2. Value chain
Participants
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
Upgrades the performance of individual businesses
and the chain as a whole
Fosters and 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
Distance
learning /
training
materials
Farmer
registration
Project support
Business
planning
Profitability
analysis
Project set
Crop
Data forms
monitoring
Map and
Track
up
Baseline /
impact
Distance
learning
Map and Track
service delivery
audit
6. Farmer ICT’s
ICT applications in value chains
Farmbook
calculators
Mob
Trans
Opp
Bank
Brainhoney
Training
MPESA -
$$
Reuters/
Farm-radio
Swiss Re WI
Pre-production Production Postharvest Marketing
Market
planning
MIS and
Inputs
Finance
Farmbook
calculators
Esoko
Esoko
/
Reuters
Esoko
/RL MIS
Digital
Green
SMS
voice
Cropster /
Muddy-Boots
Esoko / RL
AMITSA
Production
tips
Marketing
decisions
Transport
Feedback
Polls
Production Finance
Finance
Market price
decisions
Storage
performance
Chain wide
Market Linkage
Best
Practices
Best
Practices
SM Biz
Product
Bulking
Financial
flows
Insurance
Traceability
7. Systems Integration
Project staff
Partner staff
Second level aggregate database e.g. (sales force)
1st stage
Database
7
Survey Info
1st stage
Database
Service Delivery
Info
Registration
Info
Extension / Service
provider
Farmers
Third-Party Databases
and Websites
Extension / Service
provider
Extension / Service
provider
Farmers Farmers
1st stage
Database
9. Targeting
Top 1-2% of commercial smallholder
farmers who produce up to 50% of the
traded grain
15-18% of smallholders who sell the
bulk of the other 50% of traded grain
20-30 % of farmers who are
market neutral (weather
dependent)
30-50% of farmers
who are net buyers
Periodic
sellers
Market Ready
smallholders
Data based on Sitko et al. MSU.
Trends and transformations in staple
food markets in Eastern and
Southern Africa
Market limited smallholders
Highly vulnerable Poor (ultra poor)
2-3 year process
5-8 year process
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?
