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Integrating Very Poor Agricultural Producers into Value Chains Dan Norell World Vision

Integrating Very Poor Agricultural Producers into Value Chains Dan Norell World Vision. Learning Objectives. Recognize the constraints and opportunities of vulnerable households engaging in markets

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Integrating Very Poor Agricultural Producers into Value Chains Dan Norell World Vision

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  1. Integrating Very Poor Agricultural Producers into Value ChainsDan NorellWorld Vision

  2. Learning Objectives • Recognize the constraints and opportunities of vulnerable households engaging in markets • Understand when it is appropriate to encourage vulnerable households to engage in a market and how an organization can support households to minimize their risk

  3. Constraints of the Very Poor • Gender • Cultural barriers • Lack of time • Lack capacity to undertake economic activity • Limited ability to take on risk

  4. Stronger Enterprises… • Build hope and trust • Build commercial relationships between producers & suppliers and producers & buyers • Increase resilience - allows families to adapt to & recover better from shocks & stresses • Able to pay for better healthcare services

  5. Value Chain Map

  6. Vertical Linkages • Connects producers to buyers and suppliers • More fair financial flows • Connect producers with market actors • More effective knowledge and information transfer • Stakeholder workshops • Increases innovation

  7. Horizontal Linkages • Connects producers to other producers • Allows for risk sharing mechanisms • Greater bargaining power • Economies of scale • Facilitates knowledge sharing networks between female producers of various experience levels • Increased social capital - mentoring – Value Girls Program • Increased confidence • Collective learning

  8. Productive Safety Net Program Plus project, Ethiopia Project provided an initial food package or food voucher for a limited time until producers graduate to a stage where they are able to continue without the food support.

  9. Case: ProRENDA Project in Angola Background: • Smallholder farmers and value chain market actors • 60% female participation Goal: • “Smallholder farmers in the central highlands in Angola will increase their annual income from potatoes and other high value crops through competitive value chains”

  10. ProRENDA Project in AngolaVertical Linkages • Value chain selection of nutritious & profitable value chains (carrots, potatoes, beans) • Knowledge and information transfer that met market demands • Product processing and grading • Post-harvest quality control and storage • Capacity to develop business relationships • Farmer business schools • Access to financial services

  11. ProRENDA in Angola:Horizontal Linkages & Gender Focus • Savings groups & literacy classes • Seed banks • 80% female-managed seed banks • especially serving those 30% of project households that have a female as the head of household

  12. Seed banks providing access to inputs Potato and Onion production, Angola • Community Seed Banks set up for distribution of potato and onion seeds • Introduce improved varieties of crops - while generating income for extremely poor farmers • Project provides the seed stock to very poor households who grow the stock. Beneficiaries have to pay back twice the amount received in the form of in-kind seed to other community members in the seed bank. They also have to purchase their own seed in future seasons

  13. Download the Field Guide! http://microlinks.kdid.org/library/integrating-very-poor-producers-value-chains-field-guide

  14. Small Group Discussion In groups of 2 or 3 discuss: 1. When is it appropriate to encourage households to engage in a market? 2. How can organizations facilitate market linkages so that the market linkages minimize the risk for very poor households?

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