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?