Knowledge

Drawing on a literature review, this report examines a range of business models that can be used to structure agricultural investments in lower- and middle-income countries, and that provide an alternative to large-scale land acquisitions. A business model is the way in which a company structures its resources, partnerships and customer relationships in order to create and capture value – in other words, a business model is what enables a company to make money. Business models are considered as more inclusive if they involve close working partnerships with local landholders and operators, and if they share value among the partners.

This report was prepared for informing IFAD‘s Country Strategic Opportunities Program (COSOP) 2012 – 2017 for Viet Nam. In preparation of this report a brainstorming workshop was held on 9 May 2011 in Hanoi bringing together key national research institutes working on climate change (CC) and environment related issues, ministries of agriculture and environment and bilateral and multilateral donors.

A severe food crisis currently threatens southern Sudan. In East Africa, where millions of people already are dependent on food aid, a sharp rise in the cost of staple crops looms. These are just the latest sources of concern in a turbulent period that began two years ago when food shortages hit many countries in Africa and Asia due to a worldwide spike in prices. Higher food prices meant that poor people, already struggling to meet basic human needs, were pushed deeper into poverty. On its heels came the global financial crisis, which also hit the poorest the hardest. Agriculture is the main employer, job creator and export in most developing countries. Historically, agriculture has driven economic performance in many countries, generating growth that has been shown to be at least twice as effective in reducing poverty as growth in other sectors. Investment in agricultural and rural development is therefore vital to food security and sustainable economic development.