SMALLHOLDERS’ EXPERIENCES WITH INCLUSIVE AGRIBUSINESS MODELS IN MOZAMBIQUE
Authors:   , Di Matteo Filipe 
Published: October 2024

Inclusive agribusiness models have gained traction as a potential solution to poverty and food insecurity among smallholder farmers, especially in Africa. These models aim to integrate income-constrained groups into value chains while maintaining business viability. Despite their popularity, there is ongoing debate about their effectiveness in reducing poverty and improving smallholder livelihoods. Supporters argue that such models can mitigate risks for smallholders and increase their participation in lucrative agricultural markets. However, critics contend that inclusive models often fall short of their promises, trapping farmers in low-intensity farming cycles with limited profits and market access, while exacerbating inequalities within communities.
One of the main challenges is that inclusive agribusiness has become a buzzword, often narrowly focusing on economic participation without addressing broader social and environmental outcomes. To tackle this, the dissertation explores how smallholders experience these models and whether their livelihoods improve over time. It suggests examining the evolving relationships between smallholder farmers and agribusinesses, particularly as the private sector's growing role has weakened state support for smallholders.
The study draws on the concept of “embedded autonomy” from development studies, applying it to understand how smallholders' interests align with agribusinesses and how much autonomy they have within these systems. Case studies from Mozambique’s sugarcane and soybean sectors analyze the alignment of stakeholders' interests and the impact of inclusion on smallholders.
The empirical chapters analyze two specific production models. In the sugarcane sector, contract farming illustrates how long-term participation affects households' socioeconomic outcomes. The analysis reveals that contract farming can offer benefits, but its design must account for smallholders' decision-making power. In contrast, the soybean sector, characterized by open-market sourcing, emphasizes smallholders’ agency in adapting to agribusiness-led models despite significant challenges.
Farmer organizations also play a crucial role in promoting inclusive development, acting as advocates for smallholders within production systems. However, their effectiveness depends on the support they receive from governments, NGOs, and the private sector. Policies that strengthen these organizations are essential for locally-led inclusive development.
The dissertation concludes that while inclusive agribusiness models offer potential benefits, their effectiveness in reducing poverty remains debatable. A critical dilemma emerges around smallholder farmers' embeddedness in inclusive models versus their autonomy to act in their best interests. True inclusion should go beyond economic participation and balance the collective interests of agribusinesses with smallholders' individual needs, ensuring that farmers have the freedom to pursue their own development trajectories. The study calls for more comprehensive, locally-led approaches that consider smallholders' diverse needs and challenges.