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. This is 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 under-investment. 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 facilitated knowledge exchange between participating economies, built the capacity of relevant bodies in participating economies and identified the implications of findings for the APEC programs.
Project activities and outputs
Literature review: A review of smallholder inclusive business models
Workshop 1: "Partnering for Smallholders Inclusive Market Opportunities in the Mekong Workshop", 8-9 December 2015, Crowne Plaza West Hanoi, Vietnam.
This workshop was a collaboration between this project and the ACIAR-funded project: A strategic approach to pro-poor market and consumer research in China and the Mekong region.
- Agriculture in the Greater Mekong Subregion
- 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
Workshop 2: "Developing smallholder inclusive value chains for local and global markets", 4 - 6 June, 2016, Padma Hotel Legian, Bali.
- 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
Participating economies and institutions:
- China (Prof Nie Fengying and Dr Gu Rui, Agricultural Information Institute, Chinese Academy of Agricultural Sciences)
- 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)
- Lao PDR (Associate Professor Silinthone Sacklokham, National University of Laos)
- 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)
Australian Government Department of Agriculture as part of the Australian Government’s Economic Diplomacy Fund.