With climate change expected to reduce agricultural outputs in some developing countries by 50 per cent or more by 2080, and climate adaptation predicted to cost developing countries US $70–100 billion annually, the private sector is being asked to step-up.
An article on the social reporting blog of the International Fund for Agricultural Development (IFAD) says the private sector has “largely been missing from the debate but has the investment capacity and business models to close the financing gap”.
The private sector surely includes small and informal businesses and farmers that dominate markets in developing countries. “Small farmers are managing climate-sensitive resources on a regular basis, yet they barely feature in discussions about market-based adaptation,” says the article.
During the 8th International Conference for Community-Based Adaptation in Kathmandu, IFAD has been illustrating how, through value chains, the adaptation potential of smallholder farmers can be unlocked. In all stages in a typical value chain, climate-related issues can cause losses and damages but there is potential for such risks to be better managed.
For example, smallholder farmers can adopt agroforestry or intercropping to maintain soil quality and reduce erosion. They can diversify crops and livestock to maintain commodity flows even under extreme conditions.
When equipped with information, finances, low-cost technologies and networks, smallholders can take actions that have an influence right across the value chain.
Read the full story: Small farmers are the private sector too
See also: IFAD's Adaptation for Smallholder Agriculture Programme
