Global Value Chains in Horticultural Employment and Development

Over the past decades horticultural supply networks have been woven into global value chains, linking smallholder producers, large-scale growers and multinational buyers. These chains span production, processing, certification, logistics and retail, generating employment across rural and peri-urban areas. Participation in high-value segments, such as cut flowers, fresh fruits and vegetables, has driven economic transformation in many low- and middle-income countries by creating wage labour opportunities, enhancing skills and fostering gender inclusion. Nevertheless, entry and advancement within these chains depend on factors such as compliance with quality and sustainability standards, access to finance, infrastructure and governance structures. Out-grower schemes and contract farming arrangements have emerged as modalities for integrating smallholders, though they may entail power asymmetries between lead firms and growers. Technological innovations, from greenhouse systems to digital traceability tools, have reshaped labour demand, often raising the intensity of labour requirements and altering the profile of employment contracts. Simultaneously, upgrading strategies—ranging from product and process improvements to functional and inter-sectoral upgrades—affect the distribution of value and the prospects for decent work. Critical policy challenges include ensuring equitable bargaining power, supporting skill development, safeguarding labour rights and balancing environmental sustainability with economic resilience. This field of research examines how horticultural global value chains contribute to rural livelihoods, gender equity and sustainable development, drawing attention to the complex interplay of market demands, institutional frameworks and social outcomes.

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Global Value Chains in Horticultural Employment and Development publication trend

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Technical terms

Global value chain (GVC): A sequence of activities and actors involved in producing, processing and delivering a commodity from farm to consumer, spanning multiple countries and governance structures.

Out-grower scheme: A contractual arrangement in which farmers produce specific crops for a buyer, often receiving inputs or technical support in exchange for guaranteed purchase of their output.

Upgrading: The process by which actors within a value chain improve their capabilities and move into higher-value activities or functions, such as quality enhancement, branding or logistics management.

Sustainability certification: A compliance mechanism that sets standards for environmental protection, social welfare and economic viability, often required by international buyers to verify ethical and sustainable production.

References

1. Greenhouse farming and employment: Evidence from Ecuador. Food Policy (2023).
2. Do Sustainability Standards Exclude Small Farms? Modelling the Kenyan Floricultural Sector. Earth (2021).
3. Maternal employment in high-value agriculture and child nutrition: Evidence from the Ethiopian cut-flower industry. Food Policy (2024).