HIVOS is trying to achieve poverty reduction through quality improvement among groups of smallholders in coffee and vegetable production in Kenya and South Africa. These smallholders depend on markets for their livelihood. Main buyers in these markets increasingly demand compliance with a variety of standards. Therefore, in order to avoid being squeezed out of these markets, groups of smallholders need to respond to these demands. Our report analyses the daunting challenges for smallholders, and the as yet too unsystematic interventions by civil society organizations, including HIVOS. Most importantly, as a solution to the lack of systematic progress, we propose an interaction model as a guiding perspective for future interventions. This model aims to enhance systemic improvement processes among groups of smallholders and aims to ensure entry opportunities for poorer producers.