Fruits & vegetable value chains (F&V VC) in Nigeria hold significant potential to continue toward sustainable, inclusive food system transformation. Domestic food system growth, including that of F&V, remains crucial in achieving a healthy food environment and serving as a source of various micronutrients. There is a need for bundles of innovations to address multiple challenges along F&V VC in Nigeria, characterized by a set of challenges that are unique to developing countries and F&V. V&F VC consists of many small actors, farmers, and traders, whereby limited vertical coordination can lead to significant efficiency loss along the value chain. Seasonal and temporal variations in supply-demand gaps for F&V commodities are substantial, and considerable scope exists for reducing losses and enhancing the overall efficiency of the domestic F&V sector. Policy environments are also favorable for such efforts, as the latest Agricultural Policy documents highlight the Nigerian government’s interest in modernizing F&V VC. Given the significant involvement of women and youths in the sector, F&V VC development has substantial potential to contribute to Nigeria's inclusive development of agrifood systems. The current domestic F&V VC in Nigeria suffers from various sets of problems. Access to quality seeds is limited due to the significant use of recycled seeds, limited supply, and high costs of certified seeds. Cooling practices are inefficient due to insufficient access to the grid and off-grid electricity, limited knowledge of intermediate cooling methods applicable at the farm gate, and constraining quality preservations at farm gate storage, during transportation, and storage at market premises. Processing is insufficient due to the high costs of processing equipment and limited knowledge of the construction and operation of simpler, less resource-dependent processing facilities, including drying of F&V commodities. Inappropriate packing, such as the use of Rafia baskets instead of Reusable Plastic Crates, which are commonly recognized, is still prevalent, potentially due to limited market coordination. Based on the stakeholder consultations, desk reviews, validation workshops, and availability of external resources, we identified the following as critical interventions to pilot various innovation bundles. Intervention #1 provides improved varieties and quality seeds, combined with agronomy training and certification, in northern Nigeria through the collaboration with East West Seeds and Wageningen University & Research. Intervention #2 provides off-grid cooling and cool transportation, including forced-air evaporative cooling units at farm clusters and the combination of small and large refrigerated trucks for local and longer-distance transportation, through the collaboration with ColdHubs and MIT-Lab. Intervention #3 introduces improved solar dryers and provides training on appropriate, hygienic processing methods, building, and utilization of these driers (possibly combined with the introduction of a business model), through the collaboration with World Vegetable Center and Nigerian Stored Products Research Institute. Intervention #4 provides plastic crates using various rental arrangements and improves market access for farmers through collaboration with private companies, including Bunkasa. Intervention #5 supplements interventions #1, #2, and #3 and provides improved information through certification and labeling. Lastly, Intervention #6 strengthens linkages between existing solar powered cold storages to supplement other interventions.

Despite African consumers under-consuming nutrient dense fruits and vegetables (FV) and animal products (AP), and the farm production and supply chains of these products are fraught with constraints that keep them from operating optimally, we find abundant recent evidence of dynamism in these sectors. To wit: (1) consumption of these products in levels and shares is already substantial and growing rapidly; (2) supply of these products is growing rapidly, just not yet much faster than population growth; (3) supply growth is manifested in a number of countries by dynamic “meso booms” with diffusion of farming and growth in midstream ("Hidden Middle") value chain segments; these booms are “grass roots” driven, without subsidy or management by government or NGOs or large companies. We reviewed recent survey-based evidence of these booms and discussed the drivers. The policy implications are the need for governments to invest in the conditions we found to be enabling these booms, that is, roads and wholesale markets and electrification and other infrastructure hard and soft.

The persistence of undernutrition and the increasing levels of overweight and obesity worldwide (with their associated societal costs) are calling for a transformation of food systems towards healthier diets. Fruits and vegetables are key components of a healthy diet; however, their consumption is considerably below the minimal levels recommended by the World Health Organization (WHO). This underconsumption is particularly pronounced in low- and middle-income countries and among low-income socio-economic groups in all countries. This paper uses the value chain approach to analyze the factors that affect the availability and affordability of fruits and vegetables. It examines major challenges across the value chain and identifies opportunities for improvement as seen through a nutrition-sensitive lens. Factors that negatively affect the availability and affordability of fruits and vegetables discussed in this paper include low production and productivity, the loss of agrobiodiversity, inadequate technology, logistics and infrastructure, weak organizational, business, and technical skills, and inefficient market linkages across the supply chain. The paper proposes a number of policy recommendations based on insights from documented cases of good practices and on lessons learned in domestic and export-oriented value chains. The paper makes a case for reviving native, underutilized, and neglected fruit and vegetable varieties to improve nutrition and increase agrobiodiversity. In addition, short value chains delivering to local markets are recommended as a resilience strategy for smallscale producers and low-income consumers in the face of climatic and economic shocks.

Efforts to promote the development and agricultural value chains area common element of strategies to stimulate economic growth in low-income countries. Since the world food price crisis in 2007-2008, developing country governments, international donor agencies, and development practitioners have placed additional focus on trying to make agricultural value chains work better for the poor. As value chains evolve to serve new markets, they tend to become less inclusive. For example, if a value chain for high quality rice arises within an economy, it is inherently easier for those who sell rice to retailers to source that high quality rice from larger farms with the ability to control quality than from dozens of smallholder farms. As a result, the normal path of value chain evolution can be biased against smallholders; hence it is important to understand what types of interventions can make value chains more inclusive while also making them more efficient.

With roughly three-quarters of the world’s poor living in rural areas, addressing global poverty requires paying attention to rural populations, especially smallholder farmers in developing countries. Millions of smallholders and others among the developing world’s poor, including a large proportion of women, participate as producers, laborers, traders, processors, retailers, or consumers in agricultural value chains. A value chain refers to the set of interlinked agents that produce, transform, and market the products that consumers are prepared to purchase (see Figure 1 for an outline of a stylized value chain). Improving the performance of agricultural value chains has the potential to benefit large numbers of low-income and poor people. Innovation for Inclusive Value-Chain Development: Successes and Challenges assesses how to improve agricultural value chains, particularly value chains that include smallholders.

Understanding the capacity of food systems to undertake a transformation towards sustainability requires understanding how resources stream in and out of the systems. As complex socio-economic structures, food and agricultural value chains are important means for channeling resources, knowledge, and agency in and out of rural areas. Given their prominent role on the development agendas, there is mixed evidence as to what extent value chains and their actors can contribute to improving the livelihoods in poor rural and urban areas. In order to shape sustainable living places, transformative capacities and good governance are important mainstays. Transformative agri-food value chains are robust and often act as the sole transmission belt for returning capital, resources and identity back into vulnerable areas. Moreover, domestic or regional chains may provide urban consumers with fresh quality food that also contributes to regional identity.

Value chain development can make significant contributions to achieving the Sustainable Development Goals (SDGs) because it is a powerful approach to address root causes and binding constraints that impede the sustainable development of food value chains. The first step in value chain development is selecting those value chains that, when upgraded, can have the biggest SDG impact. This publication provides practical guidelines on how to select value chains for which upgrading is feasible and impactful in terms of the potential for generating positive economic, social and environmental outcomes. The handbook describes a step-by-step process that helps to assess, compare and select value chains in a participatory and evidence-based manner. It presents a toolbox that can be customized to projects with different budgets, scopes and objectives. This publication forms part of a set of FAO handbooks on Sustainable Food Value Chain (SFVC) development, which together provide hands-on guidance for development practitioners, including international organizations, NGOs, regional bodies and national governments seeking to achieve sustainability objectives through agrifood value chain development projects.