A Guide to Strengthening Business Development Services in ...

[Pages:124]A Guide to Strengthening Business Development Services in Rural Areas

Rupert Best, Shaun Ferris and Chris Wheatley, editors

A Guide to Strengthening Business Development Services in Rural Areas

Rupert Best, Shaun Ferris and Chris Wheatley, editors

i

Catholic Relief Services, 228 West Lexington Street, Baltimore, MD 21201-3413 USA Illustrations: Jorge Enrique Guti?rrez Printed in the United States of America. ISBN-10: 1-61492-157-1 ISBN-13: 978 -1- 61492-157-8 Download this publication and related material at ? 2015 Catholic Relief Services--United States Conference of Catholic Bishops

ii

Contents

Abbreviations

vi

Preface

vii

Acknowledgements

viii

Introduction

1

Part 1: A Guide to Strengthening Business Development Services in Rural Areas

3

Chapter 1. Theory and Practice of Business Development Services

4

Trends in agricultural development

4

Farmer segmentation

10

Conclusions from these trends

10

Chapter 2. What Are Business Development Services?

12

Delivery models for business development services

13

Who provides business development services

14

Who pays for business development services

15

Delivering business development services

16

The mobile revolution

20

Chapter 3. How to Improve Business Development Services for Smallholders

21

Priority setting and planning

21

Implementing the action plan

26

Monitoring, evaluation and learning

29

Part 2: Case Studies

32

1.1 A Local Business Development Services Fund to

Improve Agro-Enterprise Support Services

34

1.2 C atalyzing Smallholder Inclusion in Value Chains

through Agribusiness Development Centers

39

2.1 Connecting African Farmers to Seed Enterprises with Vouchers and Fairs

43

2.2 Development of Agricultural Input Dealers in Rural Uganda

46

2.3 Building Second-Generation Market Information Systems

50

2.4 Agricultural Extension Services in Africa

56

3.1 T he Role of the Development Facilitator in Building the Capacity of Smallholder

Farmers to Link with Modern Markets: Calamansi Growers in the Philippines

62

3.2 K enya Dairy Sector Competitiveness Program:

A New Business Model for Kenya's Dairy Industry

68

iii

3.3 Private Provision of Market Linkage Services for High-Value Crops

72

4.1 Enabling Informal Farmers to Access Formal Markets

77

4.2 S ocial Intermediaries for Market Access:

The Case of the Cuatro Pinos Cooperative in Guatemala

81

5.1 H ow Savings-Led Microfinance Has Improved Chickpea

Marketing in the Lake Zone of Tanzania

86

5.2 Facilitating Financial Linkages for Smallholder Producers in Nicaragua

91

5.3 E stablishing a Warehouse Receipts Program:

The Experience of the Eastern Africa Grain Council

95

5.4 Inventory Credit Improves Farmers' Incomes and Food Security in Niger

100

Annex 1. New Business Model Components

105

Annex 2. About the Partners

107

Annex 3. About the Donors

109

References

111

iv

List of Figures

Figure 1. An abbreviated evolution of agricultural development strategies.

4

Figure 2. The three market dimensions of a value chain.

7

Figure 3. Farmer segments.

10

Figure 4. Strong government or public sector dominating service provision.

16

Figure 5. Public sector facilitation of private sector service provision.

17

Figure 6. Market access frontier.

19

Figure 1. Yield gap for cereals between sub-Saharan Africa and other regions.

57

Figure 2. Extension model based on Australian, public?private sector

arrangement for financing and management.

60

List of Tables

Table 1. Scope and scale of market information systems in Uganda.

53

Table 2. Typology of agricultural extension service providers, clients

and their roles in Uganda.

57

Table 3. One-off costs charged by warehouses to depositors.

97

Table 4. Monthly costs charged by warehouses to depositors.

97

List of Boxes

Box 1. What do we mean by market chains, actors and value chains?

6

Box 2. Categories of business development services.

12

Box 3. Types of support services provided to the agri-food sector by category.

13

Box 4. Sample checklist of questions for investigating service demand.

23

Box 5. Sample checklist of questions for investigating service supply.

24

v

Abbreviations

ACORDARAlliance to Create Rural Business Opportunities through AgroEnterprise Relationships

ACOS

Agricultural Commodity Supplies

AMAAgribusiness Management Associates

BDS

business development services

CIATInternational Center for Tropical Agriculture

CIPASLAInter-institutional Consortium for Sustainable Agriculture

CLODESTComit? Local para el Desarrollo Sostenible de la Cuenca del R?o Tascalapa

CLUSA

Cooperative League of the USA

CRS

Catholic Relief Services

DOSTDepartment of Science and Technology

DSD

direct seed distribution

FAOFood and Agriculture Organization of the United Nations

FASSLALocal Agro-Enterprise Support Services Fund

FRR

Fineline Rural Reach Ltd.

GDP

gross domestic product

GTZDeutsche Gesellschaft f?r Technische Zusammenarbeit

IDEAUganda Investment in Developing Export Agriculture project

KDSCPKenya Dairy Sector Competitiveness Program

MFI

microfinance institution

MIS

Market information systems

MT

metric ton

NAADSNational Agricultural Advisory Service

NARONational Agricultural Research Organization

NGO

nongovernmental organization

NZAID

New Zealand Aid Programme

QMS

quality management system

RATINRegional Agricultural Trade Intelligence Network

SIGA

SILC Group Association

SILCSavings and Internal Lending Communities

UCAA

Uganda Change Agent Association

UNADAUganda National Agro-Input Dealers Association

vi

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