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Making the Most of Agricultural Investment: A Survey of Business Models that Provide Opportunities for Smallholders

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Publication date
15/07/2010
Number of Pages
116
Language:
English
Type of Publication:
Studies
Focus Region:
Global
Focus Topic:
Market / Trade
Rural Finance / Insurance
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk assessment
Commodity:
Other
Author
Sonja Vermeulen, Lorenzo Cotula
Organization
Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD) and the Swiss Agency for Development and Cooperation (SDC)

Recent years have witnessed a renewed interest in agricultural investment. In many cases, this has translated into large-scale acquisitions of farmland in lower- and middle-income countries. These acquisitions have triggered lively if polarized debates about “land grabbing”. Less attention has been paid, however, to alternative ways of structuring agricultural investments. Drawing on a literature review, this report examines a range of business models that can be used to structure agricultural investments in lower- and middle-income countries, and that provide an alternative to large-scale land acquisitions. A business model is what enables a company to make money. Business models are considered as more inclusive if they involve close working partnerships with local landholders and operators, and if they share value among the partners.