CASA TAF’s second annual learning paper adds to the body of knowledge on the commercial and development impact potential of smallholder-sourcing agribusiness models.
The paper quantifies the share of investment flowing to agribusinesses sourcing from smallholder farmers within the broader category of agriculture; and captures 15 investor perspectives on the commercial viability and development impact of companies that source from smallholder farmers.
Five key takeaways are recommended for investors, agribusinesses and development partners which will enable greater recognition of smallholder-sourcing businesses as an asset class; catalyse the provision of targeted upstream support to smallholder suppliers; and encourage the creation of investment vehicles with less prescriptive investment horizons to allow flexibility for investments to generate returns at their own rate.