1. Pathways out of Poverty Can R&D help small-scale producers benefit from coordinated supply chains? Can R&D help small-scale producers benefit from coordinated supply chains? Joachim Voss, Director General, CIAT ESSD Week World Bank 31 March 2005 Joachim Voss, Director General, CIAT ESSD Week World Bank 31 March 2005

2. Trends in Food Markets Consumer demand Higher quality More variety Year-round supply Downward pressure on price Food safety concerns Consumer demand Higher quality More variety Year-round supply Downward pressure on price Food safety concerns Modern retail systems Food industries Food services Supermarkets Modern retail systems Food industries Food services Supermarkets

3. Global Sourcing and Retailing Technological advances Food processing Post-harvest technologies Trade liberalization Technological advances Food processing Post-harvest technologies Trade liberalization Economies of scale Concentration of Retailers Food services Food processors Economies of scale Concentration of Retailers Food services Food processors

4. Coordinated Supply Chains Joint agreements Production volume Time of delivery Quality and safety conditions Price Joint agreements Production volume Time of delivery Quality and safety conditions Price Durable arrangements Producers Traders Processors Buyers Durable arrangements Producers Traders Processors Buyers

5. Can small-scale producers participate in coordinated supply chains? Weaknesses Lack of access to capital Lack of knowledge Market & production opportunities Sources of financial and technical support Appropriate technologies Lack of organization Weaknesses Lack of access to capital Lack of knowledge Market & production opportunities Sources of financial and technical support Appropriate technologies Lack of organization Strengths Access to labor Self-employment (motivation) Products that need “tender, loving care” Strengths Access to labor Self-employment (motivation) Products that need “tender, loving care”

6. Learning Process Improve Capacity to Innovate Appropriate Technologies Institutional Innovation Enabling Policies Access to Information

7. Appropriate Technologies Co-innovation Demand-driven research Seizing market opportunities Co-innovation Demand-driven research Seizing market opportunities

8. Access to Information Access to market prices and opportunities Scaling out ICTs Social network analysis Bargaining power Access to market prices and opportunities Scaling out ICTs Social network analysis Bargaining power

9. Institutional Innovation for the Poor Capacity to Organize Participatory approaches to market chain analysis Understanding diverse organizational options Participatory approaches to market chain analysis Understanding diverse organizational options Chain governance Who has decision-making power? How does information flow? Transparency of the process Chain governance Who has decision-making power? How does information flow? Transparency of the process

10. Enabling Policies Access to capital Articulation of policies that support small farmers at different levels Mechanisms for addressing equity Access to capital Articulation of policies that support small farmers at different levels Mechanisms for addressing equity

11. Learning across Experiences

12. Identification of existing knowledge and good practices Documentation, systematization and learning based on R&D questions Design of R&D hypothesis + questions Design of methods & tools Field application Selection of topic with partners Capacity building Identify Key Stakeholders LearningLearning LearningLearning ProcessProcess ProcessProcess

13. To conclude: If left to market forces, the big producers will tend to win. If provided support to be well organized—with access to appropriate information, capital and technology—small producers can compete If left to market forces, the big producers will tend to win. If provided support to be well organized—with access to appropriate information, capital and technology—small producers can compete

14. Thank you!