Value chain analysis to identify and address PHL and its impact on smallholder farmers (SHF)

• Feb 26, 2025
• 2 min

MSC, in partnership with ISF Advisors and Factor(e) Ventures, analyzed post-harvest losses (PHL) in India, Kenya, and Nigeria. The study identified key value chain challenges and scalable renewable energy technologies to mitigate PHL, supporting smallholder farmers with affordable storage, processing, and energy solutions.

Globally, one-third of food produced for human consumption is lost before it reaches consumers. This affects smallholder farmers (SHFs) the most. These farmers experience significant post-harvest losses (PHL) due to inadequate storage, processing, and energy solutions, which results in lower incomes (15% reduction) and food insecurity. The lack of affordable and scalable renewable energy technologies for post-harvest processes worsens these issues, particularly in rural areas.

MSC researched post-harvest losses (PHL) among smallholder farmers (SHFs) in India, Kenya, and Nigeria. We studied key value chains that had the highest PHL and explored the underlying drivers and barriers to the adoption of existing solutions among SHFs. We partnered with ISF Advisors and Factor(e) Ventures and examined how inadequate storage, processing, and energy solutions contribute to these losses. We also identified affordable and scalable solutions that use renewable energy to mitigate PHL. 

The joint study team conducted the research in three phases:

• Phase I: Planning

We defined research objectives, key questions, and selection criteria to identify the high-PHL crop value chains.

• Phase II: Value chain analysis and solution scoping 

We mapped priority crop value chains that have the highest PHL. We conducted interviews and focus group discussions with SHFs, farmer organizations, and value chain actors to assess barriers and needs.

• Phase III: Solution identification

We supported an application process to identify affordable, practical, and scalable solutions that use renewable energy to reduce PHL. We used a techno-economic analysis (TEA) to identify these solutions based on affordability, scalability, performance, and gender impact.

Based on this research, we drafted a report on the analysis of PHL among key value chains and a landscape of emerging renewable energy technologies to manage PHL. The most promising solution received a USD 50,000 award, and the results of the analysis would inform investments to scale high-potential PHL solutions

The Shell Foundation commissioned this study.