ICT’s in Value ChainsShaun FerrisCTA Addis – 6th November…
Value chain
A value chain process focuses on linking chain actors with target markets:
Participants
Key features of value chain methods?
Market linkage process Takes a systems perspective Drives growth through end markets Stimulates commercially-oriented, market-based
solutions to constraints Upgrades the performance of individual
businesses and the chain as a whole Fosters and facilitates competitiveness by
building inter-business relationships
The value chain
The Core Actors
Business Service Providers
The Institutions and Rules
They each have different ICT needs and solutions
Extension, vets, inputs, transport, banks
There are three different types of actors
Distance learning / training
materials
Farmer registrati
on
Business planningProfitabili
ty analysis
Crop monitorin
gMap and
Track
Project set up
Baseline / impact
Distance learning
Extension ICT’s
Map and Trackservice delivery
audit
Project support
Data forms
Farmbook calculators
Mob Trans
Opp Bank
ICT applications in value chains
Pre-production ProductionPostharve
stMarketing
Market planning
MIS and Inputs
Finance
Farmbook calculators
Brainhoney
Training
Esoko
Esoko /
Reuters
Esoko /RL MIS
Digital Green
SMSvoice
Cropster /Muddy-Boots
Esoko / RLAMITSA
MPESA - $$
Production tips
Transport
FinanceProductionFinance
Marketing decisions
Reuters/Farm-radio
Feedback Polls
Market price decisions
Storage
Chain wide Market Linkage
Best Practices
Best Practices Product
Bulking
Farmer ICT’s
SM Biz performance
Financial flows
Insurance
Swiss Re WI
Traceability
Systems Integration
7
Survey InfoService Delivery Info
Farmers
Extension / Service provider
Registration Info
Third-Party Databases and Websites
Extension / Service provider
Extension / Service provider
Farmers Farmers
Second level aggregate database e.g. (sales force)
Project staff
Partner staff
1st stage Database
1st stage Database
1st stage Database
Food aid and asset transferSafety net clients
Time frames
Targeting
Top 1-2% of commercial smallholder farmers who produce up to 50% of the traded grain
15-18% of smallholders who sell the bulk of the other 50% of traded grain
20-30 % of farmers who are market neutral (weather dependent)
30-50% of farmers who are net buyers
Market Ready smallholders
Market limited smallholders
Highly vulnerable Poor (ultra poor)
Data based on Sitko et al. MSU. Trends and transformations in staple food markets in Eastern and Southern Africa
Periodic sellers 2-3 year process
5-8 year process
Key Challenges Most smallholder farmers work outside of value
chains. Value chain support requires a shift in extension
to business advice in addition to production 100’s of farmers to one Extension worker Using value chain information requires a learning
process for farmers and that takes time. Millions of farmers want customized information,
most do not get it. Most farmers expect free services, which needs
to change
Conclusions1. Great progress in ICT solutions, but How many
extension services are using these methods? Need to find best fit options to shift from traditional
delivery channels and ICT-enabled channels
2. Must focus on scale to achieve cost recovery and value added?
To do this we need better public-private partnerships?
3. Need more return on investment studies to highlight the value of ICT-enabled approaches
– and effectiveness compared to other approaches?
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