Managing agricultural commercialization for inclusive growth in Sub-Saharan A...Agri Policy
For Sub-Saharan Africa, transforming small-scale farming into viable
commercial farming is central to reducing poverty and increasing
growth. The challenges to achieving this transformation are too great
for smallholder farmers to overcome alone. Yet policies to increase
access to lucrative markets often overlook this fact. This briefing,
based on an extensive review of current approaches, summarizes
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for future success.
http://digital.agripolicyoutreach.org/54552/Managing-agricultural-commercialization-for-inclusive-growth-in-Sub-Saharan-Africa/Policy-Brief
Rapid income growth, urbanization, organized retailing and
liberalized trade are dictating the way food is produced, and
South Asian agriculture is responding by becoming increasingly
commercialized. New markets could present an opportunity
for smallholder farmers to increase their income, but many
barriers still prevent their inclusion.
Strong economic growth, rapid urbanization, changing demographics, modern technology and the emergence
of modern agri-food markets are leading to the commercialization of South Asian agriculture.
Commercialization has seen a significant shift in patterns of consumption, away from staple cereals towards high-value
agricultural products such as fresh fruits and vegetables, milk and dairy products, meat and poultry products, processed
food and beverages.
Small and marginal farmers have been economic pillars in rural areas but face the risk of exclusion due to profound changes in the structure and governance of regional and global food chains.
Smallholder producers struggle to participate in the commercialization process. Bottlenecks include inappropriate policies, lack of access to technology, institutional barriers,
poor infrastructure and, crucially, poor links to markets.
To strengthen market linkages and encourage smallholder participation, farmers need vertical integration into agri-food value chains, coordination and collective action, stronger market
information systems, and better access to institutional credit.
Investment in research and development, extension services, rural infrastructure and post-harvest management is needed to ensure smallholder producers’ participation in emerging markets.
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Benchmarking the Business of Agriculture
1. Benchmarking the Business of Agriculture
Augusto López-Claros
Director, Global Indicators & Analysis Department
Financial and Private Sector Development Vice Presidency
World Bank Group
Grahame Dixie
Adviser, Agriculture & Environment Services Department
Sustainable Development Network
World Bank Group
Washington DC
April 19, 2013
2. Benchmarking the Business of Agriculture
Background
Increasing food prices and expanding urban demand
have heightened food security and agriculture as priorities
for development
World Bank’s Spring Meetings in 2012 solidified support for
agribusiness indicators
G8 called for the World Bank “to develop options for
generating a Doing Business in Agriculture Index”
World Bank Group’s Agriculture and Environmental Services
(AES) and Global Indicators and Analysis Department (GIA)
merge efforts to begin producing a
“Benchmarking the Business of Agriculture” project
Convening in Copenhagen:
Agriculture Transformation Index and agri-business component
“fast-tracked", housed in the World Bank Group
2
3. Benchmarking the Business of Agriculture
Structure and Objectives
BBA’s
integrated
approach
Doing Business in Deep Dives:
Agriculture: • In-depth metrics of a
Synergies broader range of factors
enable more
• Will provide policymakers robust that affect agricultural
with new benchmarks of comparisons productivity
the regulatory environment
between • Comparable across
countries
affecting the business of countries, but greater
agriculture flexibility in reporting
• Comparable across many structure to analyze case
economies over time studies of positive change
Objective: Leverage positive policy change for a stronger
commercial agricultural sector
3
4. Benchmarking the Business of Agriculture
Theory of Change
Research findings: Better government policies can encourage transformative
change to benefit agribusiness and informal smallholders
BBA
Proven effectiveness in Will
catalyzing change in Doing Business in leverage
Doing Business regulatory frameworks Agriculture
that impact SMEs positive
policy
Proven utility in going
beyond governments change for
ABI Deep Dives
and including the a stronger
private sector
commercial
agricultural
sector
• Smarter business regulation promotes economic growth. Informal economies tend to be smaller in countries where
rules and regulations are strong and efficient.
• Some areas of legislation have a critical impact on the productivity of small-scale agribusinesses. Rules and
regulations that directly impact medium to large-scale businesses can also significantly affect the profitability of small and
medium-scale farmers.
4
5. Benchmarking the Business of Agriculture
Context for BBA Indicators
Three key considerations
1. BBA indicators will serve as one component of the Agricultural Transformation
Index
• BBA indicators should complement , not replicate, indicators of other ATI components
2. BBA indicators will provide guidance for building ‘supply chain quality’
• BBA will cover operational, economic and policy aspects of the supply chain
3. BBA indicators will target countries at different stages of overall and agricultural
development
• Ag-based, transforming, urbanizing.
5
6. Benchmarking the Business of Agriculture
Raison d'être
Very significant increases in food demand in towns, key suppliers the larger scale
small–holder farmers
Major
implications for
improved market
access in SSA
and India
6
7. Benchmarking the Business of Agriculture
Research & Analysis Approach
“Transforming” agriculture will require recognition of
the economic capacity within each grouping’s supply chain
Trade
Inputs
(exports)
Water
Handling,
Land storage
Contract Transport.
farming services
Credit
7
8. Benchmarking the Business of Agriculture - The BBA Team
Who we are, what we do
?
Sanjib & Raissa – Valerie, James, Arnou & Niels– Inputs i.e. Seeds, Water
Country Analysis Fertilizer, Mechanization
John & Samjhana
Thea & Nuria– Land Issues John, Yucheng & John - Markets & Trade Rural Transport
Joanna & Samjhana Alva -Data Systems & Rural Melissa, Fedrica & Grahame
Finance Energy/Communication Donors, Survey, Indicators & Outreach
8
9. Benchmarking the Business of Agriculture
Our first year’s program
Forming and merging teams, developing indicators, developing and testing them with key
advisors and the Core and Advisory Committee before field testing
Jan April May June Jan 2014
Research 1st Draft 2 nd Draft
+ Outreach Field
DBA & DD DBA & DD
to Advisors testing
indicators indicators
DBA
BBA DBA in 10 + 30
countries countries
BBA BBA
Deep Dives x 2 DD
x 3 DD
Prepare paper on Pressure Test Consultation & Review
Review of 1st Field
reasons for Indicators internal Advisory & Core
Surveys
inclusion/ exclusion Specialist + Advisors Development Group
9
10. Benchmarking the Business of Agriculture
Country Selection
Need to generate a purposeful sample – distinct groupings based on
economic importance of agriculture*
Illustrate Split of
Countries, which will be
divided across regions
COUNTRIES % Nos
Advanced 6% 5
Urbanising 20% 16
Transition 37% 30
Agricultural 37% 30
* % Rural Population could be replaced by % Labor Force in Agriculture
10
11. Benchmarking the Business of Agriculture
Deep Dives
The prototype of the Deep Dive reporting started in 2010 with 9 SSA country
study of Agribusiness Indicators. This has generated a raft of new metrics to
judge the enabling environment for agricultural commercialization.
Ghana TESTING
Ethiopia
CONTENT
Mozambique
Tanzania Syn- Deep
thesis Dive
Kenya
report REPORTING reports
Nigeria
Burkina Faso
Mali COMMUNICATION
Zambia
11
