USAID Module 2: Working Not Working Answer Key
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The document summarizes the key relationships, rules, and interconnected systems that are currently working and not working in the rice value chain in 3 countries based on a matrix analysis. Some aspects found to be working include functioning wholesale and retail links for imported rice and growing domestic consumer demand. Aspects found not to be working include importers not investing in domestic production, traders taking a short-term view which pushes farmers, and weak extension services. The overall system is also found to be unwilling or unable to invest in the urban consumer market for rice.
USAID Module 2: Working Not Working Answer Key
- 1. Module 2 Session 1 Activity 2 Current Picture of the Rice Value Chain: Working/Not Working Answer Key Note to facilitator: Even though you will be working with participant statements, their statements should reasonably match much what of is already on the back of the cards. 1. Use expanded situation cards 2. Re-organize information on cards against new matrix 3. Clusters as a means to get out key terms: relationships, rules and inter-connected systems Relationships Rules How is the system working for the Market Player? Working Not Working • Some domestic rice • Importers not very interested in investing in value chains competing domestic production with imported rice • Miller not investing in upgrading supply chain • Wholesale/retail link partly because of perceived weak incentives functioning well for imported rice • Importers responsive to changing consumer preferences • Differentiated consumer • Paddy farmers not making business-oriented demand decisions on quality over margin • Growing domestic • Traders’ short-term thinking results in consumer demand aggressive win-lose negotiations with farmers and push incentives not to upgrade • Substantial opportunity • Poor farmer yields for growth • Smallholder hesitant to adopt new technology even when benefits seem to be apparent • The overall system’s inability/unwillingness to invest in the urban consumer market for rice Inter-connected systems Module 2 Session 1: Working/Not Working Answer Key • Paddy farmers have very limited choice of agricultural equipment (rules) • Spray services exists but in very small numbers (rules) • Tillage services exist but are limited and disorganized (rules) • Extension services weak and under resourced (rules) • Banks are not interested in agriculture given other lower risk/cost markets. (rules) • Equipment suppliers have poor links to finance for larger equipment purchases (relationships) • Agriculture inputs retail distribution networks with limited outreach and organized around a sales only model (rules) 1
- 2. Module 2 Session 1 Activity 2 Current Picture of the Rice Value Chain: Working/Not Working Answer Key • Most inputs supplied by trader to farmers with little concern of efficacy. (rules) • Radio and ICT industries weak and not focused on agriculture (rules) • Input industry not investing in paddy farmer market (relationships) • Input firms have poor links between them and providers of service—such as spraying and tillage—who could advance their products to small farmers (relationships) • Tillage services not linked to input firms (relationships) • Government intervention crowding out input firms, finance, and agricultural equipment dealers (relationships) Module 2 Session 1: Working/Not Working Answer Key 2