Elly Kaganzi
Technical Advisor of Market Engagement and
Economic Development
CARE- USA
ekaganzi@care.org
Background
 From the late 80 and early 90s smallholder farmers
started to face substantial barriers to achieving
improved livelihoods as commodity prices declined,
public sector reform reduced assistance and natural
resources became scarcer. This coupled with market
integration led to increased competition.
 Research into way through which competitiveness of
smallholder farmers would be enhanced began. CIAT
among fore front agencies looking at ways of integrating
smallholder farmers in competitive value chains
Strategies considered
 Increasing competitiveness of market chains
 Adding value
 Diversification (products and services)
 Better organization
 New contractual arrangements
 Links to financial services
Clients and Beneficiaries
 Clients
 National / regional researchers
 Service providers, NGOs, CBOs,
 Universities
 Private sector entrepreneurs / farmer associations, women’s
groups
 Beneficiaries
 Poor smallholder farmers
 Rural traders
 Business service providers
 Processors
 Consumers
The Methods
 Have been developed over the past 12 years, they
have been well tested
 Are being used in Central America, Andean
America, South East Asia and Eastern and
Southern Africa, and West Africa through
Learning alliances.
 Taken up and scaled out by National, Regional and
International organisations
 CRS, CARE, Africare, World Vision, National
Government agencies.
New methodologies for Value Chain analysis and
development for small-scale producers
Key Features of Rural Agro-enterprise development
Process
 Area based
 Participatory
 Market led
 Thinking “outside the farm”
 Scaleable
 Seeking continuous innovation
 Building on local skills and empowering communities
Entry Points for the Process
 Competence of Service provider
 Organisation of farmers
 Wealth of groups
 Market access and engagement
 Product types
 Availability and access to services
Visioning for the future
Working group for Agro-enterprise within VC framework)
National / International Enabling
Environment
Value Chain Operators
Commercial (and social) interests
Input Suppliers
Farmers
(Formal and
informal groups)
Suppliers
Transporters
Processing
Factories / Value
Addition
Wholesalers
Retailers
Wholesalers
Retailers
Consumers at
Formal Market
Consumers at
Informal Market
Intra-chain / Inter-actor support, coordination,
management. Improving efficiency and transparency of transactions
Support of development goals and public interests, payment
Value Chain
Supporters /
Service Providers
Interventions,
business support
Research
Bodies
Extension
NGOs
Non-financial Services
BDS
Providers
State Bodies
Microfinance Institutions
Financial Services
Banks
The marketing facilitator “A Market visit”
Market Opportunity Identification is a process of generating
knowledge and making decisions based on Demand.
Taking clients to the market is often a real “eye opener”
Mapping out the Market Chain
Participatory approaches increase the level of farmer ownership in
the process and enables producers and Service providers to develop
new types of relationships, FACILITATION
Service Providers discussing options for a new Business
with farmers and Chain Actors
Stockists
Traders
Partner,
service
provider
Farmers
Scaling up
The “Learning Alliance™”
6 months
Apply,
monitor and
follow-up
8 months
Apply,
monitor and
follow-up
6 months
Apply,
monitor and
follow-up
Interest group
formation and
market opportunity
identification
L
Evaluating and
selecting
enterprise
alternatives
5 days
L
Agroenterprise
design and
development of
action plans
5 days
5 days
An incremental learning
process
Monitoring and evaluation
5 days
L
Business
Development
Services and
their
assessment
Service Provider Farmer Profiling
Specialist marketing
service providers
Service providers
With strong
Marketing
experience
Service providers
With more
Marketing
experience
Service providers
With limited
Marketing
experience
Small-scale farmers
organised & supplying
a specialised
value chain
Small-scale farmers
organised and
adding value to
selected products
Small-scale farmers
organised to sell
produce collectively
Individual
Small-scale farmers
Sell surplus product
into the market
Link supplier groups
To specialist
service providers
Increase
Competitiveness in input
And output markets
Link activities to
finance services
Diversify products
strengthen business
skills
Initiate savings records
Link to MF
Organise farmers
Select existing product
Produce for the
Market. Evaluate
Development impact
 Increased farm income
 Ground nut producers in Eastern Uganda. Nnegotiations led to a 16%
price premium due to higher quality of nutsn and selling to a known buyer.
 Cut flowers in Cauca, Colombia. 24% price increase for producers for
flowers sorted, graded and packed to customers needs.
 In Tanzania, 15 NGOS capacity in market development build in an IFAD
program . Farmer income increases 15-25%
 Potato farmers in Kabale, Uganda. Sold 2000 Mt of potatoes for $300,000,
in past 8 years.
 In Rwanda, over 15,000 families increased their income through integration
in vegetable, high value chillies, baskets
 Scaling out to the Development world
 CRS global Agro-enterprise development initiatives
 CAREs pathways women's empowerment program ( 6 countries 14 value
chains
 Empowered communities and farmers (est. 200,000 farm families)
 Through reference/pilot sites and Learning alliance
 More effective rural business development service providers
 Partners in reference/pilot sites and in Learning Alliance projects
 Rwanda, Ethiopia, Burundi, Malawi and Zambia
Conclusions
 Productivity alone has not succeeded in reducing rural
poverty. A broader strategy is needed.
 The global agrifood system is becoming less remunerative
for primary producers.
 Farmers need to be competitive and better organised to
make farming pay
 Farmers need to find ways of adding value to their goods
and accessing new markets.
 We Need to develop new ways of strengthening skills to
enable rural innovation so that our beneficiaries can find
and manage markets, access value adding technologies,
achieve improved links with other actors and organize
effective support services are possible ways forward.