Pro-Poor Value Chain Development - Capacity.org

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54 Table 3.1: Overview of BOAM’s knowledge development and learning agenda Description of types of knowledge needs Source 1 A characteristic feature of value chain development is the shift from transaction-based to contract-based business relations. A contract, whether formal or informal, contains basic information such as the agreed price per unit and specifications of the particular product(s) or service(s) to be supplied. However, a contract can also spell out a number of related or embedded services to be provided as part of the business arrangement including, inter alia: logistical arrangements such as delivery schedules and collection points; required technical support and training and who should provide it; financial services provisions for investments in input material and production material; quality control and measurement; how market information will be generated and disseminated; and the institutional arrangements needed to deliver critical financial and technical services to producers. Knowledge need: BOAM and the value chain actors wanted to know what impact contracts had on the development of business relationships. 2 One of the activities undertaken as part of value chain upgrading is exploring ways to access new or existing markets. In addition, new products and/or product upgrading occurs. An example is the introduction of improved processing techniques to enhance the quality and durability of food products and appeal to a larger market segment. Knowledge need: BOAM and the value chain actors wanted to know what types of business arrangements could facilitate access to new markets (such as the use of joint ventures between processors and producers, setting up new trade relations or the development of a specific brand or label). 3 Upgrading existing products or introducing new ones often requires access to new types of inputs, such as improved seedlings or even new crop or animal varieties. Commercial availability at the right moment of better planting materials, seed(ling) supply systems and animal feeds is crucial in keeping up with increasing demand. As development of new input material can take years, it is essential to ensure that strategies are in place to match demand and supply within the value chain. Knowledge need: BOAM and the value chain actors needed to develop knowledge on how to design input supply strategies to meet increasing demand in the upgraded value chains. Business issue in the honey, dairy, fruits value chains Business issue in the honey, fruits and dairy value chains Business issue in oilseeds, fruits, dairy and honey value chains
Description of types of knowledge needs Source 4 The creation of a strong pool of local service providers is a prerequisite for sustainable value chain development. In order to create incentives for providers to invest in capacity and quality improvements, a service market is needed. At the beginning of the BOAM intervention demand was limited hence there were only a few providers offering technical and business development services. Knowledge need: BOAM and value chain actors needed to develop possible strategies and best practices for marketoriented development of the services sector. 5 Value chain upgrading often requires a quality assurance system combining standards for food safety and food quality. Knowledge need: BOAM and the value chain actors needed to develop knowledge on how to establish such systems, bearing in mind that they had to include: • Payment systems to ensure price incentives for producing higher quality products, and • Quality standards and systems for verifying quality in a transparent way. 6 Value chain upgrading is never finished. Consumer demands are constantly evolving, which requires continuous product innovation and value chain upgrading in order to remain competitive. Knowledge need: BOAM and the value chain actors needed to develop knowledge on how to establish a product innovation framework whereby consumer intelligence could be used in developing new products (including processing and packaging). 7 Due to their close links to smallholder farmers, downstream actors are often best placed to coordinate capacity-building support such as training and extension services. In turn, these organisations receive support from commercial providers or government agencies. BOAM’s experience demonstrated the difficulty of developing successful business models for delivering services to smallholder farmers and other actors upstream of the value chain. Knowledge need: BOAM needed to demonstrate ‘win-win’ extension practices to convince public agencies to become more responsive to the needs of all value chain actors. 8 Multi-Stakeholder Platforms (MSPs) are a commonly used mechanism in value chain development interventions. Knowledge need: BOAM needed to find out • whether MSPs were an effective instrument to steer sector development, and • what role sector organisations could play to steer overall sector development while taking into account the developmental stage of the value chain. Business issue in honey, fruits and dairy value chains Business issue in all value chains Business issue in all value chains ‘Enabling sector’ issue in the honey, fruits and oilseeds value chains ‘Enabling sector’ issue in honey, dairy and oilseeds value chains Knowledge development 55
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Page 3 and 4: Copyright © SNV Netherlands Develo
Page 5 and 6: Contents Contents .................
Page 7 and 8: Contributors Eleni Abraham Eleni ho
Page 9 and 10: Timoteos Hayesso Timoteos holds a B
Page 11 and 12: Worku Tessema Worku Tessema holds a
Page 13 and 14: changing systems that require new s
Page 15 and 16: Foreword The Embassy of the Kingdom
Page 17 and 18: It is now time to focus on another
Page 19 and 20: Tables 3.1 Overview of BOAM’s kno
Page 21: ILRI International Livestock Resear
Page 24 and 25: 24 transactions and production proc
Page 26 and 27: 26 BOAM’s approach to value chain
Page 28 and 29: 28 • Business development • Kno
Page 31 and 32: Chapter 1 Sector development Juerge
Page 33 and 34: Another major change was in the lan
Page 35 and 36: Support for sector association stre
Page 37 and 38: It should be noted here that as an
Page 39: Box 1.4 continued Other projects fu
Page 42 and 43: 42 B2B & PSS PGS C R P/T/E FO F I C
Page 44 and 45: 44 Business-to-Business (B2B) devel
Page 46 and 47: 46 Box 2.3 continued Subsequently,
Page 48 and 49: 48 Value chain financing A key bott
Page 51 and 52: Chapter 3 Knowledge development, in
Page 53: Figure 3.2: The innovation system (
Page 57 and 58: Establishing knowledge development
Page 59 and 60: In June 2011, BOAM organised a majo
Page 61 and 62: Four of the knowledge needs listed
Page 63 and 64: Chapter 4 Strengthening providers o
Page 65 and 66: Figure 4.1: Types of business devel
Page 67 and 68: • Continuous on the job training
Page 69 and 70: Professionals and Competency Pool p
Page 71: Conclusion With its BDS strengtheni
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Page 76 and 77: 76 Box 5.1: Continued Likewise, the
Page 78 and 79: 78 stakeholders. One of the benefit
Page 81 and 82: Chapter 6 Study on BOAM outcomes Ro
Page 83 and 84: several hundred members, PLCs are c
Page 85 and 86: andom sample of 100 smallholder far
Page 87 and 88: Figure 6.3 Honey sales (in ETB) as
Page 89 and 90: services enhanced their reputation
Page 91 and 92: Table 6.2: Effects of value chain i
Page 93 and 94: 2.3 Entrepreneurial and technical c
Page 95 and 96: farmers are willing to allocate to
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Page 100 and 101: 100 level of market demand, which d
Page 102 and 103: 102 value chain), beehives and colo
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104 Service provider development As
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106 References Burns J. (2010) Link
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108 Initially viewed as a rather ri
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110 agricultural sector, which requ
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112 The changing role of value chai
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114
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116 BOAM’s engagement in the hone
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118 In addition to the EHBPEA the h
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120 Modern beehive Transitional bee
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122 core of BOAM’s intervention s
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124 revenue increase in ETB of 83%
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126
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128 Challenges in the oilseed value
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130 Facilitating the establishment
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132 BOAM supported six companies to
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134 • Eight FCUs started innovati
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136
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138 Large private investors are sta
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140 Natural and genetic resources:
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142 Business development Business d
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144 the establishment of the hub. T
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146 MSC Thesis, School of Veterinar
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148 BOAM’s engagement in the frui
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150 Improved grafting techniques (l
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152 BOAM also brokered partnerships
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154 on various aspects of fruit and
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156
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158 Upgrading capacity We consider
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160 In addition to a high degree of
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162 References Altenburg, T. (2007)
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164 Name Type of organisation Value
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