The Role Of Small And Medium Agrifood Enterprises In Food Systems Transformation The Case Of Rice Processors In Senegal

The objective of this publication is multifold. First, it aims to learn from small and medium sized agrifood manufacturers about the role they play in food systems transformation in Senegal and the policy reforms required to harness their potential. Second, and more specifically, it gleans lessons from structured interviews with Senegalese rice millers, based on their day-to-day realities, highlighting the business creativity used by these firms in order to deal with difficult enabling environments. Third, the methodology adopts a food systems approach to analyze the target enterprises; cross fertilizing different disciplinary perspectives in order to develop evidence for the public sector on integrated policy making that better supports the role of small agrifood enterprises in sustainable transformation. Finally, the study shares ideas about innovations related to procurement, operations, logistics, finance, marketing and sales, human resources, and strategic partnerships. An important contribution of this work is to demonstrate the multidimensional and complex nature of the environment within which agrifood manufacturers do business, and the need for the public sector to harness their potential to reduce poverty through off-farm employment generation and to improve food security through the sustainable supply of affordable and nutritious food to domestic and export markets.

This study looks at the business models of small and medium sized rice processors in Kenya in order to better understand the policy and technical support they need to grow and fulfil their role in agrifood systems transformation. More specifically, by employing semi-structured interviews with Kenyan rice millers, the technical study identifies challenges in their day-to-day business activities, including procurement, inbound and outbound logistics, in-house operations, financing, and human resources management. Additionally, the publication looks at opportunities for improving the business enabling environment in which these enterprises operate, providing a set of policy options to foster their role. The methodology cross fertilises different disciplinary perspectives in order to gather evidence for formulating policy in a way that integrates several policy fields and cross-cutting issues such as food safety, quality and nutrition; farmer-market linkages; decent rural employment and gender equality; or rural investment. The paper showcases how small and medium agrifood manufacturers respond to the business enabling environment and also contribute to local development from multiple angles.

Small and medium agrifood enterprises (SMAEs) such as processors, transporters and other service providers, play an important role in achieving sustainable development objectives. For instance, they connect farmers to urban markets; make significant investments in rural areas; provide employment to vulnerable populations such as women and youth; and propel the modernization of agrifood value chains. In sub-Saharan Africa, where agriculture comprises 53 percent of total employment and 15.5 percent of gross domestic product, supporting SMAEs can have great implications for pro-poor growth and rural transformation. To support SMAEs in fulfilling their potential, the Food and Agriculture Organization of the United Nations (FAO) has been dedicating research to better understand their policy and technical needs. This publication is such output and aims to provide an assessment of the policy and institutional framework in Senegal shaping the business models of small and medium agrifood processors. This systemic appraisal of Senegal’s business enabling environment for SMAEs was cross-fertilized with an analysis of the business models of three rice millers, resulting in a related FAO technical study 'The role of small and medium agrifood enterprises in food systems transformation: the case of rice processors in Senegal'. The analyses were carried out using a multidisciplinary agrifood systems approach, which looks at policies and institutions related to procurement, operations, logistics, finance, marketing and sales, human resources, and strategic partnerships. Due to its well-articulated policy documents and the extensive research on various aspects of the business enabling environment conducted in the country, Senegal represents a compelling case to illustrate the links between policies and the activities of agrifood processors.

This report provides an update on global progress towards the targets of ending hunger (SDG Target 2.1) and all forms of malnutrition (SDG Target 2.2) and estimates on the number of people who are unable to afford a healthy diet. Since its 2017 edition, this report has repeatedly highlighted that the intensification and interaction of conflict, climate extremes and economic slowdowns and downturns, combined with highly unaffordable nutritious foods and growing inequality, are pushing us off track to meet the SDG 2 targets. However, other important megatrends must also be factored into the analysis to fully understand the challenges and opportunities for meeting the SDG 2 targets. One such megatrend, and the focus of this year’s report, is urbanization. New evidence shows that food purchases in some countries are no longer high only among urban households but also among rural households. Consumption of highly processed foods is also increasing in peri-urban and rural areas of some countries. These changes are affecting people’s food security and nutrition in ways that differ depending on where they live across the rural–urban continuum. This timely and relevant theme is aligned with the United Nations General Assembly-endorsed New Urban Agenda, and the report provides recommendations on the policies, investments and actions needed to address the challenges of agrifood systems transformation under urbanization and to enable opportunities for ensuring access to affordable healthy diets for everyone.

Multi-stakeholder collaboration is an important process that can serve as a tool and strategy to solve complex issues and problems such as transforming national food systems towards more sustainable outcomes. This guide aims to support stakeholders working at all levels of the food system in the implementation of actions to transform their food systems. Centered on 5 building blocks underpinning successful multi-stakeholder collaboration for food systems transformation, the guide uses these constructions to illustrate ingredients of the process and show the interconnectedness of the steps needed to be successful. The guide also contains two annexes with a list of tools, and assessment questions. Annex 1 highlights a range of tools to support facilitators and participants with deeper guidance on a specific topic. Annex 2 contains a checklist of questions, customized to the content provided under each Building Block, and serves as an ongoing monitoring tool that can be used alongside the recommendations provided.

Small and medium-sized enterprises (SMEs) constitute the large majority of businesses both globally and in Asia and the Pacific. Despite their undeniable importance, the literature on SMEs in general, and agrifood SMEs in particular, is relatively limited. One specific area that deserves deeper consideration is the extent of digital engagement of agrifood SMEs along the agrifood value chain, from farm to retail and food services, in countries in Asia and the Pacific. The goal of this publication is to understand the current status of digitalization of agri-SMEs in Asia and the Pacific, what this process looks like and how to improve it. A value-chain approach was adopted to evaluate the digital maturity of all types of agri-SMEs across previously siloed categories – from farm to fork, and in the core and the extended value chain. The report analyses the benefits of digital transformation for agri-SMEs and the challenges they face in this process. Next, the report outlines practical and actionable measures that governments and other stakeholders may undertake to help agrifood SMEs stay ahead in the digital age. Special attention is given to the creation of a digital environment that enables agri-SMEs to increase the efficiency of their operations and allow them to grow. This is particularly important given that many agri-SMEs are located in rural agricultural areas, (where more than half of the population in Asia and the Pacific still resides), but where the environment is less favourable to digital transformation.

The methodology captures the multifaceted nature of small and medium agrifood enterprises (SMAE) business models, adding contextual insights to the literature and policy formulation processes on these small firms, which are often treated homogenously. The framework upon which the methodology is based links the business model of an SMAE to various policy areas including farmer-market linkages, decent employment (including gender equality and youth inclusion aspects), rural finance and investment, nutrition, food losses and waste as well as food safety and quality. This makes it possible to identify intervention areas that can help reconcile the commercial objectives of SMAEs with sustainable rural development outcomes. There is also scope for adapting the methodology to carry out further research on environmental sustainability and digitalization. Ultimately, more pertinent lessons can be drawn for policymaking purposes only by understanding the complex business arrangements of SMAEs and their interactions with the external environment, including the policy and institutional climate, consumer and supply base, as well as the community in which they operate.

In recent years, several major drivers have put the world off track to ending world hunger and malnutrition in all its forms by 2030. The challenges have grown with the COVID-19 pandemic and related containment measures. This report presents the first global assessment of food insecurity and malnutrition for 2020 and offers some indication of what hunger might look like by 2030 in a scenario further complicated by the enduring effects of the COVID-19 pandemic. It also includes new estimates of the cost and affordability of healthy diets, which provide an important link between the food security and nutrition indicators and the analysis of their trends. Altogether, the report highlights the need for a deeper reflection on how to better address the global food security and nutrition situation. To understand how hunger and malnutrition have reached these critical levels, this report draws on the analyses of the past four editions, which have produced a vast, evidence-based body of knowledge of the major drivers behind the recent changes in food security and nutrition. These drivers, which are increasing in frequency and intensity, include conflicts, climate variability and extremes, and economic slowdowns and downturns – all exacerbated by the underlying causes of poverty and very high and persistent levels of inequality. In addition, millions of people around the world suffer from food insecurity and different forms of malnutrition because they cannot afford the cost of healthy diets. From a synthesized understanding of this knowledge, updates and additional analyses are generated to create a holistic view of the combined effects of these drivers, both on each other and on food systems, and how they negatively affect food security and nutrition around the world. In turn, the evidence informs an in-depth look at how to move from silo solutions to integrated food systems solutions. In this regard, the report proposes transformative pathways that specifically address the challenges posed by the major drivers, also highlighting the types of policy and investment portfolios required to transform food systems for food security, improved nutrition, and affordable healthy diets for all. The report observes that, while the pandemic has caused major setbacks, there is much to be learned from the vulnerabilities and inequalities it has laid bare. If taken to heart, these new insights and wisdom can help get the world back on track towards the goal of ending hunger, food insecurity, and malnutrition in all its forms.