InclusIve BusIness Models

Inclusive Business Models

TRAINING MODULES

Inclusive Business Models

TRAINING MODULES

Food and Agriculture Organization of the United Nations Rome, 2017

The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned.

The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO.

ISBN 978-92-5-109982-7

? FAO, 2017

FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO's endorsement of users' views, products or services is not implied in any way.

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Cover photographs: ?FAO/Giulio Napolitano; ?FAO/Ishara Kodikara; Anne Wangalachi/CIMMYT

Contents

Acknowledgements Abstract Acronyms

Introduction Overview

Session 1 Opening session

Session 2 What does inclusive business models mean?

Session 3 Buyers' perspective on procurement from smallholders

Session 4 Principles for inclusive and competitive business models

Session 5 Facilitating inclusive business models ? entry points

Session 6 IBM approach ? A methodology for implementation

Session 7A Business model analysis

Session 7B Visit to a market or an agribusiness

Session 8 BM tools: SWOT, Ansoff Matrix and Porters' Five Forces

Session 9A Identifying common priorities

Session 9B Designing upgrading activities

Session 10 Closing session

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Inclusive Business Models

Acknowledgements

This training package is the result of a participatory process involving a broad range of experts under the leadership of Siobhan Kelly (Agribusiness Economist, FAO). Special recognition is owed to Cora Dankers (Agribusiness Officer, TCIB, FAO), Natalie Vergara (Consultant, FAO), Moussa Djagoudi (Agribusiness Officer, FAO, Ghana) and Florence Tartanac (Senior Officer, ESN, FAO) for their guidance and feedback in the development of these materials. Acknowledgements are also given to Shane Hamill (Consultant, ESA, FAO) and Elena Ilie (Consultant, ESA, FAO) for providing a final review. Sincere thanks are due to Simone Morini (Publishing Expert, ESN, FAO) and Daniela Verona (Publishing Consultant, ESA, FAO) for design and publishing coordination.

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Inclusive Business Models

Abstract

Various types of inclusive business models (IBMs) can connect small producers to agricultural value chains. These include traders, agrifood processors, retailers and contract farming arrangements with large buyers. Supporting these business models and strengthening the linkages that connect smallholders to markets can improve the overall competitiveness of a value chain and reduce poverty. The training targets designers and implementers of farmer-market linkage projects including ministries, development organizations and NGOs, and can add value not only to smallholder-based development initiatives but also to the business activities of other actors involved in agricultural value chains including processors and buyers of agricultural produce. The IBM training package consists in a facilitator's manual accompanied by a series of PowerPoint presentations. The manual provides guidance to the facilitator on how the sessions should be organized as well as on expected outputs, preparatory activities, reference notes, description of suggested activities and additional tools such as case studies or templates for group work.

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Acronyms

AABM BIF BM BS CIAT CTA EU FAO FCI FO GIDA GIZ HQCF HR IBLF IBM IFAD LEAF MBPU MV NGO SFL SMAE SME SNV TSS UNDP USAID WBCSD

Macenta Banana Merchants Association Business Innovation Facility business model Blue Skies Ltd. International Center for Tropical Agriculture Technical Centre for Agricultural and Rural Cooperation European Union Food and Agriculture Organization Farm Concern International Farmers Organization Ghana Irrigation Development Authority German Agency for International Cooperation High Quality Cassava Flour human resources International Business Leaders Forum inclusive business model International Fund for Agricultural Development Linking Environment and Farming Macenta Banana Producers Union Millennium Village non-governmental organization sustainable food lab small and medium agro-enterprise small and medium-sized enterprise Netherlands Development Organization Transaction Security Service United Nations Development Programme United States Agency for International Development World Business Council for Sustainable Development

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