New research offers practical approaches to strengthening traceability and supporting smallholder inclusion at the start of agricultural supply chains.

The first mile, the journey from producer to the first aggregation or processing point, is a critical yet often overlooked stage in agricultural supply chains. Across cocoa, coffee, rubber and palm oil, this stage is shaped by smallholders, informal intermediaries, and complex social, economic and logistical realities. 

Understanding the first mile is essential for building traceable, inclusive supply chains that enable smallholders and informal actors to participate equitably. 

In 2025, ISEAL commissioned Proforest to explore the first mile of agricultural commodity supply chains. Drawing on mapping, interviews and case studies across multiple commodities and regions, the research examines the actors, structures and traceability challenges that define this stage of the supply chain. 

What emerged across commodities?

Across all commodities, the first mile is dominated by independent smallholders operating with limited resources, minimal infrastructure and often outside formal regulatory frameworks. Producers typically rely on intermediaries, including local collectors, traders and agents, for market access, transport and credit. 

While these intermediaries play a vital role in enabling trade, their operations are frequently informal, undocumented and poorly integrated into traceability systems.

Formal documentation often only begins at mills or processors, making it difficult to trace volumes back to plot level. This not only increases the risk of mixing and substitution, but also of smallholders being left out of supply chain participation. Poorly designed traceability initiatives can inadvertently displace these actors, while inclusive systems have the potential to empower smallholders, improve incomes and formalise intermediary roles in ways that strengthen both equity and efficiency.

Where governance strengthens or weakens traceability

Governance and formalisation are key factors in first mile success. Countries with strong regulatory frameworks and centralised oversight demonstrate higher levels of traceability and fewer unlicensed actors. 

Where governance is fragmented, informality persists within the first mile, requiring flexible, context-sensitive solutions that balance regulation with practical support for smallholders and intermediaries.

What stronger first mile traceability looks like in practiceThe research highlighted several practical recommendations for building traceable systems that are resilient, inclusive and adaptable to evolving realities on the ground:

• design for inclusion: through low-barrier entry points such as mobile-based registration tools, enabling group-level traceability, and recognition of intermediaries’ local networks and relationships to help connect remote producers to markets.
• strengthen digital access and skills: pair digital rollouts with training and capacity building to ensure traceability tools are usable and effective. Shared access models can help bridge the digital divide. 
• support cooperative and group models: cooperatives and producer groups can provide aggregation, governance structures and social and environmental services, helping formalise roles without displacing local intermediaries.
• balance formalisation with flexibility: use hybrid systems and phased requirements to gradually integrate informal actors. Requirements should be tailored to commodity, geography and actor type.
• encourage engagement at first points of processing: mills and processors can strengthen traceability by working with intermediaries and sharing responsibility for traceable supply, including through cost-sharing mechanisms that recognise their contributions. 
• promote collaborative approaches: governments, companies, NGOs, sustainability systems, and producer organisations need to work together to align incentives, share data and scale successful first mile initiatives.
• focus on impact over granularity: combine plot-level traceability with risk-based and landscape-level approaches to tackle systemic issues across entire regions and support inclusive supply chains.

Strengthening inclusive first mile traceability requires collaborative approaches that bring together governments, companies, NGOs, sustainability systems and producer organisations. 

By combining digital tools, physical infrastructure and local expertise, supply chains can become more traceable, equitable and resilient, ensuring smallholders remain an integral part of sustainable agricultural production.

Explore the research

• Full report: mapping first-mile actors, structures and traceability challenges across commodities and countries.
• Executive summary: highlighting key findings and practical recommendations.
• Case studies: highlighting scalable lessons from inclusive supply chains and diverse first-mile traceability approaches, from government- to producer-led systems across commodities and landscapes.  

Together, these resources provide evidence-based insights for companies, governments and sustainability systems seeking to strengthen traceability, manage risk and support smallholder inclusion at the first mile.

This publication was produced by Proforest and commissioned by ISEAL. The research included in this report was made possible through funding by Walmart/Walmart Foundation and UK International Development from the UK government.

The findings, conclusions, and recommendations presented in this report are those of Proforest Initiative alone, and do not necessarily reflect the opinions of ISEAL, Walmart/Walmart Foundation, or the UK government.