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

BOAM-book-coverPro-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.

More

Search Terms:
case studies
africa
rural development
analytical frameworks
institutional development
inclusive business

Recent Articles

Value chain development by the private sector in africa

18 June 2013

vcd in africa_GIZ 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.

More

Tapping the power of women's collective action in agricultural markets

06 June 2013

word_document_132619841_canonical_069d06076a 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.

More

Understanding market systems: Adapting monitoring and evaluation tools for practitioners

04 June 2013

monitoring change in market systems 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.

More

Sustainable intensification: A new paradigm for food security and community resilience in Africa

08 May 2013

sustainable intensification report 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."

More

Scaling up climate information services for smallholder farmers in Africa and Asia

24 April 2013

climate informationThis 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).

More

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"?  

More

More Articles

Other 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

Go to annotated bibliography