Making globally integrated value chains inclusive, efficient, and environmentally sustainable

Global value chains (GVCs) are rapidly evolving, driven by changes in consumer demand, logistics, and technology. Expanding high-value markets represent opportunities for smallholders and agri-food Small Medium Enterprises (SMEs) to gain remunerative employment, climb out of poverty, and improve their diets. However, there are challenges:

• Vertical coordination in GVCs is difficult because of strict standards, long distances, and differences in scale between farmers and processors/exporters.
• Smallholders and agrifood SMEs are vulnerable to the market power of large processors/exporters in concentrated market structures and face greater obstacles in meeting export standards.
• Smallholders and agrifood SMEs often lack adequate access to information on production methods, market prices, and export standards.

This area of work is bringing together three types of innovations to lower the barriers of smallholders and SMEs in participating in lucrative and sustainable GVCs and vertically coordinated arrangements with processors/exporters.

Explore below insights on the topic.