1. SNV Ethiopia’s
Value 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
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Value Chain Development Approach

3. SNV Ethiopia’s Value Chain Development Approach
C
R
P
C
F
I
Knowledge development
& learning
SNV & Services Providers
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Value Chain Development Approach

4. Key intervention areas:
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1 1.Sector development
2.Business development
3.Knowledge development
3 and learning
4.Business Development Services
Provider strengthening
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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
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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.
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Value Chain Development Approach

6. Sector / Institutional development: products
MSP: 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
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Value Chain Development Approach

7. Sector / Institutional development: products
MSP: 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
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8. Sector / Institutional development: products
MI: 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
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9. Sector / Institutional development: products
SAS: Sector Association Strengthening
- EMPPA, EBA and EHBPEA: support the
establishment, strategic planning, business planning
EPPM: 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
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Value Chain Development Approach

10. Sector / Institutional development: products
VCF: Value Chain Financing (100%)
- CGs, trade fairs, research
- Sector projects for sector associations and public sector
- Upgrading of EMDTI laboratory
ATP: Appropriate Technology Promotion
- Improved aluminum milk cans
- Simple quality control equipment
- Transitional beehive: Women having access to honey
production
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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.
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Value Chain Development Approach

12. Business development: products
PGS: 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
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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
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14. Business development: products
PSS: 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)
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Value Chain Development Approach

15. Knowledge development and learning
Sector 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 EU
Program
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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) 16
Value 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)
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Value Chain Development Approach

18. Recap:
Pro – Poor development through
value chain development
Demand/market driven value chain development
Supporting 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
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Value Chain Development Approach