Facilitating market linkages for family farmers
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Small farmers can be linked to markets through traders, farmers’ organizations, agrifood processors, retailers, large hotels and supermarkets, or through formal contracts with large buyers under contract farming arrangements. Small farmers can also supply food to the public sector, for instance for schools and hospitals, under institutional procurement processes. FAO’s work contributes to ensuring that business models that include smallholders result in poverty reduction and food security while being competitive and sustainable. However, the inclusive and business elements of these efforts can be competing forces. Trade-offs are sometimes necessary when a business model that is inclusive of small actors has to generate profits.
