ICT’s in Value Chains

Shaun Ferris

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 registration

Business planning

Profitability analysis

Crop monitoring

Map and Track

Project set up

Baseline / impact

Distance

learning

Extension ICT’s

Map and Track

service delivery

audit

Project support

Data forms

Farmbookcalculators

Mob Trans

OppBank

ICT applications in value chains

Pre-production Production Postharvest Marketing

Market planning

MIS and Inputs

Finance

Farmbookcalculators

BrainhoneyTraining

EsokoEsoko

/

Reuters

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

ProductBulking

Farmer ICT’s

SM Biz performance

Financial flows

Insurance

Swiss Re WI

Traceability

Systems Integration

7

Survey Info

Service Delivery

Info

Farmers

Extension / Service

provider

Registration

Info

Third-Party Databases and Websites

Extension / Service

providerExtension / Service

provider

Farmers Farmers

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

Project staff

Partner staff

1st stageDatabase

1st stageDatabase

1st stageDatabase

Food aid and asset transferSafety net clients

Time frames

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

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?