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Whereas numerous studies are available that describe the structure and components of food systems, far less attention is usually given to the analysis of drivers for food system change. Since such transformations take place at the interface of multiple stakeholders' interests, involve the use of multiple instruments and may lead to multiple outcomes, it is of foremost importance to understand the underlying dynamics of food system transformation processes. This article identifies different leverage points for improving dietary outcomes and outlines analytical perspectives on three possible interventions along the food value chain that go further than just 'solving the problem'. Real systems solutions intend to address fundamental interactions within the food system and thus provide unusual solutions to change its dynamics. This opens the way to new insights on appropriate policies and innovative incentives for steering food system transformation processes. [ABSTRACT FROM AUTHOR]

Most policies and incentives that aim to enable smallholder farmers towards the intensification of their agri-food production systems focus on supply-side strategies, such as training, technical assistance or credit services. Far less attention is usually given to demand-side drivers, such as the role of midstream value chain actors supporting smallholder's investments in primary production. This explorative paper provides new insights on the value addition in the production vs. the midstream segments of agri-food value chains. It focusses attention on the influence of value chain integration on smallholders' production and investment opportunities, and the implications for the structure of primary production. We use data from several value chains in sub-Saharan Africa to illustrate how farmers link to commercial midstream actors are able to enhance resource productivity, efficiency and profitability. In addition, we show that a larger role of the midstream in value added creation is associated with a more equal farm size distribution. [ABSTRACT FROM AUTHOR]

Market reforms are considered as an important strategy to support poverty reduction amongst small-scale agrifood producers in developing and emerging economies. Most attention is commonly focused on voluntary initiatives that provide a guaranteed minimum price to farmers and improve services for rural communities, supplemented by good agricultural practices for higher productivity, environmental quality and to support living incomes. Whereas alternative trade movements have become 'mainstream' their market shares are stagnating. Since agrifood markets have changed substantially and trade networks are restructured, smallholders are increasingly controlled by midstream agents (traders and processors) and captured into contract farming arrangements. This article outlines a new discourse around value chain transformation that supports local processing for income and employment generation and favours better integrated supply chains based on circularity and trust. It identifies new alliances between producers and traders that change market governance beyond simple adjustments in exchange relationships. Combining public investments (market infrastructure) with civic-driven organization (cooperation and contracts) and private networks (for profit redistribution along the value chain) offers interesting opportunities for linking sustainable business practices with value-driven trade arrangements. • Market reforms cannot guarantee smallholder inclusion. • Voluntary labels and market-based certification initiatives have reached their limits. • Agrifood markets and commodity trade networks are fundamentally changing. • New value chain alliances support structural transformation of market governance. • Market transformation programs offers interesting challenges for research and policy. [ABSTRACT FROM AUTHOR]

This article presents a systematic comparison between conventional and 'differentiated' coffee value chains, paying attention to (micro and macro) economic performance and environmental outcomes at different midstream segments of the Honduran coffee value chains. Growth has been strong in the Honduran coffee sector, especially among coffee cooperatives and commercial enterprises devoted to the production of 'differentiated' coffees at premium prices. We rely on a systematic data inventory of input use, costs, and benefits of all agents involved at different midstream stages of the coffee value chains to compare their performance. We find that midstream integration is critical for yield and quality improvement of Honduran coffee. This can be reinforced through voluntary certification (mainly for organic produce) and branding. Moreover, upgrading of conventional coffee for sales at local and regional markets offers some promising prospects for inclusion and sustainability. [ABSTRACT FROM AUTHOR]

Development programmes are increasingly supporting inclusive value chains (VC), in which resource-poor farmers are included in commercially viable VC opportunities. Strengthening social capital elements between VC actors is key to improve the farmers' livelihood. This article presents a novel impact evaluation method called the VC-Lab to assess the effectiveness of such development programmes, including long-term effects. The method is based on a Public Private Partnership (PPP) in the sorghum VC in Kenya. It consists of different components: (1) a VC analysis; (2) games to assess risk attitude and trust relationships between VC actors; and (3) an agent-based model (ABM) to assess the long-term impact. ABM parameter settings are based on the outcomes of the VC analysis and game results. The level of trust of participating farmers delivering to the participating trader is significantly higher than the level of trust of non-participating farmers in their trader. ABM simulations indicate that in the long run the PPP will lead to higher levels of trust and increased income, whereby training is the key intervention mechanisms. The VC-lab proves to be a valuable evaluation tool. Application of the VC-lab to other VCs, to other commodities and in other countries is needed to test wider applicability of the methodology. [ABSTRACT FROM AUTHOR]

In this article, we analyze opportunities and constraints for upgrading product quality in the dairy value chain in Ethiopia. Our analysis is based on an integrated understanding of supply chain performance both from producer and from consumer perspectives. We outline as main drivers for quality upgrading: (a) factors that influence producers’ willingness to invest toward intensification by smallholder dairy farmers and cooperatives and (b) factors that induce consumer’s willingness to pay for healthy and nutritious dairy products delivered at specific retail outlets. Since there are large gaps between upstream producers incentives and downstream consumers motives, possibilities for dairy quality upgrading remain fairly limited. Given this market structure, decisive policy support is required for better tailoring producer’s investments with consumer preferences. [ABSTRACT FROM AUTHOR]

Voluntary commodity standards are widely used to enhance the performance of tropical agro-food chains and to support the welfare and sustainability of smallholder farmers. Different methods and approaches are used to assess the effectiveness and impact of these certification schemes at farm-household, village, cooperative, and regional level. We provide an overview of the results from robust impact studies on coffee, tea, banana, cocoa, and cotton certification programmes. Overall outcomes show rather modest net revenue effects for farmers, small direct income effect for wage workers, and contested sustainability effects. Most impact studies focus on primary sourcing, but devote less attention to changes in trust and governance throughout the value chain. Moreover, implications for gender issues and supply chain trust are not always fully addressed. In order to better understand these somewhat disappointing effects, we discuss different fallacies and drawbacks that affect impact studies concerning commodity certification programmes. Main attention is given to perverse incentives for intensification and specialization that arise from certification. Moreover, spillovers to other (non-certified) farmers and spatial externalities at landscape level may reduce net effects. Important secondary effects related to behavioural change (risk, trust) and local innovation dynamics are usually overlooked. Current practices in value chain development programmes should focus increasingly on dynamic effects of upgrading and improved market integration. New interactive impact assessment approaches (gaming, multi-agency simulation) that address integrated value chain relationships offer promising perspectives for real-time and systematic analysis of alternatives for smallholder value chain inclusion beyond certification. [ABSTRACT FROM AUTHOR]