Inclusive business : Constructing a model and an indicator for food and agribusiness multinational enterprises for smallholder inclusion in high value-adding supply chains

Sjauw-Koen-Fa, A.

doi:10.18174/440502

Cited by 4 publications

(6 citation statements)

References 137 publications

(264 reference statements)

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“…In the Global South, inclusive business in the agricultural sector entails integrating poor and low-income communities into global and regional value chains as producers, processors, workers and/or other forms of business partners. It is considered integral to enhance local livelihoods and food security (Bonnell & Veglio, 2011; Chevrollier et al, 2012; FAO, 2015; Sjauw-Koen-Fa, 2012). Since its launch, it has been promoted as a way of doing business while contributing to development objectives; presented as a unique opportunity to combine business development and growth, on the one hand, with combating poverty and hunger, on the other.…”

Section: Introductionmentioning

confidence: 99%

“…Despite increased popularity among governments 1 , donors and other international development stakeholders, little is known about the impact of inclusive business on local communities (Bruni & Santucci, 2016; Chamberlain & Anseeuw, 2017; FAO, 2015; Sjauw-Koen-Fa, 2012; Smith, 2013). Furthermore, while it is presented as a model that contributes to improved local food security, little is known on whether and how it contributes.…”

Section: Introductionmentioning

confidence: 99%

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Inclusive Business for Smallholders’ Household Food and Nutrition Security: Disconcerting Results from an Analysis of a French Bean Agri-investment in Kenya

Wangu

Mangnus

Westen

et al. 2021

Journal of Development Policy and Practice

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Inclusive business is regarded as having the potential to improve food security status in the Global South. Despite increased popularity among governments, donors and other development stakeholders, little is known about the approach’s impact on smallholder farmer communities. As such, the above-mentioned inclusive business promise on food security status largely rests on assumptions. This article scrutinises a case of smallholders’ French bean production for export market in Tharaka Nithi County, Kenya. The business model adopted in the initiative is termed inclusive and is intended to enhance food and nutrition security in the community. The empirical findings show that several contextual factors—in particular, access to land and water resources—limit the participation of the majority of farmers in the community. This leads to a notable level of exclusion. Moreover, the company risks negatively influencing local food security when food crops are substituted for an export crop that is not consumed locally. Results of this article demonstrate that while private sector-led development might contribute to higher economic productivity and access to food of better quality, it rarely changes the structural causes of food and nutrition insecurity, which are oftentimes related to access to production resources. We plead for increased scrutiny of the contextual factors when designing and implementing inclusive business models.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Inclusive Business for Smallholders’ Household Food and Nutrition Security: Disconcerting Results from an Analysis of a French Bean Agri-investment in Kenya

Wangu

Mangnus

Westen

et al. 2021

Journal of Development Policy and Practice

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“…It is scientifically proven that extensive management farming practices, principally for profit, correlate to not only increased productivity and better specialization but also result in higher income (Olwande et al, 2015;Bernard and Spielman, 2009). In spite of such development, the majority of smallholder farming households, especially in developing countries like Malawi, are unable to benefit from the comparative advantage of realizing a lot from their agricultural husbandry, partly due to low productivity and low marketing intelligence (Reddy, 2010;Sjauw-Koen-Fa, 2016). This is due to the low level of commercialization and the failure to see agriculture as a viable enterprise with reliable market interfaces (Brixiová et al, 2015;Atiase et al, 2018;Bernard and Spielman, 2009).…”

Section: Introductionmentioning

confidence: 99%

“…Major bean-growing regions in the country include Dedza, Thyolo, Mulanje, Ntchisi, Chitipa, Dowa, Mzimba, Mangochi, Ntcheu, and Phalombe (Magreta and Jambo, 2012). A wide range of bean research projects have been carried out in Malawi with the assistance of the government (National Agricultural Research Services) and non-governmental organizations (NGOs), such as the International Centre for Tropical Agriculture (CIAT) (Tumeo et al, 2017). Kholepethe, Kabalabala, Napilira, Phalombe, Sugar 131, CAL 143, Napilira, Kabalabala, NUA59, NUA45, VTT294/4-4, Nagaga, Nkhalira, Kambidzi, Sapatsika, and Maluwa are just a few of the improved bean varieties that have been released as a consequence of the research on beans (Birachi, 2012).…”

Section: Introductionmentioning

confidence: 99%

Structure, conduct, and performance of beans marketing in Malawi: A case study of Lilongwe District

Chitete

Mgomezulu²,

Phiri

et al. 2023

J. Agribus. Rural Dev.

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Poorly performing markets are one of the major limitations to achieving high farm income and ultimately poverty reduction in sub-Saharan Africa. Using the structure, conduct, and performance approach applied to bean markets in Malawi, we bring to light the status and performance of the smallholder marketing system. Multiple methods were employed in this study: the Herfindahl-Hirschman Index to evaluate the market structure; adopted pricing strategies and affiliation with large companies or associations to assess conduct; and marketing margins to measure market performance. Our results show that 39 percent of markets are imperfectly competitive. Also, the lack of reliable markets, purchase prices, access to credit, operating capital, and transaction costs were major factors that undermined the potential for bean traders to operate at a higher scale. The commonly adopted pricing mechanisms include cost-plus pricing, dynamic pricing, and quality-dependent pricing. Very few bean traders (7%) are affiliated with large trading companies and associations. Seven bean marketing channels were observed. We recommend that policies favoring improvements in rural road networks and market infrastructure should be encouraged to reduce transaction costs. In order to eliminate barriers to increasing quantities of beans handled by traders, the government should provide soft loans with low interest rates to traders. Deliberate actions to promote the affiliation of small traders with larger companies and associations involved in bean trading should be promoted.

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“…Transforming smallholders into sustainable value chain practices is challenging, as it involves a large number of them, and they are a heterogeneous group. It is estimated that about 500 million smallholder farmers in developing countries are under-used and have the potential for future food suppliers in 2050 (Sjauw-Koen-Fa, 2012;Sjauw-Koen-Fa et al, 2016). Nevertheless, it is likely that not all smallholders will be able to comply with the increasing demands for standards in higher-value markets (Schoneveld et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Assessing smallholders’ heterogeneity towards sustainable agrifood value chain in developing countries

Hidayati

Garnevska

Ramilan

2023

BFJ

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PurposeAgrifood value chains in developing countries are transforming into higher value markets which require sustainable practices, with smallholders playing a critical role. However, smallholders are a heterogeneous group which may have discrepancies in outcomes to meet sustainability standards. This paper aims to empirically investigate smallholders' heterogeneity towards sustainable value chain practice in developing countries.Design/methodology/approachEight key enabling factors of sustainable value chain transformation were used to explore smallholders' typology, then profiled, based on their socio-economic status and current practices. A quantitative method was applied in Indonesia's cashew sector with 159 respondents from the primary producer area on Madura Island. A combination of descriptive analysis, cluster analysis, cross-tab analysis and one-way ANOVA analysis was used in this study.FindingsFour types of groups were identified, each with distinct characteristics and arranged in priority order as follows: accelerator, progressor, inattentive and conservative groups. Interventions can be implemented on per clusters basis or based on potential similarities among clusters, depending on priority. It is noted that the pursuit of sustainable value chain practices by smallholders is not necessarily associated with high socio-economic status, as those with low socio-economic status may have a stronger inclination towards them.Practical implicationsThe paper enhances awareness of practitioners and policymakers regarding smallholders' heterogeneity in sustainable value chain practice. It enables more effective and focused interventions to support smallholders who require assistance in sustainable production and value-adding activities. Different smallholders' characteristics call for different assistance/intervention. Practitioners can recognise smallholders' characteristics that are more compatible with higher value markets and sustainability requirements to better integrate their practices. Policymakers must carefully develop short-term and long-term interventions based on the activities prioritised by particular traits to “hit the right button” for smallholders' practice development.Originality/valueThis study investigates the typology of smallholders towards sustainable value chain practices by using eight enabling factors and profiling them based on their socio-economic condition and current practices. Additionally, this study shifts the focus of typology exploration away from the traditional lens of farm sustainability to a larger perspective which encompasses sustainable value chain activities.

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Inclusive business : Constructing a model and an indicator for food and agribusiness multinational enterprises for smallholder inclusion in high value-adding supply chains

Cited by 4 publications

References 137 publications

Inclusive Business for Smallholders’ Household Food and Nutrition Security: Disconcerting Results from an Analysis of a French Bean Agri-investment in Kenya

Inclusive Business for Smallholders’ Household Food and Nutrition Security: Disconcerting Results from an Analysis of a French Bean Agri-investment in Kenya

Structure, conduct, and performance of beans marketing in Malawi: A case study of Lilongwe District

Assessing smallholders’ heterogeneity towards sustainable agrifood value chain in developing countries

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