Business models that are inclusive of small scale suppliers
Small-scale farmers, who form the bedrock for global agrifood supply, are faced with agrifood markets in an unprecedented state of flux. Domestic markets are undergoing rapid but uneven modernization, and higher value and export markets are increasingly the preserve of larger scale suppliers.
Inclusive business models as those which do not leave behind small- scale farmers and in which the voices and needs of those actors in rural areas in developing countries are recognised. This paper describes a range of business models for inclusive market development within the context of agrifood restructuring and modernization. It focuses specifically on models that improve the inclusiveness, fairness, durability and financial sustainability of trading relationships between small farmers on one hand and downstream agribusiness (processors, exporters and retailers) on the other. While the authors do address what producers need to do to compete in modern dynamic markets, and the role of facilitating public policy, the focus is more on the buyers and their role as partners in development.
A New Business Model for Sustainable Trading Relationships publication
Authors: Mark Lundy, Bill Vorley, and James MacGregor, July 2008.