Small-scale farmers face many challenges in the face of globalisation. Ever-increasingly competition, increasingly strict food safety and evironmental standards, and a growing regulatory burden can make it difficult for small farmers to survive. A cluster or cooperative approach can help farmers achieve economies of scale to remain competitive.
International requirements on food safety, traceability, animal health and welfare and social responsibility are increasingly stringent. The burden of compliance and the cost of certification are particularly heavy for small scale farmers who are often excluded by the limited resources at their disposal. Working in groups can help small scale farmers attain economies of scale necessary to address compliance issues and participate in certification schemes, improving their competitive position.