In collaboration with 60 Decibels, the Alliance for Inclusive and Nutritious Food Processing (AINFP) program has published a report analyzing the impact of food processors supported by the USAID-funded AINFP program on their smallholder farmer suppliers. The study shares highlights of the findings, learning, and outcomes from the program’s support for food processors working with smallholder farmers for the growth and sustainability of the food processing sector.
The study was informed by the need for AINFP to understand the impact of its interventions with food processors on farmers in their supply chains, hence the collaboration with 60dB to conduct a lean impact study with food processors participating in the AINFP program. This pilot study sampled clients that:
The study will provide valuable insights into the smallholder farmer sourcing and engagement dynamics, highlighting successes and lessons learned to inform the design and implementation of future smallholder farmer sourcing development programs.
AINFP food processors are positively impacting farmer livelihoods.
Farmers are availing essential services from their food processors, such as market access, trainings, inputs, and transport. The majority report improvements in their way of farming, such as the adoption of high-quality inputs, better techniques, and higher farm investments after selling to their food processor.
Experience with service delivery influences the depth of impact realized and farmer satisfaction.
We find that perception of price offered, service delivery timeliness, challenge rates, and the food processor’s contribution to their overall sales are factors that influence the extent of impact realized by farmers and how satisfied they are with their food processors.
Farmers are satisfied with their food processors.
On average AINFP’s food processors have a NPS of 41, which indicates moderate satisfaction. Farmers are happy with the payment timeliness, quality of inputs, and good customer service.
Overall food processors demonstrate high potential to strengthen their sourcing models while delivering meaningful impact.
AINFP’s food processors are in a unique position to maximize impact for all stakeholders – farmers and consumers alike. While strategically sourcing from smallholder suppliers, they have created stable markets and avenues to access key services that drive long-term farm outcomes.
