 303 16.2 Institutional landscape 305 16.3 Institutional innovation: certifying the tea subsector by rainforest alliance and sustainable agriculture network standards 309 16.4 Results 320 16.5 Conclusions 321 16.6 Recommendations 323 References 324 CHAPTER 17 Why and how market institutions create incentives for adopting sustainable agricultural practices 327 Allison Loconto and Marcello Vicovaro 17.1 Institutional innovation as a framework for analysis 327 17.2 Why create markets for sustainably farmed products? 329 17.3 How were markets created for sustainably farmed products? 337 17.4 Institutional innovations and how they work 350 17.5 Conclusions 359 References 362 FIGURES 2.1 Changing composition of the workforce in Indonesia (1985–2012) 18 2.2 Exports of cocoa products from Indonesia 28 3.1 NOA PGS organizational structure 42 3.2 Map of NOA PGS farms in Namibia 44 3.3 Different markets for organic produce in Namibia 50 3.4 NOA certification marks 51 4.1 Quarterly investment in community-based training