1. ICT’s in Value Chains Shaun Ferris CTA Addis – 6 th November…

2. Value chain  A value chain process focuses on linking chain actors with target markets: Participants

3. 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

4. The value chain The Core Actors Business Service Providers The Institutions and Rules They each have different ICT needs and solutions Extension, vets, inputs, transport, banks There are three different types of actors

5. Distance learning / training materials Farmer registration Business planning Profitability analysis Crop monitoring Map and Track Project set up Baseline / impact Distance learning Extension ICT’s Map and Track service delivery audit Project support Data forms

6. Farmbook calculators Mob Trans Opp Bank ICT applications in value chains Pre-productionProductionPostharvestMarketing Market planning MIS and Inputs Finance Farmbook calculators Brainhoney Training Esoko Esoko / Reuters Esoko /RL MIS Digital Green SMS voice Cropster / Muddy-Boots Esoko / RL AMITSA MPESA - $$ Production tips Transport Finance Production Finance Marketing decisions Reuters/ Farm-radio Feedback Polls Market price decisions Storage Chain wide Market Linkage Best Practices Product Bulking Farmer ICT’s SM Biz performance Financial flows Insurance Swiss Re WI Traceability

7. Systems Integration 7 Survey Info Service Delivery Info Farmers Extension / Service provider Registration Info Third-Party Databases and Websites Extension / Service provider Farmers Second level aggregate database e.g. (sales force) Project staff Partner staff 1 st stage Database 1 st stage Database 1 st stage Database

8. Food aid and asset transfer Safety net clients Time frames

9. Targeting Top 1-2% of commercial smallholder farmers who produce up to 50% of the traded grain 15-18% of smallholders who sell the bulk of the other 50% of traded grain 20-30 % of farmers who are market neutral (weather dependent) 30-50% of farmers who are net buyers Market Ready smallholders Market limited smallholders Highly vulnerable Poor (ultra poor) Data based on Sitko et al. MSU. Trends and transformations in staple food markets in Eastern and Southern Africa Periodic sellers 2-3 year process 5-8 year process

10. 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

11. Conclusions 1. Great progress in ICT solutions, but How many extension services are using these methods?  Need to find best fit options to shift from traditional delivery channels and ICT-enabled channels 2. Must focus on scale to achieve cost recovery and value added?  To do this we need better public-private partnerships? 3. Need more return on investment studies to highlight the value of ICT-enabled approaches  – and effectiveness compared to other approaches?