Kaganzi methods for_linking_smallholder_farmers_to_mkts
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Methods and approaches for Linking Smallholder farmers to Markets, by Elly Kaganzi (CARE- USA)

Methods and approaches for Linking Smallholder farmers to Markets, by Elly Kaganzi (CARE- USA)

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  • Picture at back The community facilitator’s work is complemented by the market facilitator , who guides the farmers through the market opportunity and evaluation process that I have just described. He or she is a vital link between the farmers’ knowledge of their own situation and the ‘outside’ world, and in particular access to information that is required to take good decisions with respect to production opportunities. In this slide we see Macdonald of Concern Universal, in the same community in Malawi, as he helps a group of male farmers decide on the next steps in developing their rabbit enterprise. Between now and December there will be a large increase in the number of rabbits and actions need to be taken now to organize their sale. Picture at front In this slide, Charles Musoke of Africare in Kabale is organizing with a potato retailer in the local market a visit of farmers to gather information on preferred varieties, quality requirements, prices, overall demand, frequency and continuity of delivery as part of the process of selecting among different production options. It is the market facilitator, from either government or non governmental organizations who is the direct beneficiary of CIAT’s research on community enterprise development. Our aim is to provide the Macdonalds and Charles with methods and tools that can help them improve the facilitation processes with the community, increase the success of enterprise development and reduce the risk implied by moving toward a market orientation.
  • This example of a “participatory map” was generated by a group of coffee farmers in the Municipality of Sulaco, Honduras. These farmers had a broad picture of the chain—from production to export—and succeeded in identifying most of the actors. Despite the good picture, when it was looked at in more detail, most of the map’s information lay in the links between the farmer and the large-scale merchant—in this case, the “Fat Man from Yoro”—and that details beyond this point were limited. An important issue that did not appear in the map was that of quality. In this case, the importance of quality was brought out by the facilitator in discussion with the person who drew the respective map. Those who did not participate in this exercise were the small and large intermediaries, export companies, and support entities. As a result, information for these links had gaps that had to be filled in with the viewpoints of the other actors, whether through workshops, focus groups, or semi-structured interviews.

Kaganzi methods for_linking_smallholder_farmers_to_mkts Presentation Transcript

  • 1. Elly KaganziTechnical Advisor of Market Engagement andEconomic DevelopmentCARE- USAekaganzi@care.org
  • 2. BackgroundFrom the late 80 and early 90s smallholder farmers started to face substantial barriers to achieving improved livelihoods as commodity prices declined, public sector reform reduced assistance and natural resources became scarcer. This coupled with market integration led to increased competition.Research into way through which competitiveness of smallholder farmers would be enhanced began. CIAT among fore front agencies looking at ways of integrating smallholder farmers in competitive value chains
  • 3. Strategies consideredIncreasing competitiveness of market chainsAdding valueDiversification (products and services)Better organizationNew contractual arrangementsLinks to financial services
  • 4. Clients and BeneficiariesClients National / regional researchers Service providers, NGOs, CBOs, Universities Private sector entrepreneurs / farmer associations, women’s groupsBeneficiaries Poor smallholder farmers Rural traders Business service providers Processors Consumers
  • 5. The MethodsHave been developed over the past 12 years, they have been well testedAre being used in Central America, Andean America, South East Asia and Eastern and Southern Africa, and West Africa through Learning alliances.Taken up and scaled out by National, Regional and International organisationsCRS, CARE, Africare, World Vision, National Government agencies.
  • 6. New methodologies for Value Chain analysis anddevelopment for small-scale producers
  • 7. Key Features of Rural Agro-enterprise developmentProcess Area based Participatory Market led Thinking “outside the farm” Scaleable Seeking continuous innovation Building on local skills and empowering communities
  • 8. Entry Points for the ProcessCompetence of Service providerOrganisation of farmersWealth of groupsMarket access and engagementProduct typesAvailability and access to services
  • 9. Visioning for the future
  • 10. Working group for Agro-enterprise within VC framework) National / International Enabling Environment Commercial (and social) interestsValue Chain Operators Input Suppliers Consumers at Formal Wholesalers Retailers Market Farmers Suppliers Processing (Formal and informal Factories / Value groups) Transporters Addition Wholesalers Retailers Consumers at Informal Market Intra-chain / Inter-actor support, coordination, management. Improving efficiency and transparency of transactions Support of development goals and public interests, payment Interventions, business support Service Providers Research BDS Supporters / Value Chain Extension NGOs State Bodies Microfinance Institutions Banks Bodies Providers Non-financial Services Financial Services
  • 11. The marketing facilitator “A Market visit” Market Opportunity Identification is a process of generating knowledge and making decisions based on Demand. Taking clients to the market is often a real “eye opener”
  • 12. Participatory approaches increase the level of farmer ownership inthe process and enables producers and Service providers to developnew types of relationships, FACILITATION
  • 13. Service Providers discussing options for a new Business with farmers and Chain Actors StockistsTraders Partner, service providerFarmers
  • 14. Scaling up
  • 15. 6 months months Business Apply, Development monitor and follow-up L Services and their 8 months months assessment Agroenterprise Apply, monitor and follow-up L design and development of action plans 5 days days 6 months Evaluating and Apply, 5 days days monitor and follow-up L selecting enterprise alternatives Interest group An incremental learning formation andmarket opportunity 5 days days process identification Monitoring and evaluation 5 days days
  • 16. Service Provider Farmer Profiling Small-scale farmers Link supplier groups Specialist marketing organised & supplying To specialist service providers a specialised service providers value chain Increase Service providers Small-scale farmers Competitiveness in input With strong organised and And output markets Marketing adding value to Link activities to experience selected products finance services Diversify products Service providers Small-scale farmers strengthen business With more organised to sell skills Marketing produce collectively Initiate savings records experience Link to MFService providers Individual Organise farmers With limited Small-scale farmers Select existing product Marketing Sell surplus product Produce for the experience into the market Market. Evaluate
  • 17. Development impactIncreased farm income  Ground nut producers in Eastern Uganda. Nnegotiations led to a 16% price premium due to higher quality of nutsn and selling to a known buyer.  Cut flowers in Cauca, Colombia. 24% price increase for producers for flowers sorted, graded and packed to customers needs.  In Tanzania, 15 NGOS capacity in market development build in an IFAD program . Farmer income increases 15-25%  Potato farmers in Kabale, Uganda. Sold 2000 Mt of potatoes for $300,000, in past 8 years.  In Rwanda, over 15,000 families increased their income through integration in vegetable, high value chillies, baskets Scaling out to the Development world  CRS global Agro-enterprise development initiatives  CAREs pathways womens empowerment program ( 6 countries 14 value chains Empowered communities and farmers (est. 200,000 farm families)  Through reference/pilot sites and Learning alliance More effective rural business development service providers  Partners in reference/pilot sites and in Learning Alliance projects  Rwanda, Ethiopia, Burundi, Malawi and Zambia
  • 18. ConclusionsProductivity alone has not succeeded in reducing rural poverty. A broader strategy is needed.The global agrifood system is becoming less remunerative for primary producers.Farmers need to be competitive and better organised to make farming payFarmers need to find ways of adding value to their goods and accessing new markets.We Need to develop new ways of strengthening skills to enable rural innovation so that our beneficiaries can find and manage markets, access value adding technologies, achieve improved links with other actors and organize effective support services are possible ways forward.