Pro-Poor Value Chain Development - Capacity.org

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Initially viewed as a rather rigid set of predetermined solutions, the Strategic
Intervention Plans would become a key tool for setting a common agenda and
keeping value chain stakeholders on the right course. With this recognition, the
planning process became more flexible, enabling value chain actors and support
organisations to act on the basis of new insights and take advantage of new
opportunities.
The BOAM Post-Implementation Review (van der Krabben et al, 2012) found that
the coordination groups had substantially contributed to network building, personal
relationships and trust, and facilitated the interchange of knowledge.
Lesson 1:
Value chain development is not a linear process. Adopting an inclusive multistakeholder
approach helps to foster an environment in which complex issues and
actor relationships can be explored in an interactive, learning-oriented and adaptive
way. Such an approach encourages stakeholders to play a steering role and actively
engages key private and public sector leaders who can ensure that decisive actions
are taken.
Focus on the middle of the value chain
Across all the value chains BOAM focused its support on processors, exporters,
traders - and in some cases farmers’ organisations – situated in the middle section
of the chain. In the beginning many observers questioned the rationale of this
approach, especially when they realised that relatively well-off processors and
traders would receive grants to invest in pilot innovation projects.
Implicit in this criticism was the question of whether development assistance should
be used to help private sector companies to scale up their business operations.
Based on our experience, there are four key reasons why the answer to this question
is a resounding ‘yes!’
• First, private sector actors provided the crucial link between market demand and
supply, ensuring that smallholder farmers produced what the market wanted.
• Second, BOAM’s resources were always invested in initiatives that sought to
address market or supply barriers or to maximise opportunities for the value
chain as a whole, including smallholder farmers.
• Third, the targeted companies were highly motivated, which they demonstrated
by investing their own resources in what were quite risky business ventures.
Without BOAM support, private sector actors would not have been able to make
these investments.
• Fourth, BOAM support enabled business actors to contribute to the upgrading of
the value chains, which in turn leveraged private investments in upscaling, for
which little or no BOAM support was needed.
With time BOAM’s development partners came to appreciate this innovative
approach. As business activities expanded across entire value chains, smallholder
farmers began to enjoy greater access to reliable markets for their produce. With
proof of reduced risks, they were able to invest in increased production and quality
improvements and hence respond to growing consumer demand for better quality
products. The BOAM Post-Implementation Review found clear evidence that the
focus on the middle of the chain had benefited actors across the entire value chain.
Lesson 2:
With its focus on strengthening the capacities of private sector actors at the
middle of the value chain through targeted technical, organisational and financial
support, BOAM succeeded in connecting smallholder farmers more effectively to