1. Strategy for Australia’s aid investments in agriculture, fisheries and water Agriculture and Food Security Section

2. Session outline Strategy for Australia’s aid investments in agriculture, fisheries and water (February 2015) −Operational guidance note: Gender equality and women’s empowerment in agriculture (September 2015) Market system approaches −What DFAT means by market system approaches −Examples from DFAT programs

3. The new Strategy responds to Australia’s development policy, released in June last year, which identifies ‘Agriculture, fisheries and water’ as one of six priority areas.

4. Strategic framework PRIORITY AREAS OF ENGAGEMENT (OR ‘PILLARS’) Increase contributions to national economic output Increase incomes of poor people Increase incomes of poor people Agriculture, fisheries and water Promote Australia’s national interests by contributing to sustainable economic growth and poverty reduction STRATEGIC OBJECTIVES Enhance food, nutrition and water security Private sector development Human development Strengthening markets Research and innovation Innovating for productivity and sustainable resource use Innovating for productivity and sustainable resource use Promoting effective policy, governance and reform Promoting effective policy, governance and reform Women’s economic empowerment This flow chart illustrates the strategic-level framework outlined above.

5. Women’s economic empowerment will be properly considered in all of our investments, not only those that focus specifically on gender issues. Future investment designs will also include strategies to support women to overcome barriers, to identify market interventions that benefit women, and to improve access to productive resources, financial services and business skills. Operational guidance note on gender equality and women’s economic empowerment in agriculture (September 2015) provides guidance on how to achieve this. To paraphrase:Operational guidance note on gender equality and women’s economic empowerment in agriculture Do analysis Do no harm Choose the right value chains or innovations to work on Measure changes Women’s economic empowerment

6. Nutrition-sensitive agriculture (September 2015)Nutrition-sensitive agriculture Do no harm perspective, and linkages with WEE. Market-based approaches (forthcoming, 2015) Provides guidance specific to agriculture sector investments that will be applicable to AMENCA 3. Agriculture research for development (forthcoming, early 2016) Recommendation of the review of agriculture portfolio, which is still in progress. Further operational guidance notes:

7. Market System Approaches

8. Indonesia: AIP-Rural is working with Syngenta to improve off- season mango production. This partnership is projected to increase 10,000 farmers’ incomes by an estimated $980 per year, doubling farmer income. An example from the Australian aid program

9. Market System Approaches The poor are consumers and producers that rely on agricultural markets for their livelihoods Improving the way markets operate can be a sustainable and efficient way to improve the lives of the poor

10. Market System Approaches The Market System

11. Scale Facilitation Sustainability Features of market system approaches

12. Scale Components of agriculture investment in the sample of developing countries, 1981 -2007, constant 2005 USD billion Features Market System Approaches

13. Scale Working with partners who provide services to the poor rather than working directly with the poor to achieve scale Cambodia Agriculture Value Chains Program (CAVAC) By working with one fertiliser company that has a network of 500 retailers across the country, serving at least 70 farmers each, CAVAC can reach 35,000 farmers with a single initiative

14. Facilitation Facilitating rather than doing. Facilitating requires an understanding of partners incentives to act in a way that benefits the poor Doing is about paying for goods or services that are missing for the poor Features Market Systems Approaches

15. Sustainability and Systemic thinking Changes that benefit the poor and don’t require ongoing donor support Sustainable Partnerships Sustainable Systems Features Market Systems Approaches