Follow Us:
Value chains/producer organisations
The growing demand for food, the rise of international specialty value chains such as those for organic and fair trade products, and the renewed interest in bio-fuels in response to the ongoing energy crisis, have opened up opportunities to enhance the participation of agricultural smallholders in global markets. As service providers and advocacy networks, producer organizations can play an important role in strengthening the position of farmers and local producers in global value chains.
That development agencies are acknowledging the importance of producer organizations (POs) goes hand in hand with the increasing attention placed on the value chains (or supply chains) that connect farmers with consumers. Such value chains demonstrate the interrelatedness of the production, transportation, processing and marketing of farm products. Improving the coordination of activities of different actors (such as firms) in the chain can reduce transaction costs, help guarantee product quality and safety, and enhance the design of marketing strategies. Producer organizations are considered instrumental in increasing the value generated throughout the chain, such as by ensuring that the quality of products is in line with the standard demanded. They can also mobilize support from other stakeholders and can help farmers negotiate a fair share of the total profit generated.
Featured Article
Pro-poor value chain development: Lessons from Ethiopia
Pro-poor
value chain development: Private-sector led innovative practices in Ethiopia (October
2012) documents the experiences of a recently concluded business support programme implemented by
SNV-Netherlands Development Organisation. The main development objective of the Business
Organisations and Their Access to Markets (BOAM) programme was to introduce innovative approaches
aimed at improving business-to-business relations in selected value chains (oilseeds, honey, dairy
and fruits) and to scale them up where possible.
Recent Articles
Value chain development by the private sector in africa
18 June 2013
This GIZ publication (March 2013) sheds light on current understanding, experiences and
challenges around inclusive business approaches in Africa. The book highlights some factors
associated with successful (or unsuccessful) value chain development as well as opportunities and
challenges for the private sector. The contributions from experts and practitioners as well as
in-depth country studies aim to offer useful insights and perspectives on inclusive business
approaches to foster value chain development.
Tapping the power of women's collective action in agricultural markets
06 June 2013
Development actors are increasingly prioritising ‘investing in women’ to ensure food security
and sustainability—as well as equity—in agricultural development. In this context, collective
action is a critical but poorly understood way for women small-scale farmers to strengthen their
engagement in agricultural markets.
Understanding market systems: Adapting monitoring and evaluation tools for practitioners
04 June 2013
It is difficult to predict changes in market systems, even after thorough market analysis and
strategic planning. This presents particular challenges for donors and practitioners in assessing
the impact of their development interventions.
Monitoring and Measuring Change in Market Systems - Rethinking the Current Paradigm
synthesizes the outcome of diverse consultations facilitated by USAID's SEEP Network between
2010 and 2012. The aim was to support practitioners to develop more effective monitoring and
evaluation frameworks for both market and financial systems.
Sustainable intensification: A new paradigm for food security and community resilience in Africa
08 May 2013
While the concept of "sustainable intensification" is viewed by some as a cynical attempt to
promote industrial-scale agriculture, there is a growing international counter-movement that aims
to demonstrate that intensification can also be driven by small-scale and sustainable farming
systems. Falling squarely in the second camp is the Montpellier Panel, an international group of
experts whose latest report aims to offer "a practical pathway towards the goal of producing more
food with less impact on the environment."
Scaling up climate information services for smallholder farmers in Africa and Asia
24 April 2013
This
white
paper summarizes the lessons learnt from across cases, projects and research experiments in
effectively developing and providing climate information and advisory services for smallholder
farmers. The case studies were presented at an international workshop in Senegal in December 2012,
co-organized by CGIAR's Research Program on Climate Change, Agriculture and Food Security (CCAFS)
and its partners. The workshop discussions focused on two projects that are attempting to reaching
farmers at scale: Integrated Agrometeorological Advisory Services (IAAS) in India (which recently
announced in 2012 plans to scale up to 10-12 million farmers) and Mali’s Projet d’A ssistance
Agrometeorologique au Monde Rural (which has provided innovative services to farmers since
1982).
Monitoring and evaluation for value chain projects: 5 things every practitioner should know
05 April 2013
The rise of "Making Markets Work for the Poor" approaches in recent years has been driven in part by critique about the sustainability of impact, scalability and/or cost-effectiveness of traditional value chain interventions. However, according to this brief from the GROOVE Learning Network - an initiative of the USAID Microlinks programme - these new approaches bring with them new challenges related to the role of development practitioners and "how we should be pursuing that role." How, for instance, should development practitioners ensure that they serve as "facilitators" rather than getting involved directly as "market actors"?
MoreOther Topics
Essential Readings
-
Capacity.org issue 34 (August 2008) Producer organizations and value chains
-
Duncan Mwesige (2010) "Using Multi-Stakeholder Processes for Capacity Development in an Agricultural Value Chain in Uganda" in: Ubels, J., N. Acquaye-Baddoo and A. Fowler (eds) Capacity Development in Practice, Earthscan, pp. 180-193
-
Vermeulen, S., J. Woodhill, F. Proctor and R. Delnoye (2008) Chain-wide learning for inclusive agrifood market development: A guide to multi-stakeholder processes for linking small-scale producers to modern markets, IIED/WUR
