Few opportunities for smallholders for upgrading in agricultural value chains

This chapter presents findings from field studies of smallholders and farmworkers producing coffee, mangoes, and rice in several countries in the global South. It is one of the few comparative studies of the constraints and opportunities for social upgrading in global agricultural value chains (GVCs). We argue that the ease with which new suppliers can be found gives highly concentrated global wholesalers and retailers enormous leverage over smallholders. As a result, opportunities for social upgrading tend to be limited. Even in successful cases, it is accompanied by fewer employment opportunities. Cooperatives, which enjoy government support and enforced labor laws, are an exception. The chapter begins with a discussion of problems in measuring the impact of GVC participation and a theoretical explanation of why economic upgrading is not sufficient to ensure social upgrading. Special attention is given to the role of the state in promoting social upgrading.