This paper addresses the main dynamics in the global agro-industrial
value chains for tropical products. It examines new upgrading opportunities for
smallholder production in Africa as a consequence of two dominant trends
within global agricultural value chains. The first is caused by the dynamics of
the co-existing collaboration and intensified rivalry between lead firms within
the same chain. The other is caused by new opportunities and challenges
stemming from increased requirements on retailer-driven markets in the North
and expansion of new markets in the South. The paper points out the need to
rectify the heavily biased policy focus on standard compliance with the purpose
of strengthening smallholder incorporation and upgrading in retailer-driven
strands of global value chains ending in the North. Instead, markets in the
South and in emerging economies may function as a training ground for
upgrading of African smallholder production via increases in volume and
consistency of exports.