Livelihood Impacts Through Access to Markets


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Livelihood Impacts Through Access to Markets

  1. 1. LivelihoodImpactsthroughAccess toMarkets<br />Annual Program Review 2011<br />Nairobi, Kenya9 May2011<br />EliudBirachi<br />1<br />
  2. 2. LivelihoodImpactsthroughAccess tomarkets: Anoverview of resultsfrom Africa<br /><ul><li>EliudBirachi
  3. 3. CIAT, Kigali, Rwanda
  4. 4. Programmearea: TSBF, PABRA, SSA CP
  5. 5. Marketvaluechainresearch
  6. 6.</li></ul>2<br />
  7. 7. Overview<br /><ul><li>Overview: Focus and impacts
  8. 8. Anoverview of interventionprojects
  9. 9. Modellingmarketaccessframeworks
  10. 10. Examples of livelihoodoutcomesfrom Africa programs
  11. 11. Lessons and observations</li></ul>3<br />
  12. 12. Focus of agriculturalmarketvaluechainresearch<br /><ul><li>Conducting value chain research (for market, user targeting)
  13. 13. Sustaining wider strategic linkages to support commercialization marketing of agricultural products
  14. 14. Modeling sustainable access to markets
  15. 15. The value chain based platform approach
  16. 16. Creating enabling environment for technology adoption:
  17. 17. Role of collective action and credit
  18. 18. Evaluating impact of market access on reinvestment in the natural resource base
  19. 19. Monitoring Impact of market access on household food security</li></ul>4<br />
  20. 20. ExpectedOutcomes<br /><ul><li> Increased commercialization of agricultural production
  21. 21. Increased incomesfrom agricultural production actors
  22. 22. Increased investmentsto enhance agricultural production
  23. 23. Enhanced capacitiesof agricultural value chain actors to effectively participate in markets
  24. 24. Container: Namaha (1.5 kg)
  25. 25. Purchase price = sale price
  26. 26. Margin: See picture for determination of margin </li></ul>Trading margin<br />5<br />
  27. 27. Overview of SSA CP<br />6<br />
  28. 28. Overview of CIALCA<br /><ul><li> Mode of intervention: Empowering NARS, NGOs to support farmer associations
  29. 29. At least 3 NGO partners involved in each project area
  30. 30. Collaborations with private service providers and other NGOs established</li></ul>7<br />
  31. 31. Overview of PABRA<br />8<br />
  32. 32. Private sector<br /><ul><li>Institutions of micro finances
  33. 33. Distributors, sellers of inputs
  34. 34. Bulk traders, buyers and processors
  35. 35. ICT/Information service providers
  36. 36. Infrastructure service providers (e.g. warehousing)</li></ul>External-Synergy<br />Externalcredit<br />Business plans<br />Credit for input + Labour<br />Internalcredit<br />Credit for produce<br />Input Kiosks<br /><ul><li>Fertilizers
  37. 37. Materials
  38. 38. Seeds</li></ul>Internal -Synergy<br />Warrantage credit<br />Members’ guarantee<br />Empoweringfinancialcapacity<br />MUSO<br /> A marketframeworkfortechnologyadoption<br />Research<br />Policy<br />Figure: A model for intervention in agricultural value chains <br />9<br />
  39. 39. Regional Platform<br />(e.g. EAFU, ECGA, SACAU)<br />National Platform <br />(e.g. CGA)<br />Bean Traders Platform<br />Bean Impact Zone 1<br />Bean Impact Zone 2<br />Bean Impact Zone 3<br />Bean Impact Zone 4<br />Bean Farmers in Selected PABRA countries<br />Creating systematic impact through agricultural value based platforms <br />10<br />
  40. 40. Inter-linking with regional trade policies<br />11<br />
  41. 41. Enablingenvironmentforadoption- Business plans and credit<br /><ul><li>Producershaveacquiredthecapacitytointegrate ISFM and improvedgermplasmtechnologiesin theirbusinessplans
  42. 42. Associations are able to borrow credit to invest in ISFM and pay back regularly- (borrowed USD 8900 this season)</li></ul>A farmer training session in progress in South Kivu<br />One of the farmer operated<br /> input kiosks. 3 tons sold to farmers last season <br />12<br />
  43. 43. Enablingenvironmentforadoption- warrantagecreditschemes<br /><ul><li>Outcome of business plans, producers adopted warrantage credit schemes by storing and exercising over 5.6 tons of legumes (4.1 tons for beans and 1.5 tons soybean) in 2010
  44. 44. As a result, the net price gain for farmers was USD 0.4-0.5/kg of soybean and USD 0.9-1.0/kg of beans (over 50% in both cases)</li></ul>13<br />
  45. 45. Enablingenvironmentforadoption-mutual savingsschemes<br /><ul><li>Farmer managed mutual savings schemes (MUSO)
  46. 46. for productive investment (green) fund
  47. 47. For social welfare (red) - protects investment fund
  48. 48. 33 schemes in CIALCA sites, farmers raised over USD 5400 in one year
  49. 49. Potential to support warrantage and business plan implementation</li></ul>Demonstrating mutual savings schemes to farmers<br />14<br />
  50. 50. A focusonpartnershipsforuptake of technologies: Collectiveaction<br />Collectiveaction: Wheredo farmergroup lie in thesupplychain? <br />Farmer groups/associations<br />National research institutions<br />NGOs<br />Private sector: processors, credit providers, traders<br />Focus: farmer groups to play a bigger role in product supplies<br />Farmer groups<br />15<br />
  51. 51. Collectiveaction: Impactsof groupsontechnologyuptake<br />16<br />
  52. 52. Collectiveaction: Benefits (Economic surplus)fromtechnologyuse in the DRC<br />17<br />
  53. 53. Market access and householdincomes per year (Uganda case)<br />Bean is leading contributors<br />1 USD = 2200 UGShs<br />18<br />
  54. 54. Market access and re-investmentof agriculturalincomes: earlyindications in Uganda<br />Re-investment in NRM: Aggregate of land improvement activities <br />19<br />
  55. 55. Contributionstorevenue and prices in the DRC and Rwanda- beans<br />Beans contributed to at least 40% of household income for 53% of households in North Kivu, DRC<br />20<br />
  56. 56. Market access and incomes: Effect of linkages to profitable markets and value addition<br />Rwanda: bean prices in Kibungodistrict (about 100 km from Kigali) are USD 0.35 per kg of beans, in Kigali price was USD 0.58 <br />Potential for income is almost 50% higher in Kigali. <br />Producers supply over 35 tons of products over 3 months. Old price = RFrw 90<br />Finally, in DRC, processing of banana into wines yielded over 90% more returns compared to raw bananas. <br />21<br />
  57. 57. Communicationschannels, Burundi<br />22<br />
  58. 58. Enhancing access to profitable markets: Potential link to ICT platforms<br />23<br />
  59. 59. Market access and gender in agricultutalproducttrade<br />24<br />
  60. 60. Lessonsand observations<br />Agricultural product branding and positioning needed for value capture<br />Market information networks: Can extend benefits from agricultural product trade<br />Forward contracting and warehousing (receipt system) should be encouraged<br />Agricultural product marketing platforms as a means of sustaining market linkages<br />Platforms provide a framework for convergence of successful interventions in agricultural value chains<br />Credit access is a must for effective utilization of new technologies (need to harness internal credit potential as well)<br />The role of groups need to be strengthened to achieve economic scale of production and marketing<br />Finally, linkages to regional blocs (COMESA, EAC, SADC) vital to improve market access for outputs and inputs <br />25<br />
  61. 61. Thankyouforyourattention<br />26<br />