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The purpose of this paper is to demonstrate that agricultural commodity value chain development using multi-stakeholder partnerships (MSPs) can fast-track improvement in the livelihoods of rural farming households. With the view that such partnerships can raise farmers’ incomes, the study uses the case of the organic pineapple (OP) value chain in Ntungamo, Western Uganda, to understand the governance features that hold the value chain partners together, to analyse the costs and margins to the participating farmers, to identify opportunities for demand-driven upgrading of the farmers’ skills and knowledge, and the role that partnerships play in such upgrading.

The study uses the qualitative tools of value chain analysis: value chain maps of stakeholders, processes and support services of the OP value chain, and a quantitative tool to analyse costs and margins to the participating farmers. Interviews were conducted with key informants from the OP innovation platform, and survey data collected for the planting season, February–July, 2014, across three farmer categories of certified organic, conventional, and farmers not participating in the innovation platform.

Careful selection of partnerships to develop the value chain is found to be critical. Partners to involve should be those that enable the upgrading of farmers’ knowledge, skills and technologies to position them for better markets. Partners should also include those that enable the improvement of margins to the farmers and efficiency of the value chain. The strategic MSPs should be bound by formal contracts, to ensure stable relationships in the value chain and hence sustainable market access for the farmers.

Although carried out on a specific value chain in a specific local context, this is not likely to limit the applicability of the findings to commodity value chains in a range of local contexts.

The study fulfils the need to highlight the role that stakeholder partnerships can play in value chain development and how they can be sustained by governance and institutional arrangements.