Pathways to Inclusive Smallholder Agricultural Commercialisation: Which Way Now?

Abstract

Agricultural commercialisation has the potential to provide a number of beneficial outcomes, including higher incomes and living standards for smallholder farmers. However, for these outcomes to be achieved, commercialisation must be inclusive and broad-based so as to link a large proportion of smallholders in rural areas to commercial, highly profitable value chains. In Malawi, where smallholder farmers contribute about 80 per cent to total food production and 20 per cent to total agricultural export earnings, agricultural commercialisation is especially imperative. While several activities have been undertaken to promote smallholder agricultural commercialisation over the past three decades, progress has not been satisfactory. Most smallholder farmers do not engage with markets on a consistent or sustainable basis. The main goal of the study on which this briefing paper is based was, therefore, to understand and track the underlying dynamics of smallholder agricultural commercialisation over time, and to identify policy recommendations to address the issues that exist in its uptake.