IFPRI Forum

March 2007

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During the past two decades, South Asian consumers have moved away from traditional staple cereals, such as rice and wheat, toward high-value foods such as fruits, vegetables, poultry, dairy, and fish. Prompted by the region's changing food plate, many smallholder farmers have begun to follow suit.

Yet, in an area of the world dominated by small farms of two hectares or less, farmers face a daunting task when attempting to make the transition toward high-value agriculture. Unlike traditional, cereal-based agriculture, high-value foods require smallholder farmers to have strong links to food processors, retailers, and other players in the food chain. Perishable foods such as fruits, vegetables, and milk also pose special challenges. Climate-controlled packing and storage facilities can solve this problem, but they often remain too costly for smallholders to acquire.

By forging innovative partnerships with the private sector, however, smallholder farmers across the region are finding ways to overcome these obstacles and tap into a burgeoning market.

Given its on-the-ground presence in the region through its office in New Delhi, IFPRI is actively studying this transition in agricultural production. In September 2006, the office organized the international conference, "From Plate to Plough: Agricultural Diversification and its Implications for Smallholders," which brought together researchers, policymakers, donors, and agribusiness executives for two days to share knowledge and discuss ways to help integrate smallholder farmers into high-value agricultural markets.

IFPRI researchers followed up on this conference by traveling to the FieldFresh Agri Centre of Excellence in Ludhiana, Punjab (India), to see first hand how partnerships between the government, farmers, and the private sector enable smallholder producers to transport and package their high-quality fresh fruits and vegetables for shipment to global markets.

Looking forward, IFPRI researchers are also studying the future of high-value agriculture in the region. According to Agricultural Diversification and Smallholders in South Asia, a new book coedited by Ashok Gulati, IFPRI director in Asia, South Asian farmers will attempt to keep pace with the region's projected 100 percent jump in meat, egg, and fish consumption and 90 percent increase in fruit and vegetable consumption between 2000 and 2025.

"High-value agriculture is here—and growing—in South Asia," says Gulati. "Policymakers and agribusinesses across the region now have an opportunity to work together to forge the right set of incentives, institutions, and investments to accelerate and improve smallholders' participation in this vibrant market."