value chain dev overview_sdcasia

8/9/2019 Value Chain Dev Overview_SDCAsia

1/37

Core expertise: design, management andimplementation of enterprise developmentprograms

Clients: IADB, USAID, EU, ICCO,

AusAid/PAHRDF/LGDP, GTZ, GFA, CIDA/LGSP, andother develo ment or anizations


2/37

INOYME BDS CONFERENCE .n@sdcasia ph/hin Nobleza Jonah Nobleza -1 22 May 2009 . . .ww sdcasia org ph

--GROWTH THROUGH VALUEGROWTH THROUGH VALUECHAIN DEVELOPMENTCHAIN DEVELOPMENT
mailto:[email protected]:[email protected]:[email protected]


3/37

he Challenge ofhe Challenge oficroenterpriseicroenterpriseevelopment is toevelopment is toelp MEs transitionelp MEs transition-ut of low return-ut of low return-nto higher return-nto higher returnctivitiesctivities


4/37

Donor E Target GrouNGO

/ :icro level Firm level intervention rojectelivers the services directly to a specific ,arget group oftentimes heavily subsidized

Donor Facilitator

Provider

Provider

MEME

MEMEME

MEProvider

:DS Market Development roject facilitates the( )evelopment of BDS markets supply and demand with atrong emphasis on sustainability of services

NTERPRISE DEVELOPMENT MODELSNTERPRISE DEVELOPMENT MODELS


5/37

HE RATIONALE FOR SHIFTHE RATIONALE FOR SHIFTROM PURELY BDS TO VALUEROM PURELY BDS TO VALUEHAIN DEVELOPMENT HAIN DEVELOPMENT


6/37

HE BDS MARKET DEVELOPMENT APPROACH EXPANDED TO AHE BDS MARKET DEVELOPMENT APPROACH EXPANDED TO A/ROADER VALUE CHAIN MARKET SYSTEM PERSPECTIVE/ROADER VALUE CHAIN MARKET SYSTEM PERSPECTIVE

FUNDING

AG

ENCY

FUNDING

AG

ENCY

Global Enabling Environment

Local/National EnablingEnvironment

Financial (cross-cutting) providers

Input Suppliers

Input Suppliers

Sector specificproviders

Cross-cuttingproviders

Producers

GlobalRetailers

Wholesalers

Exporters

NationalRetailers

Processors

FACILITATOR

FACILITATOR

n agent that isxternal to a marketystem but seeks toring about changeithin a market systemn order to achievehe public benefitbjective of systemic


7/37

HIFTS IN THINKING HIFTS IN THINKINGROM FIRM LEVEL TO MARKET DEV APPROACHROM FIRM LEVEL TO MARKET DEV APPROACH( / )DS VC/ )DS VC

roblems do MSEs have?roblems do MSEs have?

ject help to solve these problems?ject help to solve these problems?

IRM LEVELIRM LEVEL

hat problems do MSEs havhat problems do MSEs hav

hy isn t their market environmenthy isn t their market environmentolutions to these?olutions to these?

hy is the market system not working for thehy is the market system not working for the

ARKET DEVELOPMENTARKET DEVELOPMENT


8/37

ASIC DIFFERENCES BETWEEN FIRM LEVELASIC DIFFERENCES BETWEEN FIRM LEVELND MARKET DEVELOPMENT APPROACHESND MARKET DEVELOPMENT APPROACHESFIRM LEVELFIRM LEVEL MARKET DEVELOPMENTMARKET DEVELOPMENT

Points ofPoints of

InterventionsInterventionsPrimarily on target groupsPrimarily on target groups Systemic Change: the systemsSystemic Change: the systems

around target groupsaround target groupsFocus of AnalysisFocus of Analysis Primarily target groupsPrimarily target groups Based on understanding ofBased on understanding of

market systemsmarket systemsImplementationImplementation Direct delivery to target groupsDirect delivery to target groups Facilitation/crowding-in otherFacilitation/crowding-in other

market players and activitiesmarket players and activitiesMSEs asMSEs as Grateful beneficiaries of charityGrateful beneficiaries of charity Discerning consumers of servicesDiscerning consumers of services

Key ProvidersKey Providers Government/NGOsGovernment/NGOs Mainly for-profit private sectorMainly for-profit private sector

including associations, informalincluding associations, informal

networks, and b2b relationshipsnetworks, and b2b relationshipsBDS financed :BDS financed : Primarily donor/governmentPrimarily donor/government

funds; service delivery dries upfunds; service delivery dries up

when funding endswhen funding ends

Commercial/market basedCommercial/market based

transactionstransactions


9/37

9

ow to encourage playersow to encourage players( . .,g lead firms and. . ,g lead firms and)armers to work togetherarmers to work together, - ,n a stable long term and, - ,n a stable long term andquitable basis given thequitable basis given theooted mistrusts and not soooted mistrusts and not soood experiencesood experiences

ow to enableow to enableCs toCs to articipate inarticipate inigger and moreigger and moreucrativeucrativemarketsarkets

ow to increaseow to increasehe participationhe participationf microf micro ntrepreneurs inntrepreneurs inhe value chain?he value chain?ow to promote theow to promote theainfulainful articipation ofarticipation ofmallholders inmallholders inhe market in ahe market in austainable basis?ustainable basis?

THE VALUE CHAIN DEVELOPMENT CHALLENGESTHE VALUE CHAIN DEVELOPMENT CHALLENGES

elfare of the smallestelfare of the smallestnterprise depends on thenterprise depends on theerformance of the wholeerformance of the whole. . .ndustry . . .ndustry


10/37

MARKETSARKETS

NABLINGNABLINGENVIRONMENTNVIRONMENT

IRM LEVELIRM LEVELUPGRADINGPGRADING

-NTER FIRMNTER FIRMCOOPERATIONOOPERATION

Improve the growth potential of VCs with large numbers of MEsImprove the growth potential of VCs with large numbers of MEsEnhance MEs contributions to VC growthEnhance MEs contributions to VC growth

Ensure that MEs benefitEnsure that MEs benefit

THE VALUE CHAIN FRAMEWORKTHE VALUE CHAIN FRAMEWORK

UPPORTUPPORTMARKETSARKETS


11/37

LAYERS THAT A VALUE CHAIN DEV PROGRAMLAYERS THAT A VALUE CHAIN DEV PROGRAMAY BE WORKING WITH TO FACILITATEAY BE WORKING WITH TO FACILITATEYSTEMIC CHANGEYSTEMIC CHANGE

GOVERNMENTEAD FIRMSASSOCIATIONSNFORMALNETWORKS

ARKETARKETPLAYERSLAYERS RODUCERSRODUCERSGROUPSROUPS

GOVERNMENTOVERNMENT (ROVIDERS (ROVIDERS - ,C BASED,C BASED,TAND ALONE,TAND ALONE)OVERNMENT)OVERNMENTMFIsFIsASSOCIATIONSSSOCIATIONS

SUPPLY

DEMANDDEMANDoor

dina

tio

n

I n pu

t s

Other BDST r a i n in g Transpor

tati on

R a n dD Finance

Standards

Standards

Standards

Standards

RegulatioegulationssRegulatioegulationss

/

Values

Soc/Val

uesSoc

ial

Norms

ial

Norms

Values

Soc/Val

uesSoc

ial

Norms

ial

Norms

SUPPLYSUPPLY

S U P P O R T

S U P P O R T

M A R K E T S

M A R K E T S

S U P P O R T

S U P P O R T

M A R K E T S

M A R K E T S

C O R E

C O R E

M A R K E T S

M A R K E T S

C O R E

C O R E

M A R K E T S

M A R K E T S

/

R U L E S

/

R U L E S

I N S T I T U I O N S


/

R U L E S

/

R U L E S




12/37

EY FEATURES OF THE VCEY FEATURES OF THE VCAPPROACHPPROACH

PROJECT CYCLEPROJECT CYCLE


13/37

ubsector Selectionubsector Selection

/alue Chain Competitiveness Analysis/alue Chain Competitiveness Analysis

/ilot Interventions Relationship Building/ilot Interventions Relationship Building

ntervention Adjustmentntervention Adjustment

/ -rowding in Scaling up / -rowding in Scaling up

Exitxit

trategy Formulation and Mtrategy Formulation and Mo

earsand3

ear 1ear 1

/terative ncrementalVCA

PROJECT CYCLEPROJECT CYCLE


14/37

EXAMPLES OF VCDEXAMPLES OF VCDINTERVENTIONS/ FACILITATIOINTERVENTIONS/ FACILITATIO

ACTIVITIESACTIVITIES

CARDAVA BANANA INDUSTRYCARDAVA BANANA INDUSTRY


15/37

umbo sizes forumbo sizes foranila market andanila market andately for Japanately for Japan:anana Chips processed:anana Chips processedgraderade

ardavaardava/nacks Dishes fornacks Dishes for:ocal Market small:ocal Market smallizes and ripeizes and ripeThe strengthening of the threeThe strengthening of the three

value chains is aimed at balancingvalue chains is aimed at balancingthe demand and supply of cardavathe demand and supply of cardava

,banana throughout the year and,banana throughout the year and,consequently the stabilization of,consequently the stabilization of

incomes of players in the chainincomes of players in the chain

especially the farmersespecially the farmers

CARDAVA BANANA INDUSTRYCARDAVA BANANA INDUSTRY


16/37

PROMOTION OF GOOD AGRICULTURAL PRACTICESPROMOTION OF GOOD AGRICULTURAL PRACTICESPROMOTION OF GOOD AGRICULTURAL PRACTICESPROMOTION OF GOOD AGRICULTURAL PRACTICES

COMMUNITY BASED PROVIDERS/BDS SYSTEMCOMMUNITY BASED PROVIDERS/BDS SYSTEMTECHNICAL ASSISTANCE TO ESTABLISHMENT OF MODEL FARMS CUM TRAINING CENTERTECHNICAL ASSISTANCE TO ESTABLISHMENT OF MODEL FARMS CUM TRAINING CENTERPARTICIPATORY DEVELOPMENT AND UPDATINGPARTICIPATORY DEVELOPMENT AND UPDATING


17/37

NCREMENTAL PARTICIPATORY MARKET RESEARCHNCREMENTAL PARTICIPATORY MARKET RESEARCHITH STAKEHOLDERS IN THE FARMERS MARKET AS ACTIVEITH STAKEHOLDERS IN THE FARMERS MARKET AS ACTIVEPARTICIPANTSARTICIPANTS

,or many years the,or many years the( )erias Farmers Market( )erias Farmers Marketompeted mainly onompeted mainly on. ,rice In 2006 many of,rice In 2006 many ofhe supermarkets inhe supermarkets inosta Rica adjustedosta Rica adjustedheir prices to be atheir prices to be athe same level orhe same level orometimes cheaper thanometimes cheaper than

.he Feria.he Feria

e advertisements were used by the program to get stakeholdee advertisements were used by the program to get stakeholde

- - - , - , -IADB JAPAN PROGRAM SDCASIA CNP UPGRADING OF FARMERS MARKETS COSTA RICA 2007 2008- - - , - , -IADB JAPAN PROGRAM SDCASIA CNP UPGRADING OF FARMERS MARKETS COSTA RICA 2007 2008

WARENESS ANDWARENESS ANDINITIATIONNITIATIONxample of InterventionActivities


18/37

ACILITATING BEHAVIOUR CHANGEACILITATING BEHAVIOUR CHANGEND TRANSFORMING RELATIONSHIPSND TRANSFORMING RELATIONSHIPS


19/37

OMPETITIONS TOOMPETITIONS TOACILITATE SHARING ANDACILITATE SHARING ANDISSEMINATION OFISSEMINATION OFMERGING GOOD PRACTICESMERGING GOOD PRACTICESith support from leadith support from lead, ,irms LGUs and input,irms LGUs and inputsuppliersuppliers


20/37

WARENESS ANDWARENESS ANDINITIATIONNITIATIONROMOTION OF COMMON OBJECTIVES THROUGHROMOTION OF COMMON OBJECTIVES THROUGHTAKEHOLDERS WORKHOPSTAKEHOLDERS WORKHOPSPriority Constraint: Unstable Supply of Cardava Banana

Workshop Results Farmers Group

Solution Our contribution tothe solution

What willmotivate us?

Contribution weexpect from other

players

Incentives that we canprovide to otherplayers

Improve farmproductivity

Application ofGAP-alignedfarm production

practices;Disseminationof low-costindigenous pestand controltechnology

Stableprocurementpractices

Less fluctuationin pricePrice premiumfor large volumesupply

Information ondemand situationSupport to

informationdissemination onlow costindigenoustechnology

Stable supply atcompetitive cost;

practice of proper

grading and sorting atfarm level

Excerpts: B-ACE Stakeholders Workshop, 2006

dentifying incentives dentifying incentivesarnessing the powers andarnessing the powers andapabilities of value chainapabilities of value chain


21/37

WARENESS ANDWARENESS ANDINITIATIONNITIATIONACILITATING THE DEVELOPMENT OF BASIC COMPETENCIES ANDACILITATING THE DEVELOPMENT OF BASIC COMPETENCIES ANDINKAGE CAPACITIESINKAGE CAPACITIESExperiencedExperienced

peelers frompeelers fromlead firmslead firms

showed theshowed thecommunitycommunity

workers properworkers properpeeling andpeeling and

.quality control.quality control

-ommunity-ommunityased BDSased BDSSystemystem

xample of InterventionActivities


22/37

hoho nfluencenfluencend controlnd controleople seople sccess toccess tomarketsarkets

ow do theyow do theynfluence andnfluence andontrolontroleople seople sccess toccess tomarketsarketsow to improveow to improveapability andapability andapacity so thatapacity so thatheir influenceheir influencend control can bend control can besed to yieldsed to yieldositive benefitsositive benefitsor MSEs and theor MSEs and themprovement of themprovement of thehain in generalhain in general

DENTIFICATION OF POTENTIAL CATALYSTSDENTIFICATION OF POTENTIAL CATALYSTS:NCITING ACTION BUILDING THE:NCITING ACTION BUILDING THEFOUNDATIONOUNDATION


23/37

:NCITING ACTION BUILDING THE:NCITING ACTION BUILDING THEFOUNDATIONOUNDATIONORKING WITH CATALYSTS FORORKING WITH CATALYSTS FOR/HANGE FACILITATING SHARED LEADERSHIPHANGE FACILITATING SHARED LEADERSHIPdentification ofdentification ofotential positionalotential positionalnd opinion leaders asnd opinion leaders asell as thoseell as thosendividual players whondividual players whonfluence and controlnfluence and controlommunities marketommunities marketccessccessuilding theuilding theapacities ofapacities ofdentified leaders ordentified leaders oratalysts to enableatalysts to enablehem to take the leadhem to take the leadn change initiativesn change initiatives

nd in establishingnd in establishinghe organizationalhe organizationalase for collectivease for collective.ctions.ctionstrengthening mutuallytrengthening mutuallyeneficialeneficialelationships betweenelationships between- -ublic and private-ublic and private

Shared costs on training and pre certification expenses

technical support for organicRevived buying operations in the area

Processors/Exporters of organic cardava chips: partners in theProcessors/Exporters of organic cardava chips: partners in the

LGUGU


24/37

Traders FarmersTraders FarmersStrategicStrategic

PartnershipsPartnerships

o lle ctiv e M a rk e tin gith B D S

cially those with whom they have cash advances Traders tend to postponecially those with whom they have cash advances Traders tend to postpone

ananahips /xportersetro anilaMarket

oined forces to sell collectively and get a larger share of the maoined forces to sell collectively and get a larger share of the ma

FARMERS

illageConsolidatorsig Traders ith cashdvances tofarmers

Traders

, :on farmers take on additional roles creating efficiency:on farmers take on additional roles creating efficiency


25/37

:NCITING ACTION BUILDING THE:NCITING ACTION BUILDING THEFOUNDATIONOUNDATION ,ROMOTION OF A CULTURE OF INFORMATION SHARING,ROMOTION OF A CULTURE OF INFORMATION SHARINGEARNING AND OPEN COMMUNICATIONEARNING AND OPEN COMMUNICATION

ies between community and other industry stakeholders aretrengthened


26/37

:NCITING ACTION BUILDING THE:NCITING ACTION BUILDING THEFOUNDATIONOUNDATION

ROMOTION OF COMMONROMOTION OF COMMONNDERSTANDINGNDERSTANDINGF STANDARDSF STANDARDS

ND SHAREDND SHAREDACCOUNTABILITYCCOUNTABILITY


27/37

:NCITING ACTION BUILDING THE:NCITING ACTION BUILDING THEFOUNDATIONOUNDATIONTIMULATING CONSUMER INTEREST TO CREATETIMULATING CONSUMER INTEREST TO CREATENCENTIVES FOR CHANGENCENTIVES FOR CHANGE

INCREMENTAL PROMOTION OF MORE FOCUSEDINCREMENTAL PROMOTION OF MORE FOCUSED


28/37

xample of InterventionActivitiesuilding the Momentum for Participation through Parlayinguilding the Momentum for Participation through Parlayingrinciple using one action to pollinate subsequentrinciple using one action to pollinate subsequent

oncerted planning and action for the futureoncerted planning and action for the future

As agrarian reformAs agrarian reform

,beneficiaries the Cooperative,beneficiaries the Cooperative-was a recipient of a 7 hectare-was a recipient of a 7 hectare. ,land For 5 years the land was. ,land For 5 years the land was

underutilized and bananas wereunderutilized and bananas wereleft to grow without careleft to grow without care

- :A C E R e sp o n s e a ci li ta ted i nt er act io ns w it ha ci li ta te d i nt er ac ti on s w it h

r o g r e ss iv e c o m mu n i t y g ro u pro gr es s i v e c o m m un it y g r o upn d b u ye r s t o e x p l o r e b u s i n e ssnd b u y e r s t o e x pl o r e b u s i n e s sm o d e l so d e l s

:a r t i c i p a to ry p l a n ni n g j o i n t:a r t i c ip a t o r y p l a n n i n g j oi n tn a l y s is o f s i t u a t i o n a n dna ly s i s o f s i t u at i o n a n d

e t e r m in a t i o n o f o p t i ma l u s e set er m i n a t i o n o f o p t i m a l u s e sf t h e f a r mf th e f a r m

-o m m u n i t y l e d i m pl e m e n t a t i o n ofo m m u n it y l ed i m p l e m e n t a ti on o fh e so l u t i o ns a g r ee d d u r in gh e s o l u t i o n s ag r e e d d u r i n g

h e pl a n n i n g h e p l a n n i n g a r m a l s o b ec a m e t he c e n te r f o ra r m a ls o b e c a m e t h e ce n t e r fo r

o ll ec ti ve m ar ke ti ngo ll ec ti ve m ar ke ti ngn it ia t i v e s b o t h fo r b a n an an i t i a t i v e s b o th f o r b a n a n a

h i s a n d l o c a l

INCREMENTAL PROMOTION OF MORE FOCUSEDINCREMENTAL PROMOTION OF MORE FOCUSED-JOINT BUSINESS ORIENTED ACTIVITIES-JOINT BUSINESS ORIENTED ACTIVITIES


29/37


30/37

INCREMENTAL PROMOTION OF MORE FOCUSEDINCREMENTAL PROMOTION OF MORE FOCUSED


31/37

-JOINT BUSINESS ORIENTED ACTIVITIES-JOINT BUSINESS ORIENTED ACTIVITIES

SE OF AN INFLUENTIAL CORE GROUP EARLY IN THESE OF AN INFLUENTIAL CORE GROUP EARLY IN THEROCESS ROCESSDENTIFICATION OF FOCAL POINTS OF CHANGE THAT CANDENTIFICATION OF FOCAL POINTS OF CHANGE THAT CANRIGGER WIDER CHANGERIGGER WIDER CHANGE

BEFOREEFORETODAYODAY

nvestment in new stalls by Progressive Vendors triggerednvestment in new stalls by Progressive Vendors triggeredhe more conscious implementation of Food Safety and Qualityhe more conscious implementation of Food Safety and Quality

, BARRANCA FERIA DE AGRICULTOR COSTA RICA 2008, BARRANCA FERIA DE AGRICULTOR COSTA RICA 2008 -IADB JAPAN PROGRAM SDCAsia CNP -IADB JAPAN PROGRAM SDCAsia CNP

xample of InterventionActivities

INCREMENTAL PROMOTION OFINCREMENTAL PROMOTION OF


32/37

INCREMENTAL PROMOTION OFNC N O O ON O-MORE FOCUSED JOINT BUSINESS ORIENTED ACTIVITIES-MORE FOCUSED JOINT BUSINESS ORIENTED ACTIVITIES

ELEBRATE EVERYELEBRATE EVERYUCCESS IN THEUCCESS IN THEHANGE PROCESSHANGE PROCESSO INSPIRE ANDO INSPIRE ANDAINTAIN MOMENTUMAINTAIN MOMENTUM

BENCHMARKING AND EXCHANGE VISITS BENCHMARKING AND EXCHANGE VISITS -SCALING UP-SCALING UP


33/37

Commencement of trading activities byCommencement of trading activities bynew groups with older partnernew groups with older partner

.communities as mentors The more.communities as mentors The moreexperienced partners introduced newexperienced partners introduced new

groups to lead firm buyersgroups to lead firm buyers

haring and dissemination of/uccess stories Stimulation ofemand and supply of services

gusan Radio Station started GAPn Air program after visit to


34/37

xtreme Poverty Ratextreme Poverty Rate( SAID PovertySAID Poverty)ssessment Tool)ssessment Tool

. %66%66Decreaseecrease. %66%66Decreaseecrease

(ESULTS AS OF DECEMBER 2008 (ESULTS AS OF DECEMBER 2008 EAR 2 ofEAR 2 of)mplementation)mplementation

. :o of MSEs Assisted:o of MSEs Assisted,0 0850 085

%3%3Increasencrease

%3%3Increasencrease


35/37

ESULTS AS OF DECEMBER 2008ESULTS AS OF DECEMBER 2008

verage MonthlyIncomen US$

%0Increase%0Increase

. %ve Increase in%ve Increase inProductivityroductivity

%26Increase%26Increase


36/37

!hank you!hank you

VCA PROCESSVCA PROCESS


37/37

VCA PROCESSVCA PROCESS

/FOR THE PROJECT WORKSHOP BUSINESS CLINIC

value chain dev overview_sdcasia

Documents