Value Proposition

Smallholder farming system is the primary source of livelihood for most families in Africa. Therefore, increasing farm productivity and profits in smallholder farms is essential to generating economic growth in rural areas and reducing hunger and poverty. However, smallholder farmers face a myriad of challenges, which combine to make them uncompetitive in the local, regional and international markets.

Production for the markets calls for careful planning and coordination of production resources, including production means such as land, water, on-farm and off-farm infrastructure, labour capital and good management of these resources. Poor access to and/ or organization of these resources affect the way in which smallholder farmers can benefit from opportunities in agricultural markets, especially in terms of the volume of the products traded and the quality of these products. The value chain management model ensures that challenges to production are addressed through proper organization and participation of stakeholders. The main advantages that are derived by being involved in an effective value chain are the ability to reduce the cost of doing business, increase revenues, increase bargaining power, improve access to technology, information and capital and by doing so, innovate production and marketing process to in order to achieve a higher value and provide a higher quality of product to the consumers.

The value chain management model helps farmers to secure markets and enter into formal market contracts that can be used to access credit; to share information among partners; to consolidate production and minimize transaction cost; to improve their bargaining power; to add value to products and to access high-value markets.