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\hypersetup{pdftitle={How to Increase Small"=scale Farmers' Income --- Value Chain Analysis of Capsicum in Peru},pdfauthor={Diana Dilla, Jaqueline Garcia - Yi, Ulrike Grote, Matthias Jäger},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Agricultural diversity, high value markets, neglected and underutilised crops , value chain analysis},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\begin{center}
\Large{\textbf{How to Increase Small"=scale Farmers' Income --- Value Chain Analysis of Capsicum in Peru\footnote{\textbf{Contact Address:} Diana Dilla, Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Königsworther Platz 1, 30167~Hannover, Germany, \mbox{e-mail}: \email{diana.dilla@googlemail.com}}\\[0.8ex]}}
\normalsize{\textsc{Diana Dilla$^{1}$, Jaqueline Garcia - Yi$^{2}$, Ulrike Grote$^{3}$, Matthias Jäger$^{4}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Germany}}}
\item[]{\small{\textit{$^{2}$University of Bonn, Center for Development Research (ZEF), Germany}}}
\item[]{\small{\textit{$^{3}$Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Germany}}}
\item[]{\small{\textit{$^{4}$Bioversity International, Colombia}}}
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\index[author]{Dilla, Diana}
\index[author]{Garcia - Yi, Jaqueline}
\index[author]{Grote, Ulrike}
\index[author]{Jäger, Matthias}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
Peru, a country with high poverty prevalence in Latin America, belongs to the centre of origin for Capsicum (chili pepper). From there the production and use of Capsicum has spread all over the world so that nowadays, it is of great economic importance as a spice or ingredient for pharmaceutical use. However, the genetic diversity of this crop in its centre of origin has been underutilised so far and trade has concentrated on undifferentiated commodities, providing only little economic benefits and low margins to the farmers.



The paper aims at unlocking the full potential of Capsicum's diversity by using value chain analysis. This methodology provides a powerful tool for linking supply capacities to market needs and thus, helping to integrate small"=scale farmers into the market. The analysis is conducted in the context of on an ongoing project in Peru which characterises commercially valuable traits of the whole genetic Capsicum diversity and links promising elite materials selected from gene banks to national and international high value markets. These accessions are supposed to help increasing the value of the harvested products and thus, enhancing the income of small"=scale farmers.



The value chain analysis of the Peruvian Capsicum sector focuses on describing and assessing the structure of the whole chain, its governance and the key actors at every single stage including their share in adding value. An economic analysis, based on primary data from interviews with different chain actors, identifies the distribution of incomes and evaluates the efficiency of the entire chain. Through the detailed examination of strengths and weaknesses, opportunities and threats the importance of value chain integration for small"=scale farmers is estimated. This provides key information to all value chain actors for drawing up an upgrading strategy which aims at transforming the production and marketing process into an efficiently organised and functional value chain. Finally, results and methodology can be transferred also to other neglected and underutilised agricultural crops.



}

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\noindent \textbf{Keywords:} Agricultural diversity, high value markets, neglected and underutilised crops , value chain analysis
\index[key]{Agricultural!diversity}
\index[key]{High value markets}
\index[key]{Neglected and underutilized crops }
\index[key]{Value chain analysis}
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