In transition countries small-scale farmers and households are effectively excluded from direct
participation in markets. In general, they face pressures from larger processors and retail chains to
supply raw materials in required quantities and quality. These demands often pose a great challenge
for integration into value chains. At the same time, local, often small and medium-sized processors,
challenged by global and regional competition and the need to comply with international regulations,
are also experiencing difficulties in establishing their position in the supply of multinational retail
chains.