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Snv value chain


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  • 1. SNV Ethiopia’sValue Chain Development Approach Pro Poor Development through Value Chain Development LVC/PPD National Project Inception Workshop Addis Ababa, January 21, 2011
  • 2. SNV Ethiopia’s Value Chain Development Approach Rationale: Demand Driven Value Chain Development Reliable Outlets Market Intelligence Embedded Services Opportunities Finance facilities Market Intelligence Farmer Consumer Inputs Coop Processor Retailer Producer Market 2 Value Chain Development Approach
  • 3. SNV Ethiopia’s Value Chain Development Approach C R P C F I Knowledge development & learning SNV & Services Providers 3 Value Chain Development Approach
  • 4. Key intervention areas: 21 1.Sector development 2.Business development 3.Knowledge development 3 and learning 4.Business Development Services Provider strengthening 4 Sector development provides for opportunities, business development turns opportunities into results, knowledge development and BDS provider development assures the sustainable up-scaling of the approach 4 Value Chain Development Approach
  • 5. Sector / Institutional development Creating opportunities through: -Market access/studies; -Public-private dialogue; -Institutional changes; -Sector competiveness; -Sector research projects; -Win-win relationship building; -Financing sector projects. 5 Value Chain Development Approach
  • 6. Sector / Institutional development: productsMSP: Multi Stakeholder Platforms (Coordination Groups)- Bottleneck definition and priority setting (ownership)- Project implementers report to the CG on project status/fund use (accountability)- From the interaction from CG meetings producers and processors have agreed to form EMPPA, EHBPEA- Starting point for apiculture and dairy board establishment (public-private dialogue forums)- Research agenda setting 6 Value Chain Development Approach
  • 7. Sector / Institutional development: productsMSP: Multi Stakeholder Platforms (Coordination Groups- Input suppliers , producers and processors create B2B linkages- Linking public institutions to private sector actors (EMDTI, HBRC, Regional Marketing Agencies)- Public-Private dialogue resulting in policy/regulatory changes (Feed export ban, honey proclamation, collection centers)- Input suppliers , producers and processors create B2B linkages 7
  • 8. Sector / Institutional development: productsMI: Market Intelligence- Exchange visit to Kenya that resulted to the idea of Dairy Business Hub- Researches on various issues (new product development, quality, EU market access, shoats rearing vs. fattening)- Advise for packaging materials, technical advise on processing technology (set up and equipments)- Trade fair participation leading to exports (2008 - 30t Europe, 10t Yemen; 2010 - 400t)- Publications on bee flora and apiculture resources- With ECOPA awareness creation on hygienic milk production and consumption 8
  • 9. Sector / Institutional development: productsSAS: Sector Association Strengthening- EMPPA, EBA and EHBPEA: support theestablishment, strategic planning, business planningEPPM: Effective Public Policy Management- Support associations to lobby at government level- Commitment to the establishment of the dairy and apiculture board- EU third country listing: MoARD in the lead- Honey proclamation- Introduction of transitional beehives besides modern beehives 9 Value Chain Development Approach
  • 10. Sector / Institutional development: productsVCF: Value Chain Financing (100%)- CGs, trade fairs, research- Sector projects for sector associations and public sector- Upgrading of EMDTI laboratoryATP: Appropriate Technology Promotion- Improved aluminum milk cans- Simple quality control equipment- Transitional beehive: Women having access to honey production 10 Value Chain Development Approach
  • 11. Business development Making use of opportunities through: -Linking businesses to markets; -Linking businesses to producers; -Developing arrangements; -Promoting embedded services; -Testing and subsidizing innovations; -Strengthening cooperatives; -Access to capital. 11Value Chain Development Approach
  • 12. Business development: productsPGS: Producer Group Strengthening (cooperatives)- Training producer groups reaching +1600 producers on hygienic milk production and handling via coops leading to decrease in rejection rate from 13% to 1%- One dairy cooperative trained on Business and Financial Management- Supporting 4 honey cooperative unions in fair trade certification (FLO)- Via associations and cooperatives 2.000 out growers and trainers trained in beekeeping skills and colony multiplication impacting 19.000 beekeepers- More formal outlets through out grower schemes- Women group producing protective clothing 12 Value Chain Development Approach
  • 13. Business development: products• B2B: Business-to-Business support- Support the provision of embedded services (training, input provision): introduction of quality based payment leading to decrease in adulteration rates- Provide for network opportunities (CG)- Linking over 1000 producers to processors (e.g. Sululta – Tsega&Family)- Linking investors to cooperatives (Velocity Cap – Selale)- Via 8 honey processors 3.000 out growers and trainers trained in beekeeping skills and organic honey production impacting 7.100 beekeepers resulting in added income up to US$ 150 13
  • 14. Business development: productsPSS: Private Sector Actor Strengthening- 6 Business plans (Honey and Dairy)- Technical training for processing staff- Direct advise to individual entrepreneurs- HCAAP/ISO certification (3 companies)- Product diversification (yogurt, propolis, royal jelly)- Traceability (2 companies)VCF: Providing and facilitating investment funds for innovations and up-scaling- Financing innovations (80%-20%: e.g. Business Hub, Processing Improvements, Diversification)- Financing up-scaling projects (>15) (20% - 80%)- Facilitating access to equity funds (2 processors)- Intermediate with donor agencies (Agriterra - Selale) 14 Value Chain Development Approach
  • 15. Knowledge development and learningSector B2B How to realize up scaling of the VCs - Program Level: up scaling of the BOAM approach to RAIN, PSNP+, Niche Program - Institutional/sector level: - Apiculture/Dairy Board - B2B Value Chain Development - Quality Based Payment (Biftu) - Business Hub (Asela Model Agricultural Enterprise - Honey export to the EUProgram 15 Value Chain Development Approach
  • 16. BDS Provider development Increasing the value chain development capacity in Ethiopia by - Using service providers (15+) - Sharing the VCD approach - papers and cases, - participation in conferences - articles - Strengthening capacities - public (e.g. EMDTI, HBRC), private (e.g. Ffarm, YONAD) and NGOs - Coaching of associations (e.g. EMPPA, EHBPEA) 16Value Chain Development Approach
  • 17. SNV Ethiopia’s Value Chain Development Approach Key Success Factors• First assure markets, then increase production• Focus on private sector as the engine for growth• Combination of sector wide and B2B support• Involvement of all key stakeholders (via MSP)• Ownership: defining intervention priorities• Build on private sector leaders• Public sector focused on sector identified priorities• Combine capacity building with access to funds• Quick wins (short term vs long term) 17 Value Chain Development Approach
  • 18. Recap: Pro – Poor development through value chain development Demand/market driven value chain developmentSupporting the private sector as engine for growth Sector development provides for opportunities, business development turns opportunities into results, knowledge development and service provider development assures the sustainable up-scaling of the approach 18 Value Chain Development Approach