Small and medium-sized enterprises (SMEs) are at the heart of sustainable agri-food systems, playing a vital role in biodiversity conservation, local economies and climate resilience. Their commitment to sustainability – through traditional food processing methods and responsible resource use – sets them apart from large corporations that often prioritize efficiency over environmental impact.
Despite their importance, SMEs face many challenges. They need to compete with large industrial agriculture businesses, often struggling with financial limitations and complex supply chains that cut into their profits. However, SMEs continue to find ways to adapt, with many working to streamline their value chains, secure green finance and embrace fair trade initiatives to stay competitive.
While expanding their impact can be difficult, they can strengthen their position by reducing food waste, selling directly to consumers and forming ethical partnerships with larger companies, all while maintaining their sustainability values.
Governments and financial institutions have a key role to play in helping SMEs thrive. Supportive policies that encourage fair trade, provide access to green finance and offer sustainability certifications can make a significant difference. SMEs can benefit from education and training programmes that help them implement sustainable practices, improve operational efficiency, and enhance their competitiveness in local and global markets. Digital platforms and technology can also provide SMEs with tools to reach wider audiences, improve transparency and optimize logistics, further increasing their resilience.
Consumers have the power to support SMEs by choosing locally produced, organic and ethically sourced food, helping these businesses compete in a market dominated by large corporations. When consumers prioritize sustainability, they create demand for products that align with ethical and environmental values, encouraging more businesses to adopt responsible practices. Supporting local farmers' markets, independent grocery stores and ethical brands helps SMEs stay competitive. Additionally, advocating for transparency in food sourcing and production can push larger companies to improve their sustainability standards, creating a ripple effect that benefits the entire food system.
To explore this further, Amélia Delgado, European Climate Pact Ambassador (Food Systems), has shared insights on how SMEs can drive meaningful change in the agri-food sector. She outlined key barriers, strategies for resilience, and the impact of policies and consumer support in shaping a more sustainable food system. Emphasizing investment in regenerative agriculture and climate-smart technologies, she highlighted their role in helping SMEs adapt while staying committed to sustainability.
Read the full Q&A with Amélia Delgado on the Green Forum, where experts and practitioners come together to discuss insights in the pursuit of a just economic transition, including solutions that promote sustainable agri-food systems. Join the Green Forum today.