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Ciat Seas Of Change

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Short overview presentation of the LINK Methodology.

Short overview presentation of the LINK Methodology.


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  • For projects that work with private sector partners, we often work at the value chain level to promote trade between groups of producers needing new or improved trade and companies needing more or improved supplyWhen working in value chains, it is important to understand the actors and how the create assets for your work or challenges. Who are your key partners? What are their goals and constraints? Who do we need to recruit as a partner? Who is neutral that just needs to be informed? Who is a blocker that needs to be managed?There are many different entry points – starting with farmers and looking for a buyer. Starting a with new intermediary. Starting with a lead firm. In the cases of working with a business partner, a good first step is to really understand what the product opportunity is. What are the requirements – cost, quality, etc – that the farmers need to meet to be successful? Is the farmer story important to the product proposition?Next is understanding the capacity gap between the current farming and processing performance and what would be needed to be successful. What investments are needed? Is this a reasonable and achievable gap? How can the partners work together on this?Next is the structure of the trading relationships. It is not just about a sourcing opportunity – but an inclusive, durable, and fair one. Looking to the business model principles, are there needs and opportunities around collaboration? Market linkages? Transparency and risk sharing? What services are needed by the farmers and the intermediary?A typical weak point in inclusive business models is the “specialized intermediary” – the business that is sourcing from small scale producers and having to meet the souring requirements of modern fast moving supply chains. Understanding whether the requirements can be met, and whether the basica business model -- including he costs of services to promote and sustainable inclusive – can be carried by the value proposition is critical.Finally to increase impact and reduce risk means investment at the household level. A single value chain should be one of a number fo strategies…
  • NEED SLIDE: Objective_ buildsustainabletradingrelationships. How: Discover, design do. (use photo)
  • descriptions and outcomes.
  • Transcript

    • 1. LINKING WORLDS: EXISTING FRAMEWORKSSource: Seville, Don. Sustainable Food Lab for Linking World Conference.
    • 2. “OUR GOAL is not to link the poorest farmers to the most demand market but to invest in moving farmers up and to make markets more accessible? Can we help companies Can we help farmers source down a level? move up a level? Can benefits trickle down? 1-2% are the commercial farmers (2% of farmers account for 50% of maize sales) Can they compete with 3-15% are regularly selling into markets commercial? Can we integrate VC with food 20-30% are occasionally connected to security and local markets? markets and are food buyersLow barrier cash crops, transition 40-50% are subsistence strategies, basic agronomic producers, buy in food, improvements? get most cash from off farm work.Source: Seville, Don. Sustainable Food Lab for Linking World Conference.
    • 3. ELEMENTS FOR INCLUSIVE BUSINESS MODELS Capable farmers Willing buyers (skills, capacity & (private sector organization) policies) Enabling environment (public / donor policies) NEW BUSINESS MODELS FOR SUSTAINED TRADING RELATIONSHIPSAdapted from www.regoverningmarkets.org by CIAT
    • 4. THIS TOOLKIT IS DESIGNED TO help a group of market chain actors and stakeholders:Discover opportunities Implement, validate Produce results that arefor innovation. and evaluate equitable, viable, feasible interventions that are , durable and inclusive. inclusive of small- holders. Facilitate a systematic learning process.
    • 5. the market on critical the existing the change the innovation test, adjust, i and measurechain points in business strategy prototype mprove the results and the chain model interventions impacts
    • 6. THE PRODUCTION SIDE: THE MARKETINGcomprises the set of comprises theactivities, mechanisms activities, mechaand relationships for and relationshiproviding a good or selling that go ervice, in other words service, or in or creating value. The words for cappartner network -- the value. Br upply chain and its speakincoordination – is a vitally production s mportant source of associated withcompetitive advantage. while the mar side gene revenues, th marketing also e
    • 7. ANALYZE THE EXISTING BUSINESS MODEL
    • 8. The resolution of For farmers and Fair and One of the special New business The businessproblems, in both their transparent challenges faced models promote axiom states thatthe commercial and organizations, mark governance refers by small-scale innovation by you cannot managesocial performance et to the producers is the multiple actors what you do notof new business linkages should establishment and lack of access to along the chain in measure. Our sixthmodels requires all provide a stable enforcement of services such as products and new businessor most chain market with clear clear and finance, market services as well as model principle isactors set shared quality, volume and consistent grades information, and the processes that to incorporategoals price signals as and standards, best agronomic underpin both. tailored indicatorsfor collaboration. well as access to clear practices that could and monitoringThe development key services commitments to improve quality, Innovations should plans to assess theof a systemic view (Principle 4). These buy and sell certain yields, food safety, be done ‘with’ health of the on-of the chain linkages must volumes of certain and environment smallholder going tradingrecognizes and contribution to grade products at performance. farmers, rather relationship as avalues the improved certain times, and than ‘for’ them. for-profit businessinterdependence of livelihoods. For equitable Successful Inclusive access to and also itsthe actors. buyers, solutions processes of risk solutions enable innovation provides effectiveness as aReaching and must provide a management. smallholders to a means to remain vehicle forimplementing consistent supply access credit, competitive in communityagreement often of safe, quality Mutually knowledge, dynamic markets, development.involves products at a recognized technology, and build theidentifying one or competitive price. interdependency develop incentives commercial value Constantmore champions The achievement of between chain that of goods and monitoring of theto lead the process. both producer and actors is key. encourage services; and, health of the buyer goals in Shared producers to invest share innovation trading relationship practice requires commercial risk in their own gains among reduces the risk the the delivering social and insurance production based partners all of minor problems will and commercial against failure are on market needs. which builds destroy the