Business models that are inclusive of small farmers

Paper prepared for FAO and UNIDO as background to the Global Agro-Industries Forum, New Delhi, 8 - 11 April 2008

by Bill Vorely, Mark Lundy, James MacGregor, novembre 2009
Language : English

The paper describes a range of business models for inclusive market development within the context of agrifood restructuring and modernisation. It focuses specifically on models that improve the inclusiveness, fairness, durability and financial sustainability of trading relationships between small farmers on one hand and downstream agribusiness (processors, exporters and retailers) on the other. It also alerts us to the needs of external providers, such as financiers and training agents. The gap in basic services in rural economies, such as appropriate extension and credit, needs to be bridged before FDI can live up to its promises. While we do address what producers need to do to compete in modern dynamic markets, and the role of facilitating public policy, our focus in this paper is more on the buyers and their role as partners in development.

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