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Rapidly changing food systems are creating both challenges and opportunities. As urban food markets have grown in recent decades, so too have rural–urban food supply chains. The growing urban demand has the potential to be a major force towards poverty reduction and inclusive rural development. This increasing urban demand for food, and especially for higher-value processed food, is creating opportunities for producers and agribusiness, including input suppliers. However, these changes in food systems also pose challenges for millions of small-scale family farmers, as agribusinesses dominating global input markets have little incentive to develop technologies that serve their needs. Small-scale producers need the support of policy frameworks and investments in order to stay competitive in the domestic market. To enhance their productivity and incomes, smallholder farmers need to be connected to sources of knowledge, inputs and credit tailored to their conditions.