Implications of public purchases from family farming: reflections on the Chilean case

Abstract

Government purchases of food from family farmers aim to provide a new market for smallscale farming while promoting food security for vulnerable populations. In Latin America there are various examples of these initiatives but with important differences in their implementation. Our objective is to review the effects on the farmers who sell into these programs, considering the case of Chile. There, since 2017, companies hired by the government to provide school meals are required to include a percentage of local products in their purchases. Information was collected through personal interviews with farmers and advisors from three agricultural organizations participating in government purchases in two different regions. The results show that in this case public purchases have the novelty of being a formal market for farmers, which is a very relevant experience for them. However, the conditions are neither stable nor always beneficial for farmers due to important asymmetries in negotiating power with purchasing companies. We conclude that the Chilean initiative has interesting potential impacts, but some major changes must be made to it, as greater involvement and will on the part of the parties.