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

Local entrepreneurs

SME

Rural labour

Supermarkets

Agri-food corporations

Larger scale traders

Financial sector

The Small Scale Farmer Story

Why Inclusive Agri-Food Markets

For BusinessSecuring supply

Market opportunity

Business Reputation

For societyFood security

Poverty and hunger alleviation

Peace and security

What Business is Saying

ECOM: Inclusive business is central to our

sustainability work- -th

at is, working in a way

that creates shared value for smallholder

farmers. We facilitate their in

volvement in our

programs, and in doing so, create positive

impact in the countries where we operate

MARS: Our business depends on a long-term

supply of quality cocoa, and we believe this

begins by increasing farmers’ yields, incomes

and quality of life. 100% certification

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.

Unilever: By 2020 we will source 100% of our

agricultural raw materials sustainably. By 2020

we will engage with at least 500,000

smallholder farmers and 75,000 small-scale

distributors in our supply network.

WWF Strategy

Consumers

Suppliers

Large businesses

Context

Drivers (+ -)

Mechanisms Incentives

Impact

require

create

• For business• For small-scale

producers and entrepreneurs

• For government

• Policies• Platforms• Partnerships• Capacities• Investments• Business

models

Scale in terms of change in Supply chain

Scale in terms of benefits for the poor

Scale in terms of people included

Scale in terms profits of inclusive models

Economic; political; cultural; physical

Resource scarcity; values; demographics; security

Scaling Inclusive Markets

Change the

Influence

Framework for Analysis

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

Sustainability

Profit

Planet People

Agri-FoodCommercial

Relations

GlobalBusiness

National Business

Financial Institutions

Fair Economic

opportunity at scale

Sustainably Feeding 9

Billion

SMEsSmall-ScaleFarmers

Public Policy & Investment

Government ResearchNGOs

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