Smallholders and inclusive growth in agricultural value chains

This report investigates inclusive growth in 12 agricultural value chains, with a focus on smallholder participation and upgrading behaviour.

The evidence reviewed indicates that smallholders can play a significant role in competitive value chains, as long as they have the requisite capabilities, profitable opportunities, and the necessary information to accurately assess their alternatives. There are also significant steps that governments, development practitioners and firms can take to promote inclusion, by building smallholder capabilities, facilitating improved market opportunities, and improving the quality of information available to smallholders. The report argues that it is important that decisions about market participation and upgrading are made by smallholders themselves, based on their understanding of their own best interests.

The review of evidence focuses on three central questions:

1. Inclusion: To what extent have smallholders participated in agricultural value chain projects? What are the different types of project outreach to smallholders?  
2. Upgrading: Have smallholders been willing and able to add value by upgrading? What kinds of productivity effects have been observed under what conditions?
3. Benefits: Are smallholders able to capture some of the additional value that they create through upgrading? Do smallholders and their households receive income benefits from their participation and upgrading investments?