World Bank supports productive alliances to boost smallholder farming competitiveness

World Bank supports productive alliances to boost smallholder farming competitiveness
Banking & Financial Services
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Ajay Banga, President at World Bank Group | The World Bank

The World Bank Group has been involved in supporting Productive Alliances (PAs) across Latin America and Africa, impacting over 1.6 million family farmers since 2002. These alliances have resulted in a significant increase in sales and income for Producer Organizations (POs) and family farmers, with financial returns reaching up to 25 percent.

In Bahia, Brazil, PAs benefited 40,000 families and increased the real net revenue of rural POs by 29 percent. Food security also improved significantly among project beneficiaries. In Honduras, the Rural Competitiveness Project (COMRURAL) exceeded its targets, benefiting nearly 13,000 direct participants and increasing land productivity by 23.5 percent.

Malawi's Agricultural Commercialization Project (AGCOM) aimed to boost agricultural value chain products' commercialization. By its closure, AGCOM had surpassed its sales target by a substantial margin, benefiting over 72,800 farms.

Productive Alliances help smallholder farmers improve their market access through business plans developed collectively with buyers and service providers. The World Bank Group has invested almost $2.3 billion globally in such projects.

"The grant from AGCOM has transformed our business," said one beneficiary of the Malawi project.

Looking forward, the World Bank Group is conducting a global study to assess PA effectiveness in improving outcomes for POs and family farmers worldwide.