Elly Kaganzi Technical Advisor of Market Engagement and Economic Development CARE- USA

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, womens 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 ) Farmers (Formal and informal groups ) Suppliers Transporters Processing Factories / Value Addition Retailers Consumers at Formal Market Wholesalers Input Suppliers Value Chain Operators Intra-chain / Inter-actor support, coordination, management. Improving efficiency and transparency of transactions Commercial (and social) interests Wholesalers Retailers Consumers at Informal Market Interventions, business support Support of development goals and public interests, payment Value Chain Supporters / Service Providers Research Bodies NGOs BDS Providers ExtensionState Bodies Banks Financial ServicesNon-financial Services Microfinance Institutions National / International Enabling Environment

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

Participatory approaches increase the level of farmer ownership in the process and enables producers and Service providers to develop new types of relationships, FACILITATION Mapping out the Market Chain

Service Providers discussing options for a new Business with farmers and Chain Actors Traders Stockists Farmers Partner, service provider

Scaling up

Evaluating and selectingenterprisealternativesL 5 days Agroenterprise design and development of action plans L 5 days Interest group formation and market opportunity identification 5 days Apply, monitor and follow-up 6 months The Learning Alliance 8 months Apply, monitor and follow-up 6 months Apply, monitor and follow-up Business Development Services and their assessment L 5 days Monitoring and evaluation An incremental learning process

Small-scale farmers organised & supplying a specialised value chain Small-scale farmers organised and adding value to selected products Service Provider Farmer Profiling Small-scale farmers organised to sell produce collectively Individual Small-scale farmers Sell surplus product into the market Organise farmers Select existing product Produce for the Market. Evaluate Link supplier groups To specialist service providers Increase Competitiveness in input And output markets Link activities to finance services Service providers With limited Marketing experience Diversify products strengthen business skills Initiate savings records Link to MF Service providers With more Marketing experience Service providers With strong Marketing experience Specialist marketing service providers

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. 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.