Pathways out of Poverty

Pathways out of Poverty

Can R&D help small-scale producers benefit from coordinated supply chains?

Can R&D help small-scale producers benefit from coordinated supply chains?

Joachim Voss, Director General, CIAT

ESSD Week World Bank

31 March 2005

Joachim Voss, Director General, CIAT

ESSD Week World Bank

31 March 2005

Trends in Food MarketsTrends in Food Markets• Consumer demand

Higher quality

More variety

Year-round supply

Downward pressure on price

• Food safety concerns

• Consumer demand Higher quality

More variety

Year-round supply

Downward pressure on price

• Food safety concerns

• Modern retail systems Food industries Food services Supermarkets

• Modern retail systems Food industries Food services Supermarkets

Global Sourcing and Retailing

Global Sourcing and Retailing

• Technological advances

Food processing

Post-harvest technologies

• Trade liberalization

• Technological advances

Food processing

Post-harvest technologies

• Trade liberalization

• Economies of scale

• Concentration of

Retailers

Food services

Food processors

• Economies of scale

• Concentration of

Retailers

Food services

Food processors

Coordinated Supply Chains

Coordinated Supply Chains

• Joint agreements Production volume

Time of delivery

Quality and safety conditions

Price

• Joint agreements Production volume

Time of delivery

Quality and safety conditions

Price

• Durable arrangements Producers Traders Processors Buyers

• Durable arrangements Producers Traders Processors Buyers

Can small-scale producers participate in coordinated supply chains?

Can small-scale producers participate in coordinated supply chains?

Weaknesses• Lack of access to

capital

• Lack of knowledge Market &

production opportunities

Sources of financial and technical support

Appropriate technologies

• Lack of organization

Weaknesses• Lack of access to

capital

• Lack of knowledge Market &

production opportunities

Sources of financial and technical support

Appropriate technologies

• Lack of organization

Strengths

• Access to labor

• Self-employment (motivation)

• Products that need “tender, loving care”

Strengths

• Access to labor

• Self-employment (motivation)

• Products that need “tender, loving care”

Learnin

gLearn

ing

ProcessProces

s

Improve Capacity

to Innovate

Appropriate Technologie

s

Appropriate Technologie

s

Institutional Innovation

Institutional Innovation

Enabling PoliciesEnabling Policies

Access to Informatio

n

Access to Informatio

n

Appropriate TechnologiesAppropriate Technologies

• Co-innovation

• Demand-driven research

• Seizing market opportunities

• Co-innovation

• Demand-driven research

• Seizing market opportunities

Access to InformationAccess to Information

• Access to market prices and opportunities

• Scaling out

ICTs

Social network analysis

• Bargaining power

• Access to market prices and opportunities

• Scaling out

ICTs

Social network analysis

• Bargaining power

Institutional Innovation for the Poor

Capacity to Organize

Institutional Innovation for the Poor

Capacity to Organize

• Participatory approaches to market chain analysis

• Understanding diverse organizational options

• Participatory approaches to market chain analysis

• Understanding diverse organizational options

• Chain governance Who has

decision-making power?

How does information flow?

Transparency of the process

• Chain governance Who has

decision-making power?

How does information flow?

Transparency of the process

Enabling PoliciesEnabling Policies

•Access to capital

•Articulation of policies that support small farmers at different levels

•Mechanisms for addressing equity

•Access to capital

•Articulation of policies that support small farmers at different levels

•Mechanisms for addressing equity

Learning across

Experiences

Learning across

Experiences

Identification of existing knowledge and good practices

Documentation, systematization and learning based on R&D questions

Design of R&Dhypothesis +

questions

Design of methods & tools

Field application

Selection of topic with partners

Capacity building

Identify Key Stakeholders

Learning

Learning

Process

Process

To conclude:To conclude:

If left to market forces, the big producers will tend to win.

If provided support to be well organized—with access to

appropriate information, capital and technology—small producers can compete

If left to market forces, the big producers will tend to win.

If provided support to be well organized—with access to

appropriate information, capital and technology—small producers can compete

Thank you!

Thank you!