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ICT’s in Value Chains

ICT’s in Value Chains. Shaun Ferris CTA Addis – 6 th November…. Participants. Value chain. A value chain process focuses on linking chain actors with target markets:. Key features of value chain methods ?. Market linkage process Takes a systems perspective

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ICT’s in Value Chains

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

  2. Participants Valuechain • A value chain process focuses on linking chain actors with target markets:

  3. Key features of valuechainmethods? • 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. There are three different types of actors Thevaluechain They each have different ICT needs and solutions The Institutions and Rules The Core Actors Business Service Providers Extension, vets, inputs, transport, banks

  5. Extension ICT’s Project support • Distance learning Data forms Map and Track service delivery audit

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

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

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

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

  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 • 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 • Must focus on scale to achieve cost recovery and value added? • To do this we need better public-private partnerships? • Need more return on investment studies to highlight the value of ICT-enabled approaches • – and effectiveness compared to other approaches?

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