Expanding Value Chains to Include the Poor

ModeratorDan Norell

Senior Technical AdvisorWorld Vision US

How can financial service providers, NGOs, Government and the private sector better integrate poor farmers and other microentrepreneurs into value chains?

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A Video on the Challenges that Very Poor Farm Families Face

http://www.youtube.com/watch?v=dSZa676mCyU

Brief presentations

Workshop Session World Café

Closing & Key Takeaways

· Ms. Gisela Velasco, Executive Director, Jollibee Group Foundation, Philippines· Mr. David Ruchiu, Africa Director, Farm Concern International, Kenya· Mr. Daniel B. Zoltani, Regional Director for Asia/Pacific, Whole Planet Foundation, Thailand· Dr. Venkatesh Tagat, Chief General Manager,Business initiatives Department, NABARD – Head office, Mumbai, India· Mr. Ed Jimenez, Central Bank, Government of the Philippines

The Farmer Entrepreneurship Program: Linking Farmers to Institutional Markets

GISELA TIONGSONExecutive Director

Jollibee Group Foundation

FARMER

ASSEMBLER

AGENT

TRADER

FARMER

http://www.youtube.com/watch?v=JFMMIskJNws

Dr.Venkatesh TagatChief General Manager

NABARDMumbai

Institutional Arrangements for small

producers including poor for accessing markets

Inclusive Value Chain of Medicinal Plants in the

State of Tamil Nadu, INDIA

Harnessing Local Knowledge on conservation of Medicinal Plants

Collection of Medicinal

Plants from wild

Planting of Medicinal Plants in

farmers’ field

Weighing, Pressing and Warehousing

Bailing of Produce for transportation to user industries

What matters is the value for their toil

Inclusive Value Chain of Cashew

in state of Tamil Nadu, INDIA

Local Simple technologies,

yet inaccessible to poor

Grading is the Key to value Addition

Local Actors enable

backward linkages

Producers’ Organization benefits community

Capacity to leverage debt is poor for the small producers’ driven chains due to their poor equity base

Access to bank credit from the formal institutions is difficult

Local traders/existing market players can create hurdles like beating down the prices

Lot of financial resources and time is required to build the capacities of the small producers’ organisations.

Thank you

World Bank-Findex: (148 Countries) 2.5 billion of adults do not have access to formal financial system

Philippine Regulators

Sustainable, Market-Led

and Appropriate

Products/Services

Securities and Exchange Commission

Insurance Commission /

Other Governmenta

l Agencies

Central Bank

Ministry of Finance

Cooperative Development

Authority

Thinking Beyond the Box Policies: BSP Experience

Discussion Outputs Group 1 – Ms. Gisela Tiongson-Velasco

• Structuring how to work together and identifying needed support. Give access to information– Risk mitigation for the value chain (insurance)– Better understanding of value chain/players– Market– Build business linkage between economic actors– Capacity building

• What does each bring to the table?– Academics– NGOs– Government– Micro-entrepreneurs

• Commitment– Identify leaders– Government support– Information– Facilities

• Include MFIs in measure of financial inclusion– Redefinition of financial service– Start at both ends– Leaders, facilitators

Discussion Outputs Group 2– Mr. David Ruchio

• Collective approach• Business must see opportunities• Social entities and government

– Organise– Negotiate

• Regulation– Anti-dumping– Pricing – inputs– Encourage insurance

• Pricing– Competitive pricing– Educate farmers on negotiating

Discussion Outputs Group 3– Mr. Daniel Zoltani

• Targets:– Government should ensure infrastructure– MFI’s to broker information for farmers– Platform linking fund providers with cooperatives– Provide credit guarantees for loan portfolio– Organize farmers into market linkages– Empower farmers groups to own their projects– Work/partner with large corporations using supply chains– Create village production centers for sustainable value chains

• Challenges:– Corruption– Lack of education, market information, technical know how– Access to financial services/diversified– Service providers – lack of knowledge

• Bridging the gap:– Fully understanding the value chain– Establishing network for facilitating partnerships– Designing agri-financial products/services responsive to needs

Discussion Outputs Group 4 – Mr. Eduardo Jimenez

• Broaden the definition of financial inclusion and not limit the banking sector– Better coordination among regulators– Cohesively towards financial inclusion– Value chains– Tax relief for value chains – social enterprises– More towards a guarantee mechanisms

• Appropriate agriculture insurance– call attention of donors to increase insurance

• More holistic planning– From inputs, infrastructure, etc.