ICT’s in Value Chains
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This document discusses the use of information and communication technologies (ICTs) in agricultural value chains. It describes how value chain approaches link farmers to markets through a systems perspective that stimulates commercial solutions and competitiveness. There are three types of actors in a value chain - farmers, extension services, and business providers - each with different ICT needs. The document outlines several ICT applications that can be used at different stages of production and marketing. It also discusses challenges like integrating systems and targeting services to the large number and diversity of smallholder farmers.
ICT’s in Value Chains
- 1. ICT’s in Value Chains Shaun Ferris
- 2. Value chain Participants A value chain process focuses on linking chain actors with target markets:
- 3. 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
- 4. 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
- 5. Extension ICT’s Distance learning / training materials Farmer registration Project support Business planning Profitability analysis Project set Crop Data forms monitoring Map and Track up Baseline / impact Distance learning Map and Track service delivery audit
- 6. Farmer ICT’s ICT applications in value chains Farmbook calculators Mob Trans Opp Bank Brainhoney Training MPESA - $$ Reuters/ Farm-radio Swiss Re WI Pre-production Production Postharvest Marketing Market planning MIS and Inputs Finance Farmbook calculators Esoko Esoko / Reuters Esoko /RL MIS Digital Green SMS voice Cropster / Muddy-Boots Esoko / RL AMITSA Production tips Marketing decisions Transport Feedback Polls Production Finance Finance Market price decisions Storage performance Chain wide Market Linkage Best Practices Best Practices SM Biz Product Bulking Financial flows Insurance Traceability
- 7. Systems Integration Project staff Partner staff Second level aggregate database e.g. (sales force) 1st stage Database 7 Survey Info 1st stage Database Service Delivery Info Registration Info Extension / Service provider Farmers Third-Party Databases and Websites Extension / Service provider Extension / Service provider Farmers Farmers 1st stage Database
- 8. Time frames Safety net clients Food aid and asset transfer
- 9. Targeting Top 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 Periodic sellers Market Ready smallholders Data based on Sitko et al. MSU. Trends and transformations in staple food markets in Eastern and Southern Africa Market limited smallholders Highly vulnerable Poor (ultra poor) 2-3 year process 5-8 year process
- 10. 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
- 11. Conclusions 1. 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?