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Innovation for Agribusiness (InovAgro): Household- and market-level impacts of value chain interventions

Innovation for Agribusiness (InovAgro): Household- and market-level impacts of value chain interventions
Author: Amare, Mulubrhan
Publisher: Intl Food Policy Res Inst
Total Pages: 48
Release: 2022-10-27
Genre: Political Science
ISBN:

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Agriculture, in Mozambique, is characterized by production systems that are based predominantly on rainfed conditions and on low use of yield enhancing agricultural inputs. The Innovation for Agribusiness (InovAgro) interventions were designed to increase incomes for poor smallholder farmers in northern Mozambique. Using a market systems development (MSD) approach, the InovAgro implemented value chain interventions (VCIs) to promote the development of inclusive and sustainable market systems such that the interventions impacts were felt long beyond the project’s lifespan. This study evaluated the impact of the InovAgro VCIs on households (considering a range of outcomes related to farmers’ use of yield-enhancing agricultural inputs, access to information on agricultural input and output markets, maize productivity, women and youth empowerment, and household welfare. The study also explored InovAgro VCIs outcome indicators to evaluate market-level effects, namely: systemic (long-term), sustainability, large-scale (spillover or multiplier), and unintended (positive or negative) effects. We conducted a modified randomized controlled trial (RCT) using a spatial identification strategy to classify beneficiary and nonbeneficiary households; this was supplemented with three waves of household-level panel data (2015, 2017 and 2019). We also complemented key informant interviews (KIIs) and focus group discussions (FGDs) with local stakeholders, including market actors and local authorities, with two rounds of geospatial data (2017 and 2019). Our findings show that InovAgro VCIs had a positive and significant impact on beneficiaries’ use of yield-boosting agricultural inputs and on access to information on agricultural input and output markets. Our analysis also reveals that the InovAgro VCIs boosted maize productivity and increased the marketable surplus of maize among beneficiaries. InovAgro VCIs were seen to have unintended negative effects on access to, and control over, land by women and youth in the short term; in the longer term; however, these adverse effects were reversed and became positive and significant. Our findings also show that simultaneous exposure to all three VCIs under the complete package had a positive impact on overall household welfare. We also find evidence in support of the InovAgro VCIs having a systemic market effect and producing more sustainable long-term usage of yield-boosting agricultural practices than non-InovAgro VCIs. Our results elucidate that InovAgro VCIs benefitted large numbers of smallholder farmers beyond the project’s direct sphere of influence and targeted beneficiaries. The key takeaway message from our findings is that a more intense VCI, that is, delivery of the complete package, appears to be necessary to achieve a long-term positive effect on overall household welfare.


Access to markets for smallholder farmers in Alto Molócue and Molumbo, Mozambique: Mid-term impact evaluation of INOVAGRO II

Access to markets for smallholder farmers in Alto Molócue and Molumbo, Mozambique: Mid-term impact evaluation of INOVAGRO II
Author: Hosaena Ghebru
Publisher: Intl Food Policy Res Inst
Total Pages: 38
Release: 2019-10-22
Genre: Political Science
ISBN:

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The Innovation for Agribusiness (InovAgro) project, which launched with its first three year phase in 2010, uses a market system development (MSD) approach towards the goal of increasing incomes of men and women small-scale farmers in northern Mozambique. InovAgro interventions promote improved agricultural productivity, participation in selected high-potential value chains and the development of inclusive and sustainable market systems, such that impacts are expected to last long beyond the termination of the project. This paper presents results from a midline quantitative impact evaluation of the second phase of the InovAgro project interventions (2014-2017). In it, we use a carefully designed and executed quasi-experimental study design to credibly attribute changes in market engagement and welfare of participating farmers to exposure to the InovAgro II project, identifying and testing in what respects the intervention was most successful, and what regard it had less impact. Although InovAgro II projects operate in 11 districts of Zambézia and Cabo Delgado provinces, this impact evaluation focuses on two districts in Zambézia province (Alto Molócue and Molumbo), and in terms of value chains, focuses on the soybean and pigeon pea high-potential value chains, while the InovAgro II project interventions focus on these in addition to maize, sesame and groundnut. A baseline survey was undertaken in 2015 covering the 2014/2015 agricultural season and a midline follow-up survey was conducted in 2017, covering the 2016/2017 agricultural season and reaching 1,749 households of the original 1,886 households interviewed in the baseline survey. Using difference-in-difference estimation and propensity score matching, we find that exposure to the InovAgro II project is associated with an increase in the proportion of households selling soybean and pigeon pea by approximately 5% and 16%, respectively (significant at the .01 level). Exposure to the InovAgro II project also results in significantly higher shares of smallholder farmers using improved seed for soybean and pigeon pea (an increase of 6% for soybean and 2% for pigeon pea). We find that the InovAgro II project is also associated with significant increases in access to agricultural output market information from formal sources (5%) and hired labor for farming activities (8%). Despite the significant impacts on short term outcome variables, exposure to the InovAgro II project had limited impact on long term outcome variables, such as on rural-urban migration as well as engagement in the non-farm sector (two proxies for assessing potential welfare implications of the project) however this finding is not surprising given the impact evaluation covers only two years-a short period of time to bring about the long-term impacts expected to eventually emanate from an MSD project.


The impact of market system development approaches: The case of InovAgro in Mozambique

The impact of market system development approaches: The case of InovAgro in Mozambique
Author: Amare, Mulubrhan
Publisher: Intl Food Policy Res Inst
Total Pages: 8
Release: 2022-10-12
Genre: Political Science
ISBN:

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Achieving sustainable agricultural productivity growth in sub-Saharan Africa remains a major development challenge (Abdul and Abdulai 2022; Magruder 2018).1 Low agricultural productivity in African countries is often attributed to lack of innovation, low adoption of yield-enhancing farm technologies, or both (Walker and Alwang 2015; Anderson and Feder 2004). Several studies show that the challenges to achieving sustainable and higher agricultural productivity arise mainly from market imperfections and frictions affecting the distribution of and access to new technologies and their adoption (Abdul and Abdulai 2022; Magruder 2018; Ragasa and Mazunda 2018; Duflo et al. 2008). In Mozambique, as in many African countries, the majority of rural households are subsistence-oriented and have relatively low levels of both agricultural productivity and market participation (Boughton et al. 2006; Benfica and Tschirley 2012; Benfica et al. 2014). To address these challenges, the Innovation for Agribusiness (InovAgro) project used a market systems development (MSD) approach. InovAgro is funded by the Swiss Agency for Development and Cooperation (SDC) and implemented by Development Alternatives (DAI Europe, Ltd.) in partnership with COWI Mozambique.


Innovation for inclusive value-chain development

Innovation for inclusive value-chain development
Author: Devaux, André
Publisher: Intl Food Policy Res Inst
Total Pages: 560
Release: 2016-10-21
Genre: Political Science
ISBN: 0896292134

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Governments, nongovernmental organizations, donors, and the private sector have increasingly embraced value-chain development (VCD) for stimulating economic growth and combating rural poverty. Innovation for Inclusive Value-Chain Development: Successes and Challenges helps to fill the current gap in systematic knowledge about how well VCD has performed, related trade-offs or undesired effects, and which combinations of VCD elements are most likely to reduce poverty and deliver on overall development goals. This book uses case studies to examine a range of VCD experiences. Approaching the subject from various angles, it looks at new linkages to markets and the role of farmer organizations and contract farming in raising productivity and access to markets, the minimum assets requirement to participate in VCD, the role of multi-stakeholder platforms in VCD, and how to measure and identify successful VCD interventions. The book also explores the challenges livestock-dependent people face; how urbanization and advancing technologies affect linkages; ways to increase gender inclusion and economic growth; and the different roles various types of platforms play in VCD.


Interventions for inclusive and efficient value chains: Insights from CGIAR research

Interventions for inclusive and efficient value chains: Insights from CGIAR research
Author: de Brauw, Alan
Publisher: Intl Food Policy Res Inst
Total Pages: 13
Release: 2021-12-31
Genre: Political Science
ISBN:

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Efforts to promote the development of agricultural value chains are a common element of strategies to stimulate economic growth in low-income countries. Since the world food price crisis in 2007-2008, developing country governments, international donor agencies, and development practitioners have placed additional emphasis on making agricultural value chains work better for the poor. As value chains evolve to serve new markets, they tend to become less inclusive. For example, if a market for high quality rice arises within an economy, it is inherently easier for traders who sell rice to retailers to source that high quality rice from larger farms that are better able to control its quality than from dozens of smallholder farms. As a result, the normal path of value chain evolution can be biased against smallholders; hence, it is important to understand what types of interventions can make value chains more inclusive while also making them more efficient. In this brief, we summarize studies on five types of value chain interventions that were supported by the CGIAR’s Research Program on Policies, Institutions, and Markets (PIM) through its Flagship 3 on Inclusive and Effective Value Chains. Figure 1 illustrates a “typical” agricultural value chain, including the five intervention types (in orange). These include interventions that attempt to deal with multiple production constraints; certification; contract farming; public-private partnerships; and “other” services related to trading and marketing agricultural products. Apart from the last category, these interventions all involve production. This reflects the fact that smallholder producers can be considered, in some ways, the weakest link in evolving agricultural value chains (de Brauw and Bulte 2021). Hence, it is sensible to target interventions either at or close to smallholders. However, in some cases, the best way to overcome smallholder constraints may be to help actors at other points in the value chain overcome constraints. Many interventions share a focus on reducing transaction costs to promote smallholder market integration. Ideally, interventions increase both efficiency and inclusion, but we observe that such win-win outcomes are rare. Trade-offs appear to be more common than synergies, and some value chain interventions involve clear winners and losers.


Making Markets More Inclusive

Making Markets More Inclusive
Author: K. McKague
Publisher: Springer
Total Pages: 265
Release: 2014-07-24
Genre: Business & Economics
ISBN: 113737375X

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Most studies of doing business at the "bottom of the economic pyramid" focus on viewing the poor as consumers, as micro-entrepreneurs, or as potential employees of local companies. Almost no analysis focuses on the poor as primary producers of agricultural commodities a striking omission given that primary producers are by far the largest segment of the working-age population in developing economies. Making Markets More Inclusive bridges the management literature with original research on agricultural value chains in developing and emerging economies. This exciting work is the first to delve into the skills, capabilities, strategies and approaches needed for inclusive value chain development. McKague shows how NGOs and companies can connect poor producers in developing economies with the right markets to better create social and economic impact. He also analyzes one of the leading agricultural value chain initiatives in the world, which is being replicated by the Bill and Melinda Gates Foundation in several different value chains in Malawi, Tanzania, Ghana, India, and Mali. Want more? Check out these compelling videos, which provide a glimpse into the stories and examples used throughout the book. Video Trailer for Making Markets More Inclusive. Farmer Training. Kallani Rani increased the productivity of her cows, become a cattle feed seller in her village (Chapter 6), and opened a fresh milk canteen in her local market (Chapter 7). She now trains other women farmers and works to improve opportunities for women in her community (Chapter 5). Animal Health Care Services. Asma Husna trained to be an animal health worker with CARE to provide important animal health services and education to local farmers on a fee-for-service basis (Chapter 6). Cattle Feed Shops. Fulera Akter started a business as a cattle feed seller after demand for nutritional animal feed grew due to farmers' improved knowledge of nutrition (Chapter 6). Savings Groups. Coauthor Muhammad Siddiquee, the Coordinator of Agriculture and Value Chain Programs at CARE Bangladesh, discusses the value of farmer savings groups (Chapter 6). Milk Collection. Sarothi Rani became a milk collector to earn an improved income for her family and provide an important service to other dairy farmers in her community (Chapter 7). Digital Fat Testing. Introducing digital fat testing machines into the dairy value chain helped reward farmers for making investments in producing higher quality milk, as well as ensuring transparent and timely payments (Chapter 7). Microfranchising. Supporting agricultural input shop owners with training, relationships to suppliers, common branding, and standardized customer services improves the productivity of smallholder farmers and the profitability of shops (Chapter 12). Bangladesh Dairy Value Chain Learning. Reflections from some of the 40 CARE staff from 17 countries who came to Bangladesh to learn from the experience of the dairy value chain project (Chapter 15).