Building New Income Opportunities for Small-farmers in Peru: The Case of Native and Naturally Colored Cotton

In the 90's the agro-export boom of Peru, based on a market-led development, has induced a major conversion of large farms to new agribusinesses (i.e. asparagus, avocados, oranges), leaving room for expansion in the traditional agro-industrial sector (i.e. cotton) for small farmers. This study assesses the new income opportunities deriving from the reinsertion of native and naturally colored cotton (NNCC) in the agricultural production of small farmers, by means of a farm economic data analysis, scenario analysis and sensitivity analysis. The analysis has been performed in a specific case study regarding 50 farms of the Moche district in the North coast of Peru, selected by means of a non-probability sampling technique.