Value Chain Upgrading and the Inclusion of Smallholders in Markets: Reflections on Contributions of Multi-Stakeholder Processes in Dairy Development in Tanzania

TLDR

Value chain approaches are increasingly combined with multi‑stakeholder processes to promote inclusive innovation and smallholder upgrading, yet this pathway has received limited analysis. The article examines this integration through a case study of an ongoing smallholder dairy development programme in Tanzania and highlights the starting points and socio‑political dynamics of such interventions. An analytical framework that merges value‑chain upgrading and innovation‑systems perspectives was applied to interpret the case‑study findings. Multi‑stakeholder processes improve horizontal and vertical coordination but constrain process and product upgrading, and while they can catalyse smallholder market inclusion, their impact is largely limited by existing value‑chain structures, fragmented markets, timeframes, and institutional constraints.

Abstract

Increasingly, value chain approaches are integrated with multi-stakeholder processes to facilitate inclusive innovation and value chain upgrading of smallholders. This pathway to smallholder integration into agri-food markets has received limited analysis. This article analyses this integration through a case study of an ongoing smallholder dairy development programme in Tanzania. Value chain upgrading and innovation systems perspectives were combined in an analytical framework to interpret the findings, which show that multi-stakeholder processes enhance horizontal and vertical coordination but limit process and product upgrading. The main conclusion is that, although such processes may catalyze smallholder market inclusion, their effects are largely bounded by existing value chain structures (e.g. production system, fragmented markets), timeframe and how prevailing institutional constraints are addressed, which may constrain the intentions of such collaboration action. This calls attention to the starting points of value chain interventions and the socio-political dynamics that are part of multi-stakeholder processes.