Middlemen in the agricultural value chain can play a positive or negative role for the chain itself, which includes producers, retail intermediaries, wholesale intermediaries, and consumers. They generally play a very important role, they provide transportation, refrigeration, product selection and preparation services according to market requirements, and packaging; all issues in which farmers often do not have the resources or proper knowledge. They are effectively the bridge between the producer and the final consumer and this role makes them fundamental in a healthy value chain.
However, they should know that they have a great responsibility, not only with the buyer but also with the producer, it’s in their power to allow farmers to have conditions that make the model a sustainable business over time. Transfer of knowledge and technology, as well as fair and lasting prices and agreements, should be elements present in the relationship that intermediaries have with their suppliers. When there is an imbalance, this is what causes farmers to give up on crops.
Likewise, an unbalanced relationship can results in poverty for farmers. For example, when there are shortages of a certain crop, price increases to farmers can become promises that cannot be fulfilled in the long term. New prices can call for a surge of farmers expecting purchases at these new unsustainable prices, but instead having to throw the products away or sell them at any price even if it doesn’t cover the costs.
Instead the proactive intermediary is the one who, in addition to providing their services, builds a lasting relationship with the farmer; a relationship in which a business is built together, and in which there is full awareness of the market requirements, the way to generate more efficient and sustainable crops. A responsible intermediary is one who offers fair and transparent conditions to the farmer regarding the purchase of his crops, and can maintain these conditions over time. It is one that aims to ensure the sustainability of the business in both economic, environmental and social terms, and that permanently dignifies the work of the farmers.
In Hugo Restrepo y Cía. We are aware of the role we have in the chili value chain and we spare no effort in transferring knowledge to farmers through our technical team. We maintain the prices agreed because we have solid customers for the quantities we sign contracts for, and we also respect the prices we give to our clients.
Our commitment is to support the farmer in building a long-term sustainability scheme. We have a commitment to the environment that consists of developing sustainable agricultural practices, as well as clean production and logistics processes. And we also act to provide value and profitability for our entire value chain: farmers, collaborators, customers, suppliers and shareholders.
