CRP2 Progress Report onValue Chains

S. Padulosi, M. Jager and H. Lamers

Bioversity International

IFPRI, Washington 11 July 2013

Key research questions

Which role does ABD play in marketing/value chains?

How can value chains help generating more income especially for the poor who still maintain wide range of diversity? and those who grow few crops and are interested /willing to re-introduce wide range of diversity into their farms?

How can market strategies based on ABD help improving value and sales?

Which types of value chain interventions (upgrading strategies) are required and which would be most effective?

How can commercially valuable traits present in ABD be most effectively assessed?

Which types of marketing tools are required and most effective?

Outputs Activity 4: Enhancing agricultural value chains of underutilized crops through improved quality assurance and coordination mechanisms across actors

Papers

• “Enhancing nutritional security and promoting women empowerment in India through value chain interventions on minor millets” by Bakker S., S. Padulosi, F. Mattei and N. Bergamini (under submission to Ecology of Food and Nutrition)

• “Holistic approach to enhance the potential contribution of neglected and underutilized species to improve use, income, livelihood and nutrition of rural poor: the case of Andean grains in Bolivia and Peru” by Padulosi, S., K. Amaya, M. Jäger, E. Gotor, W. Rojas, and R. Valdivia (under submission to Sustainability).

• "Compositional Characterization of Native Peruvian Chili Peppers (Capsicum spp.)" by Meckelmann, S., S. Dieter; M. van Zonneveld, Maarten, R. Llermé, R. Ugas, L. Quinonez, E. Mueller-Seitz and M. Petz (published in Journal of Agricultural and Food Chemistry).

• “Biochemical preliminary results for Bolivian Capsicum accessions” (Poster at the 21st Pepper Int. Conference, Naples, USA, 2012).

• “Small is not always beautiful: The use of artisanal batch processors in Andean countries causes lead contamination of popped grain products” by M. Johny, K. Amaya, M. Hermann, M. Jäger and S. Padulosi (under submission to Sustainability)

• Marketing guidelines for selected native tropical fruits in Asia (report)

and also with ref to Act 1:• Book “Biodiversity of Andean grains: balancing market potential and sustainable livelihoods” A. Giuliani, F.

Hintermann, W. Rojas and S. Padulosi Eds. • “El boom de la quinoa, su influencia en la cadena de valor de cultivo y las consequencias para los

productores en el Altiplano sur de Bolivia” by Avitabile E., A. Drucker, S. Padulosi and W. Rojas (presentation at Int. Quinoa Conf., Ecuador July 2013).

• “Tecnologia de procesamiento de quinoa a pequena escala nel altiplano sur de Bolivia” by Aroni G, M. Villca, M. Pinto, W. Rojas and S. Padulosi (presentation at Int. Quinoa Conf., Ecuador July 2013).

• Study report “Value chains of Quinoa Real in Bolivia: issues and policy recommendations for the sustainable conservation and use of a formerly underutilized plant genetic resource” (undergoing internal review)

• Presentation on “Leveraging Geographical Indications potentials to enhance the use of underutilized species” by S. Padulosi. CTA Brussels Briefing on May 15 dedicated on Linking food, geography and people- http://brusselsbriefings.net/

• Travelling exhibit on quinoa for the UN International Year of Quinoa developed in English, German and Spanish language together with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Approved• Project proposal “Improving smallholder farmers’ food and nutrition security through

sustainable use and conservation of agrobiodiversity” of 500K USD by IFAD on Jan 2013Submitted • Concept note on NUS (fruit trees) for “Strengthening incomes and resilience of production

systems in the Caribbean” to CTA• Project proposal on Impact of “Geographical Indications on income generation and

conservation of crop genetic diversity in Asia and Africa” to UNCTAD• Project proposal on “Establishing a common EU Latin American platform for collaboration to

enhance the sustainable commercial use of agrobiodiversity” for 1M E to EU 7th RFP• Concept note on “Improving agricultural interventions for nutritional outcomes in Africa”

submitted to BMGF (40M USD). Being prepared • CN “Multi stakeholder innovation platforms for Capsicum” of 400kUSD to FONTAGRO by 22

July • CN Multi stakeholder innovation platforms for quinoa” of 400k USD to FONTAGRO by 22 July

Concept notes / New Grants

OutcomesIFAD NUS• Methods and tools on production and technology for minor millets being taken up by major

projects viz. In India by IDRC/CIDA “Alleviating and Malnutrition in Biodiversity hot spots” and in Nepal IDRC “Revalorizing Small Millets in South Asia (RESMISA)”.

Capsicum project• Transaction costs and market failures have been reduced and new commercial products have been

developed through collaborations, alliances, agreements and mutual trust among people and groups along the value chain.

• Transaction costs between farmer associations and private companies have decreased as the participating companies are specialty buyers and will give a better and more stable price to farmers, plus the fact that the middlemen are no longer needed.

• There are greater opportunities for smallholders and women to benefit from growth in demand for high-value commodities and access to retail structures through the participation of farmers associations in Bolivia and Peru.

• Business relationships with processors and supermarkets in Peru and Bolivia have been established assuring fair and equitable benefits for farmers.

• Improved field production, postharvest and processing procedures have been developed and are now being employed by farmers and processing companies, including a seed system for organic chilis, environmentally-friendly solar drying technology, sensory evaluation of chilli diversity, and many commercial products.

OutcomesTropical Fruit Tree Diversity project

• Participatory methods and tools developed are now helping farming communities to assess potential market traits in local fruit diversity (inter- and intra specific) for local markets..

• Preliminary 46 products based on 18 selected minor fruit crops or focusing on various landraces of major fruit crops identified for promotion in local and distant markets (project focus is on mango, citrus, mangosteen and rambutan including their wild relatives)

Impact PathwayOUTPUTS

A) Models, approaches, methods and tools on how to link NUS/ landraces and small farmers to high value markets for multiple purposes and livelihood benefits.

B) Capacity building related outputs regarding enhanced use of NUS/ landraces

Scaling out from community to district level

OUTCOME Approaches, methods and tools disseminated to and used by stakeholders [..] contributing to greater use of NUS/ landraces from field to fork at national level, leading to more competitive ABD based value chains

Scaling up from district to national/regional level

IMPACT (IDO) • Improved use of NUS/ landraces and incorporation into value chains

·Improved governance and collaborations within target NUS value chains

·Reduction of poverty by increasing the income of all value-chain actors.

ULTIMATE GOAL (SLO) Improved livelihoods and enhanced conservation of

agricultural biodiversity

Other IDOs : NUS/landraces maintained in production systems and improved nutritional status / availability of more diversified diets.

Linkages with other CRPs• RTB: Joint concept note on: Collective learning and Innovation for developing

engendered RTB Value Chain approaches. RTB-Theme 7: Knowledge sharing and capacity building on gender-sensitive value chain analysis and impact assessment

• A4NH: By improving or upgrading these value chains we are creating an increased choice of nutritious foods for the rural and urban poor. By developing and implementing good agricultural and post-harvest practices we have reduced disease risks and nutritional losses. Concept note for BMGF in Africa (40M USD)

• Forest, Trees and Agroforestry: Improving the performance of tropical tree value chains and marketing strategies has contributed to improved household incomes from tree products. Enhanced income generation also represents an incentive to better conservation of tropical fruit tree diversity, contributing to the maintenance of environmental services to agriculture from forests and trees (Hugo Lamers coll with CRP6).

Tools’ progress• Training manual on value chain promotion methodologies for NUS

currently being developed. The Manual is based on the methodology and lessons learnt from a 5 days training workshop on value chain assessment and upgrading methodologies held in September 2012 in Ghana. Printed manual will be distributed at the NUS Conference in Ghana.

• Marketing guidelines for diversity rich smallholder communities in Asia developed and tested for selected native tropical fruits

• Holistic approach combining conservation, characterization and use enhancement (value chain assessment and upgrading, PMCA) methodologies applied in the GIZ Capsicum project and IFAD NUS project to promote multi purpose value chains delivering on income generation, nutrition and climate resilience

Diversified livelihoods vs. specialized value chains

Local-

regional

markets

Product 1

Product 2

International marketProduct 3

Contextpolitical – legal – institutional – market – cultural

Remittances Off-farm labor

Market-oriented agriculture

Subsistence agriculture

House-hold assets

+

To what extent complex livelihood realities allow for meaningful asset building through single VCD approaches..?

Crop focus (1960s/1970s)

Farming Systems

(1970s/1980s)Livelihood Systems

(1990s)Value Chain

Development (2000s)

Multi-Chain Multi purpose Approach to

Value Chain Development

(2010s)

Specialized agricultural production

Integrated agricultural production

On-farm and off-farm

activities in a broader context

On-farm and off-farm activities geared to the

market

Subsistence and market oriented

livelihood activities

Enhanced conceptualization: balancing opportunities and risks across a variety of livelihood activities (subsistence and market)

Conceptual innovation

Multi-Chain Approach to VCD

1) Identify portfolio of gender-specific activities across multiple value chains potential for link with agro and forest biodiversity

2) Determine positive feedback loops for asset building

3) Balance trade-offs between subsistence and market activities

4) Develop low, mid and high investment/risk scenarios for the short, mid and long run

(1) Geneticdiversity

(2) Selection &cultivation

(3) Harvest

(4) Value

addition

(5) Marketing

(6) Finaluse

1.1 Rescued diversity1.2 Map diversity1.3 IK Documentation1.4 Conservation (ex situ/ in situ)

2.1 Better varieties2.2 Best practices2.3 High Quality Seed

3.1 Improved technology

4.1 Novel food items4.2 Food Recipes4.3 Quality standards

5.1 Efficient value chains5.2 Commercialization 5.3 Branding 5.4 Multi-stakeholders 5.5 Platforms of Cooper.

6.1 Nutrition awareness 6.2 Enabling Policies 6.3 Promotion6.4 Education

IMPACTImproved nutrition,

incomes and other

livelihood benefits

Outcomes-Enhanced efficiency of cultivation, value addition which impact on VC competiveness and thus on empowerment of communities and self esteem

OutcomesConservation and availability of genetic diversity and IK to be used in VC enhancement

Outcomes-Self –reliance of value chain actors

CROP X

Outcomes-Nutrition rich diets- Diversity friendly VC

RE strategic role of ABD in VCD

Livelihood enhancement of

household members

resulting from VC interventions on crops with high

livelihood complementary

value

CROP A

CROP B

Example of key contribution of crop A: resilience for managing climate change risks

Example of key contribution of crop B: high nutritional content for addressing food / nutrition security of HHs

Examples of advantages in multiple/livelihood VCD:

1. Strengthen pro-livelihood complementary roles2. Promote synergies across single-crop based collaborative

platforms (e.g. synergy across platform on commodity crop and other on traditional crop).

3. Leverage capacity building efforts usually invested around single crops

4. Explore economy of scales in pro-livelihood agric. Investments

5. Development of more resilient livelihood systems able to absorb different shocks..

The R4D topics to address:

1. Complementary roles in strengthening livelihood of farmers and other VC actors (e.g. with regard to income generation throughout the year, complementarity in nutrition, greater opportunities for empowerment of women.. etc)

2. Identify complem. interventions needed/ under which circumstances.. 3. Which diversity is needed to match complementarity? How this diversity

is accessed by farmers? How it is conserved in ex situ and in situ? Etc.. 4. How to leverage existing VC (technologies, networks, etc) of established

crop/s for the benefit of other less developed VC of other crops – which opportunities? Which challenges? What the trade offs?

5. Assess socio-economic environment for pro-livelihood VC approaches.

Next steps• Leverage work of existing Grants and

complement efforts with additional PIM resources;

• Develop closer partnerships with other centers to test out method/ develop joint Grants;

• Compare results from across range of socio-economic settings;

• Assess outcome of testing and update manuals/ dev. ‘toolbox’..