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ICT’s in Value Chains
Shaun Ferris
CTA Addis – 6th November…
Participants

Value chain

A value chain process focuses on linking
 chain actors with target markets:
Key features of value chain methods?

 Market    linkage process
 Takes    a systems perspective
 Drives   growth through end markets
 Stimulates commercially-oriented, market-based
 solutions to constraints
 Upgradesthe performance of individual businesses
 and the chain as a whole
 Fostersand facilitates competitiveness by building
 inter-business relationships
The value chain
There are three different types of actors
                                    They each have different ICT needs
                                    and solutions
                                             The Institutions and Rules




                                                        The Core Actors




                                                  Business Service
                                                  Providers
 Extension, vets, inputs, transport, banks
Extension ICT’s
     Project support
                                                                            Distance
                         Project set                    Distance            learning
                             up                        learning /
                          Baseline /                    training
                           impact                       materials
    Data forms




                     Crop
                   monitoring                                  Farmer
              Map and                                        registration
Map and Track  Track
service delivery
      audit
                                        Business
                                        planning
                                       Profitability
                                        analysis
Farmer ICT’s
     ICT applications in value chains                                                                   Cropster /
                                                                                                       Muddy-Boots
     Brainhoney      MPESA -         Esoko       Opp          Esoko         Mob
                                                                /                      Esoko       Farmbook
       Training        $$           /RL MIS      Bank        Reuters        Trans
                                                                                                   calculators
Farmbook       Esoko / RL       Reuters/       Digital               SMS                                   Financial
calculators     AMITSA         Farm-radio      Green                voice                                    flows

                                               Swiss Re WI



      Pre-production                   Production                   Postharvest                Marketing


                                                                                    Market price
  Market                Production                       Marketing                   decisions
 planning                  tips                          decisions
                                                                                        SM Biz
        Best                      Best                                              performance
     Practices                 Practices                     Transport
                                                                                           Product
              MIS and                Feedback                         Storage              Bulking
               Inputs                   Polls
                                                                                           Traceability
                                           Production                    Finance
                    Finance
                                            Finance
                                                                                                    Chain wide
                                               Insurance                                           Market Linkage
Systems Integration
               Third-Party Databases
               and Websites                                                           Partner staff
                                                                   Project staff




        Second level aggregate database e.g. (sales force)


        1st stage                                  1st stage
        Database                                                                      1st stage
                                                   Database
                                                                                      Database

Registration                              Service Delivery
Info                                      Info                          Survey Info




       Extension / Service
       provider                   Extension / Service
                                                                      Extension / Service
                                  provider
                                                                      provider




  Farmers
                                                  Farmers                               Farmers


                                                                                             7
Time frames




Safety net clients   Food aid and asset transfer
Targeting

     Data based on Sitko et al. MSU.
                                                           Top 1-2% of commercial smallholder
     Trends and transformations in staple                  farmers who produce up to 50% of the
     food markets in Eastern and
     Southern Africa                                       traded grain

                                                Periodic       15-18% of smallholders who sell the
      2-3 year process                                         bulk of the other 50% of traded grain
                                                 sellers

                                                                     20-30 % of farmers who are
                                            Market Ready
                                                                     market neutral (weather
                                            smallholders
                                                                     dependent)

5-8 year process                      Market limited smallholders              30-50% of farmers
                                                                               who are net buyers

                                    Highly vulnerable Poor (ultra poor)
Key Challenges
   Most smallholder farmers work outside of value
    chains.
   Value chain support requires a shift in extension to
    business advice in addition to production
   100’s of farmers to one Extension worker
   Using value chain information requires a learning
    process for farmers and that takes time.
   Millions of farmers want customized information,
    most do not get it.
   Most farmers expect free services, which needs to
    change
Conclusions
1.   Great progress in ICT solutions, but How many
     extension services are using these methods?
        Need to find best fit options to shift from traditional
         delivery channels and ICT-enabled channels
2.   Must focus on scale to achieve cost recovery and
     value added?
        To do this we need better public-private
         partnerships?
3.   Need more return on investment studies to
     highlight the value of ICT-enabled approaches
        – and effectiveness compared to other approaches?

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Ict’s in value chains v1

  • 1. ICT’s in Value Chains Shaun Ferris CTA Addis – 6th November…
  • 2. Participants Value chain A value chain process focuses on linking chain actors with target markets:
  • 3. Key features of value chain methods?  Market linkage process  Takes a systems perspective  Drives growth through end markets  Stimulates commercially-oriented, market-based solutions to constraints  Upgradesthe performance of individual businesses and the chain as a whole  Fostersand facilitates competitiveness by building inter-business relationships
  • 4. The value chain There are three different types of actors They each have different ICT needs and solutions The Institutions and Rules The Core Actors Business Service Providers Extension, vets, inputs, transport, banks
  • 5. Extension ICT’s Project support Distance Project set Distance learning up learning / Baseline / training impact materials Data forms Crop monitoring Farmer Map and registration Map and Track Track service delivery audit Business planning Profitability analysis
  • 6. Farmer ICT’s ICT applications in value chains Cropster / Muddy-Boots Brainhoney MPESA - Esoko Opp Esoko Mob / Esoko Farmbook Training $$ /RL MIS Bank Reuters Trans calculators Farmbook Esoko / RL Reuters/ Digital SMS Financial calculators AMITSA Farm-radio Green voice flows Swiss Re WI Pre-production Production Postharvest Marketing Market price Market Production Marketing decisions planning tips decisions SM Biz Best Best performance Practices Practices Transport Product MIS and Feedback Storage Bulking Inputs Polls Traceability Production Finance Finance Finance Chain wide Insurance Market Linkage
  • 7. Systems Integration Third-Party Databases and Websites Partner staff Project staff Second level aggregate database e.g. (sales force) 1st stage 1st stage Database 1st stage Database Database Registration Service Delivery Info Info Survey Info Extension / Service provider Extension / Service Extension / Service provider provider Farmers Farmers Farmers 7
  • 8. Time frames Safety net clients Food aid and asset transfer
  • 9. Targeting Data based on Sitko et al. MSU. Top 1-2% of commercial smallholder Trends and transformations in staple farmers who produce up to 50% of the food markets in Eastern and Southern Africa traded grain Periodic 15-18% of smallholders who sell the 2-3 year process bulk of the other 50% of traded grain sellers 20-30 % of farmers who are Market Ready market neutral (weather smallholders dependent) 5-8 year process Market limited smallholders 30-50% of farmers who are net buyers Highly vulnerable Poor (ultra poor)
  • 10. Key Challenges  Most smallholder farmers work outside of value chains.  Value chain support requires a shift in extension to business advice in addition to production  100’s of farmers to one Extension worker  Using value chain information requires a learning process for farmers and that takes time.  Millions of farmers want customized information, most do not get it.  Most farmers expect free services, which needs to change
  • 11. Conclusions 1. Great progress in ICT solutions, but How many extension services are using these methods?  Need to find best fit options to shift from traditional delivery channels and ICT-enabled channels 2. Must focus on scale to achieve cost recovery and value added?  To do this we need better public-private partnerships? 3. Need more return on investment studies to highlight the value of ICT-enabled approaches  – and effectiveness compared to other approaches?

Notes de l'éditeur

  1. This slide shows our Farmbook information suite. This approach allows us to Provide field agents with tools to conduct baseline and follow up surveys.Train field agents with distance learning courses, in their local languages, and monitor their progress.Register Farmer groupsConduct profitability analysis and prepare Business plansMap and track field agent interactions with farmersMonitor crop and income performance.
  2. This slide shows intervention packages based on farmer market segmentation.