Developing Smallholder Inclusive Food Value Chain Models for Local and Global Markets
In many economies, market forces have resulted in the development of food value chains that directly connect food producers with modern retail outlets such as supermarkets, hypermarkets and food processors. These chains also operate across international borders. Their origins lie in the changing demands of consumers, the growth of new forms of modern food retailing and processing and the emergence of specialist providers of services relevant to these chains. They can provide safe and secure delivery of food consistent with trade patterns according to comparative advantage.
The dilemma is that previous research has shown that these new business models often exclude smallholders due to potentially high transaction costs of dealing with a large number of heterogeneous sellers, smallholders’ inabilities to meet new market requirements as a result of lacking the necessary skills, technology, financing, and/or inadequate infrastructure due to chronic underinvestment. Yet, farmers who are able to participate are found to have significantly higher incomes by a factor of 3 to 4 times.
The project aims to develop food value chain business models consistent with international market conditions that are gender-inclusive, practical, efficient, and enhance the inclusiveness of smallholders in local as well as global modern food value chains in partnership with other public and private stakeholders. The project studies the dairy, meat, fish and horticulture sectors and draw on the experience of farmers in six economies.
The project facilitates knowledge exchange between participating economies, build the capacity of relevant bodies in participating economies and identify the implications of findings for the APEC programs.
The project team comprises of Associate Professor Wendy Umberger (project leader), Professor Christopher Findlay and Dr Risti Permani and is funded by the Australian Government Department of Agriculture as part of the Australian Government’s Economic Diplomacy Fund.
- Participating Economies
- China (Prof Nie Fengying and Dr Gu Rui, Agricultural Information Institute, Chinese Academy of Agricultural Sciences (CAAS))
- Cambodia (Dr Sothea Oum and Mr Samsen Neak, Ngee Ann-Adelaide Education Centre and Nuppun Institute for Economic Research)
- Indonesia (Dr Arief Daryanto and Dr Heti Mulyati, Bogor Agricultural University)
- Laos (Associate Professor Silinthone Sacklokham, National University of Lao PDR)
- Philippines (Dr Roehlano Briones and Ms Lovely Ann Tolin, The Philippines Institute for Development Studies)
- Taiwan (Professor Ching-Cheng (Emily) Chang, National Taiwan University)
- Vietnam (Dr Nguyen Trung Kien and Mr Long Nguyen The, Division of Commodity Markets, Institute of Policy and Strategy for Agricultural and Rural Development (IPSARD))
1. "Partnering for Smallholders Inclusive Market Opportunities in the Mekong Workshop", 8-9 December 2015, Crowne Plaza West Hanoi, Vietnam.
The workshop is a collaborative effort between two project teams, a new project “Developing Smallholder Inclusive Value Chain Models for Local and Global Markets” funded by the Australian Department of Agriculture as part of the Australian Government’s Economic Diplomacy Fund and “A strategic approach to pro-poor market and consumer research in China and the Mekong region” (AGB-2012-057) funded by the Australian Centre for International Agricultural Research (ACIAR). The workshop invites experts presenting on topics such as changing consumer demand, development of food value chain models, international and regional trade in agriculture and food commodities.
Day 2 of the workshop focuses on this new project. More specifically, the aims of Day 2 are to understand and explore existing business practices between private sector and smallholders in agrifood sectors; the roles of other agencies (public, private, NGOs, funding agencies) in food value chain development; factors explaining the success of business models; and identify strategies to collect information and evaluate the development of smallholder-inclusive business models.
• View the event program
Initial Literature Review of Smallholder-Inclusive Business Models
Agriculture in the Greater Mekong Subregion GMS
Beef Value Chains in the Mekong Region
Cross border vegetable trade - a Guang Xi case study
Food Consumption Trends in Urban China Opportunities and Implications for Mekong Region Agriculture
Implications of Food Market Transformation for Smallholders Insight from Indonesia
Partnering for Smallholder Inclusive Market Opportunities in the Mekong
The Chinese unripe plum trade an opportunity for Vietnam
Vegetable trade in Lao Cai's urban markets
Vietnam Mango Export Opportunities in Hong Kong and Shanghai
Developing Smallholder Inclusive Value Chain Models for Local and Global Markets
Developing Smallholder Inclusive Value Chain Models for Local and Global Markets - Philippines
Development of Smallholder Inclusive Business Models in Agrifood Sector in Indonesia
Innovative Public Private Partnerships to Facilitate Sustainable New Business Models
Lessons from Dairy Industry Development Models in Indonesia
Smallholder Inclusive Business Model in Agrifood Sector in Cambodia
Smallholder Inclusive Business Models in Vietnam
Smallholder inclusive Food Value Chain Models Overview and Recent Development
The Development of Smallholder Inclusive Business Models in China
2. "Developing smallholder inclusive value chains for local and global markets", 4 - 6 June, 2016, Padma Hotel Legian, Bali.
The workshop is the final workshop of a project “Developing Smallholder Inclusive Value Chain Models for Local and Global Markets” funded by the Australian Department of Agriculture as part of the Australian Government’s Economic Diplomacy Fund.
The aim of the workshop is to present and discuss results from country studies on inclusive business models in agrifood sectors in Cambodia, China, Indonesia, Laos, Philippines, Taiwan and Vietnam, review the role of various agencies including private sector, governments, NGOs and funding agencies in value chain development and develop testable inclusive business models that are gender-inclusive, practical, and efficient.
The workshop also aims to facilitate knowledge exchange between policy and research communities as well as NGOs and industry representatives in participating economies; builds the capacity of relevant bodies in participating economies; and identifies the implications of findings for the APEC programs.
Inclusive Business Model in Cambodia: Case Study on Vegetable
Smallholder Inclusive Business Models: Case Study in Cattle/Beef Industry of China
Developing Dairy Smallholder-Inclusive Value Chain Model in Indonesia
Smallholders Inclusive Vegetable Production for Market in Vientiane Capital, Lao PDR
Developing Smallholder Inclusive Food Value Chain Models for Local and Global Markets: The Case of Taipei Agricultural Products Marketing Corporation (TAPMC)
A Smallholder Inclusive Business Model for the Local Market in Vietnam: A Case Study in the Poultry Sector
How to build, monitor and measure inclusive value chains
Sustainable commodities & smallholders involvement: The case of PISAgro
Unilever Inclusive Business Model: Black Soya Bean Case Study
- Photo Gallery
FAO (2012a). Review of smallholder linkages for inclusive agribusiness development, FAO, 2014
FAO (2012b). Smallholder business models for agribusiness-led development: Good practice and policy guidance, FAO, 2014
FAO (2015). Inclusive Business Models: Guidelines for improving linkages between producer groups and buyers of agricultural produce, FAO, 2015.
MP4 (2008). Making Markets Work Better for the Poor Making Value Chains Work Better for the Poor: A Toolbook for Practitioners of Value Chain Analysis, UK Department For International Development, 2014