Promoting access to market-oriented smallholder value chains (MSVC)

Context

The majority of rice producers are smallholder farmers who often manage areas of less than one hectare. Due to that, they occupy a weak position along the supply chain. Caused by a low degree of organisation and characterised by poor infrastructure, rice farmers lack access to knowledge, technical advice, quality farm inputs and machinery as well as to financial services.

At the same time, rice suppliers from Thailand, Viet Nam and Indonesia face major difficulties in complying with the regulations of the main importing countries.

Additionally, the agricultural sector is greatly affected by climate change through land-use related emissions. Smallholder rice farmers thus face the higher risks of being excluded from global markets as they struggle to cope with climate developments, leaving them and their families without an income and with deteriorated living conditions.

Objective

GIZ and the food and agricultural company Olam International Ltd. joined forces within the develoPPP programme of the BMZ to enable smallholder rice farmers in Thailand, Viet Nam and Indonesia are now better able to access climate-sensitive market-oriented smallholder value chains.

Approach

The project partners provide expertise and support in economic skills as well as sustainable agricultural practices. The aim is to establish rice farming as a solid foundation on which smallholder farmers can make a living. Activities in this area include training farmers in good agricultural practices, commercial basics and improving access to inputs and financing.

A quality assurance system is being introduced to support compliance with food safety laws, international conventions and national regulations regarding social and environmental criteria for more environmentally friendly rice production and processing. The main strategy is to establish long-term business partnerships and facilitate effective collaboration between relevant actors.

Last update: August 2023