Developing policies for transforming smallholder agri-food supply chains in developing economies : a digital pathway to sustainable value creation

Abstract

Smallholder agriculture is critical for food security, engaging nearly two billion farmers in developing economies and contributing to the reduction of rural poverty. However, productivity is frequently hindered by inefficiencies in agri-food supply chains, suboptimal agricultural practices, climatic challenges, and a lack of market access. This PhD study investigates the capacity of digital transformation and policies to facilitate sustainable value generation in smallholder farmer supply chains. It addresses critical research gaps, including the lack of investigation into smallholder agricultural systems from a supply chain perspective, the absence of customized digital solutions and novel business models, and the insufficient evaluation of the impact of these solutions on farmers’ livelihoods. Guided by a pragmatic research philosophy, the study employs a three-phase mixed-methods approach encompassing diagnostic analysis, solution development, and policy integration. This project centers on the Sri Lankan tea smallholding sector as its primary case study. The research identifies structural bottlenecks and digital literacy gaps that hinder sustainability, priorities digital interventions such as digitized farm records and digital registration and evaluates the role of voluntary sustainability standards in improving market access. It further develops a fuzzy logic–based risk assessment framework to assess policy effectiveness. The study proposes a digitally enabled business model incorporating digital product passports to enhance traceability, compliance, and value creation. The findings demonstrate that integrating digital solutions with targeted policy frameworks can enhance the resilience, inclusivity, and market competitiveness of smallholders. This approach offers both theoretical contributions to sustainable supply chain management and actionable recommendations for policymakers, industry stakeholders, and development practitioners.