Policy Support and Governance Gateway

Sustainable Agribusiness and Food Value Chains

Small-scale producers provide over 70 percent of the world’s food needs while agribusinesses are important generators of employment and income worldwide. Improving the sustainability of food value chains can benefit millions of poor households in developing countries as well as ensure access to nutritious food for all.
 

Integrating smallholders into food value chains and improving food systems

Governments should support farmers, agribusinesses and civil society to promote inclusive and efficient food systems that better integrate smallholder farmers and small and medium agribusinesses into value chains. This will improve their access to markets, generate decent employment, and make nutritious food available.

FAO has developed approaches and tools to support the integration of smallholders and small and medium agribusinesses into value chains. FAO also provides capacity building support to strengthen public-private collaboration on sustainable food value chains development, public food procurement, public-private partnerships, responsible contract farming, and improve market access for local products through Geographical Indications.
Key messages

It also requires inter-institutional coordination and collaboration on policy development, legislation, and policy implementation — from ministry to district levels. FAO promotes transparent and evidence-based governance practices that lead to inclusive and sustainable agribusiness and food value chains in support of healthy diets for all.

Policies, incentives and frameworks promoting agro-industries, and in particular small and medium enterprises (SMEs), have proven to be an effective pathway to lift rural populations out of poverty in many countries.

In particular, they shorten the path towards achieving Sustainable Development Goals 2 (Zero Hunger) and 12 (Responsible consumption and production).

A nutrition-sensitive value chain approach is a useful way to analyse and navigate the complexity of food systems to improve food security and nutrition. Such an approach can help identify entry points for policy interventions, investment decisions and capacity development.

Large-scale crises such as the COVID-19 pandemic may weaken even well-established food value chains, resulting in income reduction and loss of employment, thereby leaving people vulnerable to food insecurity and malnutrition. While at the business level some agrifood businesses may benefit from particular shocks (e.g., those with solid e-commerce channels having to cope with COVID-19 lockdowns), others will be negatively affected.

 
Featured resources
How coffee value chains foster climate-resilient livelihoods – The FAO-Slow Food Coffee Coalition experience
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This document introduces how agroforestry coffee improves resilience and ensures livelihoods in the context of climate risk and access to markets.

Developing sustainable food value chains – Practical guidance for systems-based analysis and design. SFVC Methodological Brief
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This brief outlines a rigorous and standardized approach for value chain analysis and design, taking a systems perspective to analyse and influence...

A contract farming model agreement in Lesotho
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The primary objective of the contract farming model agreement is to promote responsible contract farming and good practices in contract development....

Measuring the state of food safety in Belgium with a food safety barometer
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The purpose of the barometer is to measure the state of food safety in the country and enable evidence-informed risk management and policy decisions....

Research capacity for sustainable agrifood systems in the context of the Agricultural Innovation Systems: Insights from Malawi's multistakeholder policy dialogues – Policy brief
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A study conducted on Malawi's Agricultura Innovation System (AIS) revealed that key actors in the system lacked capacity to facilitate and or engage...

Agricultural producer organizations in the West Bank and Gaza Strip - An assessment of their agribusiness capacities and institutional environment
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This study comprises an assessment of a selected number of producer organizations in the West Bank and Gaza Strip with regards to their agribusiness...

Agricultural producer organizations in the West Bank and Gaza Strip – An assessment of their agribusiness capacities and institutional environment
2024

Strengthening agricultural producer organizations (POs) and cooperatives has been recognized as a key way forward to support farmers in the West Bank...

The status of fresh markets in Dhaka − Working to transform the city's food system
2023

The report will be helpful for the urban planners and the policymakers to develop a long-term strategic vision for Dhaka through the much-needed discussion...

Le système agricole et agroalimentaire tunisien face aux crises: focus sur la chaîne de valeur céréalière. Constats et réflexions pour la proposition d'un plan de relance à court et à moyen termes
2023

Ce rapport met en évidence l'impact économique, financier et social de la crise de covid-19 sur le secteur agricole et agroalimentaire en Tunisie. En...

Food systems profile – Kenya. Catalysing the sustainable and inclusive transformation of food systems
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Food systems are intimately linked to our lives – through the food we eat, our nutrition and health, our livelihoods, jobs, and the environment and...

In Brief to The State of Food Security and Nutrition in the World 2023. Urbanization, agrifood systems transformation and healthy diets across the rural–urban continuum
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This report provides an update on global progress towards the targets of ending hunger (SDG Target 2.1) and all forms of malnutrition (SDG Target 2.2)...

Guidelines to increase the resilience of agricultural supply chains
2023

The effects of the COVID-19 pandemic on food and agriculture have been felt all over the world. As the pandemic unfolded, considerable attention began...

Using geographical indications to improve sustainability. Lessons learned from 15 years of FAO work on geographical indications
2023

Since 2007, FAO has been applying a comprehensive approach to support its Members in the development of sustainable geographical indications, with the...

The State of Food Security and Nutrition in the World 2023 (SOFI). Urbanization, agrifood systems transformation and healthy diets across the rural–urban continuum
2023

This report provides an update on global progress towards the targets of ending hunger (SDG Target 2.1) and all forms of malnutrition (SDG Target 2.2)...

Profil des systèmes alimentaires - Niger. Activer la transformation durable et inclusive de nos systèmes alimentaires
2023

Les systèmes alimentaires sont directement liés à la réalisation de l’ensemble des objectifs de développement durable (ODD). L’impératif – et le défi...

Developing sustainable and resilient agrifood value chains in conflict-prone and conflict-affected contexts. Practitioner guidelines for selection, analysis and design
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Agrifood systems in the Near East and North Africa are characterized by increasingly degraded natural resources and vulnerability to climate change,...

Fiscal reform in Costa Rica. Price elasticities of major food categories to inform decision-making. FAO agricultural development economics working paper 23–04
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In the context of fiscal reform in Costa Rica (value added tax revision), the definition of a new basic tax basket – canasta básica tributaria (CBT),...

Price elasticities of major food categories to inform fiscal reform in Costa Rica. FAO Agricultural Development Economics Policy Brief 65
2023

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Mapping of territorial markets – Methodology and guidelines for participatory data collection. Methodology and guidelines for participatory data collection
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Malnutrition in all its forms (undernutrition, micronutrient deficiency, overweight and obesity) is a major global challenge, and improving nutrition...

FAO Policy Series: Sustainable Agribusiness & Food Value Chains
17/11/2016

Improving the sustainability of food value chains can massively benefit the rural poor. Florence Tartanac, FAO Senior Officer together with Eva Gálvez...