value chain management

Tag Archive for: value chain management

A business model for delivering information to smallholder farmers: RUNetwork

Founder of RUNetwork, Marc Bernard (left) explaining the model

As the hype for integrating new information and communication technologies (ICTs) into agricultural value chain projects increases, one of the common questions that ICT4D analysts often try to answer is, who pays for the service – the poor farmer, the project, the government, or a donor agency?

Payment for information services to farmers is one of the components of a business model for deploying ICT solutions to rural agricultural communities. A business model, however, goes beyond just the cost of the service to the user, to the sources of funding of the service, avenues for income generation, the value of the service to the user, the potential to scale beyond pilot stage, and the capacity to sustain itself after the initial funds runs out. Business models are seen as systems that organizations use to create, deliver, and capture value.

The clip below describes how Rural Universe Network (RUNetwork) uses a voucher system to answer some of these important questions in its bid to bridge the gap between smallholder farming and scientific research.

As you watch, try to identify how RUNetwork creates value to the users of the service; how the system generates revenue for operation; who pays for the services being provided; how is the system being scaled; and how is the service sustained?

The model was successfully tested in 5 different countries and scaled up to 14 communities all over Uganda. It is presently introduced in another 15 African countries in a collaborative project between the Forum for Agricultural Research in Africa (FARA) and the Federal Office for Agriculture and Food (BLE Germany) with financial support from the African Development Bank (AfDB).

For more information on RUNetwork, visit here.

March 26, 2012/by actualize

Agriculture, Food Security, Originally posted on the GBI Portal

Mapping ICT Solutions along the Ag. Value Chain

The agriculture and food security value chain system is known for its complexity with varied actors at various levels interacting among themselves and with their external environment to provide sustainable food security situation across the world. In this complex system, the key for success depends on how well the value chain actors collaborate and coordinate their activities throughout the entire process from research and development through production to consumption.

The agricultural value chain identifies a set of actors and their respective activities that are aimed at bringing basic agricultural product from research and development, through production in the field, marketing and value adding processing to the final consumer. Within the agricultural value chain, irrespective of the model of the chain, three key components can be identified. These are activities associated with – i) productivity (Research and Development (R&D), input manufacture and supply, production on the field); ii) marketing (transport and storage, processing, retail and wholesale); and iii) Monitoring and Evaluation (M&E) (policy and traceability). Marking out these components allows for identification of the actors that work within these three main categories along the value chain.

Communication tools for coordination of roles

In a complex system like the agricultural value chain, coordination of roles is key as the actors collaborate to exchange resources. Successful coordination of role calls for appropriate communication approaches and media for smooth flow of resources from one stage to another and from one actor to the other. The importance of communication within the value chain is becoming clear especially with the surge to develop new and innovative information and communication technologies (ICTs) for agriculture and food security.

The U.S. Agency for International Development’s new Global Broadband and Innovations (GBI) program with the mandate to focus the Agency’s attention and resources on leveraging the adoption of ICTs across its development portfolio has been exploring the role of the new technologies along the agricultural value chain for improved resource flow. Throughout our desk research, we have found that there are several discussions, and activities going on with the use of ICTs in agriculture and food security, and others specifically on value chain development. However, little is done to bring the two issues together.

The ICTs for Agriculture team at GBI has over the past few months been working to bring these two issues together to help identify what ICT solutions currently in the market are best fit for each stage of the agricultural value chain. The team has identified and selected over 125 ICT solutions (apps and projects) that apply to the various actors within the agricultural value chain, specifically for this initial stage of the project and has mapped out these tools along the chain.

This is an introduction to a 3-piece series that explains the role of ICTs within the three major stages of the agricultural value chain – Productivity, Marketing, & Monitoring and Evaluation. We’ll soon be launching a dynamic and interactive version of “Apps4Ag Database” project on March 9^th during GBI’s TechTalk:Mapping ICTs Along the Ag Value Chain.

March 5, 2012/by actualize

Agriculture, Agriculture Markets, Environment, Extension Service, Farmer to Farmer, Health, Originally posted on the GBI Portal, Sustainable Agriculture

Tackling Poor Access to Farm Extension Services with ICTs

Poor access to farm extension services is still a major impediment to agricultural productivity and the improvement of rural livelihoods. But, increasingly, ICTs are playing a central role in enabling and facilitating the provision of demand-driven extension services. This marks a shift from highly inefficient public sector extension delivery models, under which farmers and rural communities had little/no opportunity to articulate their own needs.

Despite the ICT-enabled shift towards more democratic/pluralistic, demand driven and efficient extension services in some places, there is still a far way to go before game changing impacts are made.

A silver laptop with a blank screen and black buttons on bright green grass

CTA/ARDYIS Facebook Photo

Although the use of conventional technologies such as radio and television, and even new ICTs, is commendable, many “model projects” reach too few people and are unsustainable.

But the emergence of multiple players in the evolving extension services landscape—NGOs/CBOs, private sector actors, and farmers as extension service users and sharpers, among others—presents broad opportunities. The main opportunity I foresee is that of a firmer platform for articulating the need for better telecommunications policies, which will benefit extension services and the broader range of development objectives that hinge on access to ICTs.

Consequently, agricultural planners and policy-makers ought not to be particularly concerned with specifically enabling the integration of ICTs into pro-poor extension service delivery. While that is a desirable objective, it ignores the broader picture—poverty reduction.

Strategic agricultural planning recognize that ICT-based solutions for agricultural problems are not all sector specific. In much the same way that the major agricultural challenges operate on a macro-level, by cutting-across sectors, the solutions must stem from holistic observations and responses.

Indeed, any ICT intervention that improves the livelihoods of the rural poor is likely to have positive (direct and indirect) impacts on agricultural value chain management—planning, productivity, and marketing. This is true to the extent that rural economies are largely agrarian. So, any challenge to improving the general livelihood of the rural poor will adversely affect agricultural productivity— be that challenge inadequate health services, poor resource management, natural disasters, anthropogenic shocks, minimal access to education, financial services and poor infrastructure, etc.

So, strengthening extension services will require tackling more systemic problems… seeing the forest and not just the trees.

June 13, 2011/by actualize