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CTA is looking to fund original research into the factors affecting the development of “inclusive” value chains and support the preparation of case studies of successful and innovative inclusive value chains

Details

Published on Tuesday, 17 December 2013 08:57

The case studies funded are likely to cost between €10,000 and a maximum of €20,000.
Not to be opened before 15 February 2014 9:00”,
Grant objective
One objective of CTA’s Strategy is to contribute to enhanced value chains and improved smallholder incomes in ACP regions and countries. Under its project “Research, capacity building and institutional development in support of inclusive value chains in ACP regions”, some of the expected results of the work in this area are that there should be improved access to and better utilisation of research, information and knowledge on inclusive value chain development in ACP countries and that ACP institutions and individuals should be better equipped to promote more efficient, inclusive and sustainable value chains.

The long-term impact of this work is expected to be improved efficiency, inclusiveness and profitability of agricultural value chains in ACP countries. This Call for Proposals is designed to facilitate research and case studies that could contribute to the achievement of CTA’s objectives.

Description of grant
The EU-ACP Technical Centre for Agriculture and Rural Cooperation (CTA) promotes the development of agricultural value chains in African, Caribbean and Pacific (ACP) countries. In support of this work, we are looking to (3.1) fund original research into the factors affecting the development of “inclusive” value chains and (3.2) support the preparation of case studies of successful and innovative inclusive value chains. Inclusive value chains are normally considered to be those that obtain supply from smaller farmers, although value chains that actively involve SMEs, such as small traders and processors, could also be considered. The definition of small farmer in this context may depend on the crop being produced and cannot be based solely on land access. For example, a farmer producing one hectare of fruit or vegetables may be a relatively sizeable producer, while a farmer growing one hectare of maize or having five hectares of land for cattle may be a subsistence producer. The emphasis of this call for proposals is on specific chains that connect farmers to consumers in clearly identified sequence, involving collaboration between actors at all stages of the chain. This could be for domestic, regional or international markets. Examples could be: (1) milk producers-milk collection point-dairy-retailer-consumer; (2) fruit or vegetable farmers – canning company – retailers- consumers; or (3) vegetable farmers – farmers’ group or cooperative – supermarket or supermarket chain - consumers. “Value chain” is not considered to be synonymous with “market” or “marketing system” and the concept excludes ad hoc sales where the producer is not producing for a clearly identified market outlet.

Original research into the factors affecting the development of “inclusive” value chains

We are primarily looking for research based on a selection of cases in ACP countries where companies, with or without donor support, have successfully sought supply from smaller farmers while maintaining a strong commercial orientation. However, factors underlying both success and failure in achieving inclusion are of interest so research may also address examples of where companies have failed to exploit markets due to an inability to identify suitable supply or where potentially inclusive linkages have broken down for any other reason. Where value chains have become “inclusive” through donor support it is thus important to assess the commercial viability of the inclusiveness without donor or government intervention and to reject cases where donor or direct government support (with the exception of PPPs) continues to be the main factor underlying commercial success.

You are invited to suggest appropriate indicators for measuring the success or otherwise of inclusive value chains selected. The proposal should also specify the variables that will be considered as relevant during the research as factors that could impact on the potential for small farmers to work with modern value chains or on the success of such inclusive chains. These could include, but should not be limited to:
- Education levels, financial resources and capacity of farmers to make investments, other income-earning opportunities and cash flow, risk-taking capacity, farming and farm management skills, existing products produced, if different from those required for the value chain;
- Land tenure and security;
- Other socio-economic factors affecting ability to comply with standards, certification and quality requirements, delivery specifications, etc.;

Dowload the proposal specification here.
For more information, here.

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