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Elly Kaganzi Technical Advisor of Market Engagement and Economic Development CARE- USA [email protected]
Elly KaganziTechnical Advisor of Market Engagement and Economic DevelopmentCARE- [email protected]
Background
From the late 80 and early 90s smallholder farmers started to face substantial barriers to achieving improved livelihoods as commodity prices declined, public sector reform reduced assistance and natural resources became scarcer. This coupled with market integration led to increased competition.
Research into way through which competitiveness of smallholder farmers would be enhanced began. CIAT among fore front agencies looking at ways of integrating smallholder farmers in competitive value chains
Strategies consideredIncreasing competitiveness of market chains
Adding value
Diversification (products and services)
Better organization
New contractual arrangements
Links to financial services
Clients and Beneficiaries Clients
National / regional researchersService providers, NGOs, CBOs, Universities Private sector entrepreneurs / farmer associations,
women’s groupsBeneficiaries
Poor smallholder farmersRural tradersBusiness service providersProcessorsConsumers
The MethodsHave been developed over the past 12
years, they have been well tested
Are being used in Central America, Andean America, South East Asia and Eastern and Southern Africa, and West Africa through Learning alliances.
Taken up and scaled out by National, Regional and International organisations
CRS, CARE, Africare, World Vision, National Government agencies.
New methodologies for Value Chain analysis and development for small-scale producers
Key Features of Rural Agro-enterprise development Process
Area basedParticipatoryMarket ledThinking “outside the farm”ScaleableSeeking continuous innovationBuilding on local skills and empowering
communities
Entry Points for the ProcessCompetence of Service providerOrganisation of farmersWealth of groupsMarket access and engagementProduct typesAvailability and access to services
Visioning for the future
Working group for Agro-enterprise within VC framework)
Farmers(Formal and informal
groups)
Suppliers
Transporters
Processing Factories / Value
Addition
RetailersConsumers at Formal
MarketWholesalers
Input Suppliers
Valu
e Ch
ain
Ope
rato
rs
Intra-chain / Inter-actor support, coordination, management. Improving efficiency and transparency of transactions
Commercial (and social) interests
Wholesalers Retailers Consumers at Informal Market
Interventions, business support
Support of development goals and public interests, payment
Valu
e Ch
ain
Supp
orte
rs /
Serv
ice P
rovid
ers
Research Bodies NGOs BDS
ProvidersExtension State Bodies Banks
Financial ServicesNon-financial Services
Microfinance Institutions
National / International Enabling Environment
The marketing facilitator “A Market visit”
Market Opportunity Identification is a process of generating knowledge and making decisions based on Demand.
Taking clients to the market is often a real “eye opener”
Participatory approaches increase the level of farmer ownership in the process and enables producers and Service providers to develop new types of relationships, FACILITATION
Service Providers discussing options for a new Business with farmers and Chain Actors
Traders
Stockists
Farmers
Partner, service provider
Scaling up
Evaluating andEvaluating andselectingselecting
enterpriseenterprisealternativesalternatives
LL
5 d5 daysays
AgroenterprisAgroenterprise design and e design and development development
of action of action plansplans
LL
5 d5 daysays
Interest group Interest group formation and formation and
market market opportunity opportunity
identificationidentification
55 d daysays
Apply, Apply, monitor and monitor and
follow-upfollow-up
66 monthsmonths
88 m monthsonths
Apply, Apply, monitor monitor
and and follow-upfollow-up
66 m monthsonths
Apply, Apply, monitor and monitor and
follow-upfollow-up
Business Business DevelopmenDevelopmen
t Services t Services and their and their
assessmentassessment
LL
55 d daysays
Monitoring and evaluation
An incremental learning An incremental learning process process
Small-scale farmersorganised & supplying
a specialisedvalue chain
Small-scale farmersorganised and
adding value to selected products
Service Provider Farmer Profiling
Small-scale farmers organised to sell
produce collectively
Individual Small-scale farmersSell surplus product
into the market
Organise farmersSelect existing product
Produce for theMarket. Evaluate
Link supplier groupsTo specialist
service providers
Increase Competitiveness in input
And output marketsLink activities tofinance services
Service providers With limitedMarketing experience
Diversify productsstrengthen business
skills Initiate savings records
Link to MF
Service providers With moreMarketing experience
Service providers With strongMarketing experience
Specialist marketingservice providers
Development impactIncreased farm income
Ground nut producers in Eastern Uganda. Nnegotiations led to a 16% price premium due to higher quality of nutsn and selling to a known buyer.
Cut flowers in Cauca, Colombia. 24% price increase for producers for flowers sorted, graded and packed to customers needs.
In Tanzania, 15 NGOS capacity in market development build in an IFAD program . Farmer income increases 15-25%
Potato farmers in Kabale, Uganda. Sold 2000 Mt of potatoes for $300,000, in past 8 years.
In Rwanda, over 15,000 families increased their income through integration in vegetable, high value chillies, baskets
Scaling out to the Development world CRS global Agro-enterprise development initiatives CAREs pathways women's empowerment program ( 6 countries 14 value
chains Empowered communities and farmers (est. 200,000 farm families)
Through reference/pilot sites and Learning alliance More effective rural business development service providers
Partners in reference/pilot sites and in Learning Alliance projects Rwanda, Ethiopia, Burundi, Malawi and Zambia
ConclusionsConclusionsProductivity alone has not succeeded in reducing
rural poverty. A broader strategy is needed.
The global agrifood system is becoming less remunerative for primary producers.
Farmers need to be competitive and better organised to make farming pay
Farmers need to find ways of adding value to their goods and accessing new markets.
We Need to develop new ways of strengthening skills to enable rural innovation so that our beneficiaries can find and manage markets, access value adding technologies, achieve improved links with other actors and organize effective support services are possible ways forward.
Productivity alone has not succeeded in reducing rural poverty. A broader strategy is needed.
The global agrifood system is becoming less remunerative for primary producers.
Farmers need to be competitive and better organised to make farming pay
Farmers need to find ways of adding value to their goods and accessing new markets.
We Need to develop new ways of strengthening skills to enable rural innovation so that our beneficiaries can find and manage markets, access value adding technologies, achieve improved links with other actors and organize effective support services are possible ways forward.
