Including small-scale farmers in profitable value chains

Including small-scale farmers in profitable value chains
Author: Shepherd, A.
Publisher: CTA
Total Pages: 60
Release: 2016-11-05
Genre: Business & Economics
ISBN: 9290816074

This paper reports on six case studies commissioned by CTA to examine factors contributing to the success of inclusive value chains in ACP countries. All six studies are from Africa. They cover: (1) jatropha chains in Burkina Faso and Mali; (2) oilseeds in Uganda; (3) litchi in Madagascar; (4) cashew in Benin; (5) milk products in Senegal; and (6) bananas, pigs and aquaculture in Uganda. There is a range of definitions of inclusive value chains but such chains are generally considered to be those that seek to obtain supply from poorer farmers, thereby maximising farmers’ access to market opportunities. Recent developments in production and marketing systems do not automatically benefit small-scale farmers and conscious efforts need to be made to achieve positive results for them. Even so, not all farmers can be included, for reasons such as their location, farm size and natural resources, capacity to meet increasingly strict product standards, and the farmers’ aversion to risk.

Smallholder farmers’ participation in profitable value chains and contract farming : Evidence from irrigated agriculture in Egypt

Smallholder farmers’ participation in profitable value chains and contract farming : Evidence from irrigated agriculture in Egypt
Author: Tabe-Ojong, Martin Paul Jr.
Publisher: Intl Food Policy Res Inst
Total Pages: 8
Release: 2023-05-18
Genre: Political Science
ISBN:

Key messages The participation of smallholder farmers in high-value and profitable value chains as well as contract farming remains low in Africa.  Farmers with limited land resources are more likely to devote a larger share of their land to low-value crops such as cereals while this pattern weakens with increasing land size and slightly reverses for high-value crops such as spices and herbs.  Smallholders in Egypt face a trade-off between ensuring food security to their house holds and maximizing profit, and land plays a major factor in moderating this trade-off.  Younger and wealthier farmers are more likely to participate in the cultivation of high value crops such as spices and herbs as well as contract farming.  There exist strong complementarities between participation in high-value value chains and contract farming.

Making the connection

Making the connection
Author: Pye-Smith, C.
Publisher: CTA
Total Pages: 40
Release: 2013-12-31
Genre: Business & Economics
ISBN:

The ‘Making the Connection’ conference on developing value chains for smallholder agriculture was the largest ever held on the topic. It focused on how to create efficient, market-led value chains that will ensure greater food security and improve the welfare of tens of millions of smallholder farmers. Participants discussed a wide range of policy issues, the most important of which are summarised here. These include ways of improving linkages between small farmers and buyers, the development of intra-regional trade, promoting an enabling environment and improving value chain finance.

Developing Sustainable Food Value Chains

Developing Sustainable Food Value Chains
Author: David Neven
Publisher: Food & Agriculture Organization of the UN (FAO)
Total Pages: 92
Release: 2014
Genre: Business & Economics
ISBN:

Using sustainable food value chain development (SFVCD) approaches to reduce poverty presents both great opportunities and daunting challenges. SFVCD requires a systems approach to identifying root problems, innovative thinking to find effective solutions and broad-based partnerships to implement programmes that have an impact at scale. In practice, however, a misunderstanding of its fundamental nature can easily result in value-chain projects having limited or non-sustainable impact. Furthermore, development practitioners around the world are learning valuable lessons from both failures and successes, but many of these are not well disseminated. This new set of handbooks aims to address these gaps by providing practical guidance on SFVCD to a target audience of policy-makers, project designers and field practitioners. This first handbook provides a solid conceptual foundation on which to build the subsequent handbooks. It (1) clearly defines the concept of a sustainable food value chain; (2) presents and discusses a development paradigm that integrates the multidimensional concepts of sustainability and value added; (3) presents, discusses and illustrates ten principles that underlie SFVCD; and (4) discusses the potential and limitations of using the value-chain concept in food-systems development. By doing so, the handbook makes a strong case for placing SFVCD at the heart of any strategy aimed at reducing poverty and hunger in the long run.

Innovation for inclusive value-chain development

Innovation for inclusive value-chain development
Author: Devaux, André
Publisher: Intl Food Policy Res Inst
Total Pages: 560
Release: 2016-10-21
Genre: Political Science
ISBN: 0896292134

Governments, nongovernmental organizations, donors, and the private sector have increasingly embraced value-chain development (VCD) for stimulating economic growth and combating rural poverty. Innovation for Inclusive Value-Chain Development: Successes and Challenges helps to fill the current gap in systematic knowledge about how well VCD has performed, related trade-offs or undesired effects, and which combinations of VCD elements are most likely to reduce poverty and deliver on overall development goals. This book uses case studies to examine a range of VCD experiences. Approaching the subject from various angles, it looks at new linkages to markets and the role of farmer organizations and contract farming in raising productivity and access to markets, the minimum assets requirement to participate in VCD, the role of multi-stakeholder platforms in VCD, and how to measure and identify successful VCD interventions. The book also explores the challenges livestock-dependent people face; how urbanization and advancing technologies affect linkages; ways to increase gender inclusion and economic growth; and the different roles various types of platforms play in VCD.

Interventions for inclusive and efficient value chains: Insights from CGIAR research

Interventions for inclusive and efficient value chains: Insights from CGIAR research
Author: de Brauw, Alan
Publisher: Intl Food Policy Res Inst
Total Pages: 13
Release: 2021-12-31
Genre: Political Science
ISBN:

Efforts to promote the development of agricultural value chains are a common element of strategies to stimulate economic growth in low-income countries. Since the world food price crisis in 2007-2008, developing country governments, international donor agencies, and development practitioners have placed additional emphasis on making agricultural value chains work better for the poor. As value chains evolve to serve new markets, they tend to become less inclusive. For example, if a market for high quality rice arises within an economy, it is inherently easier for traders who sell rice to retailers to source that high quality rice from larger farms that are better able to control its quality than from dozens of smallholder farms. As a result, the normal path of value chain evolution can be biased against smallholders; hence, it is important to understand what types of interventions can make value chains more inclusive while also making them more efficient. In this brief, we summarize studies on five types of value chain interventions that were supported by the CGIAR’s Research Program on Policies, Institutions, and Markets (PIM) through its Flagship 3 on Inclusive and Effective Value Chains. Figure 1 illustrates a “typical” agricultural value chain, including the five intervention types (in orange). These include interventions that attempt to deal with multiple production constraints; certification; contract farming; public-private partnerships; and “other” services related to trading and marketing agricultural products. Apart from the last category, these interventions all involve production. This reflects the fact that smallholder producers can be considered, in some ways, the weakest link in evolving agricultural value chains (de Brauw and Bulte 2021). Hence, it is sensible to target interventions either at or close to smallholders. However, in some cases, the best way to overcome smallholder constraints may be to help actors at other points in the value chain overcome constraints. Many interventions share a focus on reducing transaction costs to promote smallholder market integration. Ideally, interventions increase both efficiency and inclusion, but we observe that such win-win outcomes are rare. Trade-offs appear to be more common than synergies, and some value chain interventions involve clear winners and losers.

Synopsis, Innovation for inclusive value-chain development

Synopsis, Innovation for inclusive value-chain development
Author: Devaux, André
Publisher: Intl Food Policy Res Inst
Total Pages: 4
Release: 2016-04-19
Genre: Social Science
ISBN: 0896299775

With roughly three-quarters of the world’s poor living in rural areas, addressing global poverty requires paying attention to rural populations, especially smallholder farmers in developing countries. Millions of smallholders and others among the developing world’s poor, including a large proportion of women, participate as producers, laborers, traders, processors, retailers, or consumers in agricultural value chains. A value chain refers to the set of interlinked agents that produce, transform, and market the products that consumers are prepared to purchase (see Figure 1 for an outline of a stylized value chain). Improving the performance of agricultural value chains has the potential to benefit large numbers of low-income and poor people. Innovation for Inclusive Value-Chain Development: Successes and Challenges assesses how to improve agricultural value chains, particularly value chains that include smallholders.

Spore Special Issue

Spore Special Issue
Author:
Publisher: CTA
Total Pages: 36
Release: 2012-12-31
Genre: Business & Economics
ISBN:

The 2012 Spore Special Issue is dedicated to value chains – arguably the best way for smallholder farmers to become integrated into modern markets. This issue tries to clear some of the confusion surrounding value chains and provides a broad picture of interesting innovations in ACP countries. It contains four chapters which, through the use of expert narratives, case studies and field reports, explain value chains, highlight the importance of the producer-consumer relationship, and look at strategic choices and the essential role of a favourable environment.

Inclusive Value Chains

Inclusive Value Chains
Author: Malcolm Harper
Publisher: World Scientific
Total Pages: 312
Release: 2010
Genre: Business & Economics
ISBN: 9814295000

Ch. 1. Poverty in India and value chains -- ch. 2. Retail winners and losers - the impact of organised retailing -- ch. 3. Inclusive value chains in fresh fruit and vegetables. Case study 1 : Namdhari Fresh Limited / BN Dhananjaya and A. Umesh Rao. Case study 2 : ITC Choupal Fresh / Rewa Shankar Misra. Case study 3 : INFAM in Wayanad, Kerala / Jacob D. Vakkayil. Case study 4 : Spencer's Retail / Sukhpal Singh -- ch. 4. Inclusive value chains in commodity crops. Case study 5 : Contract farming of potatoes : an attempt to include poor farmers in the value chain / Braja S. Mishra. Case study 6 : Basmati Rice and Kohinoor Foods Limited / Anup Kumar Singh. Case study 7 : Agrocel Industries / Anamika Purohit. Case study 8 : bioRe Organic Cotton / Rajeev Baruah -- ch. 5. Inclusive value chains in fisheries, honey, coffee and poultry. Case study 9 : Falcon Marine Exports / Rajeev Roy. Case study 10 : Honey in Muzaffarpur / Ashok Kumar. Case study 11 : Fairtrade and organic coffee / Priti Rao. Case study 12 : Small-holder broiler farming in Kesla / Anish Kumar -- ch. 6. Inclusive value chains in non-food artisan products. Case study 13 : ITC Limited and the Agarbatti Industry / Nagendra Nath Sharma. Case study 14 : Operation Mojari / Vipin Sharma and Mallika Ahluwalia -- ch. 7. What do the case studies tell us? Lessons for the future.

Working with Smallholders

Working with Smallholders
Author: International Finance Corporation
Publisher: World Bank Publications
Total Pages: 324
Release: 2018-12-05
Genre: Business & Economics
ISBN: 1464812780

This handbook addresses the challenges that agribusiness companies face when working with smallholder suppliers in their value chain.