Establishing Business Growth Opportunities by Analyzing theLinkage between Food Processing Entrepreneurs and Smallholder Farmers in order to Alleviate Poverty

"The objective of this study was to evaluate the linkage mechanism between grass roots rural agricultural (tomato) producers and urban food processors; to establish productivity indices for small-holder farmers and food processors; to assess the effectiveness of the marketing strategies and storage and preservation; and finally to analyze the impact of the linkages on poverty alleviation. The linkage among the tomato producers was established. It is in form of information flow and knowledge transfer, capital flow, frequency of contact and social relations. The linkage between producers and buyers also exist. It is in form of trade/product flow, capital flow, as well as flow of information and knowledge transfer. Finally, the linkage exists among processors also; this is in form of information flow and knowledge transfer and a bit in social relations. The linkage was observed to have a positive impact on poverty by using the possession index as a proxy. With trade and thus,revenues growing, considering tomato business contributing to a bigger portion of the family incomes, improvement in the possession index has been considered to “speak” for overall alleviation in poverty. Productivity indicies (technical coefficients) for a certain level of investment have been established; they correspond to certain levels of input employment and output; they are for scaling to any level of preferred investment."