Diversifying outputs

The diversification of outputs involves a change in primary production or household
post-harvest processing to capture more value added. This category spans a wide range
of technological options from household processing of cassava roots – to making milk
products to sell to passers by – to organic farming and the production of fruits or poultry to
supply global supermarket chains. Often market demands make this category of
technology better suited to well resourced producers in Rural Worlds 1 and 2, who can
more easily meet demands for volume, quality and timeliness of deliveries. Others in Rural
World 2 as well as in Rural World 3 are likely to need finance and extensive institutional
support to diversify, organise marketing and maintain technical quality.
Risks and financing needs for diversification will tend to be higher than those for
merely upgrading production technology for existing staples. Careful prior assessments of
markets and their needs, good information systems and ready rural access are other
prerequisites for successful diversification. But for many small producers for whom the
returns from staple crop production are no longer sufficient to earn a living, diversifying
outputs may be the only technical strategy that will allow them to stay on the land.