Using an Agroenterprise Learning Alliances for Inclusive

Value Chain Support

What did CRS want to What did CRS want to achieve?achieve?

Five year commitment to Shift from Five year commitment to Shift from agriculture to agroenterpriseagriculture to agroenterprise Provide a bridge from relief to developmentProvide a bridge from relief to development Link poor farmers to marketsLink poor farmers to markets Make smallholder farming more competitiveMake smallholder farming more competitive Diversify to higher volume / value cropsDiversify to higher volume / value crops Strengthen access to finance and other BDSStrengthen access to finance and other BDS

Improved food and financial securityImproved food and financial security

Participatory Methodologies for Participatory Methodologies for Agroenterprise DevelopmentAgroenterprise Development

Learning Alliance Learning Alliance StructureStructure

VC DocumentationVC Documentation

Based on the Agroenterprise Based on the Agroenterprise Learning Alliance, CRS is Learning Alliance, CRS is publishing two bookspublishing two books

1.1. Working Together, Learning Working Together, Learning Together: Together: Learning Alliances in Learning Alliances in Agroenterprise DevelopmentAgroenterprise Development

2.2. Getting to Market: Getting to Market: Agriculture to Agriculture to AgroenterpriseAgroenterprise

What worked wellWhat worked wellin AED and value chains in AED and value chains

reinvigorated CRS’s approach to agriculturereinvigorated CRS’s approach to agriculture aligns incentives in ways that encourage poor communities aligns incentives in ways that encourage poor communities

to rethink their options and engage in markets engage more to rethink their options and engage in markets engage more effectivelyeffectively

worked across a range of environments and has proven to worked across a range of environments and has proven to be a bridge between relief and development.be a bridge between relief and development.

required greater partnership development with the required greater partnership development with the community, technology providers and private sectorcommunity, technology providers and private sector

led to organic integration between sectors such as MF, led to organic integration between sectors such as MF, Water, and Health, where it matters, which was not the case Water, and Health, where it matters, which was not the case before.before.

Improved financial and AE skills is empowering women when Improved financial and AE skills is empowering women when programs focus attention on their needs. BUT much more programs focus attention on their needs. BUT much more work needs to be done to define and invest in programs that work needs to be done to define and invest in programs that support women in agriculture more effectivelysupport women in agriculture more effectively..

Navy Bean Chain Navy Bean Chain EthiopiaEthiopia

Crop grown by 70,000 + farmers. CRS support has Crop grown by 70,000 + farmers. CRS support has been support this sector for 6 years starting with been support this sector for 6 years starting with productionproduction

Current Value chain upgradingCurrent Value chain upgradingNext 4 yrs Next 4 yrs 2000 to 20,000 farmers2000 to 20,000 farmers

Scale and sustainabilityScale and sustainabilityby linking informal & formal worldsby linking informal & formal worlds

New Business models projectNew Business models project Clear production standardsClear production standards Delivery of pricing transparencyDelivery of pricing transparency Assurance of fair minimum priceAssurance of fair minimum price Communication systems for MISCommunication systems for MIS Defined quality standardsDefined quality standards M&Eto show development benefitsM&Eto show development benefits

Chickpea Chain TanzaniaChickpea Chain Tanzania

In 2000 new varietyIn 2000 new variety 2003-05 farmer marketing groups2003-05 farmer marketing groups In 2007-08 introduced SILC groups (savings and In 2007-08 introduced SILC groups (savings and

internal loans) which associated SIGAsinternal loans) which associated SIGAs Scale generated attracted buyers, in 2007 Scale generated attracted buyers, in 2007

collective marketing collective marketing ∆ ∆ from 570 mt in 2006 to from 570 mt in 2006 to 2,152 mt in 2007.2,152 mt in 2007.

SIGA based on 2500+ farmers was also a conduit SIGA based on 2500+ farmers was also a conduit to link another 8,100 farmers into this market to link another 8,100 farmers into this market channel.channel.

Linkage of MF and AE catalyzed a rapid Linkage of MF and AE catalyzed a rapid increase in savings groups that reinforced increase in savings groups that reinforced AE and enabled collective marketing.AE and enabled collective marketing.

Value Chain challengesValue Chain challenges

Skills upgrade & transfer to communities takes timeSkills upgrade & transfer to communities takes time Care to match product with target communityCare to match product with target community Farmer group organisation slow but valuableFarmer group organisation slow but valuable Value chain analysis is complex but then continuousValue chain analysis is complex but then continuous Finance for the rural poor needs a rethink….Finance for the rural poor needs a rethink…. Links to local market information and BDS weakLinks to local market information and BDS weak Links to formal private sector requires facilitationLinks to formal private sector requires facilitation M&E not chain wideM&E not chain wide

Selection of value chainSelection of value chain

Demand, local resources, community Demand, local resources, community preferencepreference

Risk, services, participation, Risk, services, participation, durabilitydurability

Multi-Skill Options for Multi-Skill Options for Farmer GroupsFarmer Groups

Social

Innovation

Market engagement

Natural resources

Financial

Linking Microfinance to Linking Microfinance to Value ChainsValue Chains

Shifting from micro-finance to micro-investment

Savings clubs to Saving associations MFI’s shift from lump sum to multi-phase

loansAmount of

savings (end of year)

1 2

Amount of savings (start of year)

Year

3 4

8

14

18

9

5

040

11

Source: Tom Shaw, CRS

Mobilised BDSMobilised BDS

Mobilised information Mobilised information systems for market systems for market

information are available information are available and affordable but need and affordable but need coordination to financecoordination to finance

Promising Methods for Promising Methods for inclusioninclusion

Participatory value chain developmentParticipatory value chain development Multi-skill options for farmer groupsMulti-skill options for farmer groups Savings mobilization Savings mobilization Strengthening local BDS providersStrengthening local BDS providers Mobilised information platformsMobilised information platforms New business modelsNew business models Integration of infrastructure, training and Integration of infrastructure, training and

marketing linkagemarketing linkage Links to Universities and Research InstitutesLinks to Universities and Research Institutes

ConcernsConcerns Tendency towards focusing market solutions on the Tendency towards focusing market solutions on the

economically active, which may exclude the vulnerable. economically active, which may exclude the vulnerable. Feeling that value chain is high value as opposed to Feeling that value chain is high value as opposed to

volume staple food crops which can reach thousands of volume staple food crops which can reach thousands of farmers. farmers.

Working in an environment of short term investment in Working in an environment of short term investment in areas that need “generational change” processesareas that need “generational change” processes

PVO community is hampered by limited development PVO community is hampered by limited development funds in FFP mechanisms to support poor communities, funds in FFP mechanisms to support poor communities, running the risk of making the poor poorerrunning the risk of making the poor poorer

Trend towards increasing use of contract instruments as a Trend towards increasing use of contract instruments as a means of supporting agricultural development is means of supporting agricultural development is undermining the ability of PVO’s to undermining the ability of PVO’s to access development fundingaccess development funding

For further information For further information See CRS Ag Symposium See CRS Ag Symposium

2020thth April AprilWashington D.C.Washington D.C.sferris@crs.orgsferris@crs.org

Using an Agroenterprise Learning Alliances to link poor farmers to markets