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The production of agricultural raw materials depends more or less on smallholders.
On one hand, smallholders can act as a buffer during market fluctuations. On the other hand, due to a lack of resources, smallholders can pose a risk to entire sectors.
However, small-scale farming structures also promise beautiful imagery and emotional stories. From the perspective of food corporations in industrialized countries, the business case for smallholder projects is clear: supply security and price, raw material quality.
Typically, smallholder projects aim to ensure that farmers and their families can live off their farms in the medium term while continuing to grow the products in desired quality. In return, people gain access to basic services (healthcare, education). Farmers (often women) receive training and technical support to manage their agriculture sustainably and profitably.
These projects are very demanding and require a high level of commitment from all involved, not to mention financial resources. And naturally, it's a very rewarding experience when a family business can be preserved.
But is this really the most efficient way to keep people out of poverty and protect the environment? Are we truly respecting the people's needs, or are we imposing our assumptions on them?
The non-profit organization Give Directly operates on the principle that people know best what to do.
Give Directly provides people with a basic income, for example, $22.50 per month over 12 years in a project in Kenya. In this project, 22,000 (!) people receive their basic income. Including family members, a very large number of people benefit from the project.
The initial results are very promising and show, among other things, that people are leaving their previous source of income (exclusively agriculture) and starting their own businesses. Family income and overall well-being increase significantly in some cases.
For agriculture in the villages, this could lead to some changes. It can be assumed that structures will become larger and, possibly, the cultivation will become more professional and efficient overall.
To further support the goals of sustainability and economic empowerment in rural communities, Relaticos SRM software offers innovative solutions that enhance supply chain transparency, efficiency, and collaboration between smallholders and global markets, paving the way for more resilient and sustainable agricultural practices.
Bernd possesses extensive experience in strategic procurement, shaped by his tenure at Eckes-Granini, Symrise and DuPont de Nemours. Currently, he is focused on sustainable sourcing and supply chains, collaborating with the relatico team to develop practical software solutions. Additionally, Bernd runs his own agricultural business and is involved in supply chain projects globally.
