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Scaling Inclusive Agri-Food Markets

Report on the “Islands of Success to
Seas of Change Initiative”

Jim Woodhill
Director - CDI
Background

 Initiative supported by partners below
 Explored the questions „what works when scaling
 inclusive agri-food markets?‟
 Background analysis
     ● Case studies
     ● Sector Studies
     ● Review of business strategy
 International learning workshop in April
What are Inclusive Agri-Food Markets



Formal / modern agri-food value chains that help to
alleviate poverty by including lower-income communities
without loosing sight of the goal of business, which is to
make profits.



 Small scale Farmers                Supermarkets
 Local entrepreneurs                Agri-food corporations
 SME                                Larger scale traders
 Rural labour                       Financial sector
The Small Scale Farmer Story
Why Inclusive Agri-Food Markets


For Business            For society
 Securing supply        Food security
 Market opportunity     Poverty and hunger
                         alleviation
 Business Reputation
                         Peace and security
What Business is Saying




                   Nestle: It is our firm belief that for a company
                   to be successful over time and create value for
                   its shareholders, it must also create value for
                   society. We call this Creating Shared Value
                   (CSV) ….. it is our basic way of doing business.
WWF Strategy




               Consumers



               Large businesses


               Suppliers
Framework for Analysis
                                            Scale in terms             Scale in terms
                                            of people                  of benefits for
                                            included                   the poor
                        Scale in terms                                                   Scale in terms
                        of change in                                                     profits of
                        Supply chain                Impact                               inclusive models




    •   Policies
    •   Platforms                                            require                                        • For business
    •   Partnerships                                                                                        • For small-scale
                                                      Scaling                                                 producers and
    •   Capacities     Mechanisms                Inclusive Markets                 Incentives                 entrepreneurs
    •   Investments
    •   Business                                                                                            • For government
                                                             create
        models



                                                                                         Influence
                  Change the                    Drivers (+ -)
                                     Resource scarcity; values; demographics; security



                                                     Context
                                           Economic; political; cultural; physical
Directions for Scaling (1)


 Strengthening the intermediary function: (trusted/ethical
 coordination) agents/platforms
 Informing and shaping supportive policies at all levels
 Progressing a “new certification” agenda
 Creating mechanisms for collaborative finance
 Increasing effectiveness of public private partnership
 mechanisms
Directions for Scaling (2)



 Strengthening agri-cluster/networked businesses
 initiatives
 Improving mechanisms for joint learning and research
 between all groups
 Monitoring and assessing social impact
 Deepening understanding and capacity across
 business, government, producer organizations
 knowledge institutes and NGOs
Profit

                                Sustainability

                Planet                                  People
                                   Financial
                                  Institutions

                  Global           Agri-Food                           Fair
Sustainably                                         National
                 Business         Commercial                        Economic
 Feeding 9                                          Business
                                   Relations                       opportunity
   Billion
                                                                     at scale
                           Small-Scale           SMEs
                            Farmers

              Government                 NGOs           Research




                             Public Policy & Investment
Policy Implications
• Policy matters
• Strategies and policies for transition and
  structural change are needed
• Huge differences between regions, countries and
  value chains
• Investment in core public goods is critical
• Need effective PPP mechanisms
• Public sector needs to ‘add up’ the private sector
  contribution
• Research for Responsible Business
Thank you

For more information go to:


www.seasofchange.net

                              CDI

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8 ifad seas of change presentation woodhill

  • 1. Scaling Inclusive Agri-Food Markets Report on the “Islands of Success to Seas of Change Initiative” Jim Woodhill Director - CDI
  • 2. Background  Initiative supported by partners below  Explored the questions „what works when scaling inclusive agri-food markets?‟  Background analysis ● Case studies ● Sector Studies ● Review of business strategy  International learning workshop in April
  • 3. What are Inclusive Agri-Food Markets Formal / modern agri-food value chains that help to alleviate poverty by including lower-income communities without loosing sight of the goal of business, which is to make profits. Small scale Farmers Supermarkets Local entrepreneurs Agri-food corporations SME Larger scale traders Rural labour Financial sector
  • 4. The Small Scale Farmer Story
  • 5. Why Inclusive Agri-Food Markets For Business For society  Securing supply  Food security  Market opportunity  Poverty and hunger alleviation  Business Reputation  Peace and security
  • 6. What Business is Saying Nestle: It is our firm belief that for a company to be successful over time and create value for its shareholders, it must also create value for society. We call this Creating Shared Value (CSV) ….. it is our basic way of doing business.
  • 7. WWF Strategy Consumers Large businesses Suppliers
  • 8. Framework for Analysis Scale in terms Scale in terms of people of benefits for included the poor Scale in terms Scale in terms of change in profits of Supply chain Impact inclusive models • Policies • Platforms require • For business • Partnerships • For small-scale Scaling producers and • Capacities Mechanisms Inclusive Markets Incentives entrepreneurs • Investments • Business • For government create models Influence Change the Drivers (+ -) Resource scarcity; values; demographics; security Context Economic; political; cultural; physical
  • 9. Directions for Scaling (1)  Strengthening the intermediary function: (trusted/ethical coordination) agents/platforms  Informing and shaping supportive policies at all levels  Progressing a “new certification” agenda  Creating mechanisms for collaborative finance  Increasing effectiveness of public private partnership mechanisms
  • 10. Directions for Scaling (2)  Strengthening agri-cluster/networked businesses initiatives  Improving mechanisms for joint learning and research between all groups  Monitoring and assessing social impact  Deepening understanding and capacity across business, government, producer organizations knowledge institutes and NGOs
  • 11. Profit Sustainability Planet People Financial Institutions Global Agri-Food Fair Sustainably National Business Commercial Economic Feeding 9 Business Relations opportunity Billion at scale Small-Scale SMEs Farmers Government NGOs Research Public Policy & Investment
  • 12. Policy Implications • Policy matters • Strategies and policies for transition and structural change are needed • Huge differences between regions, countries and value chains • Investment in core public goods is critical • Need effective PPP mechanisms • Public sector needs to ‘add up’ the private sector contribution • Research for Responsible Business
  • 13. Thank you For more information go to: www.seasofchange.net CDI