Abstract:
Access to high-value markets is one of the major challenges faced by the smallholder
producers in developing countries. The study applies value chain analysis to the
pineapple sub-sector in Sri Lanka to identify ways of improving the access of smallholder
farmers to the global fresh pineapple market since it has a fast-growing export demand.
The value chain analysis was carried out to identify its nature, actors, and sources of
inefficiency along the value chain. The study employed a qualitative research design,
and structured and unstructured interviews were held, respectively, with 30 farmers
and 5 exporters. Study shows that pineapple production is dominated by smallholder
farmers with limited access to information (export price, quality, and standard), healthy
and quality planting materials, inputs such as fertilizer, credit and technology (best
practices), and a short supply of lands with unique soil properties favorable to cultivate
pineapple. Low productivity, high cost of production, and quality reduction of pineapple
(reduction in fruit size) in subsequent harvests after the first crop drained farmers’
competitiveness. Irregularity of payments and time taken to settle dues by collectors
on the other hand deteriorated farmers’ trust. On the other hand, the competitiveness
of the exporters on the other hand was undermined by the upsurge of export tax
and lack of a reliable supply of quality consistent fruits in adequate quantities. Policy
interventions are required to develop market institutions for smallholders, such as
producer societies, cooperatives, contract farming, or out-grower schemes. Moreover,
revitalizing the extension service to transfer the specific knowledge required to produce
export-quality pineapples, organizing credit schemes to provide operational capital
to both farmers and collectors and conducting research on development of planting
materials and varieties would improve the efficiency along the chain.
