The Consultative Group for International Agricultural Research (CGIAR) is the largest non-profit public agricultural research group globally. Recently, it has restructured itself into One-CGIAR with the intention of integrating its capabilities, knowledge, assets, people, and global presence for a new era of intercon nected and partnership-driven research towards achieving the Sustainable Development Goals (SDGs). One-CGIAR led the development of about 30 initiatives that aimed at addressing one more of the key impact areas of SDGs. One of these initiatives is “Rethinking Food Markets and Value Chains for Inclu sion and Sustainability,” referred to as rethinking markets in short. Rethinking Markets Initiative aims to provide evidence on what types of bundled innovations, incentive structures, and policies are most effec tive for creating more equitable sharing of income and employment opportunities in growing food markets, while reducing the food sector’s environmental footprint. The initiative has four work packages addressing different but interrelated issues and that are being implemented in one or more countries. Work Package 1 (WP1) is about making globally integrated value chains inclusive, efficient, and environmentally sustainable.

Throughout history, rural smallholders have formed various forms of associations to confront access-barriers to the market. It is estimated that 250 million farmers participate in agricultural cooperatives in developing countries. Agricultural cooperatives are considered to be a fundamental pillar of rural development strategies, as well as a core institution in the process of governance decentralization and agri-business development. In Ethiopia, where agro-ecological conditions are generally favourable, 85 percent of the national population lives in rural areas under subsistence or semi-subsistence regimes. Agricultural cooperatives are advocated by the government as key market institutions to exploit Ethiopia's agricultural growth potential. The scope of this study is to improve the understanding of the role played by cooperative organizations in linking Ethiopian smallholder farmers to emerging markets. Through exploring the evolution of supermarkets, integrated supply chains, and global commodity exchange networks, this study sheds light on the relationship between rural cooperation and farmers' competitiveness. Quantitative data that form the basis for this study were collected from the Highland regions of Ethiopia, in the period between 2003 and 2006. Findings suggest that cooperatives are not a panacea to boost rural competitiveness. Collective action assists smallholders in procuring state subsidy for production, but does not necessarily lead to increased commercialization. Only when collective action involves collective marketing do farmers become more commercial, further improving production volumes and productivity. However, in the process of commercialization and production intensification quality management is often neglected in Ethiopian agricultural cooperatives. This study reveals guidelines for public-private partnerships so that cooperative farmers can maximize commercialization and optimize the balance between quality and productivity.

Currently, one in three of the world's population suffer from one or more forms of malnutrition. The Agricultural Development and Nutrition teams at the Bill & Melinda Gates Foundation, in collaboration with the UK's Department for International Development (FCDO), seek to investigate the potential of vegetable and fruit supply chains to increase the supply of and strengthen demand for nutritious foods, as well as increase local market opportunities for increased income, especially for women. This report highlights the conclusions from a study in Ethiopia, and identifies several root causes, as well as opportunities for interventions to further develop the fruit and vegetable sectors, and with that enhance consumption.