Bridging the Midstream Gap: Unlocking Capital and Infrastructure for U.S. Specialty Crop SME
A strategic analysis of SME financing, infrastructure investment, and policy solutions
The U.S. food system loses billions of dollars in value each year not because food isn’t grown, but because the infrastructure that moves it to market is underbuilt and underfinanced. This white paper examines the overlooked “midstream” and outlines practical solutions to unlock capital, reduce food loss, and strengthen nutrition, climate, and economic outcomes.
Executive Snapshot
Small and mid-sized enterprises (SMEs) operating in aggregation, storage, processing, packaging, and distribution are the connective tissue of the U.S. specialty crop sector. Yet these midstream actors remain largely invisible to capital markets and policy design.
Bridging the Midstream Gap presents an evidence-based analysis of why this segment is chronically underinvested, despite strong demand and proven returns. Drawing on data, interviews, and real-world examples, the paper identifies where capital can be catalytic, how policy can unlock markets, and what it will take to move from fragmented supply chains to resilient, inclusive food systems.
What you’ll learn
Where food loss and value erosion occur between farm and market
Why midstream SMEs fall into a persistent financing and infrastructure “blind spot”
The economic, nutrition, climate, and equity returns of targeted midstream investment
Proven solutions including blended finance, modular cold storage, and mobile processing
Policy and procurement levers that can unlock scalable demand
Actionable recommendations for funders, investors, and policymakers
Why this matters
The U.S. specialty crop sector generates over $63 billion annually and anchors national nutrition security, yet 30–40% of fruits and vegetables are lost before reaching consumers due to midstream gaps. These losses translate into avoidable emissions, higher food prices, missed economic opportunity, and reduced access to healthy food, especially in underserved communities.
Midstream SMEs are not peripheral actors. They are essential market enablers. When properly supported, investments in storage, processing, and logistics consistently deliver strong financial returns while advancing public health, climate resilience, and rural economic development. Ignoring this segment is no longer a viable option.
Download the Full White Paper
Explore the data, analysis, and recommendations shaping the future of U.S. specialty crop infrastructure.
The midstream is not a gap to work around, it is a growth engine hiding in plain sight. With deliberate investment, aligned policy, and coordinated action, the U.S. can reduce food loss, strengthen nutrition security, and unlock inclusive economic growth. The tools exist. The opportunity is clear. The time to act is now.
About the authors
Prepared by: Food Systems for the Future Institute
Reviewed with contributions from: ReFED
Publication date: January 2026
Contact
For more information, please contact:
Cedric Habiyaremye at cedric@fsfinstitute.net