From Linkedin
another dimension to this discussion is what is produced and for whom. Most small scale farmers sell a portion of their yields for income generation - however their production decisions are not informed by market opportunities, resulting in all of them producing tomatoes/mangoes/onions or whatever all together - thereby causing a fall in prices at their market level - and therefore reducing the returns on their investment - this situation is further exacerbated by poor infrastructure, and an inability to access markets efficiently. In the case of large scale productions, the production decisions are based on market knowledge, investment in marketing, and infrastructure. So, to attribute higher returns from larger scale productions to just the scale of production, is in my mind a little short sighted. Theoretically, scale can also be built by encouraging the farmers to produce in groups - for a targeted market and with a targeted product - there are some experiments that are ongoing with this approach, which then may enable in identifying the collection of attributes required to enable efficient and competitive production
By Nishu Aggarwal
From Linkedin
another dimension to this discussion is what is produced and for whom. Most small scale farmers sell a portion of their yields for income generation - however their production decisions are not informed by market opportunities, resulting in all of them producing tomatoes/mangoes/onions or whatever all together - thereby causing a fall in prices at their market level - and therefore reducing the returns on their investment - this situation is further exacerbated by poor infrastructure, and an inability to access markets efficiently. In the case of large scale productions, the production decisions are based on market knowledge, investment in marketing, and infrastructure. So, to attribute higher returns from larger scale productions to just the scale of production, is in my mind a little short sighted. Theoretically, scale can also be built by encouraging the farmers to produce in groups - for a targeted market and with a targeted product - there are some experiments that are ongoing with this approach, which then may enable in identifying the collection of attributes required to enable efficient and competitive production
By Nishu Aggarwal