Integrating Very Poor Agricultural Producers into Value Chains Dan Norell World Vision

Harnessing the Power of Cross-sectoral Programming to Alleviate HIV/AIDS and Food Insecurity


May 30, 2013Washington, DC

Integrating Very Poor Agricultural Producers into Value Chains

Dan NorellWorld Vision


Learning Objectives

• Recognize the constraints and opportunities of vulnerable households engaging in markets

• Understand when it is appropriate to encourage vulnerable households to engage in a market and how an organization can support households to minimize their risk


Constraints of the Very Poor

• Gender • Cultural barriers• Lack of time• Lack capacity to undertake economic

activity• Limited ability to take on risk


Stronger Enterprises…• Build hope and trust • Build commercial relationships between

producers & suppliers and producers & buyers

• Increase resilience - allows families to adapt to & recover better from shocks & stresses

• Able to pay for better healthcare services


Value Chain Map


Vertical Linkages• More fair financial

flows– Connect producers with

market actors• More effective

knowledge and information transfer– Stakeholder workshops

• Increases innovation

Connects producers to buyers and suppliers


Horizontal Linkages

• Allows for risk sharing mechanisms– Greater bargaining power– Economies of scale

• Facilitates knowledge sharing networks between female producers of various experience levels– Increased social capital - mentoring – Value Girls Program– Increased confidence– Collective learning

Connects producers to other producers


Productive Safety Net Program Plus project, Ethiopia

Project provided an initial food package or food voucher for a limited time until producers graduate to a stage where they are able to continue without the food support.


Case: ProRENDA Project in AngolaBackground:

•Smallholder farmers and value chain market actors•60% female participationGoal: •“Smallholder farmers in the central highlands in Angola will increase their annual income from potatoes and other high value crops through competitive value chains”


ProRENDA Project in AngolaVertical Linkages

• Value chain selection of nutritious & profitable value chains (carrots, potatoes, beans)

• Knowledge and information transfer that met market demands– Product processing and grading– Post-harvest quality control and storage

• Capacity to develop business relationships– Farmer business schools

• Access to financial services


ProRENDA in Angola:Horizontal Linkages & Gender Focus

• Savings groups & literacy classes• Seed banks

– 80% female-managed seed banks – especially serving those 30% of project

households that have a female as the head of household


Seed banks providing access to inputsPotato and Onion production, Angola

•Community Seed Banks set up for distribution of potato and onion seeds

•Introduce improved varieties of crops - while generating income for extremely poor farmers

•Project provides the seed stock to very poor households who grow the stock. Beneficiaries have to pay back twice the amount received in the form of in-kind seed to other community members in the seed bank. They also have to purchase their own seed in future seasons


http://microlinks.kdid.org/library/integrating-very-poor-producers-value-chains-field-guide

Download the Field Guide!





Small Group DiscussionIn groups of 2 or 3 discuss:1. When is it appropriate to encourage households to engage in a market?2. How can organizations facilitate market linkages so that the market linkages minimize the risk for very poor households?

Integrating Very Poor Agricultural Producers into Value Chains Dan Norell World Vision

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