Harness agrifood value chains for climate-smart farming

New paper pushes back against pessimism that agriculture cannot play an effective role in climate change mitigation and adaptation.

December 2, 2024

4 Min Read
Man irrigating taro field in China using pump
Taro fields are irrigated using pumps in Zixing City, Hunan Province, China.Science

The global food system is uniquely vulnerable to climate impacts, making adaptation of paramount importance, according to a news release from the International Food Policy Research Institute (IFPRI). 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 Nov. 28 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, director general of IFPRI; Loraine Ronchi, global lead for science, knowledge and innovation in agriculture and food at World Bank Group, and Thomas Reardon, University Distinguished Professor with the Michigan State University department of agricultural, food and resource economics and non-resident research fellow for 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 Declaration on Sustainable Agriculture made at COP28, which was signed by some 160 nations committed to integrating agriculture into climate strategies, the IFPRI news release stated.

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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 Organization for Economic Cooperation & Development 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,” Swinnen said. “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, which make up 80-90% of AVC companies in the Global South, have a vital role to play and can unleash grassroots transformation by providing small farmers with essential inputs, training, credit and logistics in support of climate-smart agriculture,” Reardon stated.

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Role of science and innovation

The paper 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 research and development 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, IFPRI said.

Policy solutions for inclusive climate action

In the paper, the authors also highlighted how crucial policy frameworks will be in strengthening the vital role AVCs play and proposed 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.

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“Agrifood value chains represent a significant but still largely untapped opportunity to drive climate-smart agriculture and build sustainable food systems,” Ronchi stated. “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.”

IFPRI provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition. The institute’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. IFPRI is a research center of CGIAR, a worldwide partnership engaged in agricultural research for development.

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