“Challenges and experiences of farmers in the Sierra de Querétaro in their relationship with intermediaries”.

Before a product is delivered to the hands of the final consumers there are many intermediaries which make up the final price of the product, but why in some cases is the price difference so great?

Let us remember that intermediaries are those agents that act as links between a producer and its final consumer of products or services. Well, we know that after a product is harvested, it is usually these people who are in charge of moving it from the crops to the markets, and they are the ones who negotiate a price with the farmers.

Well, this price is not always good for producers.

In the mountainous regions of our country, farmers in the Sierra of Querétaro play a vital role in food production and the local economy. However, your relationship with the middlemen who facilitate the sale of your products can present a number of challenges. This article explores the experiences of farmers in the sierra, their interaction with intermediaries and the challenges they face in the process, as well as the possible solutions to be implemented.

Challenges in the relationship with Intermediaries:

As mentioned above, intermediaries are known to be important for the distribution of goods in many sectors because they are the ones who open markets and take greater risks, helping to move agricultural products from typically rural production areas to markets and points of sale. They are the ones who negotiate prices with wholesalers and agree on prices with farmers. While intermediaries play an important role in the agricultural supply and marketing chain, these benefits are not always good for these producers, as one of the main points of criticism towards these intermediaries is that they sometimes obtain high profit margins in the purchase and subsequent sale of agricultural products. This results in an inequality of benefits with farmers, as they often receive a relatively small share of the final price paid by consumers and can also limit farmers’ choices by causing them to be subject to the conditions and prices set by intermediaries.

Let’s talk about fair trade.

Fair trade is a social and economic movement whose main objective is to improve the living conditions of producers and workers in developing countries, especially in the agricultural and artisanal sectors. It is based on principles of equity, transparency, respect, and social and environmental sustainability. Fair trade seeks to ensure that producers receive a fair price for their products, that working conditions are decent, and that sustainable development is promoted in communities

Knowing this, let’s focus on the case of the farmers in the Sierra

Farmers in the Sierra often face significant challenges when dealing with intermediaries, especially with those colloquially called «coyotes,» who buy their products and then sell them to large markets. One of the main challenges is the lack of transparency in prices and sales conditions; indeed, farmers’ unawareness of current prices is the main cause of dishonesty among many of these intermediaries. Furthermore, farmers’ dependence on intermediaries to reach markets can make them feel vulnerable and with little negotiation capacity for their interaction with other markets, so they choose to continue operating in this way.

This article also aims to present the alternatives found for these farmers based on extensive research. Below are the findings that can be implemented by these types of producers in rural areas.

What opportunities are there for farmers in the Sierra to reduce their dependence on middlemen and sell directly to wholesale distributors?

It is expected that by implementing strategies that promote the economic autonomy of the Sierra farmers, reduce their dependence on intermediaries, and foster more equitable and sustainable business practices, the quality of life and economic well-being of the farmers can be significantly improved. It is anticipated that by recognizing and valuing the hard work of the farmers, establishing transparent price-setting mechanisms, promoting direct marketing, and facilitating access to updated market price information, a fairer and more favorable environment for agricultural development can be created in this rural area.

How can this be achieved?

By implementing an agricultural cooperative where, through agreements with the local farmers, they can also create an economy of scale in which, as a group, they have the scope to acquire and maintain the necessary agricultural machinery for their crops, we know that it can be costly for an individual farmer. However, by being part of a cooperative, farmers can share the cost of machinery and use it more efficiently, which will contribute to the goals of reducing production costs. Additionally, by being part of this cooperative, they can access larger and more diversified markets, allowing them to sell their products at more competitive prices and seize opportunities for large-scale sales. They may even create a better volume with the majority of their harvests to generate a greater impact that also stimulates competitiveness in the markets. The study applied to the surveyed farmers demonstrated that 60% of them obtain a daily production in the pumpkin harvest of slightly more than 50 pieces (boxes of approximately 23.3 kilograms). Additionally, regarding the purchase of agricultural inputs, by buying seeds, fertilizers, pesticides, and other supplies in large quantities as a group, farmers can negotiate lower prices per unit and obtain volume discounts. Furthermore, as a cooperative, they can also make shared use of their infrastructure such as warehouses for their inputs, irrigation systems, and transportation systems, as some of the surveyed farmers have their own units. This will also allow them to reduce costs as sharing freight and transportation costs among several farmers will improve efficiency in the distribution and commercialization of their products.

Impact on Farmers:

The impact of an agricultural cooperative on farmers can be significant in several ways

Among them:

It increases economic empowerment as being part of agricultural cooperatives allows them to come together and work collectively to obtain better prices for their products by negotiating in bulk

Access to resources: By joining a cooperative, farmers can access resources that would otherwise be difficult to obtain individually, such as inputs at discounted prices, credits for their investment each season, and even agricultural and information technology.

Cost reduction: As mentioned above, sharing resources and services among cooperative members can help reduce individual operating costs, which improves the profitability of your activities.

Strengthening the collective voice: By coming together, farmers can have a stronger voice in negotiating with potential customers, financial institutions, and government entities.

In summary, belonging to a cooperative can have a significant positive impact on farmers’ activities, cost reduction, financial situation improvement, and facilitate market access by taking their own risks supported by their cooperative without the need for intermediaries.

Conclusions:

In conclusion, the relationship between Sierra farmers and intermediaries is complex and presents a series of challenges. While some experiences may be positive, many farmers face significant difficulties in their interaction with intermediaries, which they can avoid if they prefer by implementing this type of association that also supports each other. Moreover, the option of partnering with other cooperatives and further increasing their impact is not ruled out.