Symbiosis Between Commercial Small-Scale Producers and Micro, Small and Medium Enterprises in the “Hidden Middle”: Evidence from the Horticulture Value Chains in Africa and Asia

Rapid urbanization and changing diets in Africa and South Asia are raising demand for horticultural products, creating opportunities for agrifood transformation. This report synthesizes evidence from the INCATA project (Linked Farms and Enterprises for Inclusive Agricultural Transformation in Africa and Asia). It finds that small-scale producers are highly commercial and often embedded in mutually beneficial relationships with micro, small, and medium enterprises (MSMEs) in the “hidden middle” of input supply, trading, logistics, and related services.

Towards inclusive and sustainable vegetable value chains in Odisha

The Hidden Middle—the segment of agrifood systems that connects farmers to consumers through aggregation,
storage, logistics, and processing—has long been overlooked in both research and policy. Yet this is where most
value addition, employment, and efficiency gains actually occur. When midstream actors function well, food
systems are more resilient, markets are more stable, and small producers gain predictable access to buyers and
inputs. When they do not, costs rise, losses increase, and opportunities for inclusive growth dissipate.