Value chain development to benefit smallholders in Ghana: The effectiveness of selected interventions

Value chain development to benefit smallholders in Ghana: The effectiveness of selected interventions
Author: Kolavalli, Shashidhara
Publisher: Intl Food Policy Res Inst
Total Pages: 71
Release: 2020-03-26
Genre: Political Science
ISBN:

This study examines interventions in two agricultural development projects in Ghana which aimed to build competitiveness of selected value chains to generate growth and reduce poverty – the Northern Rural Growth Project, implemented between 2009 and 2016, and the Market Oriented Agriculture Programme, which began in 2004 and is still in place. These projects aimed to sustainably increase rural households’ income through the development of inclusive and profitable agricultural commodity and food value chains to generate agricultural surpluses and to benefit from improved access to remunerative markets. In this study, the efficacy of four sorts of value chain interventions implemented by the two projects are examined in the context of the strengthening maize, pineapple, mango, and citrus value chains: • Facilitating interactions among value chain actors to encourage technical and institutional innovations, • Improving the operations of individual actors, such as producers, service providers, traders, and processors; • Helping develop new services for producers or initiating new producer institutions; and • Improving infrastructure. The study sought to identify how, where, and when might it be appropriate to intervene in value chains, particularly to benefit smallholders. While the lessons from this study do not comprehensively answer these questions, a better understanding is provided on the reasons behind the outcomes the projects attained in seeking to strengthen agricultural commodity value chains and some guidance is offered on how interventions aimed at doing so should be designed.

African Farmers, Value Chains and Agricultural Development

African Farmers, Value Chains and Agricultural Development
Author: Alan de Brauw
Publisher: Springer Nature
Total Pages: 223
Release: 2021-11-02
Genre: Business & Economics
ISBN: 303088693X

This book provides a thorough introduction to and examination of agricultural value chains in Sub-Saharan Africa. First, the authors introduce the economic theory of agri-food value chains and value chain governance, focusing on domestic and regional trade in (and consumption of) food crops in a low-income country context. In addition to mainstream and heterodox thinking about value chain development, the book pays attention to political economy considerations. The book also reviews the empirical evidence on value chain development and performance in Africa. It adopts multiple lenses to examine agricultural value chains, zooming out from the micro level (e.g., relational contracting in a context of market imperfections) to the meso level (e.g., distributional implications of various value chain interventions, inclusion of specific social groups) and the macro level (underlying income, population and urbanization trends, volumes and prices, etc.).Furthermore, this book places value chain development in the context of a process the authors refer to as structural transformation 2.0, which refers to a process where production factors (labor, land and capital) move from low-productivity agriculture to high-productivity agriculture. Finally, throughout the book the authors interpret the evidence in light of three important debates: (i) how competitive are rural factor and product markets, and what does this imply for distribution and innovation? (ii) what role do foreign investment and factor proportions play in the development of agri-food value chains in Africa? (iii) what complementary government policies can help facilitate a process of agricultural value chain transformation, towards high-productive activities and enhancing the capacity of value chains to generate employment opportunities and food security for a growing population.

Developing Sustainable Food Value Chains

Developing Sustainable Food Value Chains
Author: David Neven
Publisher: Food & Agriculture Organization of the UN (FAO)
Total Pages: 92
Release: 2014
Genre: Business & Economics
ISBN:

Using sustainable food value chain development (SFVCD) approaches to reduce poverty presents both great opportunities and daunting challenges. SFVCD requires a systems approach to identifying root problems, innovative thinking to find effective solutions and broad-based partnerships to implement programmes that have an impact at scale. In practice, however, a misunderstanding of its fundamental nature can easily result in value-chain projects having limited or non-sustainable impact. Furthermore, development practitioners around the world are learning valuable lessons from both failures and successes, but many of these are not well disseminated. This new set of handbooks aims to address these gaps by providing practical guidance on SFVCD to a target audience of policy-makers, project designers and field practitioners. This first handbook provides a solid conceptual foundation on which to build the subsequent handbooks. It (1) clearly defines the concept of a sustainable food value chain; (2) presents and discusses a development paradigm that integrates the multidimensional concepts of sustainability and value added; (3) presents, discusses and illustrates ten principles that underlie SFVCD; and (4) discusses the potential and limitations of using the value-chain concept in food-systems development. By doing so, the handbook makes a strong case for placing SFVCD at the heart of any strategy aimed at reducing poverty and hunger in the long run.

Innovation for inclusive value-chain development

Innovation for inclusive value-chain development
Author: Devaux, André
Publisher: Intl Food Policy Res Inst
Total Pages: 560
Release: 2016-10-21
Genre: Political Science
ISBN: 0896292134

Governments, nongovernmental organizations, donors, and the private sector have increasingly embraced value-chain development (VCD) for stimulating economic growth and combating rural poverty. Innovation for Inclusive Value-Chain Development: Successes and Challenges helps to fill the current gap in systematic knowledge about how well VCD has performed, related trade-offs or undesired effects, and which combinations of VCD elements are most likely to reduce poverty and deliver on overall development goals. This book uses case studies to examine a range of VCD experiences. Approaching the subject from various angles, it looks at new linkages to markets and the role of farmer organizations and contract farming in raising productivity and access to markets, the minimum assets requirement to participate in VCD, the role of multi-stakeholder platforms in VCD, and how to measure and identify successful VCD interventions. The book also explores the challenges livestock-dependent people face; how urbanization and advancing technologies affect linkages; ways to increase gender inclusion and economic growth; and the different roles various types of platforms play in VCD.

Interventions for inclusive and efficient value chains: Insights from CGIAR research

Interventions for inclusive and efficient value chains: Insights from CGIAR research
Author: de Brauw, Alan
Publisher: Intl Food Policy Res Inst
Total Pages: 13
Release: 2021-12-31
Genre: Political Science
ISBN:

Efforts to promote the development of agricultural value chains are a common element of strategies to stimulate economic growth in low-income countries. Since the world food price crisis in 2007-2008, developing country governments, international donor agencies, and development practitioners have placed additional emphasis on making agricultural value chains work better for the poor. As value chains evolve to serve new markets, they tend to become less inclusive. For example, if a market for high quality rice arises within an economy, it is inherently easier for traders who sell rice to retailers to source that high quality rice from larger farms that are better able to control its quality than from dozens of smallholder farms. As a result, the normal path of value chain evolution can be biased against smallholders; hence, it is important to understand what types of interventions can make value chains more inclusive while also making them more efficient. In this brief, we summarize studies on five types of value chain interventions that were supported by the CGIAR’s Research Program on Policies, Institutions, and Markets (PIM) through its Flagship 3 on Inclusive and Effective Value Chains. Figure 1 illustrates a “typical” agricultural value chain, including the five intervention types (in orange). These include interventions that attempt to deal with multiple production constraints; certification; contract farming; public-private partnerships; and “other” services related to trading and marketing agricultural products. Apart from the last category, these interventions all involve production. This reflects the fact that smallholder producers can be considered, in some ways, the weakest link in evolving agricultural value chains (de Brauw and Bulte 2021). Hence, it is sensible to target interventions either at or close to smallholders. However, in some cases, the best way to overcome smallholder constraints may be to help actors at other points in the value chain overcome constraints. Many interventions share a focus on reducing transaction costs to promote smallholder market integration. Ideally, interventions increase both efficiency and inclusion, but we observe that such win-win outcomes are rare. Trade-offs appear to be more common than synergies, and some value chain interventions involve clear winners and losers.

The impact of an integrated value chain intervention on household poultry production in Burkina Faso: Evidence from a randomized controlled trial

The impact of an integrated value chain intervention on household poultry production in Burkina Faso: Evidence from a randomized controlled trial
Author: Leight, Jessica
Publisher: Intl Food Policy Res Inst
Total Pages: 62
Release: 2020-04-15
Genre: Political Science
ISBN:

This article reports on a cluster-randomized controlled trial conducted in 120 villages in rural Burkina Faso evaluating a multifaceted intervention (SELEVER) that seeks to increase poultry production by delivering training in conjunction with the strengthening of village-level institutions providing veterinary and credit services to poultry farmers. The intervention is evaluated in a sample of 1,080 households surveyed following two years of program implementation. Households exposed to the intervention significantly increase their use of poultry inputs (veterinary services, enhanced feeds, and deworming), and report more poultry sold and higher revenue; however, there is no evidence of an increase in profits. This evidence is consistent with the hypothesis that the return to inputs in the poultry market may not be sufficient to counterbalance the market costs of these inputs.

Contract Farming and the Development of Smallholder Agricultural Businesses

Contract Farming and the Development of Smallholder Agricultural Businesses
Author: Joseph A. Kuzilwa
Publisher: Routledge
Total Pages: 237
Release: 2017-08-24
Genre: Business & Economics
ISBN: 1317309995

Contract farming has received renewed attention recently as developing economies try to grapple with how to transform the agricultural sector and its associated value chains. This book examines different contract arrangements for selected crops, applying both qualitative and quantitative approaches in order to examine how contract farming affects smallholders and value chain dynamics in Tanzania. Major themes covered in the book include: contract farming policy; contract farming and value chain dynamics; contract farming adoption decisions; contract farming and income diversification. The authors also discuss alternative aspects of contract farming such as trust, conspiracy, empowerment and corporate social responsibility. The book presents original research from case studies conducted in Tanzania on sugarcane, tobacco, sunflower and cotton. These crops have a history of trials and errors with contract farming involving smallholders. Furthermore, they are targeted in national strategies as some of the main crops for establishment and upgrading of agro-industrial activities in Tanzania.

Value Chains, Social Inclusion and Economic Development

Value Chains, Social Inclusion and Economic Development
Author: A.H.J. (Bert) Helmsing
Publisher: Routledge
Total Pages: 305
Release: 2012-05-23
Genre: Business & Economics
ISBN: 1136724710

Lead firms, development organisations, donors and governments view value chains and voluntary standards as vital instruments for achieving millennium development goals through trade and market-related interventions. The precise foundations for these development strategies, which suggest positive development outcomes from integration of poor actors into value chains, are as yet underdeveloped. The interdisciplinary work in this volume shows how trade is managed and asks theory-driven questions about how value chains relate to locally-rooted development processes. Policy makers and development practitioners are increasingly using value chain analysis to frame pro-poor development interventions. This book offers multiple conceptualizations of development outcomes of inclusion of small producers, firms and workers in value chains. Processes of inclusion at different scales are unpacked in order to identify the terms of participation of small producers, firms and workers. As value chains are embedded, the book further argues that inclusion can be conceptualized as the degree of alignment between value chain logics and the institutions and capacities in the local business system. The combination of inclusive governance and endogenous development informs a grounded debate on roles of development-oriented partnerships. Chapters in this volume draw on multiple strands of economics, sociology, political science, geography and management studies; and for empirical grounding engage in comparative analysis of cases from Latin America, SubSaharan Africa and East and South East Asia. These are combined with processes taking place at a global level, such as the proliferation of standards and the growth of roundtables and multi-stakeholder partnerships. The contributions explore contrasts – between contexts, between industries or commodities/products, and between conceptual frameworks; and the context dependency of development impact necessitates cross-case investigations. This collection will be of interest to scholars in development studies, economics, business studies, as well as to development policy makers.