Agricultural value chains encompass the flow of products, knowledge and information between smallholder farmers and consumers. They offer the opportunity to capture added value at each stage of the production, marketing and consumption process. Smallholder farmers need to better engage with value chains in order to gain added value for improving their livelihoods, whilst reducing their risks and increasing their resilience.
As value chains differ considerably across countries and products, more research is needed to identify the optimal configuration enabling smallholder farmers to gain a greater share of their value and assume fewer risks. If agricultural value chains are to offer pro-poor opportunities for growth, then those markets in which smallholders can have a ‘comparative advantage’ need to be identified and the producers actively assisted. Smallholders with a strong social network can draw upon their social capital to strengthen their position within a value chain. For example, an effective producer organization or cooperative can help smallholder farmers increase their bargaining power by helping them enter into high-value supply chains and provide support for acquiring information on market prices and requirements.
Governments can support the development and coordination of value chains. Investments that incentivize greater productivity and the ability to capture a higher value include transport infrastructure; energy for processing, chilling, drying, or and packaging commodities; research and extension services in new storage, processing and packaging technologies; and education and training in product marketing. Perhaps the most critical role of governments is establishing systems of laws, regulation and governance, which set rules for fair and competitive markets for farmers, marketing agents and processors, and permit farmers to secure land and property rights.
Whilst most smallholders participate in local value chains, increasingly multinational companies are playing an important role in developing value chain opportunities for smallholder farmers. For example, Flour Mills of Nigeria has made a public commitment to source more raw materials from smallholder farmers, helping to improve their agricultural practices and thus enabling them to supply global markets. Another major global food manufacturer, Babban Gona aims to create value for their shareholders and develop direct relationships between farmers and cooperatives through their Farmer Connect programme.
We have plans to partner with DADTCO Philafrica whose patented innovative mobile processing technology has changed the way cassava is perceived, grown and processed in Africa. The technology will help us process fresh cassava on-farm or nearby, instead of transporting the perishable roots over long distances to a central factory. The mobile concept essentially overcomes main obstacles to the commercialization of cassava across Africa: the transportation of roots with high water content and bulky irregular shape and the rapid perishability of the root once harvested. This mobile technology results in zero waste as 100% of the cassava root is utilized.
Learn MoreOur work in addressing constraints in agricultural value chains is dependent on research, and cassava is no different. Based off our 2014 Cassava Field Survey, we realized that anything we do in cassava must address the following challenges:
