Market systems development

FIPS goes beyond the farm to facilitate inclusive agricultural markets. By pioneering enterprise-led extension and local aggregation models, we create sustainable rural economies that continue to grow long after project funding ends.

Small Farms, Big Futures

Market systems development

FIPS delivers market systems facilitation in ways that support smallholder agriculture. We work beyond farm-level productivity to strengthen the structures, incentives, and relationships that shape long-term farmer outcomes. FIPS’ approach to market systems development focuses on:

FIPS works with farmers, enterprises, private sector actors, governments, and financial institutions to facilitate markets rather than substitute for them. Successful models, such as aggregation, off-taking, and service provision, are designed to be scalable and replicable, encouraging crowding-in of additional actors.

Implementing strategic, multi-level engagement is essential to institutionalising sustainable agricultural practices among smallholder farmers.

Develop skills and knowledge

Strengthening capacity across the system is foundational. Training must target both farmers and input suppliers through practical demonstrations, field-based extension, and regular capacity-building workshops. In this case, these approaches were critical to:

Strengthen input supply chains

Sustainable adoption depends on reliable access to inputs. Policymakers and market actors must collaborate to ensure consistent availability of:

Targeted subsidies, credit facilities or risk-sharing mechanisms can reduce cost barriers and accelerate uptake.

Promote sustainable, integrated practices

Long-term soil regeneration requires a systems approach. Stakeholders should advocate for:

Leverage data and research for precision targeting

Evidence-based decision-making strengthens impact and efficiency.

Foster cross-sector collaboration

Institutionalising innovation requires coordinated action. Collaboration between government, NGOs, private suppliers and research organisations should be formalised through:

Case Note

Market systems intervention: Facilitating lime access in western Kenya

FIPS’ work on soil fertility was implemented in Western Kenya (Busia, Homa Bay, Kakamega and Siaya). Through market systems facilitation, FIPS simultaneously stimulated both supply and demand for lime, while strengthening farmer knowledge of soil acidity challenges and practical solutions. FIPS also successfully embedded lime microdosing within government policy frameworks.

At the heart of the intervention was a paradigm-shifting innovation: combining precise soil pH diagnostics with a simple, targeted lime microdosing method that delivered visible benefits within a single planting season.Conventional lime recommendations for acidic soils are poorly suited to resource-constrained smallholders. Standard guidance advises broadcasting 800–1,600 kg (16–32 bags) per acre. This presents major logistical and cost barriers, and much of the lime does not reach the plant root zone.

FIPS demonstrated that microdosing lime is a viable alternative. Correcting soil pH within the planting hole—the root zone—proved sufficient to improve root development and nutrient uptake. By applying just 5 grams per planting hole, farmers reduced total lime use to approximately 100 kg (2 bags) per acre, significantly lowering input and labour costs.

Case Note

Behavioural challenge: Awareness and willingness to pay

Driving innovation in smallholder systems requires addressing behavioural barriers as much as transferring technical skills. Farmers typically adopt new practices only after observing peer success. Initially, many farmers lacked understanding of how soil acidity reduces productivity, resulting in low willingness to pay for pH testing or lime.

pH soil testing (2019–2025)

FIPS and partners:

Seeing real-time pH readings enabled farmers to visualise the problem and take action. This approach addressed the inefficiencies of conventional soil testing, which is often costly and inaccessible. Collaboration with KALRO strengthened validation and credibility.

Case Note

Microdosing demonstrations

Across two projects:

pH meters were funded by McKnight Foundation (45), Kenya Crops and Dairy Market Systems (200), and Seeds of Change (200). The immediacy of results enabled timely and informed decisions on lime and fertiliser use.

Case Note

Feedback loops and adoption

Farmers adopting lime microdosing achieved value-to-cost ratios ranging from 7:1 to 15:1 on severely acidic soils. Regular monitoring, yield tracking and farmer reflection sessions created iterative learning. Farmers who observed gains were more likely to:

Confidence led to experimentation; experimentation led to learning; learning drove deeper and wider adoption.

Case Note

Supply chain constraints

Creating demand was not enough—inputs had to be available, affordable and trusted. Without local access, behaviour change stalled. Most agrodealers avoided stocking lime due to:

FIPS addressed this through facilitative market engagement:

Agro-dealers, stocking lime increased from 3 to 45 businesses in two years. Lime sales grew from 69 tonnes (2022) to 534 tonnes (2025):

These shifts established a viable commercial ecosystem for lime distribution.

Case Note

Institutional buy-in and systems change

In pluralistic extension systems, farmers receive competing recommendations. Securing government buy-in was therefore critical. FIPS engaged:

By rooting innovations within public systems, FIPS strengthened institutional ownership and long-term sustainability of soil health diagnostics and lime microdosing approaches.

Explore our work

Learn more about the value chains we support, where FIPS works, our impact, case studies, and publications.

Soil health

Improving soil health and resilience through:

Staples

Distribution of high-yield, resilient staple seeds:

Fruit trees

Quality seedlings, nutrition, and management:

High-value crops

Maximizing yield and market profitability:

Dairy

Boosting dairy productivity through:

Chicken

Advancing chicken health and productivity:

Empowering Farmers

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Help smallholder farmers gain access to essential resources and knowledge for sustainable practices.

Together, let’s build a thriving agricultural community!