Through a guaranteed purchase system similar to the one it uses with the small farmers, PepsiCo enticed big agribusinesses to invest in the development of potato varieties better suited to Mexico's tropical climate and also mitigated its impact on potato prices, which swung wildly because its demand was so large.
In the past 15 years, guaranteed purchase of renewable electricity has been as common support measure in many countries.
FITs are long-term, guaranteed purchase agreements for green electricity at a price that can provide project developers a reasonable return on investment.
Without the economic security of guaranteed purchase contracts, companies will keep relocating overseas.
In a sign of hope, the state of Vermont and city of Gainesville, Florida, legislated guaranteed purchase contracts last year.
Rather than using hops imported from Australia, they will use locally grown cassava, produced by 2000 small local farmers -- with a guaranteed purchase price.
Another proven policy tool used by our competitors in Europe, Japan and China -- long-term, guaranteed purchase contracts -- would provide an enormous boost and could be implemented quickly by states and cities.
Nowhere is this more evident than in the attrition rates on wineries' direct-mail customer lists, an important segment of the business for many cult wineries, which not only receive full retail markup on direct sales but have enjoyed a virtually guaranteed purchase among dedicated customers.
This could be through tax incentives on research equipment and raw materials, as well as local "advance market commitments", whereby the Ministry of Health guarantees purchase of products developed locally as long as they meet internationally accepted standards.
Financial and economic incentives, including fair pricing and guaranteed purchase of unsold supplies, regulatory relief, tax incentives, liability protection, and intellectual property considerations, are needed to ensure a steady supply of vaccines (27, 36, 37 ).
