Supporting the adoption of the value chain analysis and development approach to strengthen FAO’s youth employment programmes is a key focus for us. By analysing the entire value chain through a youth-focused lens, we can identify the current engagement of youth, as well as the opportunities and constraints for increased youth involvement in agriculture value chains at all levels for both entrepreneurship and wage employment. In collaboration with the Decent Rural Employment Team of the Inclusive Rural Transformation and Gender Equality (ESP) Division, we have developed guidelines for the Youth-sensitive value chain analysis and development, while also supporting the ongoing youth-sensitive value chain (YSVC) capacity building trainings for youth engagement through value chain (VC) development. The guidelines provide information and practical guidance to practitioners to select an agricultural VC with significant potential for youth employment and entrepreneurship. They also offer tools to conduct context-specific youth employment analyses of the enabling environment and at each function of the core and extended VC. Together with FAO Integrated Country Approach (ICA) programme we have completed the youth-sensitive value chain analysis in Uganda, Rwanda and Kenya. The reports can be found through links on the ICA webpage.

RELATED LINKS

• Integrated Country Approach (ICA)
• Opportunities for Youth in Africa (OYA) programme by UNIDO and FAO

The world is experiencing unprecedented urban growth. Today, over half the population lives in urban areas and almost 70 percent is projected to live in urban areas by 2050. The FAO Framework for the Urban Food Agenda was prepared in response to the growing demand for a guide to support countries and their sub-national and local governments, in taking actions to enhance the sustainability of urban and peri-urban agrifood systems and to help achieve the Sustainable Development Goals set out in Agenda 2030. Assessing the performance of urban agrifood systems and understanding the key challenges to sustainability and resilience are the first steps towards building a sustainable urban agrifood system. The Rapid Urban Food Systems Appraisal Tool (RUFSAT) is being developed in response to the need for a structured approach to urban agrifood systems assessment. It appraises the social, economic and environmental sustainability of the system to support decision makers in formulating policies and strategies towards making urban agrifood systems more resilient and sustainable. Specifically, it aims to:

• present a holistic overview of the functioning of the urban agrifood system;
• identify the key challenges to sustainability and resilience of the system;
• identify approaches for transformation of urban agrifood systems to:
  • better meet consumer needs for safe, healthy, and nutritious diets;
  • support sustainable livelihoods for those employed in agrifood systems;
  • protect the environment; and
  • strengthen the resilience of agrifood systems in the face of shocks.

The RUFSAT methodology is based on FAO’s Sustainable Food Value Chain principles, together with an analysis of urban consumer habits and needs. RUFSAT is underpinned by Geographic Information System mapping that allows the research team to identify the locations of food supply chains, market-oriented infrastructure, wholesale and retail outlets and the demographics of the urban population. RUFSAT has been field tested in a number of countries including Bangladesh, Ecuador, Kenya, Peru, Rwanda and Senegal. It is currently being revised to incorporate the feedback received from the country experiences.

Unleashing the potential for inclusive agricultural growth and transformation requires coordinated and strategic public and private investments in the agricultural sector. Against a background of limited government resources and expertise, public-private partnerships for agribusiness development (agri-PPPs) are increasingly being promoted as a mechanism to pool resources, reduce risk, improve productivity and drive growth in the agriculture and agrifood systems.

The traditional rationale for partnerships between the public and private sectors (PPPs) is linked to market and policy failure in the delivery of public goods such as roads, education and health services. Similarly, agri-PPPs respond to the failed delivery of public goods such as food security, environmental protection and the socioeconomic viability of rural areas. By combining the resources and complementary capacities of both public and private partners under a well-defined legal and regulatory framework, governments can obtain economic and social benefits from public investments beyond what they could achieve alone.

Agri-PPPs have the potential to: a) leverage financing by pooling financing from various sources; b) promote risk sharing as the high risks of doing business in the agriculture sector can often deter firms from investing alone; c) enhance innovation and market access – for public partners, agri-PPPs can facilitate access to innovative technologies and superior management and marketing skills available in the private sector; and d) increase the inclusion of smallholder farmers, small and medium enterprises (SMEs), women and youth, by fostering collective action and capacity development and creating employment and entrepreneurial opportunities. 

FAO has documented evidence on agri-PPPs in more than 15 countries across Africa, Asia and Central America. Lessons learned were synthesized in the publication below.

RELATED LINKS

• Public–private partnerships for agribusiness development – A review of international experiences

Small and medium enterprises (SMEs) play a critical role in the agrifood systems of developing countries. However, they often lack the business skills to manage and grow their businesses in a sustainable manner. In 2020/21 FAO, African Union and Agripreneurship Alliance undertook a study on the Agribusiness Incubation and Acceleration Landscape in Africa. The study demonstrated the important role played by agribusiness incubators in ideation, start-up and scaling-up of agrifood SMEs. Nonetheless, the study also noted that agribusiness incubation ecosystems remain under-developed, and incubators on the continent continue to face a number of challenges that limits their scale and impact. Based on the findings from the study, FAO has developed a programme to strengthen agribusiness incubation ecosystems and policy frameworks, aimed at providing structured support to agribusiness incubators and Enterprise Support Organizations (ESOs) as part of national agrifood systems strategies for creation and growth of agrifood SMEs. The programme consists of four main components:

1. Strengthening the policy environment for agribusiness incubation;
2. Strengthening the business models and capacities of incubators and Enterprise Support Organizations (ESOs);
3. Strengthening networking and collaboration amongst incubators, ESOs, policy makers, industries and development partners;
4. Improving access to tailored financial services for incubates and incubators by partnering with national and regional financial service providers.

RELATED LINKS

• Inclusive Business Models – Guidelines for improving linkages between producer groups and buyers of agricultural produce

Contract farming is an innovative business modality, especially in developing regions. It serves as a bridge between agrifood producers and buyers, enhancing producers' access to markets, resources, technologies, and support services. This, in turn, promotes the growth of agribusinesses and the commercialization of agrifood value chains. Notably, contract farming offers advantages to small-scale producers and micro, small, and medium-sized enterprises (MSEMs) while also contributing to sustainability objectives. The Agrifood Economics Division (ESA) leads the overall management of the contract farming work at FAO, which has been implemented by a multidisciplinary team in collaboration with various partners for over two decades.

The primary focus centres on agribusiness, operational and legal aspects of contract framing, with a participatory approach, which aims to ensure ownership and sustainability of the outcomes.

Technical support on contract farming encompasses the following four key areas:

1. Knowledge management: Offering training and other capacity development support through the FAO’s Contract Farming Resource Centre.
2. Legal and regulatory environment: Assessing the legal, regulatory and policy environment related to contract farming, providing guidance on regulatory framework and supporting the development of draft legislations to create an enabling environment for contract farming in countries.
3. Value chain analysis: Conducting evidence-based analysis and feasibility assessment to help stakeholders make informed decisions regarding the adoption, implementation and upscaling of contract farming operations.
4. Facilitate linkages between farmers and buyers: Promoting connections among various value chain actors, as well as designing and facilitating contract farming pilots, including the development and negotiation of model contract agreements.

RELATED LINKS

• Contract Farming Resource Centre

The agrifood systems are undergoing a profound transformation, in part driven by the increasing adoption of digital technologies. Our work contributes to the digital agriculture priority programme within FAO Strategic Framework 2022–31. We adopt a holistic value chain approach and focus on digital innovations and their associated business models, best practices, investments and policies for the sustainable development of agrifood value chains (AVCs).

Did you know that globally, the post-farmgate segment of AVCs accounts for 80% or more of a food dollar (consumer food expenditure), with a quarter going to processing and a half to the wholesale and retail trade? We believe that there are immense opportunities to upgrade and grow AVCs, especially in developing regions. Therefore, we strive to harness the power of digital innovations to transform AVCs from farm to fork, making them more efficient, modern and sustainable.

Our efforts revolve around innovations that alleviate constraints and enhance efficiency along AVCs, foster the development of agribusinesses and agro-industries, provide benefits to smallholder producers, MSEMs and rural communities, and create sustainable impacts. Our recent and ongoing work involves exploring blockchain technology, integrated digital platforms, Metaverse and e-commerce-based rural clusters, and covers various issues such as e-commerce, traceability, supply chain management, financial services, certification, marketing and sustainability measures.

Our work includes creating and disseminating knowledge and providing technical support to field projects and programmes on digital innovations for AVC development. For instance, we conduct research to identify needs, challenges, opportunities and solutions, assess feasibility and provide evidence to support informed decisions on adoption. In addition, we offer policy recommendations aimed at fostering an enabling environment for the development and adoption of technologies and innovations, as well as promoting associated investments. Our efforts also extend to supporting training, sharing of knowledge and best practices and other capacity development activities. Furthermore, we promote linkages and partnerships with various stakeholders in the public and private sectors, especially through platforms such as the South-South and Triangular Cooperation.

RELATED LINKS

• FAO Office of Innovation
• FAO Digital Agriculture
• FAO e-agriculture
• FAO Digital Village Initiative Platform
• FAO Science, Technology and Innovation

Under FAO Strategic Framework 2022–31, bioeconomy for sustainable food and agriculture is one of the 20 Priority Programme Areas (PPAs). Our work involves supporting the Office of Climate Change, Biodiversity and Environment (OCB) to lead this PPA. We are advancing sustainable bioeconomy solutions by fostering technological innovation and promoting the inclusion of rural, indigenous, and marginalized populations, as well as disadvantaged communities, youth, and female producers and consumers. FAO acknowledges that youth play a critical role as future managers of the earth’s eco and agrifood systems. Thus, we focus on youth in the effort to develop a bioeconomy that is both inclusive and resilient to future crises, while also contributing to the achievement of the SDGs. To further support a youth-inclusive bioeconomy, we lead efforts in assessing and highlighting opportunities and success stories for youth employment, entrepreneurship and engagement in the bioeconomy.

RELATED LINKS

• Sustainable and circular bioeconomy for food systems transformation
• Introducing Bioeconomy for Sustainable Food and Agriculture
• FAO bioeconomy visual assets