The Participatory Market Chain Approach – PMCA

Innovation for Sustainable Value Chain Development

from the Andes to Africa and Asia

International Food Security Dialogue 2014

”Sponsored By: Hosted By:

André Devaux, Regional Director, LAC, CIP

Native potatoes, an opportunity for Andean farmers

…but undervalued in modern society• Seen as staple, “rural” food• Few native varieties in urban markets• How to transform opportunity in

competitive advantage for Andean farmers?

Outline

Introduction Characteristics of PMCA and its

development Experiences of implementation and

its evolution from the Andes to Africa and Asia

Some lessons learned

Stimulating innovation along value chain

Innovation Process

Producer Intermediary Wholesaler

Processor Retailer Consumer

Commercial Innovations

Institutional InnovationsTechnological Innovations

Research outputs:

Creative ideas,

methodologies

Dynamic Markets

New products,added value,

Andean farmer’s asset:Potato biodiversity Interaction with

different stakeholders

Capacity to

innovate

Partnership, new working relations

Participants

R&D Orgs.

Interest

Trust

Collaboration

1 y

ear

ap

pro

x.

Diagnosis: Specific market chainUnderstand market chain actors activities, interests, ideas, problems

Participatory analysis new market opportunities: Work in thematic groups

Objective per Phase

Phase 1

Phase 2

Phase 3Develop market driven innovations:•new products•new technologies•new institutions

Public Event 1

Public Event 2

Final Public Event

Leadership

Facilitation

Backstopping

Consolidation of created innovations

A systematic R&D process that:•Builds trust among market chain actors and with R&D organizations•Stimulates market driven innovation of different types

PMCA

PMCA User & trainer guides

PMCA in summary

• Characteristics:• Helps the different actors of the market chain, including

farmers, to express better their needs to R&D organizations

• Stimulates innovations of different types among market chain actors through collective learning and trust building

• Facilitates partnership among farmers, market chain actors and service providers for improving the VC efficiency.

• PMCA needs good facilitation, a champion• Knowledge of local social culture, political sense• Good networking, specially with the private sector

04/10/2023

PMCA development: time line and partners

PMCA Peru

Implementaion in Uganda and Indonesia

11Fase 3Uganda ” Regreso

Experiences from the Andes, expanding and learning from

other regions.

2002

2006

Growth of the native potato chip market

2008

MT

1000

2000

Challenge

Creativeimitations

Large companie

s

Challenge => CSR +

Technologies

2004

Industry • Quality

Volumes Regularity Formality

• Asimetric bargaining power

Commercial innovation

2009

RESEARCH DEMANDS :TECHNOLOGICAL INNOVATION

NEW FORMS OF ORGANIZATION :INSTITUTIONAL INNOVATION

NEW MARKET OPPORTUNITIES :

COMMERCIAL INNOVATION

PMCA

PMCA as a trigger to stimulate innovations

POLICY INCIDENCE AND ADVOCACY:NEW NORMS,

NATIONAL POTATO DAY

FARMER BUSINESS SCHOOL

Market Chain-Wide Learning Approaches

Farmer Field School

Participants are farmersLearning cycle covers cropping seasonLearning content focuses on crop prodn

Participants are actors in market chainLearning cycle covers prodn-marketingLearning content focuses on marketing

Participants are farmers; includes interactive events with other chain actors Learning process based on FFS principles of experiential learning Learning cycle covers prodn-marketingLearning content is based on market chain framework

Indonesia: Farmer Business School (FBS)FBS Combines the Best of FFS and Market-Chain Approaches

Lessons learnedThe PMCA as a new way to do agricultural R&D with a strong innovation focus• Contributed to change work and relationship between the

heterogeneous market chain actors (institutional innovations), – Key to have a champion to facilitate the process

• Triggers innovation process, evolves over time, second and third generation innovations emerge after PMCA has ended

• PMCA is most effective when applied together with other measures as part of a broader intervention (program or project)– Innovation platforms, farmers’ organizations, public awareness,…

• PMCA developed in the Andes was enriched from global applications in other regions through South-South learning :– Farmer Business School in Indonesia and Asia– Gender tools in Uganda and East Africa

a.devaux@cgiar.org

Thank you!

Andean farmers’ asset: native potato biodiversity

Appealing for high value, niche markets

Comparative vs. competitive advantage

Colorful, nutritious, healthy, natural, cultural identity