This note, part of the RAI Knowledge Into Action Notes series, provides guidance on the
design and implementation of outgrower schemes to achieve
mutually beneficial outcomes for investors and smallholders.
Outgrower schemes have gained prominence as a business model
that can benefit both smallholders and investors. Such
schemes can improve smallholders’ access to markets,
finance, infrastructure, and improved growing techniques;
can enhance investors’ access to land, labor, and quality
produce; and can improve investor-community relations.
Associated risks include overdependency, exploitation of
power differences, entrenchment of inequalities,
lower-than-expected production, and side-selling. Achieving
the potential benefits and minimizing the associated risks
requires careful design and implementation.