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
 Upgrades
the performance of individual businesses
and the chain as a whole
 Fosters
and 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
Project support
Extension ICT’s
Project set
up
Data forms
Distance
learning /
training
materials
Baseline /
impact
Crop
monitoring
Farmer
registration
Map and
Track
Map and Track
service delivery
audit
Business
planning
Profitability
analysis
Distance
learning
Farmer ICT’s
ICT applications in value chains
Brainhoney
Training
Farmbook
calculators
MPESA $$
Esoko / RL
AMITSA
Esoko
/RL MIS
Reuters/
Farm-radio
Esoko
Opp
Bank
Mob
Trans
/
Reuters
Digital
Green
Esoko
Cropster /
Muddy-Boots
Farmbook
calculators
SMS
voice
Financial
flows
Swiss Re WI
Pre-production
Production
Production
tips
Market
planning
Best
Practices
Postharvest
MIS and
Inputs
Finance
Market price
decisions
Marketing
decisions
Best
Practices
SM Biz
performance
Transport
Feedback
Polls
Production
Finance
Insurance
Marketing
Storage
Finance
Product
Bulking
Traceability
Chain wide
Market Linkage
Systems Integration
Third-Party Databases
and Websites
Partner staff
Project staff
Second level aggregate database e.g. (sales force)
1st stage
Database
Registration
Info
Extension / Service
provider
Farmers
1st stage
Database
Service Delivery
Info
Extension / Service
provider
Farmers
1st stage
Database
Survey Info
Extension / Service
provider
Farmers
7
Time frames
Safety net clients
Food aid and asset transfer
Targeting
Top 1-2% of commercial smallholder
farmers who produce up to 50% of the
traded grain
Data based on Sitko et al. MSU.
Trends and transformations in staple
food markets in Eastern and
Southern Africa
2-3 year process
Periodic
sellers
15-18% of smallholders who sell the
bulk of the other 50% of traded grain
Market Ready
smallholders
5-8 year process
20-30 % of farmers who are
market neutral (weather
dependent)
Market limited smallholders
Highly vulnerable Poor (ultra poor)
30-50% of farmers
who are net buyers
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?

2.
Must focus on scale to achieve cost recovery and
value added?

3.
Need to find best fit options to shift from traditional
delivery channels and ICT-enabled channels
To do this we need better public-private
partnerships?
Need more return on investment studies to
highlight the value of ICT-enabled approaches

– and effectiveness compared to other approaches?