Unpacking inclusive agribusiness and sustainable food systems

Research analyst at Duke University Ajmal Abdulsamad opened the discussion by explaining the different frames applied to “inclusiveness”. The term is often viewed either as the ability of farmers to participate in a particular market or as the outcome or benefits of participating (e.g. higher income and/or lower risk in comparison to other markets). However, there is no consensus about the most adequate frame. Additionally, an outlook into recent trends in the global food value chains show considerable challenges especially for small farmers to become better-off, including the overcome of power dependency on stronger actors, like retailers, middle-men etc.
Global value chains in the food sector have become increasingly technology- and capital-intensive. Income opportunities for low-skilled labor have considerably declined, and nearly 86 % of value-added is concentrated in pre- and post-farming segments (e.g. seed and agrochemical production, packaging etc.), which means farming itself, where most poor farmers operate, remains marginal in terms of value.
Ajmal suggested that donors have a key role in supporting the development of networks within the food system that provide the tools and knowledge for its participants to engage in a more inclusive – and power-balanced – business approach in the agricultural sector. For the specialist, “donors need to help embedding these networks in the system of global goods”.

According to Prof. Gerald McDermott, from the University of South Carolina, a key task in championing this new way of doing agribusiness is to identify the effective actors who can “keep the ball rolling” and fill knowledge and capacity gaps of small and medium size enterprises (SMEs), which are the main beneficiaries of inclusive agribusiness interventions.
Integration in global value chains offers remarkable opportunities for small and medium-size enterprises. It allows SMEs not only easier access to market, but notably to knowledge flows, technological and learning spillovers and capabilities improvements.
However, McDermott argues that global value chains and multinationals are good at telling local firms WHAT they need to do. But Not WHY and HOW. The latter is about getting access to a diversity of applied and experiential knowledge, often provided by "bridging actors" which are not the multinational companies or groups in the local networks, but rather at a regional or national level (like business or farmers associations).