Inclusive agribusiness models in the Global South: the impact on local food security

Abstract

Private business is increasingly presented as a leading agent of development in policy, also in the pursuit of developmental goals beyond business, such as food security (SDG2 in particular). It is argued that the private sector is more effective and efficient in raising investment capital and targeting goals than entities of the public sector and civil society. This has spawned inclusive business models — ways of doing business that benefit the poor as producers or consumers. Inclusive agribusiness improves the livelihoods of poor farmers by integrating them in commercial value chains and thus gaining access to markets, inputs, and services like finance and training, in ways that are commercially viable. This contribution seeks to position this inclusive agribusiness approach in its political-economy context and assess its merits in pursuing food security through impact pathways such as availability and access (income). While there is literature on inclusive business and food security, its scope tends to be limited to participating smallholders while overlooking other community members. The main argument the present paper makes is that while there is evidence for positive income effects among participating farmers, there are few indications that this actually translates into improved food and nutrition security for the many. Shortcomings are briefly reviewed.