Risks of smallholder exclusion from upgrading food chains

Abstract

Large agri-industries fuel the upgrading of certain food chains. This chapter presents the risks of smallholders not benefitting from this upgrading. The first risk is that upgrading does not spread to all food value chains, generating territorial inequalities. The second is that the most endowed smallholders are included while the poorest are excluded. The third risk is that those smallholders who are included tend to be in a weak bargaining position against large agri-industries. As a result, most smallholders do not get higher incomes from upgrading food chains.