High Time for Immediate Transformation of Smallholder Value Chains for Global Stability

Agriculture stands at a pivotal moment. For decades, technological advancements have focused on boosting efficiency, yet many of the world’s smallholders—who produce the lion’s share of our global food supply—remain marginalised, grappling with limited access to markets, resources, and supportive policies. ? ?

The potential consequences of inaction are disastrous: economic instability, social unrest, and climate crises.?

Meanwhile, it’s becoming clear that technological fixes alone won’t address the deeper structural issues in agriculture. We need more rigorous change, a redesign of the whole system.?

To secure global stability and build a resilient, equitable, and sustainable agricultural system, we must embrace immediate and transformative change.??

As we have seen in the previous article of this series, systemic innovation goes beyond enhancing current frameworks; it redefines them, reshaping relationships, policies, and power dynamics across the agricultural landscape.??

This transformation demands not only new ideas but also a collective willingness to share power, redistribute profits, and prioritise long-term sustainability over short-term gains.??

In this final article of our series, we present a strategic blueprint for how systemic innovation can drive this necessary change, offering a path to a more inclusive and thriving future for global agriculture.?

1. The Framework of Systemic Innovation?

1.1 Defining Systemic Innovation

When we talk about innovation in agriculture, the conversation often centres around new technologies—better seeds, smarter irrigation systems, and digital tools that optimise production. While these innovations are important, they represent just one piece of the puzzle. Systemic innovation, on the other hand, is about reimagining the entire agricultural ecosystem.?

Systemic innovation involves changes across multiple dimensions: economic, social, environmental, and political. It challenges the status quo, creating new pathways for smallholders to thrive. This might mean developing new governance models that give small farmers a voice in decision-making or creating market systems that are more inclusive and equitable. Systemic innovation doesn’t just make the current system work better—it fundamentally transforms it.?

1.2 Leveraging Systems Thinking

To effectively drive systemic innovation, it’s essential to understand the complex, interconnected nature of agricultural systems. Systems thinking allows us to map out the relationships and feedback loops that define how agricultural systems function. By identifying key leverage points, we can design interventions that create the most significant positive impact.?

For example, improving smallholder access to markets is not just about building roads or providing transportation. It involves understanding and addressing the entire value chain—from input supply to post-harvest processing and market access. Systems thinking also highlights how shifting processing to the origin can enhance value addition and reduce inefficiencies across the chain. By using this approach, we can see how changes in one part of the system (e.g., better access to credit) can trigger positive changes throughout the entire system, leading to greater resilience and sustainability.?

2. Transforming Stakeholder Dynamics?

2.1 Impact on Multi-Stakeholder Networks

Agriculture is inherently a collaborative endeavour. Farmers, governments, NGOs, private companies, and consumers all play roles in shaping the food system. However, these relationships are often imbalanced, with smallholders typically having the least power and influence. Systemic innovation can change this by reshaping the multi-stakeholder networks that govern agriculture.?

For example, community-supported agriculture (CSA) models have created direct connections between smallholders and consumers in some regions. These models not only provide farmers with a reliable market but also empower them by giving them a direct voice in how their products are valued and distributed. Such changes in stakeholder dynamics are a hallmark of systemic innovation—they create a more level playing field where smallholders can participate as equals.?

However, systemic innovation must also address the distribution of knowledge across the supply chain. A significant issue today is that vital knowledge about sustainable practices, market trends, and technological advancements is not effectively shared with smallholders. Addressing this gap is critical for empowering smallholders and ensuring they can fully participate in and benefit from systemic change.?

2.2 Shifting the Rules of the Game

Systemic innovation involves changing the “rules of the game” in agriculture. This could mean reforming policies that have traditionally favoured large-scale industrial farming at the expense of smallholders. It might involve developing new regulatory frameworks that promote sustainable practices or creating financial systems that make it easier for smallholders to access credit and investment.?

One critical area needing rethinking is where processing steps take place within the value chain. Currently, raw commodities are often transported to Western countries for processing, leading to inefficiencies such as spoilage during transport and missed opportunities for value addition in the countries of origin. Shifting processing closer to the source can reduce waste and ensure more economic value generated by agriculture remains in the producing countries, contributing to their development.?

This requires a significant shift in how we view global supply chains. It asks Western companies and consumers to reconsider income and profit distribution, recognising that a more equitable approach benefits the entire system by creating more stable, prosperous markets.?

3. Enabling Change Through Governance, Finance, and Corporate Action?

3.1 The Role of Mandatory Regulation by Governments

For systemic change to take root, mandatory regulation by governments is essential. While many businesses recognise the importance of sustainability, the reality is that most will still prioritise their bottom line over broader environmental and social goals unless compelled otherwise. Without regulatory pressure, the motivation to adopt sustainable practices remains secondary to profit-driven imperatives.?

Regulations enforce a level playing field, ensuring all stakeholders adhere to sustainability standards. This is particularly important in agriculture, where unsustainable practices can cause long-term damage to ecosystems and communities. Governments must implement policies that require sustainability reporting, enforce environmental standards, and incentivise sustainable practices across the value chain. This regulatory framework is the foundation upon which sustainable systemic change can be built.?

3.2 Corporate Leadership and Strategic Early Adoption

Corporate leadership is crucial in driving systemic change. Companies, especially those with significant influence in the global food supply chain, need to prioritise sustainability as a core business strategy. This includes embedding sustainability into corporate governance, setting ambitious goals, and aligning executive incentives with long-term environmental and social outcomes.??

Being an early adopter of sustainability not only provides strategic advantages—such as access to new markets and improved brand reputation—but also positions businesses as leaders in a regulated environment. Early adoption allows companies to shape industry standards and reduce long-term risks associated with environmental and social challenges, making it both a smart business decision and a critical component of systemic innovation.?

4. Strengthening Cooperative Models and Finance Access?

4.1 Strengthening Cooperative Models

Cooperatives and producer organisations are key drivers of systemic innovation in agriculture. By pooling resources, sharing knowledge, and collectively negotiating market access, cooperatives empower smallholders to overcome many of the challenges they face individually. Strengthening these organisations through capacity building, governance improvements, and financial support can enhance their ability to drive systemic change.?

Cooperatives should also be at the forefront of implementing sustainable practices, setting an example for their members and the broader community. By integrating sustainability into their operations, cooperatives can ensure that smallholders not only survive but thrive in a rapidly changing agricultural landscape.?

4.2 Access to Sustainable Finance and Education

Access to sustainable finance is crucial for enabling smallholders to invest in sustainable practices. Governments, development banks, and private investors should create financial products tailored to the needs of smallholders, such as low-interest loans, grants, and guarantees. Impact investing, where returns are linked not only to financial performance but also to positive social and environmental outcomes, should be encouraged.?

Education and capacity building are equally important. Smallholders need training on sustainable agricultural practices, financial literacy, and the use of digital tools. Educational initiatives should be supported by both the public and private sectors, ensuring that smallholders have the knowledge and skills needed to implement sustainable practices effectively.?

5. Implementing and Monitoring Systemic Change?

5.1 Integrated Value Chain Approach

A holistic approach that integrates all elements of the value chain—from input suppliers to consumers—is necessary for systemic change. This includes improving infrastructure, enhancing market access, and ensuring that all players in the value chain adhere to sustainability principles. Collaboration across the value chain can drive innovation, reduce waste, and create more equitable distribution of value.?

Shifting certain processing steps to the origin of production can play a critical role in this approach. It reduces inefficiencies, minimises waste, and ensures that more value is captured by the countries that need it most. This rethinking of value chains is essential for building a more equitable and sustainable global food system.?

5.2 Continuous Monitoring and Adaptation

Systemic change is an ongoing process that requires continuous monitoring and adaptation. Governments, corporations, and cooperatives must establish mechanisms for tracking progress, identifying challenges, and adapting strategies as needed. This iterative process ensures that the value chain remains resilient and responsive to changing conditions.?

By committing to continuous improvement, stakeholders can ensure that the transition to sustainable agriculture is both effective and enduring.?

5.3 Stakeholder Collaboration and Public-Private Partnerships

Collaboration among all stakeholders, including governments, NGOs, businesses, and farmers, is essential for achieving systemic change. Public-private partnerships can leverage the strengths of each sector, combining public policy support with private sector innovation and resources. These partnerships can drive large-scale projects that benefit entire communities and ecosystems.?

Conclusion: A Roadmap to Urgent Systemic Change?

Systemic change in agriculture is not just an option—it is an imperative. Without it, we face growing economic instability, social unrest, and escalating climate crises. By following this roadmap, we can build a resilient, equitable, and sustainable agricultural system that not only empowers smallholders but also safeguards global food security and environmental health for generations to come.?

Achieving this vision requires more than incremental improvements; it demands bold, coordinated action across all sectors. We must integrate cutting-edge technology with sweeping policy reforms, strong corporate leadership, and reinforced cooperative models. These elements are the cornerstones of a comprehensive transformation of the agricultural value chain, from production to market access and beyond.?

But the time to act is now. Embracing systemic innovation isn’t just about improving efficiency—it’s about fundamentally reshaping the future of agriculture to ensure stability, prosperity, and sustainability on a global scale. Let’s seize this critical moment to work together, leveraging our collective strength, to build a more resilient agricultural future that feeds the world, nurtures the planet, and empowers all people.?

Join the movement for systemic change?

Whether you’re a policymaker, business leader, farmer, or consumer, your role is crucial. Advocate for the policies, practices, and partnerships that will drive this transformation. Invest in sustainable solutions, support smallholder farmers, and push for transparency and equity across the value chain. Together, we can make this vision a reality—before it’s too late.?

This is our series's 7th and final article introducing the need for systemic change within small-scale farmers' agricultural value chain. You might be interested in the other articles as well:

• Urgent Shift Needed: Embracing Systemic Innovation for a Holistic Agricultural Transformation
• Why Sustainable Agriculture is Crucial for our Future: Meeting Global Food Demands Responsibly
• Supporting Smallholder Farmers: Tackling Barriers for a Sustainable Transformation
• The Quadruple Bottom Line: Beyond Profit—The Power of Purpose in Sustainable Agriculture
• How Digital Tools and Systemic Change Secure a Sustainable Future for Smallholder Farmers
• Transforming Agriculture: The Co-op Model as a Catalyst for Systemic Change

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