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Pathways out of Poverty. Can R&D help small-scale producers benefit from coordinated supply chains?. Joachim Voss, Director General, CIAT ESSD Week World Bank 31 March 2005. Trends in Food Markets. Consumer demand Higher quality More variety Year-round supply
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Pathways out of Poverty Can R&D help small-scale producers benefit from coordinated supply chains? Joachim Voss, Director General, CIAT ESSD Week World Bank 31 March 2005
Trends in Food Markets • Consumer demand • Higher quality • More variety • Year-round supply • Downward pressure on price • Food safety concerns • Modern retail systems • Food industries • Food services • Supermarkets
Global Sourcing and Retailing • Technological advances • Food processing • Post-harvest technologies • Trade liberalization • Economies of scale • Concentration of • Retailers • Food services • Food processors
Coordinated Supply Chains • Joint agreements • Production volume • Time of delivery • Quality and safety conditions • Price • Durable arrangements • Producers • Traders • Processors • Buyers
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 Strengths • Access to labor • Self-employment (motivation) • Products that need “tender, loving care”
Access to Information Process Learning Improve Capacity to Innovate Appropriate Technologies Institutional Innovation Enabling Policies
Appropriate Technologies • Co-innovation • Demand-driven research • Seizing market opportunities
Access to Information • Access to market prices and opportunities • Scaling out • ICTs • Social network analysis • Bargaining power
Institutional Innovation for the PoorCapacity to Organize • 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
Enabling Policies • Access to capital • Articulation of policies that support small farmers at different levels • Mechanisms for addressing equity
Learning Process Identify Key Stakeholders Selection of topic with partners Design of R&D hypothesis + questions Identification of existing knowledge and good practices Design of methods & tools Capacity building Field application Documentation, systematization and learning based on R&D questions
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