Publications detail

Ghana -Review of smallholder linkages for inclusive agribusiness development

In recent years, there has been increase in the flow of investment to agriculture, particularly due to rising commodity prices. Private sector investments resulted in large-scale acquisitions of farmland in lower and middle-income countries, which brought a long-standing controversial debate about “land grabbing” and “development investment” to the forefront, as land is critical to livelihoods and food security.

 Within this context, the FAO Investment Centre has recently published the “Review of smallholder linkages for inclusive agribusiness development” under its “Good Practices in Investment Design” series. The report, a pre-investment review of commercial agriculture, was financed under the FAO/World Bank Cooperative Programme. The paper introduces the conceptual framework for the promotion of the commercialization of agriculture through the use of collaborative business models, thus providing an alternative to large-scale acquisitions as well as opportunities for smallholder farmers.

In particular, this publication focuses on a broad range of collaborative business models, including contract farming, outgrower schemes and joint ventures, and explores key factors that have led to successful and sustainable partnerships. The report describes their advantages and disadvantages and the conditions under which different models could develop and be sustainable. It also addresses the roles of stakeholders and the inclusiveness and fairness of trade relationships between smallholders and companies.