ICT’s in Value ChainsShaun FerrisCTA Addis – 6th November…

Value chain A value chain process focuses on linking

chain actors with target markets:

Participants

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

The Core Actors

Business Service Providers

The Institutions and Rules

They each have different ICT needs and solutions

Extension, vets, inputs, transport, banks

There are three different types of actors

Distance learning / training

materials

Farmer registrati

on

Business planningProfitabili

ty analysis

Crop monitorin

gMap and

Track

Project set up

Baseline / impact

Distance learning

Extension ICT’s

Map and Trackservice delivery

audit

Project support

Data forms

Farmbook calculators

Mob Trans

Opp Bank

ICT applications in value chains

Pre-production Production Postharvest Marketing

Market planning

MIS and Inputs

Finance

Farmbook calculators

Brainhoney

TrainingEsok

oEsoko

/Reuter

s

Esoko /RL MIS

Digital Green

SMSvoice

Cropster /Muddy-Boots

Esoko / RLAMITSA

MPESA - $$

Production tips

Transport

FinanceProductionFinance

Marketing decisions

Reuters/Farm-radio

Feedback Polls

Market price decisions

Storage

Chain wide Market Linkage

Best Practices

Best Practices Product

Bulking

Farmer ICT’s

SM Biz performance

Financial flows

Insurance

Swiss Re WI

Traceability

Systems Integration

7

Survey InfoService Delivery Info

Farmers

Extension / Service provider

Registration Info

Third-Party Databases and Websites

Extension / Service provider Extension / Service

provider

Farmers Farmers

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

Project staffPartner staff

1st stage Database

1st stage Database

1st stage Database

Food aid and asset transferSafety net clients

Time frames

TargetingTop 1-2% of commercial smallholder farmers who produce up to 50% of the traded grain

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

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

30-50% of farmers who are net buyers

Market Ready smallholders

Market limited smallholders

Highly vulnerable Poor (ultra poor)

Data based on Sitko et al. MSU. Trends and transformations in staple food markets in Eastern and Southern Africa

Periodic sellers 2-3 year process

5-8 year process

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

Conclusions1. 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

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

To do this we need better public-private partnerships?

3. Need more return on investment studies to highlight the value of ICT-enabled approaches

– and effectiveness compared to other approaches?