‘How smallholder farmers can contribute to value-addition’

The United Nations Conference on Trade and Development (UNCTAD) has identified the role of smallholder farmers in making meaningful contributions to sustainable economic development if stimulated with the right policies.

According to UNCTAD Commodities and Development Report 2015, smallholder farmers manage just 12 per cent of all agricultural land, yet they produce more than 80 per cent of the world’s food in value terms and thus, deserve more attention therefore from policymakers to unleash their full business potential.

Indeed, the report showcased a number of instances where factors, such as innovative financing mechanisms, access to contract farming, better and increased training, knowhow and motivation services, and agricultural and financial services using information and communications technology, have gradually increased smallholders’ productivity and integration into markets.

The report showed that “though there are marked differences by country and region in the average size of small farms, it is estimated that more than 90 per cent of the 570 million farms worldwide are managed by an individual or a family, and that mostly they rely on family labour. Estimates further show that about 2.5 billion people depend on agricultural production systems for their livelihoods. Smallholder farmers also play a key role in environmental sustainability objectives, including climate change mitigation, by protecting biodiversity in agriculture.
“It is now time for the international community to recognize the vital role smallholders play the world over in ensuring continued access to nutritious natural food and the achievement of global food security,” UNCTAD Secretary-General Mukhisa Kituyi said.
“I call on all development partners who have pledged to increase resources directed to the fight against climate change to devote special attention to smallholder farmers who are key players in sustainable agricultural practices,” Kituyi added.

The report highlights a number of enduring challenges facing smallholders to include limited access to agricultural inputs (such as fertilizers, seeds, land and labour) and credit markets, unfulfilled capacity to commercialize their produce due to deficient or non-existing infrastructure such as paved roads and lack of access to market information, which leads to power imbalances tilted against smallholders in markets.

Moving away from business as usual and striving to achieve the Sustainable Development Goals, the report argues, will require a better alignment of policies, pledges and actions at the national, regional and international levels. It will also require ensuring that development finance and climate finance for the agricultural sector target primarily small-scale farming as well as women and young people, who are acknowledged as key actors in agricultural transformation.

The report shows that developing countries can benefit from greater participation of smallholders in sustainable commodity production and trade. To this end, the report suggests that these countries put in place policies to support sustainable agricultural development, strengthen institutional capacities, provide appropriate infrastructure, facilitate technology access, secure land tenure and create a business-friendly environment for smallholders.