1) The document discusses frameworks for developing inclusive business models that link smallholder farmers to markets. 2) It explores how to help farmers increase their skills and access markets at a higher level, and how companies can source from farmers at a lower commercial level. 3) The goal is to create new business models that establish sustained trading relationships through mutual benefits for farmers and buyers.

2. LINKING WORLDS: EXISTING FRAMEWORKS
Source: Seville, Don. Sustainable Food Lab for Linking World Conference.

3. “OUR GOAL is not to link the poorest
farmers to the most demand market
but to invest in moving farmers up and
to make markets more accessible?
Can we help companies Can we help farmers
source down a level? move up a level?
Can benefits trickle down? 1-2% are the commercial farmers
(2% of farmers account for 50% of maize sales)
Can they compete with 3-15% are regularly selling into markets
commercial?
Can we integrate VC with food 20-30% are occasionally connected to
security and local markets? markets and are food buyers
Low barrier cash crops, transition 40-50% are subsistence
strategies, basic agronomic producers, buy in food,
improvements? get most cash from off
farm work.
Source: Seville, Don. Sustainable Food Lab for Linking World Conference.

4. ELEMENTS FOR INCLUSIVE
BUSINESS MODELS
Capable farmers Willing buyers
(skills, capacity & (private sector
organization) policies)
Enabling environment
(public / donor policies)
NEW BUSINESS MODELS FOR
SUSTAINED TRADING RELATIONSHIPS
Adapted from www.regoverningmarkets.org by CIAT

5. THIS TOOLKIT IS DESIGNED TO
help a group of market chain actors and stakeholders:
Discover opportunities
Implement, validate Produce results that are
for innovation.
and evaluate equitable, viable,
interventions that are feasible, durable and
inclusive of small- inclusive.
holders.
Facilitate a systematic
learning process.

6. the market on critical the existing the change the innovation test, adjust, and measure
chain points in business strategy prototype improve the results and
the chain model interventions impacts

8. THE PRODUCTION SIDE: THE MARKETING
comprises the set of comprises the
activities, mechanisms activities, mecha
and relationships for and relationshi
providing a good or selling that go
ervice, in other words service, or in
or creating value. The words for cap
partner network -- the value. Br
upply chain and its speakin
coordination – is a vitally production s
mportant source of associated with
competitive advantage. while the mar
side gene
revenues, th
marketing also e

9. ANALYZE THE EXISTING BUSINESS MODEL

11. The resolution of For farmers and Fair and One of the special New business The business
problems, in both their organizations, transparent challenges faced models promote axiom states that
the commercial and market governance refers by small-scale innovation by you cannot manage
social performance linkages should to the producers is the multiple actors what you do not
of new business provide a stable establishment and lack of access to along the chain in measure. Our sixth
models requires all market with clear enforcement of services such as products and new business
or most chain quality, volume and clear and finance, market services as well as model principle is
actors set shared price signals as consistent grades information, and the processes that to incorporate
goals well as access to and best agronomic underpin both. tailored indicators
for collaboration. key services standards, clear practices that could and monitoring
The development (Principle 4). These commitments to improve Innovations should plans to assess the
of a systemic view linkages must buy and sell certain quality, yields, food be done ‘with’ health of the on-
of the chain contribution to volumes of certain safety, and smallholder going trading
recognizes and improved grade products at environment farmers, rather relationship as a
values the livelihoods. For certain times, and performance. than ‘for’ them. for-profit business
interdependence of buyers, solutions equitable Inclusive access to and also its
the actors. must provide a processes of risk Successful innovation provides effectiveness as a
Reaching and consistent supply management. solutions enable a means to remain vehicle for
implementing of safe, quality smallholders to competitive in community
agreement often products at a Mutually access dynamic markets, development.
involves competitive price. recognized credit, knowledge, build the
identifying one or The achievement of interdependency technology, and commercial value Constant
more champions both producer and between chain develop incentives of goods and monitoring of the
to lead the process. buyer goals in actors is key. that services; and, health of the
practice requires Shared encourage share innovation trading relationship
the delivering social commercial risk producers to invest gains among reduces the risk the
and commercial and insurance in their own partners all of minor problems will
value up and down against failure are production based which builds destroy the