ICT`s in Value Chains - Making The Connection

ICT’s in Value Chains Shaun Ferris CTA Addis – 6th 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

 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

The value chain There are three different types of actors They each have different ICT needs and solutions The Institutions and Rules

The Core Actors

Business Service Providers Extension, vets, inputs, transport, banks

Project support

Extension ICT’s

Project set up Data forms

Distance learning / training materials

Baseline / impact

Crop monitoring

Farmer registration

Map and Track Map and Track

service delivery audit

Business planning Profitability analysis

Distance learning

Farmer ICT’s

ICT applications in value chains Brainhoney Training Farmbook calculators

MPESA $$

Esoko / RL AMITSA

Esoko /RL MIS Reuters/ Farm-radio

Esoko

Opp Bank

Mob Trans

/

Reuters

Digital Green

Esoko

Cropster / Muddy-Boots

Farmbook calculators

SMS voice

Financial flows

Swiss Re WI

Pre-production

Production

Production tips

Market planning Best Practices

Postharvest

MIS and Inputs Finance

Market price decisions

Marketing decisions

Best Practices

SM Biz performance

Transport

Feedback Polls Production Finance Insurance

Marketing

Storage Finance

Product Bulking Traceability Chain wide Market Linkage

Systems Integration Third-Party Databases and Websites

Partner staff Project staff

Second level aggregate database e.g. (sales force)

1st stage Database Registration Info

Extension / Service provider

Farmers

1st stage Database Service Delivery Info

Extension / Service provider

Farmers

1st stage Database Survey Info

Extension / Service provider

Farmers

7

Time frames

Safety net clients

Food aid and asset transfer

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

2-3 year process

Periodic sellers

15-18% of smallholders who sell the bulk of the other 50% of traded grain

Market Ready smallholders 5-8 year process

20-30 % of farmers who are market neutral (weather dependent)

Market limited smallholders

Highly vulnerable Poor (ultra poor)

30-50% of farmers who are net buyers

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

Conclusions 1.

Great progress in ICT solutions, but How many extension services are using these methods? 

2.

Must focus on scale to achieve cost recovery and value added? 

3.

Need to find best fit options to shift from traditional delivery channels and ICT-enabled channels

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?