Smallholders can feed the world

Market-oriented agriculture transforms lives and moves people out of poverty.

Updated: Mar 23, 2025
article By Kanayo F. Nwanze

This article illustrates the transformative potential of market-oriented agriculture for smallholder farmers. It showcases success stories from various countries where support from organizations like IFAD has enabled farmers to improve their livelihoods and contribute to food security. This information is valuable for policymakers, development practitioners, and anyone interested in understanding the role of smallholders in global food systems.

Key Insights

Egyptian Example: Market-Oriented Agriculture in the Desert

Ahmad Abdelmunem Al-Far and other Egyptian farmers transformed previously barren land by embracing market-oriented agriculture. They increased their productivity and joined the marketplace. With access to credit, drip irrigation, and training, these farmers cultivate various crops and livestock. By 2008, they were producing 40,000 tons of oranges.

Heinz Partnership: An Example of Value Chain Linkage

A particularly successful contract involves Heinz, which purchases over 6,000 tons of tomatoes annually from 300 project farms. Heinz supplies seeds and guarantees to purchase half of their harvest at a set price. If the farmers cannot sell the remaining tomatoes on the domestic market, Heinz will buy them as well. This approach creates a stable market and reduces risk for the farmers.

The Scale of Smallholder Farming

There are approximately 500 million smallholder farms globally, supporting the livelihoods of over 2 billion people. These farms produce around 80% of the food consumed in Asia and sub-Saharan Africa. The scale demonstrates the importance of smallholder farmers in feeding the world.

Farming as a Business

The article stresses the importance of treating farming as a business. Smallholders and producers should be viewed as entrepreneurs. The author argues that clear linkages along the value chain are necessary for them to succeed.

International Examples of Success

In Rwanda, Elysée Nkundabagenzi can now provide enough vegetables and milk for her family’s needs, send her children to school, purchase health insurance, and build a new house.

In Zambia, Esther Siakanede grows cabbages and tomatoes for local markets, allowing her to send her children to secondary school, buy livestock, and build a house.

In Guatemala, Pedro Tun and his colleagues are farming high-value crops, purchasing irrigation equipment, building a new storage facility, and working with private sector partners.

Call to Action

The author encourages investment in rural areas to create communities where young people can build healthy and prosperous lives, contributing to a hunger-free world.

Key Statistics & Data

  • 500 million: Approximate number of smallholder farms worldwide.
  • 2 billion: Approximate number of people who depend on smallholder farms for their livelihoods.
  • 80%: Percentage of food consumed in Asia and sub-Saharan Africa produced by smallholder farms.
  • 6,000 tons: Amount of tomatoes purchased annually by Heinz from 300 project farms in Egypt.

Methodology

This article presents a series of case studies and observations based on the author’s experiences and IFAD-supported projects. The methodology involves collecting and sharing success stories from diverse regions to illustrate the positive impact of interventions aimed at empowering smallholder farmers.

Implications and Conclusions

The article concludes that smallholder farmers can significantly contribute to global food security and poverty reduction with the right support. Key implications include the need for increased investment in agricultural and rural development, the importance of treating farming as a business, and the necessity of creating strong value chain linkages. It calls for a firm commitment from governments, NGOs, the private sector, and smallholder farmers to create sustainable and prosperous rural communities. The success stories presented demonstrate that positive change is possible with targeted interventions and a focus on empowering smallholder farmers.

Key Points

  • Market-oriented agriculture can transform lives and move people out of poverty, as demonstrated by farmers in Egypt who reclaimed desert land.
  • Investments in agricultural and rural development are essential to help smallholder farmers move from subsistence farming to participating in the marketplace.
  • Smallholder farms, which number around 500 million worldwide, produce approximately 80% of the food consumed in Asia and sub-Saharan Africa.
  • Farming at any scale should be treated as a business, with smallholders recognized as entrepreneurs.
  • Establishing clear linkages along the value chain, from production to consumption, is crucial for the success of smallholder farmers.
  • IFAD-supported projects in countries like Rwanda, Zambia, and Guatemala have transformed communities by increasing production, income, and access to education and healthcare.
  • Commitment from governments, NGOs, the private sector, and smallholder farmers and their associations is essential for sustainable economic growth.