These proceedings detail the findings of the ACIAR smallholder agriculture project which were presented at a workshop held in Tonga in May 1988. This project was based on the assumption that smallholders could make a more substantial contribution to economic growth, provided they receive the right technologies, infrastructure and incentives. The project involved four case studies of villages in various parts of Tonga. These studies established useful baseline data for establishing determining appropriate strategies needed for increasing productivity and improving farmers' terms of trade. The findings have implications for the South Pacific countries where agriculture provides the bulk of gross domestic product, employment and export income. Proceedings of a workshop held at the Institute for Rural Development, University of the South Pacific, Nuku'alofa, Tonga, 12-13 May, 1988.