Agriculture & Food Security -Partnership Development

How Companies Can Partner with USAID to Transform the Food System

Leadership | September 29, 2021

The global food system connects our environment, society, and economy. Yet, around the world, public and private sector experts have warned that it’s unsustainable. 

Today, hunger, food insecurity, and child malnutrition threaten the lives, livelihoods, and health of hundreds of millions of people—both now and in the future. Despite the global community stepping up last year to provide record financial assistance, a devastating combination of extreme weather events, persistent conflict, and economic disruptions from COVID-19 have pushed many to the brink in 2021

From the food crisis to the evolution of sustainable agriculture, we believe the most promising avenue to identify and scale solutions lies in building powerful cross-sector partnerships between the public and private sectors. 

Why We Need Cross-Sector Partnerships for Food Security and Sustainable Agriculture 

When we think about our global food system, the grand challenge is that we need innovative solutions, to unique localized challenges, scaled immediately, that, together, transform a system. No company can achieve this on its own—nor can USAID. 

Only through collaboration between the private sector, civil society, local actors, and global development organizations such as USAID can we develop and implement integrated solutions with the power to create transformational global change.  Consumer checking a food stand

We believe that the next four years under the Biden administration present enormous opportunities to scale cross-sector partnerships and increase engagement and collaboration between the public and private sectors to address our biggest global food system challenges. 

The good news: greater public and private collaboration is already underway.  

Through its role in initiatives like Feed the Future and its own Bureau for Resilience and Food Security (RFS), we’ve seen firsthand how USAID has prioritized partnering with companies to advance agriculture and food security goals. 

Meanwhile, forward-looking companies across industries are advancing initiatives to reduce food waste and climate impacts, keep more food products and materials in use, and produce food in ways that regenerate nature—thereby forging more resilient and sustainable supply chains.   

Cross-Sector Collaboration for Sustainable Agriculture and Food Security: 3 Priority Areas 

Drawing on our experience designing and implementing cross-sector partnerships, we’ve outlined three priority areas with significant opportunity for the private sector to partner with USAID on food security and sustainable agriculture.  

Across these three priority areas, there are many variations and forms individual partnerships might take, depending on geography, the objectives, and the company.   

So, for each, we focus instead on highlighting key illustrative roles that a company might play in a potential partnership with USAID.  

At the end of the piece, we also explore key value that USAID can bring to the table.  

Sustainable Aquaculture and Seafood Supply Chains  

New research has found that aquatic foods have a vital role to play in food security and a sustainable food future. Aquaculture operations and small-scale fisheries provide a critical source of protein and livelihoods. They also have significant impacts and implications for both biodiversity and climate.  

Today’s major seafood buyers—including institutional food services, restaurant chains, and retailers—have a keen awareness that their customers want their seafood sustainably sourced. The private and public sectors have many opportunities to collaborate on co-designing, piloting, and scaling solutions that would advance the sustainability of aquaculture operations and seafood supply chains.   

4 key roles that the private sector could play in a partnership initiative with USAID: 

Engaged, Long-Term Buyer.  

Seafood buyers can enter into long-term commitments and contracts to buy from aquaculture farmers and small-scale fishers who deploy and invest in sustainable practices. Small-scale fishers and aquaculture farmers often incur added costs when transitioning to sustainable management practices; costs that often create a barrier to entry.  

When the private sector commits to longer-term contracts, there can be greater stability and assurance to fishers that the added costs of sustainability investments will be worth it. Such contracts also open up opportunities for fishers and aquaculture farmers to access affordable finance to support sustainability investments. 

Standards Leader.  

For seafood supply chains to become more sustainable, forward-thinking seafood buyers need to change their procurement guidelines to reflect a higher standard—and then they need to work with their suppliers to put new policies into practice. Updated guidelines should reflect environmental sustainability, social responsibility, and climate impacts across a product’s life cycle. And by making such commitments public—and then reporting publicly on progress—companies can help to push their industry toward more systemic change.  

Investor and Tester of Innovation.  

The private sector can co-finance and pilot in their supply chains new responsible and sustainable innovations, such as novel and nature-friendly fish feed ingredients, digital and IOT on-farm (or vessel) data platforms, and worker voice and empowerment toolssustainable aquaculture and seafood

Pioneer for Supply Chain Assurance & Traceability.  

For years, the seafood industry has struggled to verify on-farm sustainability improvements for small farmers and to definitively trace sustainable seafood from catch to plate. Here, companies can use their own supply chains as testing ground for innovation, forming cross-sector partnerships to co-create, co-fund, and pilot new models for sustainability verification and assurance and supply chain traceability. Such partnerships can also include other key ecosystem players such as local banks or development finance institutions to foster innovative financing mechanisms that help incentivize and reward sustainability improvements and outcomes.  

Regenerative Agriculture 

As the private sector seeks new pathways to combat climate change and build more resilient supply chains, and as the Biden administration continues to make climate action a priority, companies are prioritizing regenerative agriculture practices to support their sustainability strategies.   

This approach encourages best practices for farming and grazing that mitigate climate change by rebuilding soil organic matter and combatting soil erosion, resulting in a carbon drawdown and improvements to the water cycle, while enhancing the wider ecosystem. Intercropping and other regenerative agriculture practices also create new avenues for farmers to bolster local food security and diversify their income streams.  

Today, we see more opportunities emerging for companies to partner with USAID in emerging markets to advance regenerative agriculture goals through farmer-centric approaches.  

4 key roles that the private sector could play in a partnership initiative with USAID: 

Engaged, Long-Term Buyer.  

When the private sector commits to long-term contracts with farmers utilizing regenerative agriculture practices, it helps ease farmers’ transition by reducing their financial risk. Such contracts can also help incentivize farmers to explore and adopt new sustainable practices (though, here, partners must also explore how best to expand farmers’ access to crucial new information and inputs). 

Co-Investor.  

Like with the aquaculture sector, smallholder farmers struggle to access financing or credit to invest in best practices on their farms. Companies can help overcome this barrier by partnering with USAID, civil society, and social enterprises to bring new techniques, training, or tools to farmers at scale, or by partnering with local banks, development finance institutions, and other financial players to help finance on- farm sustainability improvements.  

Technical Expert.  

Companies can also offer training, on-farm mentorship and support services, and other technical assistance to their supply chain farmers directly, to help them implement new regenerative agriculture practices. 

Tools, Equipment, and Input Provider.  

As the push toward regenerative agriculture intensifies, farmers will need new manufacturing equipment, new seed varietals, and other inputs. Companies can help forge new supply chain partnerships—with the help of conveners like USAID—to help farmers affordably and reliably access critical inputs for sustainable agriculture.  

Digital Innovation for Smallholder Famers 

Whether for aquaculture or regenerative agriculture practices, smallholder farmers need ready access to practical and user-friendly information. Through digital tools, farmers can access data on markets, financing, agronomics (e.g., best practices for planting), weather, and climate. New digital tools are also helping farmers forge connections to buyers and markets, compare and purchase key farming inputs, and gain access to critical financial services that were once out of reach. Smallholder farmer using digital innovation in the field

By collaborating with USAID, the private sector can help to design, fund, test, and scale new digital tools that support smallholder farmers as they work to advance agricultural productivity and sustainability. Importantly, however, partners must also consider how a shift to digital approaches might introduce new barriers to access for women or other groups. Digital solutions need to be as inclusive as possible in their audience, design, and execution—as well as in the metrics that measure their success. 

4 key roles that the private sector could play in a partnership initiative with USAID: 

Co-Investor/Co-Designer.  

One-size-fits-all approaches rarely work in agriculture. Even for digital tools, locally contextualized solutions should be co-created with farmers’ input to increase their adoption of new technologies and practices, or to seek out new information. Companies can work with local innovators to co-fund, adapt—and, in some cases, co-design—new tools, tailored to the needs and practices of farmers in key geographies. 

Content Advisor.  

Companies may create and offer educational content designed to help farmers deploy new tools or best practices for sustainable farming, on-farm productivity, or market access. 

Supply Chain Pioneer.  

Companies can pilot and scale new digital tools with farmers in their supply chains. 

Technology Provider.  

Digital solutions are worthless if farmers cannot access them, so technology companies and mobile operators are needed to build out broadband and digital connectivity infrastructure in rural areas. Companies can also play a role in designing the apps and digital platforms that farmers will access, and the private sector has a role in building the hardware—mobile devices, tablets, and computers—farmers need.  

Key USAID Partnership Roles for Sustainable Agriculture in Emerging Markets 

When companies think about why they’d partner with USAID, they might first think about money (or co-funding). And while USAID certainly can co-invest as a partner, it can also offer significant—even, in some cases, greater—value by playing other critical roles.   

Here are a few key roles USAID can play as part of a cross-sector partnership initiative: 

Convenor.  

USAID is often well-connected with major ecosystem players and has relationships with key organizations regionally and in priority countries. By partnering with USAID, companies can better connect with necessary players, including local government agencies, other companies, civil society, social enterprises, or local farmers’ groups who can help scale a project or initiative. 

Technical Assistance Provider.  

USAID is well equipped to provide technical assistance and expertise tailored to the needs of smallholder farmers. For this, USAID also taps its extensive networks of local partners and implementing partners (who bring extensive sector and geographical expertise). 

Co-Investor and Risk Mitigator.  

USAID can help the private sector co-invest in agricultural transformation and sustainable supply chains. Further, USAID often deploys its funding and other financial tools strategically to help draw down the risk companies face in piloting and implementing new innovative solutions. This can help shift the risk equation for the private sector and the farmers in their supply chains. 

Credibility Booster.  

USAID brings a powerful global brand, which can lend credibility to partnership initiatives and help to spur buy-in from local and global ecosystem partners.  

Advocate.  

For some partnerships, success hinges on changing industry practices, shifting local policy, or getting a whole host of diverse actors to embrace a new way forward. Here, USAID can lend powerful voice, working with private sector partners to advocate for and drive change. 

The Key Takeaway? Let’s Partner for a Sustainable Food System  

Here’s what we think: The secret to advancing a more sustainable, equitable food system lies in partnerships between the private sector and global development players like USAID.  

Each play different yet complementary roles; together, they can more effectively achieve their individual business, sustainability, and impact goals, while simultaneously driving progress on other key issues such as combatting poverty, advancing gender equality, and protecting our climate and environment.  

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If you are a corporate leader and would like to be a part of a discussion about these and other issues in the presidential transition, contact Resonance Strategic Partnerships Manager, Seth Olson.