A review of inclusive business models and their application in aquaculture development

Abstract

For aquaculture to continue along its current growth trajectory and contribute towards achieving the Sustainable Development Goals, value chains must become more inclusive. Smallholders and other local value chain actors are often constrained by circumstances and market failures in the global aquaculture industry. Integrating these actors into aquaculture value chains through inclusive business models (IBMs) is often touted as a solution to sustainable and ethical trade and business that can generate development outcomes. We reviewed 36 papers under seven business models commonly used in agriculture development to assess their application in aquaculture value chains in lower‐income countries. A global value chain (GVC) analysis is used to unpack the economic and social upgrading objectives of the different IBMs, as well as the types of relational coordination used between actors in the chain to achieve development outcomes. The extent to which these IBMs helped poor actors overcome certain barriers is evaluated with a focus on how they may ensure or be a risk to inclusiveness through the relations and upgrading opportunities evident in their make‐up. The analysis found that the majority of the models focused on economic upgrading over social upgrading. Providing opportunities for the latter is key to achieving the inclusive objectives of IBMs. Greater horizontal coordination between actors can create further opportunities for economic upgrading established under vertical coordination with other nodes upstream and downstream in a value chain. There is a need to further contextualize these models to aquaculture systems and develop clear indicators of inclusiveness.

The Need for a Food Systems Approach in Smallholder Food and Nutrition Security Initiatives: Lessons from Inclusive Agribusiness in Smallholder Communities

“…The extensive review study on inclusive businesses across Asia and Africa by Kaminski et al [49] corroborates the learnings from the cases presented above. As part of their study's conclusion, they maintain that their finding '[.…”

“…In a review of aquaculture development in low-and middle-income countries, the strategies for inclusive business are similar to those described in the above cases [49]. Through contract farming, smallholders' capacities are improved through provision of farm inputs, technical training, and market linkage, achieved through farmers' cooperatives, associations, and groups.…”

Harnessing the diversity of small-scale actors is key to the future of aquatic food systems

“…In much of Asia and sub-Saharan Africa, production of crops and livestock on very small landholdings produces insufficient income and necessitates pluriactivity; aquaculture has often emerged as a secondary activity. Ponds holding fish, doubling as on-farm irrigation water storage, act as a reserve to cover expenses such as school fees 23 whilst supporting associated horticulture 24 .…”

“…Our case profiles illustrate that many actors benefit from the economic, nutrition and cultural values delivered through SSFA, and that these attributes can be managed and maintained to align to equity and human well-being objectives of future food systems. Historically, agricultural models have focused on economic upgrading rather than social mobility and resilience 23 . The focus on creating enabling conditions for SSFA actors to adapt and thrive 26 , rather than provision of inputs, is essential for addressing actor-level threats and equity.…”

Covid-19 pandemic in the lens of food safety and security

“…These uncertainties create new challenges that the aquaculture farmers need to address, either by promoting and diversifying their products for wider domestic markets, or by reducing the overall operational and production costs, to protect and maximise the value of their products and maintain a sustainable business ( Fernández-Polanco, 2016 ; Jennings et al, 2016 ; Kaminski et al, 2020 ). To reduce labor intensity, improve farming operations and win market trusts, new methods such as intelligent sensors, camera systems and automated or remotely controlled monitoring/feeding strategies may be introduced to create incremental and positive shifts in aquaculture practices ( Føre et al, 2018 ).…”