Methods and approaches for Linking Smallholder farmers to Markets
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Transcript Methods and approaches for Linking Smallholder farmers to Markets
Elly Kaganzi
Technical Advisor of Market Engagement and
Economic Development
CARE- USA
[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 considered
Increasing 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 researchers
Service providers, NGOs, CBOs,
Universities
Private sector entrepreneurs / farmer associations, women’s
groups
Beneficiaries
Poor smallholder farmers
Rural traders
Business service providers
Processors
Consumers
The Methods
Have 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 based
Participatory
Market led
Thinking “outside the farm”
Scaleable
Seeking continuous innovation
Building on local skills and empowering communities
Entry Points for the Process
Competence of Service provider
Organisation of farmers
Wealth of groups
Market access and engagement
Product types
Availability and access to services
Visioning for the future
Working group for Agro-enterprise within VC framework)
National / International Enabling
Environment
Value Chain Operators
Commercial (and social) interests
Input Suppliers
Farmers
(Formal and
informal groups)
Suppliers
Transporters
Processing
Factories / Value
Addition
Wholesalers
Retailers
Wholesalers
Retailers
Consumers at
Formal Market
Consumers at
Informal Market
Intra-chain / Inter-actor support, coordination,
management. Improving efficiency and transparency of transactions
Support of development goals and public interests, payment
Value Chain
Supporters /
Service Providers
Interventions,
business support
Research
Bodies
Extension
NGOs
Non-financial Services
BDS
Providers
State Bodies
Microfinance Institutions
Financial Services
Banks
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”
Mapping out the Market Chain
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
Stockists
Traders
Partner,
service
provider
Farmers
Scaling up
The “Learning Alliance™”
6 months
Apply,
monitor and
follow-up
8 months
Apply,
monitor and
follow-up
6 months
Apply,
monitor and
follow-up
Interest group
formation and
market opportunity
identification
L
Evaluating and
selecting
enterprise
alternatives
5 days
L
Agroenterprise
design and
development of
action plans
5 days
5 days
An incremental learning
process
Monitoring and evaluation
5 days
L
Business
Development
Services and
their
assessment
Service Provider Farmer Profiling
Specialist marketing
service providers
Service providers
With strong
Marketing
experience
Service providers
With more
Marketing
experience
Service providers
With limited
Marketing
experience
Small-scale farmers
organised & supplying
a specialised
value chain
Small-scale farmers
organised and
adding value to
selected products
Small-scale farmers
organised to sell
produce collectively
Individual
Small-scale farmers
Sell surplus product
into the market
Link supplier groups
To specialist
service providers
Increase
Competitiveness in input
And output markets
Link activities to
finance services
Diversify products
strengthen business
skills
Initiate savings records
Link to MF
Organise farmers
Select existing product
Produce for the
Market. Evaluate
Development impact
Increased 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
Conclusions
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.