Jordan: Participation and Decision Making of Small-Scale Producers in New Cheese Market Channels in the Badia. Regoverning Markets Innovative Practice Series: Sustainable Markets Group, International Institute for Environment and Development (IIED), London, 2008..

Based on field research, this paper provides analysis of sheep cheese market channels in the Badia of Jordan. The goal is to inform policymakers, researchers and development programmes about this commodity?s market in that area. It also addresses market impact on Badia development and the challenges that face small-scale producers in accessing the market. Specifically, it investigates farmers? channel choices, and determinants of market choices after the introduction of the Badia Research and Development Centre (BRDC)?s innovation. The data were elicited from 118 subjects through a survey carried out in March-June 2007. Additional data were collected through interviews with key informants and PRA with farmers. This paper examines farmers? choices of market channel and technology choice as factors of farmers? characteristics such as capital, quasi-capital, risk controllers, incentives, farm size and village location. Findings indicate that the sheep cheese market is still a decentralized, mixed procurement system. The Badia innovation gradually evolved along with the supply chain and in response to the varying conditions imposed by the four pillars of inclusion1; at the same time it had poor executive governance. Farmers’ decisions regarding channel choice and technology choice are a trade-off between losses (or risks of losses) and gains. The attributes that affect a farmer?s choices of channels are: farm labour, provision of technical assistance, use of contract, disease control, and feed requirements. Differences of attributes among the channels show the importance of increase in household income and village location. Association of attributes among the different channels shows a significant relation with a farmer?s additional job, contractual relations, and bank deposits. A farmer?s decision of channel is not affected by technology choice. However, a farmer?s choice of technology is affected by increase in production costs, land ownership, and feed requirements. Differences among the channels indicate that technology choice is important in relation to increase in production costs, product price, profit, and household income. Association with technology choice indicates a relation with disease control, feed requirement, landownership, and farm labour. Conclusions show that farmers who access traditional and wholesale markets have a better economic status. It is crucial for farmers who participate in the cheese factory channel to be able to produce quality and quantity, but choice of produce quality is more a function of human capital, risks control and incentives than of equipment. Benefits from the innovation included: sustainability, better product quality, better prices, increased livestock activity and size, ability to buy animal feed, job opportunities, income increase, farmers marketing choices and sales increase. The factory has to provide price premiums