New paper calls for harnessing agrifood value chains to help farmers be climate-smart

Washington DC, November 28, 2024: The global food system is uniquely vulnerable to climate impacts, making adaptation of paramount importance. While contributing roughly one-third of total anthropogenic emissions, food systems around the world fortunately also hold immense potential for mitigation through improved practices and land use. A new article published today in Science emphasizes the critical role of agrifood value chains (AVCs) in supporting both adaptation and mitigation at the farm level.

Authored by Johan Swinnen (International Food Policy Research Institute), Loraine Ronchi (World Bank Group), and Thomas Reardon (Michigan State University and IFPRI), the paper pushes back against pessimism that agriculture cannot play an effective role in climate change mitigation and adaptation because of its fragmented nature. Structures and incentives within AVCs can effectively empower farmers to adopt climate-smart agricultural practices more widely. As such, AVCs have an important role to play in realizing the UAE Declaration on Sustainable Agriculture from COP28, signed by some 160 nations committed to integrating agriculture into climate strategies.

Unlocking the Potential of Agrifood Value Chains

AVCs, which link input providers (e.g., of seeds, fertilizers) to downstream entities (e.g., processors, retailers), represent a powerful mechanism for advancing climate-smart agriculture. These chains capture most of the food system’s economic value, both in OECD countries and the rapidly transforming Global South. 

“AVCs can drive farmers’ adoption of climate-smart practices through tools like resource provision contracts, technology transfer, and financial incentives,” says Johan Swinnen. “Historically, these mechanisms have been used to enhance food quality and safety, suggesting their applicability for addressing climate goals.”

Despite this potential, much of the effort on climate mitigation and adaptation to date has focused narrowly on large multinational firms and certification schemes for export markets. “Micro, small, and medium enterprises (MSMEs), which make up 80–90% of AVC companies in the Global South, have a vital role to play,” states Thomas Reardon, “and can unleash grassroots transformation by providing small farmers with essential inputs, training, credit, and logistics in support of climate-smart agriculture.”

The Role of Science and Innovation

The article emphasizes the importance of science and innovation in harnessing the power of AVCs in promoting climate-smart agriculture at the farm level. The authors emphasize that there is a role for economic and social science, as well as for engineering and digital sciences to help AVCs send effective climate practice signals to farmers. Public and private R&D must prioritize accessible and affordable technologies such as climate-resilient seeds, methane-reducing animal feed, and efficient irrigation systems. Collaborative initiatives, such as those between research institutions and AVC firms in the dairy sector, exemplify how science can simultaneously reduce farm-level emissions and boost productivity.

Policy Solutions for Inclusive Climate Action

The authors also highlight the crucial role of policy frameworks in strengthening the vital role AVCs.  They propose a range of policy measures, including:

• De-risking private investments through public procurement programs and the redirection of agricultural subsidies toward sustainable initiatives.
• Enabling private sector investment in the sector and business-friendly investments in transport, energy and communications networks.
• Regulating emissions reporting within supply chains while helping smaller enterprises with compliance costs to ensure inclusiveness.
• Addressing power imbalances in AVCs to promote fair income distribution and foster competition.

“Agrifood value chains represent a significant, but still largely untapped opportunity to drive climate-smart agriculture and build sustainable food systems,” states Loraine Ronchi, “given that processing and retail operations in AVCs share an interest in supply assurance and continuity, they are natural champions for supporting climate-smart, resource-wise approaches from their primary suppliers, who are farmers. Robust scientific effort on affordable technologies for smallholders, effective policy design, and inclusive stakeholder collaboration can support this.”

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About the authors:

Johan Swinnen is Director General of the International Food Policy Research Institute (IFPRI). Loraine Ronchi is Global lead for Science, Knowledge and Innovation in Agriculture and Food, World Bank Group. Thomas Reardon (corresponding author) is a University Distinguished Professor, Department of Agricultural, Food, and Resource Economics, at Michigan State University and a Non-Resident Research Fellow at IFPRI.

The International Food Policy Research Institute (IFPRI) provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition. IFPRI’s strategic research aims to identify and analyze alternative international and country-led strategies and policies for meeting food and nutrition needs in low- and middle-income countries, with particular emphasis on poor and vulnerable groups in those countries, gender equity, and sustainability. It is a research center of CGIAR, a worldwide partnership engaged in agricultural research for development. www.ifpri.org