Capacity Building
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Pillar 02

Capacity Building

Physical infrastructure that links farmers to buyers: hubs, cooperative stores, agri-zones and markets.

Industry DevelopmentIndustry DevelopmentProduct Development & InnovationProductDevelopment& InnovationSustainable Product TechniquesSustainableProductTechniquesValue-added ProductsValue-addedProductsFood Safety & QualityFood Safety& QualityCapacity BuildingCapacity BuildingDistribution HubsDistributionHubsCooperative StoresCooperativeStoresSpecial Agri-ZonesSpecialAgri-ZonesFarmers MarketsFarmersMarketsResource MobilizationResource MobilizationAccess to R&DAccessto R&DAccess to Next-Generation Technologies (NGTs)Accessto NGTsAccess to FinanceAccessto FinanceAccess to MarketsAccessto MarketsIntra-TradeIntra-TradePrice StabilityPriceStabilityContract FarmingContractFarmingTrade Agreements & PartnershipsTradeAgreements &PartnershipsLobbying & AdvocacyLobbying &AdvocacyModel Support CentersModel Support CentersInternational Best PracticesInternationalBestPracticesClimate-Smart AgricultureClimate-SmartAgricultureAgri-Centres of ExcellenceAgri-Centresof ExcellenceCrop Planning & MonitoringCropPlanning &Monitoring

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Why it matters

The challenge

Small farms produce about a third of the world's food, yet farmers lose both harvest and value between the field and the market. Capacity Building puts storage, aggregation and direct market access close to farmers, so that less food is lost and farmers keep the full value of the harvest.

  • About 13% of food is lost between harvest and retail.
  • Many food-deficit countries rely heavily on imports.
  • Farmers lose value to middlemen between farm and market.

Our goal

Full value to the farmer: free farmers from middlemen and give them direct access to buyers.

Focus areas

Food relief supportLivestock developmentStrategic commoditiesSilosValue chain
13%Share of food lost between harvest and retail
1.05 bn tFood wasted by households, food service and retail in 2022
1/3Share of the world's food produced by small farms

Sources: FAO, Tracking progress on food and agriculture-related SDG indicators 2022; UNEP, Food Waste Index Report 2024; FAO, 2021.

Solutions

How we close the gap in capacity building

Each programme answers one part of the problem with a practical model. Click any block to open its page.

Capacity BuildingCapacity BuildingDistribution HubsDistributionHubsCooperative StoresCooperativeStoresSpecial Agri-ZonesSpecialAgri-ZonesFarmers MarketsFarmersMarkets
2.1

Distribution hubs

Local storage that gives producers access to business and consumer markets and adds value to their supply chain.

AdvantagesLow cost, faster deliveries, and a direct impact on jobs and the local economy.

Explore →2.2

Cooperative stores

They bring individual growers together to grow their business, productivity and yields.

AdvantagesEffective decision-making, shared risk and reward, and greater market access.

Explore →2.3

Special agri-zones

Geographically defined areas of a country that are specialised and developed for agriculture.

AdvantagesHigher productivity, job creation and new investment, while promoting sustainable agriculture.

Explore →2.4

Farmers markets

A place where farmers and producers sell their products directly to consumers.

AdvantagesRemoves the middleman, supports the local economy and builds communities.

Explore →

Case studies

Models that have worked around the world

Evidence from different countries and regions that our programmes build on.

Africa and Asia

Special agro-industrial processing zones

Nearly 5,400 special economic zones operate in 147 economies, and Asian countries used them to anchor processing and export industries. Africa is now applying the model to farming: the African Development Bank is investing over $3 billion in agro-industrial processing zones in more than 11 countries.

$2.2 billion

Outcome$2.2 billion secured for Nigeria's zones, against an initial target of $750 million.

Source: UNCTAD, World Investment Report 2019; African Development Bank, as reported February 2025 ↗
United States

Vermont food hubs

The Vermont Agency of Agriculture, Food and Markets backs food hubs that aggregate and distribute local produce, supply schools and connect producers with buyers. From six hubs in 2009, more than 24 community food groups have formed.

$19 million

Outcome$19 million of local food a year moves through the state's six non-profit hubs, serving 400+ farmers and food businesses and 850+ buyers.

Source: Vermont Agency of Agriculture, Food and Markets; Vermont Food Hub Collaborative, 2025 ↗
Victoria, Australia

Accredited farmers' markets

Accreditation by the Victorian Farmers' Markets Association guarantees that stallholders are the farmers and makers themselves, so the profits go straight to the local producer.

48

Outcome48 accredited markets across the state, and 900 association members, half of them farmers.

Source: Premier of Victoria, media release, 18 October 2018 ↗

Programmes

Four programmes in Capacity Building

Each programme is delivered with governments and national and regional partners through an agricultural public-private partnership.

2.1

Distribution Hubs

Localised storage and aggregation points that cut food waste and give farmers direct B2B and B2C access.

Explore →2.2

Cooperative Stores

Stores owned with growers that pool produce, share risk and sell transparently.

Explore →2.3

Special Agri-Zones

Geographic zones optimised for strategic commodities, with infrastructure, incentives and investor protection.

Explore →2.4

Farmers Markets

Regular markets where farmers sell directly to consumers and businesses.

Explore →

Platforms in this pillar

Distribution Hubs

Central trade points that move products across regions. They create jobs, build food processing, cut waste and open access to global markets.

The other pillars

Industry Development

Resource Mobilization

Intra-Trade

Model Support Centers

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