Tools for defining a fair price and strengthening crop diversification value chains

Problem

Introducing new crops into cropping systems involves experimenting, investing and taking risks for farmers. If they do not receive additional value for new crops compared to more common crops, it may discourage crop diversification.

Similarly, the processing and marketing of new products resulting from crop diversification requires downstream actors to innovate, which in turn requires additional resources.

Solution

When encouraging farmers to undertake crop diversification, the price of the new crops should provide additional value compared to more common crops.

Value chains must also ensure a fair distribution of benefits among actors, in consistency with their risks and investment levels.

A list of 14 criteria for defining a fair price for new crops and value chains was developed. A related questionnaire helps actors discuss the price level and matters such as value repartition, transparency, etc.