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Title Optimal Market Boundary with minimal Characteristic Distance between Small
Producer and Customers: A strategy to realize higher value by both small
producers and consumers from a transaction
Authors Amar KJR Nayak
Type Working Paper
Publication Date 27 October 2012
Year 2012
Abstract The paper argues that the traditional understanding of market space is unlikely to resolve the inability of the small producers to obtain greater net income for their produce. In the light of this the paper focuses on the idea of characteristics distance between the small producers and the market space in terms of location and nature of customer. The paper argues that when there is synergy between the characteristics of the customers in a market space and the producers; the value of transaction is high for both the producers and the consumers. Accordingly, the paper suggests that market within a radius of about 350 kilometers is an optimal boundary of market space for transactions by small farmers/producers from most rural-agricultural settings in India.

The paper also discusses the necessity for systemic balance across the different levels of ecology, small producers, producer organization and the market space for a sustainable relationship among them all. It distinguishes the nature or position of organizational design variables viz., size, scope, technology, management and ownership of producer organization to suggest that they these design positions need to be internally consistent with the characteristics of the constituents who make the organization for long term sustainability of its constituents, viz., small producers and the ecosystem. This paper has been based on an action research since 2005 in a remote, rural-tribal agricultural community in the state of Odisha towards developing a sustainable community enterprise system.
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