The market systems approach in the agricultural sector

Smallholder farmers in developing countries require a combination of agricultural and business skills to truly succeed in a market system. The market systems approach, which leverages local systems to deliver goods and services, is a cornerstone of Fintrac’s work with the commercial sector to end hunger and poverty. Their decades of experience have taught them that context and existing local system capacity dictate which service delivery models will embrace rather than crowd-out local actors.

Demonstration-based interventions create both the demand for new technologies and the critical mass of high quality supply necessary for input suppliers and buyers to invest in under-served areas. By aligning profit incentives, they foster sustainable service delivery between willing local commercial agribusinesses and smallholders. This topic paper shares these practical lessons to encourage continuous learning.