Agricultural cooperatives, responsible sourcing and risk-based due diligence

Agricultural cooperatives are an integral part of the global agri-food system, providing essential jobs, income, and market access opportunities for smallholder farmers and others in agri-food supply chains in low- and middle-income countries. This policy brief introduces how agricultural cooperatives in developing countries can integrate risk-based due diligence into their business models to meet increasing market and legislative requirements related to sustainability and responsible business conduct in global value chains (GVCs). As downstream agri-food companies and traders begin to introduce sustainability requirements into their operations, their upstream partners and suppliers will also be required to demonstrate how they are managing social and environmental risks in their business operations. Agricultural cooperatives are essential actors to consider in these dynamics because many already participate in GVCs through commodity trade. Importantly, in developing countries, cooperatives are often at the heart of agricultural sourcing communities and can unlock significant opportunities for rural economic growth and poverty reduction. By adapting to changing market and legislative needs related to responsible sourcing and sustainability, cooperatives are better positioned to reduce adverse social or environmental impacts and improve their standing as a responsible supplier in GVCs