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AFRICAN AGRIBUSINESS SUPPLIER

DEVELOPMENT PROGRAMME (AASDP)


TRAINING MANUAL
Growing Inclusive Agri-Food Value Chains
Benefitting African Farmers And SMEs

Empowered Lives.
Resilient Nations.
Acknowledgements
Toolkit and Training Material Design, Development and Coordination:
Tomas Sales, Pascale Bonzom, Juergen Nagler (UNDP AFIM)

Toolkit and Training Material Authors:


Marije Boomsma, Remco Mur, Ellen Mangnus (Royal Tropical Institute (KIT))

We also would like to thank all contributors for their valuable input and
feedback, including Tiina Turunen, Dan Acquaye, Robert Nyambaka, Kurauone
Murwisi, Murray Smith, Seliatou Kayode-Anglade and Dr Hans Balyamujura.

Finally, we are grateful to all the organizations that attended the AASDP
workshop in Nairobi, Kenya, on October 9 and 10, 2013, for their contributions.
African Agribusiness
Supplier Development
Programme (AASDP)
Training Manual
Growing Inclusive Agri-Food Value Chains
Benefitting African Farmers And SMEs
Table of Contents
Acronyms 
I. Introduction1
African Agribusiness Supplier Development Programme  1
ASDP training  2
What is in the training manual?  3
Who is this training for?  4
The learning approach  4
The Trainer a.k.a. The Facilitator  5
Structure of a learning activity 5
List of materials required  5
II. Proposed training programme 7
III. Training sessions 8
Session 1. Introduction: participants’ expectations and objectives  9
Block A. African Agribusiness Supplier Development Programme 10
Session 2. An African Agriculture Supplier Development Programme  11
Session 3. Key success factors  13
Case study 1: Soy bean supply chain in Kenya 15
Session 4. What’s in it for….. World Café  18
All images © flickr.com
Block B. Stakeholders’ roles and responsibilities20
Session 5. Stakeholders’ roles and responsibilities in an ASDP 21
Block C. Phases of an ASDP24
Session 6. Feasibility and Programme Preparation 25
Session 7. A. Supply Chain Diagnostics 28
Case study 2: Dairy supply chain in Nigeria29
Session 7. B. Chain Analysis from a Gender Perspective 33
Session 8. Supply Chain Planning 35
Session 9. Supply Chain Implementation 37
Case study 3a: Local sourcing of Sorghum in Sierra Leone38
Session 10. Phasing out 41
Session 11. Monitoring and Evaluation and Learning 42
Case study 3b: Local sourcing of Sorghum in Sierra Leone 43
Block D. Action planning / way forward44
Session 12. Towards an ASDP Road Map 45
Case study 4a: Roadmap for a Nigerian ASDP47
Session 13. Financing an ASDP 54
Case study 4b. Non- validated indicative figure for a Nigerian ASDP55
Acronyms
AFIM African Facility for Inclusive Markets
ASDP Agribusiness Supplier Development Programme
CO Country Office
CSO Civil Society Organization
FDI Foreign Direct Investments
GAP Good Agricultural Practices
IMD Inclusive Market Development
KES Kenya Shilling
KIT Royal Tropical Institute
LED Local Economic Development
MDG Millennium Development Goals
M&E Monitoring and Evaluation
NGO Non-Governmental Organization
PO Producers’ Organization
PPT PowerPoint Presentation
RBA Regional Bureau for Africa
SME Small and Medium Enterprise
UNDP United Nations Development Programme
UNDP CO UNDP Country Offices
USD US Dollar

. iv .
.v.
Introduction

The African Agribusiness


Supplier Development
Programme

Woman farmer collecting her harvested sweet potatoes


Introduction

In November 2010, UNDP launched a strategic, regional private sec-


tor and Inclusive Market Development (IMD) project for Poverty Re-
duction in Africa entitled: the ‘African Facility for Inclusive Markets’
(UNDP AFIM). This project is led by the Regional Bureau for Africa
(RBA) and is coordinated from UNDP’s Regional Service Centre for
Africa (RSCA) in Addis Ababa. UNDP AFIM focuses on the promotion
of IMD in Africa through developing and expanding regional value
chains in job creating sectors such as agribusiness, tourism, renew-
able energy, retailing and mining.

The core mandate for UNDP AFIM is to engage the private sector to
work towards reducing poverty and accelerating progress towards
achieving the Millennium Development Goals (MDGs) by supporting
pro-poor economic growth and IMD across Sub-Saharan Africa. IMD
focuses on developing private sector markets to make them more
inclusive and beneficial to low income groups such as producers,
consumers and employees. Specifically, IMD seeks to empower small
and medium size enterprises, producers and distributors to partici-
pate in and benefit from the existing potential markets in which they
do business.

As part of its mandate, UNDP AFIM, had developed an Agribusiness


Supplier Development Programme (ASDP) with the intention of sup-
porting UNDP Country Offices (COs) in Sub-Saharan Africa and their
respective government partners in order to develop and establish
national ASDPs.
© IFAD

.1.
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

The target beneficiaries of the programme are in At the heart of the programme are 4 key func-
the first place, small scale farmers and SMEs, in- tions, including Organizing support for suppliers,
cluding farmer organizations. A successfully im- Sharing supply chain information through the
plemented ASDP will promote greater income supply chain, Facilitating linkages in a sub-sec-
generation for small scale farmers and ensure tor, and Policy advice. Cross sector learning is a
the supply chain is more inclusive with greater cross cutting function.
participation from SMEs. Secondly, off-takers (or
lead firms) and other stakeholders in agricultural All the above need to happen in a sustainable
supply chains, such as input suppliers and finan- and inclusive manner, meaning that the ASDPs
cial institutions will benefit. Large firms will have should not compete with local food security
the added benefit of being actively involved neither negatively impact the natural environ-
in inclusive business, which is becoming an in- ment nor climate change and should refrain
creasingly important business trend. from discriminating vulnerable groups includ-
ing women, ethnic minorities and youth.
The objectives of an ASDP to be implemented
by UNDP Country Offices (UNDP COs) and their ASDP training
partner governments include:
To support the development of the African
• To improve the supply of African agricultural ASDP, AFIM developed a toolkit and a training
products by farmers and SMEs meeting mar- manual. The toolkit sets out the programme’s
ket quality standards, with quicker delivery conditions for starting up a country ASDP. It de-
times, reduced transportation and reduced scribes the programme components, the roles
inventory costs, and as such to access the and responsibilities of the various actors within
growing markets that are provided by off-tak- a supply chain as well as possible interventions
ers; in order to help facilitate the engagement of
• To secure and offer off-takers an efficient and off-takers with smallholder producers. This tool-
high quality local agricultural products sup- kit is targeted towards UNDP Country Offices
ply; aiming to work with their partner governments
• To contribute to the development of nation- and other development agencies aiming in set-
al African economies (through attracting ting up a national smallholder and SMEs ASDP.
Foreign Direct Investments (FDI), increased The tool provides a framework to facilitate the
government income through taxation, job linkage between the users (UNDP CO and their
creation, an improved trade balance etc.) by partner governments), partners (Lead firms) and
developing agricultural products that can beneficiaries (Smallholders and SMEs).
substitute imports and can access export
markets; and
• To contribute to sustainable development
goals, especially food security, poverty reduc-
tion and gender equity, through job creation
and income generation.

.2.
Introduction

This complementary training manual will be What is in the training manual?


used in introducing the ASDP and its major el-
The manual contains a series of learning activ-
ements and concepts to the relevant UNDP
ities, helping learners to exchange and reflect
Country Office staff, relevant Government de-
on experiences and acquire the knowledge,
partments and agencies, lead firms and poten-
skills and attitudes required to develop and im-
tial implementers.
plement an ASDP. The trainer can choose the
The objectives of the training are to: learning activities which are most appropriate
for his/her target audience. The activities have
• Introduce the ASDP to participants, including: been designed in such a way that they can be
• The rationale and objectives of an ASDP; adapted easily to the local context. The manual
• The benefits of the ASDP to different stake- also includes an example of a suggested train-
holders; ing programme. This will give an idea of how
• The major underlying concepts of an ASDP; learning topics can be structured in a standard
• The roles and responsibilities of different training course of one week. It is highly recom-
stakeholders; mended that you organize local study visits and
• The implementation of an ASDP in 6 phases; excursions to lead firms and/or smallholder pro-
and ducers and other stakeholders. This real-life en-
counter and the exchange of experiences and
• Agree on an action plan to developing an
perspectives with important ASDP stakeholders
ASDP in the country.
can help the learner to see the learning material
The objectives of the training manual are to: in context. After the study visit a debriefing in
• Equip trainers with practical examples of terms of lessons learned needs to take place in
learning activities and a training programme; order to link the different learning experiences
with the learning material.
• Design and facilitate interactive and experien-
tial learning-based workshops on the devel- The training manual follows the structure of the
opment and implementation of an Agricul- ASDP toolkit. For each phase, the training manu-
ture Supplier Development Programme; al proposes a number of learning activities.
• Expose trainers to a range of different learn-
ing methodologies in order to exchange sub-
ject matter expertise; and
• Make learning an enjoyable process of knowl-
edge sharing.

.3.
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Fig. 1. Programme phases

M&E and

Supply Chain
Learning
Activities

1 Feasibility
2 Preparation
3 Diagnostics
4 Planning 5 Implementation
6 Phasing out

Who is this training for? The learning approach


The training is targeting UNDP Country Office The training sessions incorporate a specific ap-
staff members of relevant ministries and depart- proach, which is participatory and learner-cen-
ments that will be involved in the programme. It tred and designed for flexible use and adaptable
is possible to use parts of the training materials to specific contexts. The learning activities are
for presenting the programme to key partners, not merely theoretical descriptions of knowl-
such as off-takers and NGOs. Due to its partici- edge about supplier development programmes
patory character, the training targets group be- but stimulate active involvement and encour-
tween 20 and 25 participants. age trainees and trainers to make use of experi-
ences and reflections in the development of the
necessary knowledge, skills and attitudes (com-
petencies) needed.

.4.
Introduction

The Trainer a.k.a. the Facilitator Structure of a learning activity


The facilitator of the training should be an ex- The learning activities that you will find in this
perienced trainer with the following skills and training manual are structured according to ses-
subject matter knowledge: sion sheets in the following way:
• Displays good overall thematic knowledge of • Title of the learning activity;
the ASDP; • Content of the module, learning topic;
• Has good facilitation skills and understands • Objective of the learning activity;
what adult learning is about; • Learning methodology and process;
• Respects diversity as a core value in the train- • Training tips;
ing process;
• Learning materials and presentations; and
• Builds trust within the community of partic-
• Timing.
ipants;
• Is open to feedback and considers it a valu- List of materials required
able learning opportunity;
• Flipcharts
• Is able to adjust the training according to
needs; • Coloured cards (1/3 A4)
• Is able to apply principles of adult education, • Masking tape
experiential learning; and • Flipchart stands
• Good knowledge of the basic concepts of the • Coloured markers (3 colours)
training. • White board
• PowerPoint projector
• Projection Screen

.5.
Proposed
Training
Programme
Proposed Training Programme

Below is an example of ASDP training programme. The training consists of 13


sessions, which require 3 days. An alternative programme for 1 day is also pro-
posed. The training manual is supported by a PowerPoint presentation which
can be found in Annex.

Introduction
Session 1. Introduction: Participants’ expectations and objectives

Block A. African Agriculture Supplier Development Programme


Session 2. An African Agribusiness Supplier Development Programme
Session 3. Key success factors
Session 4. What’s in it for….. World Café

Block B. Stakeholders’ roles and responsibilities


Session 5. Stakeholders’ roles and responsibilities in an ASDP

Block C. Phases of an ASDP


Session 6. Feasibility: shortlisting sub-sectors
Session 7A. Supply chain diagnostics
Session 7B. Chain analysis from a gender perspective
Session 8. Supply chain planning
Session 9. Supply chain implementation
Session 10. Phasing out
Session 11. Monitoring and evaluation and learning

Block D. Action planning / way forward


Session 12. Towards an ASDP roadmap
.7.
© IFAD
Session 13. Financing an ASDP

Training
Sessions
.8.
Training sessions

Session 1
Introduction: Participants’
expectations and objectives

Content of the module, • After two minutes a round of introduction will


learning topic be done. One-by-one participants are given
the opportunity to introduce themselves
This first session is important for creating a con- (one minute each), stating:
ducive atmosphere for the participants. Partic-
ipants are expected to participate actively and
êê Their name
share experiences and ideas. êê Their organization and position
êê Their expected role in an ASDP
Objectives êê Their expectations of the training
• Participants have the opportunity to express • After all participants and the facilitator have
their expectations. introduced themselves, the facilitator pres-
• Participants know the objectives of the train- ents the objectives and the preliminary pro-
ing. gramme of the training.
• Participants get to know each other. • The facilitator asks participants whether the
objectives and training covers their expecta-
Learning methodology and process tion.
• The facilitator welcomes participants. Training tips
• If possible, the official opening can be done
by the UNDP CO Director, to provide addition- • The facilitator should ensure that participants
al motivation to participants. do not get into long monologues.
• The facilitator asks the participants to take Learning materials
two minutes to “buzz” with their neighbour
• PPT 1
about:
êê What they expect to be their role in an Timing
Agribusiness Supplier Development Pro- • 45 minutes (depending on the number of
gramme (based on their (possibly limited) participants)
understanding of what an ASDP is)
êê Their expectations of the training

.9.
Block A
Agribusiness Supplier
Development Programme

Session 2

A
An African Agribusiness Supplier
Development Programme

Session 3
Key success factors

Session 4
What’s in it for….. World Café

. 10 .
Training sessions

Session 2
An African Agribusiness Supplier
Development Programme

Content of the session Objectives


The Agribusiness Supplier Development Pro- After the session, participants can explain what
gramme aims to develop inclusive supply an ASDP entails and what its objectives are.
chains, linking smallholder suppliers to off-tak-
ers. A supply chain can involve many stakehold- Learning methodology and process
ers, from chain operators, to chain supporters Plenary brainstorming session and PPT presen-
(service providers) and is situated in a wider tation.

A
context (policy, economy, agro-ecological, etc.).
• The facilitator asks participants to write down
It is important that participants have a good
on cards 3 words (one word per card) they as-
understanding of what an ASDP entails, why it
sociate with Agribusiness Supply Chain (max
is important and what the key success factors
2 minutes).
are. In this session, participants first are asked to
share their understanding of Agribusiness Sup- • The facilitator asks participants (one-by-one)
ply Chains and based on this, their understand- to stick their cards on the wall.
ing of an Agribusiness Supplier Development • Once all cards are on the wall:
Programme. Topics of this session include: Option 1
• Agribusiness Supply Chains • The facilitator asks participants to regroup the
• Agribusiness Supplier Development Pro- cards according to their own criteria/logic.
gramme • Once the participants are done, the facilitator
• The rationale for an ASDP asks one participant to present the result.
• The objectives of an ASDP
• The key functions of the ASDP

. 11 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Option 2 (in case of more than 30 participants) Training tips


• The facilitator presents the cards on the wall • Option 1 can be rather disorganized if the
• While presenting, the facilitator can try to re- group is relatively large, but is more partici-
group the words e.g. according to the follow- patory and lively. It is a good opportunity to
ing categories: create an active ambiance for the training.
êê Chain activities • If there are too many (e.g. more than 30) par-
êê Actors (chain actors, operators, enablers) ticipants, option 2 might be preferred.
êê Context Learning materials
êê Objectives • PPT 2
êê Other • Cards, Flipchart, markers, masking tape,
Continuation (for both option 1 and 2) whiteboard

• In plenary, the facilitator summarizes the re- Timing:


sults and allows for a short discussion • 1.5 hour
• The facilitator asks participants what their un-
derstanding of an Agribusiness Supplier De-
velopment Programme is.
• The facilitator writes key words on a white-
board or flipchart
• The facilitator presents PPT 2 and explains:
êê Rationale of an ASDP
êê The objectives of the ASDP
êê Allow for questions and discussion

. 12 .
Training sessions

Session 3
Key success factors

Content of the session • The facilitator asks participants to discuss in


sub-groups of 6 persons whether success fac-
Based on the lessons learned from the already
tors are (using the table below):
existing SDP in Latin America, a number of key
success factors have been identified. It is import- êê In place
ant to reflect on these factors as they need to be êê Not in place but likely to be realized by
in place to make the ASDP successful. Some of ASDP
the factors might not be in place, but could be êê Not in place and not likely to be created
influenced by the ASDP stakeholders.
Learning materials
Objectives • PPT 3, sufficient copies of the case study, flip-
Participants know the key success factors that charts, markers, masking tape.
are required for an ASDP to be successful. Training tips
Learning methodology and process • In case one or more key-success factors are
not in place, the facilitator might ask partici-
• The facilitator presents the success factors pants what according to the participants, are
(PPT 3) and asks whether participants can the implications for the ASDP, whether and
think of any other factors that need to be in how these factors could be influenced.
place for an ASDP to be successful.
• The facilitator distributes copies of the case Timing:
study soy bean sub-sector in Kenya and asks • 1.5 hour
participants to read the case (2 pages).

. 13 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Key success factor In place Not fully in place

Likely to be realized Not likely to be


through ASDP created

ASDP should be in line with


national and regional policies

Availability of markets in the


form of committed off-takers

The availability of potential


and committed suppliers

Collaboration with and


integration of projects
and/or other service suppliers

A supporting and applied


information system

The availability of skilled consultants


to support the supply chain projects

Commitment of the financial


sector to develop suitable
financial products

Public funding for


financing the programme

Profitability and profit margin within


the supply chain

Other…

• Ask groups to present their tables in plenary


• Allow for questions and discussion

. 14 .
Training sessions

Case study 1:
Soy bean supply chain in Kenya
Current agricultural context as a business. The role of government and gov-
ernment agencies is to provide extension ser-
Agriculture is key in the national economy of
vices, invest in inputs and group formation. They
Kenya. It directly contributes 26% of Kenya’s
furthermore develop policies and commodity
GDP and another 25% indirectly. 65% of Kenya’s
strategies and invest in research. However the
export consists in agricultural products and as
capacity is limited and not always efficient. Also
high as 70% of the rural population earns an (in-
off-takers are not always committed to support
formal) income through agriculture. The sector
government implementation on the ground.
is mostly run by small scale farmers of 0.2-3 ha.
Together they produce 75% of all agri-output Soya supply chain characteristics
and 70% of marketed produce. Small-scale farm-
ers produce over 70% of maize, 65 % of coffee, Soya production in Kenya is still small. It is
50 % of tea, 80 % of milk, 85 % of fish, and 70 % mainly produced in Western Kenya in arid and
of beef and related products. An important role semi-arid areas. The current production is about
in linking farmers to markets is played by coop- 2,000 MT per year while the demand for soya is
eratives. about 150,000 MT. Soya is produced by small
scale farmers (app. 5,000), mainly female, who
In 2003 the new government adapted the Eco- also grow maize. The existing association of soy
nomic Recovery Strategy (ERS) for Wealth and growers (Nigouri) does not function well and
Employment Creation: a new strategy and pol- thus farmers are generally loosely organized.
icies that abandoned the policy on poverty re- Farmers sell to agents who then sell to users.
duction and adopted economic recovery. The Soya is used for edible oil production (10%),
ERS was followed up in 2007 with Vision 2030. food production (Promasidor, Say Afric, Farmer’s
This vision was translated into the Agricultural Choice, Proctor and Allan, Delemere, Alpa Fine
Sector Development Strategy (ASDS). Besides Food, Heritage Foods and Intsa Products) and
ensuring food and nutritional security for all the rest is mainly used by milling companies
Kenyans, the strategy aims at generating high- producing animal feed for cattle and chicken
er incomes as well as employment, especially in (e.g. Unga Feeds, MCK Feeds, Sigma Feeds, Uni-
the rural areas. Agriculture should be one of the feed and Lakefeeds) (UNIDO, 2010). Overall pro-
main drivers for economic growth. The ASDS de- duction is increasing slowly, but the demand is
scribes all intended government interventions growing much faster, particularly for animal feed
in the agri-sector comprising smallholder crops uses. The feed industry now heavily relies on im-
producers. The current strategy to lift up the ag- ported ingredients (soya and sorghum).
ricultural sector in Kenya is to approach farming

. 15 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Constraints in soy supply chains • Farmers operate at small scale and are not or-
ganized in groups.
Kenyan farmers do not produce soya on a large
scale. Despite this, it could be a good cash crop
• Post-harvest services hardly exist.
in certain areas. There are several reasons for the • Farmers have a lack of credits.
low production: • There is little value chain coordination and
vertical linkages in the chain.
• Soya is not a food crop and is considered less
• The soy sector is facing competition with
important than maize by many farmers.
cheap imported edible oil and seedcake.
• There is lack of good inputs for producing
soya. Except for some research organisations Several projects have been set up over the years
looking into seeds supply, there is no high to improve production (for instance the N2 Afri-
quality seeds, let alone hybrid seeds. Off-tak- ca project focused on seeds supply, funded by
ers do not supply seeds because they have the Bill and Melinda Gates Foundation). Most of
bad experiences with farmers not selling their them failed because of a lack of coordination
crops after harvest (side selling). Also inocu- and a comprehensive sector strategy in which
lums and fertilizers are not supplied. all key stakeholders participate. This is different
• Soy farmers hardly receive public support, in Uganda where farmers do receive public sup-
such as extension, access to inputs or invest- port and where group production is taking off.
ments in infrastructure. The Ministry of Ag-
riculture is however finalizing a strategy for
Opportunities in soy bean supply
soya bean production and marketing which chains
is almost ready. There are, on the other hand, good opportuni-
• Good agricultural practices are not widely ties for Kenyan suppliers to expand production:
spread resulting in a productivity of just 400 • Soya is a good rotational crop for maize. In
kg/ha (as compared to 800 kg/ha in Uganda addition, since there are maize viruses now, it
and 1,200 kg/ha in India). may be a good alternative.
• Current production costs for farmers are esti- • Soya grows well in the short rain season.
mated to be 35 KES/kg while sales price is 45
• There is a growing demand for soya products
KES/kg.
(human food and animal feed).
• Sales prices (and thus margins) are low be-
• Industries want to replace imported soy prod-
cause Kenyan farmers compete with import-
ucts with locally sourced ingredients.
ed soya (70 KES/kg).
• Opportunities for increasing productivity
• Low sales prices make other farm crops more
through improved production practices, and
interesting for farmers, particularly because
the use of high-yielding and dual purpose va-
soya productivity is very low in Kenya.
rieties.

. 16 .
Training sessions

• Research capacity is available: Kenya Agri- rently SNV is carrying out a fodder study for ex-
cultural Research Institute (KARI), Industrial ploring opportunities.
Research and Development Institute, Interna-
tional Institute of Tropical Agriculture, Tropical There is an increasing market for soya. The de-
Soil Biology and Fertility institute. mand comes both from the milling and feed in-
dustry (for instance Unga Mills, Farmers choice)
UNIDO is currently implementing a soya pro- as well as the edible oil industry (human food). A
gramme in West Kenya that aims to improve big oil processor is BIDCO. BIDCO needs a mini-
productivity of soya. It has already set up 3 mi- mum of 100 MT of high protein soya per day for
cro-plants for processing and is developing the producing edible oil. Current capacity is a total
2nd phase of the soy programme. The first phase volume of app. 15.000 MT (requiring app. 30,000
was funded by Japan and focused on Food Se- ha and 30,000 farmers), but if more is available
curity. In this programme the soya was sold to BIDCO will increase its capacity. BIDCO is trying
the Red Cross. From next year on (2nd phase) it to source soya locally. In this regard it provides
is planning to work with inputs suppliers (MEA extension training, demonstration plots and ac-
ltd for inoculants and SeedCo for seeds). It will cess to finance by local banks. It does not want
provide technical assistance (on GAP), it will help to intervene in seed supply (anymore) because
in bulking and post-harvest technology, pro- of side selling risks. The planning for 2012 was to
cessing (small processing plants), group forma- source 6,000 MT through the Kenya Soy Farm-
tion and finance. This programme should have a ers Association (KeSoFA), but only 200 MT was
regional focus. In addition, the East African Dairy delivered mainly due to the lack of seeds and
Programme (EADP) together with SNV have an support on Good Agricultural Practices, organi-
interest in linking farmers to the feed industry zation, awareness, finance, infrastructure and a
in order to provide good quality inputs for the clear sector policy.
dairy industry (see also the dairy section). Cur-

. 17 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Session 4
What’s in it for…World Café

As part of its mandate, UNDP AFIM, has devel-


Set the oped the African Agribusiness Supplier Devel-
CONTEXT
Cr pita E opment Programme (ASDP) with the intention
ho SPA

ea b
DI colle are

of supporting UNDP Country Offices (COs) in


OV ive

s
IES

te le
Sh
SC ct
ER

Sub-Saharan Africa and their respective govern-


C

the ment partners to develop and establish national


World Café ASDPs. It is important that the benefits for the
that mTIONS
atter
QUES lore

different stakeholder groups are clear to partic-


principles for
for in

Exp
toge hts
LISTE

ipants.
hosting
ther
sig

conversation
that matter e
Objective
Con rag
d
nec cou ne’s NS After this session, participants are able to explain
PER ivers t En ryo TIO
SPE e
CTI eve RIBU what are the benefits of an ASDP for each of its
VES NT
CO major stakeholders.

Source: http://www.theworldcafe.com.
Learning methodology and process
World Café
Content of the module
The core mandate for UNDP AFIM is to engage
• The facilitator asks the participants to men-
tion the major stakeholders categories in an
the private sector to work towards reducing pov-
agribusiness supply chain. Broadly there are 4
erty and accelerating progress towards achiev-
categories of supply chain actors, 2 enabling
ing the Millennium Development Goals (MDG’s)
organizations and an implementing organiza-
by supporting pro-poor economic growth and
tion:
Inclusive Market Development (IMD) across
Sub-Saharan Africa. IMD focuses on developing êê Small suppliers (producers)
private sector markets to make them more in- êê SMEs
clusive of and beneficial to low income groups êê Off-takers
such as producers, consumers and employees. êê Service providers
Specifically, AFIM’s IMD initiative seeks to em- êê Government
power small enterprises, producers and distribu-
êê UNDP CO
tors to participate in and benefit from the exist-
ing potential markets in which they do business.
êê Implementing partner
• Participants will be divided on 4 different ta-
bles (6-7 persons) which will be facilitated by
one table host to be selected at each table.
Every table will focus on one specific ques-
tion:

. 18 .
Training sessions

Table 1: What are the major constraints/ • It is not necessary for all people to spend time
opportunities smallholder producers are at each table because after a few rounds (typ-
facing in accessing markets? What are the ically 2 or 3, depending on the time allocated)
possible benefits of an ASDP for smallholder the session closes with a debriefing.
suppliers? • The host of each table presents a synthesis and
key reflection points to the entire group of par-
Table 2: What are the major constraints/ ticipants either from the table itself, or back in
opportunities SMEs are facing in accessing plenary, whichever makes sense for the room
markets? What are the possible benefits of an set-up and size.
ASDP for SMEs?
• Allow time for the other participants to add in-
Table 3: What are the major constraints/ teresting points or further lessons learned after
opportunities off-takers are facing in sourcing the debriefing by table hosts.
locally? What are the possible benefits of an • Presentation and plenary discussion.
ASDP for off-takers? • PowerPoint presentation.

Table 4: What are the possible benefits of an Training tips


ASDP for governments? • This session can be regarded as the direct fol-
• Cover the tables with flip-charts or brown pa- low-up of session 2, but can also be considered
per. Participants should be constantly encour- as stand-alone session.
aged to take notes, doodle or create diagrams • In the plenary session, the facilitator can ask
directly on the table. The table host in particular what other intervention approaches / mecha-
should be instructed to keep track of key ideas. nisms participants know to support smallhold-
• Instruct the participants to focus on key points er farmers’ economic development? (possible
that relate to the questions and to contribute answers include: Local Economic Development
their own thoughts and ideas regularly. They (LED), pro-poor value chain development, Mar-
should also listen actively for interesting con- kets for the Poor, Sub-Sector development
nections, patterns or additional questions. projects, etc.).
• Each round of conversation should last approx- • What are the advantages/disadvantages of a
imately 15 minutes. All of the participants ex- Supplier Development Programme compared
cept for the host should move to the next table. to the other approaches?
• The host provides an overview of the previous Learning materials
discussion for the next group and steer them
• 4 tables with chairs
towards complementary thought processes in
order to avoid repetition. • Flipcharts, markers on each table
• Masking tape
• PPT 4

Timing:
• 1.5 hours

. 19 .
Block B
Stakeholders’ roles
and responsibilities

B
Session 5
Stakeholders’ roles and
responsibilities in an ASDP

. 20 .
Training sessions

Session 5
Stakeholders’ roles and
responsibilities in an ASDP

Content of the module • Each group is asked to attribute each card


(function) to one stakeholder.
Key in an SDP sub-sector/supply chain project
• Once cards are finished, participants are asked
is the triangular relations and interactions be-
to add functions and write these on empty
tween suppliers (farmers/SME suppliers), lead
cards.
firms and service providers (including Govern-
ment agencies and NGO/IO support). They are • If functions are not clear, ask groups to discuss
and clarify the functions.

B
based on equality principles, yet the starting
point for an SDP is an output driven approach, • The facilitator presents PPT 5 in plenary and
based on the demand for agricultural supply by asks participants to comment (in case they
off-takers. In other words, there should be first came to other conclusions).
of all the full commitment from a lead firm. In Training tips
this session, participants reflect on the roles and
responsibilities of the major stakeholders, i.e. • The implementing partner and supply chain
broker or facilitator are very important in the
• Small suppliers (producers) and SMEs implementation of the programme. In the fol-
• Off-takers lowing session the role of the broker will be
• Service providers discussed.
• Implementing partner • Group discussion could continue for app. 45
• Government minutes. It is not necessary that each group
• UNDP CO discusses each card (time is probably too lim-
ited).
Objective
Participants know the stakeholders in an ASDP Learning materials
and understand their roles and responsibilities. • Sets of cards according to the number of
groups. These cards need to be printed and
Learning methodology and process cut before the training.
• The facilitator explains who the main actors • Markers
in setting up and implementing an ASDP are. • PPT 5
• Participants are divided in groups of 6. Timing
• Each group is given a set of cards with func-
tions. • 1.5 hour

. 21 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Get organized / form groups Improve production methods (GAP)

Commit to and honour contract


Supply quality products
obligations

Communicate and exchange constant


Invest time and capital in improving
information with the off- taker
business and supply
about production

Commit to the SDP programme on a medium Guarantee markets by setting up fair and
to long term basis sustainable purchasing contracts

Communicate with suppliers about quality


Provide market intelligence information
requirements, volume, on time delivery etc.

Provide constant training on Good


Help accessing quality inputs and logistics
Agricultural Practices (GAP)

Support access to finance (pre-finance,


Pay in time trade finance, equity
investments in hardware)

Develop programme systems, including an Monitor the implementation of supply


information system chain projects

Ensure that the contractual agreements


are fair and that the interests of the Overall monitoring and evaluation
suppliers are protected

Creating a technical assistance base


Reporting of consultants and
committed programme partners

Ensure that the environment is protected Training

. 22 .
Training sessions

Align the country ASDP with national and


Involving and committing off-takers
regional ambitions and programmes

Involve NGO partners and existing


Attracting donor funding local private sector service
providers for farm support

Involving finance organizations, including Monitoring progress and integrating


commercial banks learning

Provide (improved) services Provide advise related to GAP

Provide quality agricultural inputs Standardization

Certification Finance

Group formation Organizational strengthening

Participating in discussions Providing data

Accessing the right people and other (semi-) Research finance options (own budget /
public and private organizations for support negotiating with others)

Invest in public goods (infrastructure, water, Improving and implementing public


electricity etc.) services and policies

Creating an enabling environment for


agribusiness supply development

. 23 .
Block C
Phases of an ASDP

Session 6

C
Feasibility: Shortlisting Sub-sectors

Session 7
A. Supply Chain Diagnostics
B. Chain Analysis from a Gender Perspective

Session 8
Supply Chain Planning

Session 9
Supply Chain Implementation

Session 10
Phasing out

Session 11
Monitoring and Evaluation and Learning

. 24 .
Training sessions

Session 6
Feasibility and Programme Preparation

Content of the module, Objective


learning topic Participants know the criteria for the selection of
Once there is genuine interest for and ASDP in suitable supply chains for an SDP and are able to
a country, the next step is to identify and select apply the criteria. Participants are also aware of
commodity sub-sectors. The underlying princi- all steps for preparing an ASDP.
ple of the SDP is to contribute to poverty alle-
viation and this is therefore the most important Learning methodology and process
selection criteria. • The facilitator asks participants to list criteria

C
for selecting commodity sectors (in groups of
The selection process starts with doing a desk 6)
review and study on which agro-value chains • Describe these criteria: what, how and why?
offer the most prospects for poverty alleviation. • Rank the criteria: indicate the most important
Such a quick review should include the follow- criteria
ing elements: • Name 4 commodities with potential for de-
veloping an ASDP
1. The sub-sector’s contribution to incomes
• Ask groups to come up with a conclusion on
2. The number of people and companies in- the suitability of the respective value chains.
volved in producing, processing and market-
• A short plenary discussion on the suitability:
ing
the facilitator asks why participants think a
3. The domestic market potential (interest of specific sector is suitable or not (highlighting
off-takers/Lead Firms) the major reasons)
4. Its relevance to food security • Ask participants whether there are other crite-
5. The number and names of potential interest- ria that can be used for selecting sub-sectors.
ed lead firms • A quick round of answers in plenary
6. The comparative advantage of the sector • In plenary: ask participants whether the crite-
7. An analysis of general business and policy en- ria in the PPT overlap with their own criteria.
vironment for this specific chain Would the commodity still qualify?
• Finalize the session with a short presentation
In this session, participants are asked to assess
on Programme Preparation
the suitability of an ASDP for specific sub-sectors
(proposed by the participants themselves). The
session ends with a presentation on Programme
preparation.

. 25 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Training tips • Criteria that related to economic growth


The facilitator can refer to chapter 4 of the Tool- • Environmental criteria
kit. There are tools that could be referred to Learning materials
during the selection process, including:
• Flipcharts, markers, masking tape
• Elements for a quick review • PPT presentation
• Factors that indicate the importance of a mar-
ket for the poor Timing
• Pro-poor assessment criteria (UNIDO) • 1 hour

Weight Criteria Score for each value chain (1 to 5)


%
Value Value Value
chain 1 chain 2 Chain ...
Fits the country’s Strategy for poverty
Poverty reduction, X

reduction

Potential for employment generation

Number of Small producers in the Sub-sector

Required investments

Entry-barrier Levels for poor agro-processors

Geographical Location of producers

Sub-total (A)

Poverty impact μ =(X x A) /100

. 26 .
Training sessions
Economic growth potential, Y

Contribution to GDP - export earnings

Potential for domestic/international demand

Public and Private investment prospects

Potential for Market integration of Local SMEs

Promotion of Policy changes

Scaling-up potential

Sub-total (B)

Economic growth impact α = (Y x B) /100


Pragmatic aspects, Z

Market demand

Extent of value added potential

Production costs in comparison to


competitors

Available resources and number of operators

Availabili of raw materials and other inputs

Sub-total (C)

Pragmatic aspects β = (Z x C) / 100

Total score (A + B + C)
Total score based on weight (μ + α + β)
Source: UNDP, 2010A

. 27 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Session 7
A. Supply chain diagnostics

Content of the module During this exercise, participants are asked to


map a value chain and identify bottlenecks and
Once a sub-sector is selected, a more thorough
opportunities by answering the 4 questions,
analysis is conducted to identify the constraints
without going too much into detail.
and opportunities in the development of local
supply to a Lead firm. The objective of this stage Learning topic
is to assess the supply chain of each identified
focal commodity and to look at the constraints Supply chain analysis
along that value chain and what has created
barriers for the smallholder farmers of the com-
Objective
modity and the SMEs from engaging in com- Participants are able to engage in supply chain
mercial activities and supplying to higher value diagnostics around selected commodities/
markets. Herein also Lead Firms’ needs are iden- sub-sectors and identify constraints and oppor-
tified so as to identify the supply gap from both tunities.
the demand and supply side.
Learning methodology and process
The process for mapping a chain includes the
Group work: supply chain diagnostic.
following steps (KIT Value chain training 2008):
• The facilitator starts with a short presentation
1. Description of the different functions and on value chains.
technical operations in a chain: functional
• Participants are asked to read case study 2:
analysis;
Dairy supply chain in Nigeria and to do a val-
2. Specification of the main actors in the chain ue chain diagnostics, by answering the fol-
and their relations: describe relations be- lowing questions:
tween actors (loose or tight relations? Short
1. What are the different functions and
term or long term relations? Who is in charge
technical operations in the selected value
of decision making?);
chain (functional analysis) (list)
3. Drawing the chain map, including available
2. Who are the main actors in the chain
quantitative data; and
what are their relations (list)
4. Analysis of bottlenecks and opportunities in
3. Drawing the chain map
the chain with regards to technical issues,
• Identification and analysis of bottlenecks in
organizational issues as well as access to ser-
the chain with regards to technical issues,
vices.
organizational issues as well as access to ser-
vices.

. 28 .
Training Sessions

Training sessions

Case study 2:
Dairy supply chain
in Nigeria
• The facilitator asks each group to present
their value chain map and constraints and Agricultural context in Nigeria
opportunities identified. In the sixties Nigeria used to be an important
exporter of several agricultural commodities
Training tips (groundnuts, palm oil, cocoa, cotton) but due
• The case studies are not providing all in- to a focus on oil and to political unrest, invest-
formation: groups can make assumptions ments in agriculture declined. As a result Nige-
related to the chain functions and actors ria is now one of the largest importers world-
(making the case a bit fictive). wide of wheat, rice, sugar and fish. Despite this
• The facilitator can also decide to use both and the relative importance of the oil industry,
case study 1 and 2 for this exercise. the agricultural sector is still app. 1/3 of Ni-
• The facilitator can decide to have presen- geria’s GDP and, consequently, an important
tations after a certain step or to finalise source of income for many Nigerians. To date
group work first and then have plenary the main challenges in agriculture are the scale
presentations and discussions on the final of farming, the little production and marketing
results. knowledge and capacity, and little developed
infrastructure. Access to finance is also a major
Learning materials issue. Youth are not interested in farming and
• Flipcharts, markers, coloured cards, mask- tend to move to urban areas.
ing tape
• PPT 7A At the processing side there are little outlets
that want to invest back in the value chain.
Timing Also this is caused to a large extent by a lack of
• 2 hours finance as well as little comparable advantages
(i.e. high cost and low quality) of local produce.
Scattered value chains and weak value chain
linkages between lead firms, processors and
farmers are not helping the growth of value
chains either. Finally, the country, particularly
in the Northern states, still suffers from ethnic
and religious tensions that cause an insecure
situation for business as well as support staff.

. 29 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

The Agricultural Transformation


Nigeria Dairy sub-sector:
Agenda
facts and figures
Since the elections of 2007 the country has
GDP share 4%
adopted a clear vision of reform that includes
Number 15 million (1990),mostly Bunaji a diversification of the economy, including the
cattle cattle agricultural sector. This vision is widely known
Region Mostly Central and Northern as Agricultural Transformation Agenda (ATA) and
states aims “to achieve a hunger-free Nigeria through
Milk 0,5-2 litres per day (can go up an agricultural sector that drives income growth,
productivity to 10) or 469,000 MT total per accelerates achievement of food and nutritional
year (ambition 1,1 million MT) security, generates employment and transforms
Cattle farmers 12 million (mostly pastoralists) Nigeria into a leading player in global food mar-
A small number of peri-urban kets to grow wealth for millions of farmers”. Key
cattle producers exists as well to the Programme is treating agriculture not as a
as commercial cattle with dairy development project, but as a business. As such
processing plants with exotic there is much synergy with other ministries, in-
breeds cluding the Ministry of Trade and the Ministry of
Gender Caring (men), Finance, as well as with the Central Bank.
Milking (women) Key sectors of the ATA are larger commodities
SMEs Some cooperative including cassava, rice and sorghum, but also
collection points horticulture, livestock (including dairy) and
Industry 3% of fresh milk is processed aquaculture are included. Large sums of pub-
by industry (Friesland lic money have been made available and more
Campina/WAMCO) funding is expected through organizations like
Total market 1,5 million litres per year (70% the World Bank and the African Development
imported powder) Bank. This is to a large extent allocated for infra-
structure (irrigation, mechanization, processing,
storage, roads) around 6 processing zones that
have already been selected.

. 30 .
Training sessions

The dairy sub-sector Milk collection centres that serve as farm coop-
eratives are seen as an important mechanisms
Since 1954 import restrictions were lifted and
to organize dairy chains. The government will
competition with imported milk powder ham-
invest in the required infrastructure.
pered the industry’s development. This changed
in 1988 with the Structural Adjustment Pro- Most farmers are small scale pastoralists that mi-
gramme that supported local industries over grate with their livestock. Key constraints at this
imported goods. Dairy is not an easy sector to level of the supply chain are:
develop because of pastoralists smallholders
not being used to farming as a business. Farm-
• Unorganized fresh milk collection, processing
and marketing, amongst others due to pasto-
ers in different areas react differently to market
ralist system;
development activities. As a result costs are high
and there is a high level of inefficiency which • Poor productivity of cows: due to poor nutri-
makes dairy not competitive with imported tion of lactating cows;
powder. High level investments and long term • Lack of fresh water;
investments are required in order to change this • Lack of capacity and skills in dairy farm man-
sector from subsistence to commercial farming agement : no services, poor food safety stan-
dards, diseases;
As part of the ATA the Ministry of Agriculture has • Lack of clear policy, amongst others on land
developed the Dairy Transformation Agenda rights;
(2011). Goals are to increase annual production • No access to longer term finance (investing in
to 1,1 million MT per year in 2015 and to increase a cow takes 3 years before returns).
income to 285 million USD for 12 million farm-
ers. There are also opportunities for developing the
dairy sector:
Objectives are: • Good climate in Central and Northern states;
• Increase productivity through improved or- • Generally healthy animals;
ganization (clusters), production technology, • Available land;
feed, improved breeds, animal health care • Culture of dairy production and consump-
and extension services; tion;
• Organize producers in 17 states in producers • Old processing plants available for revitaliza-
cooperative associations; tion;
• Support to SMEs (semi urban dairy farms); • Fodder crops can be grown;
• Improve dairy (social) marketing; • Growing demand urban middle classes;
• Restrictions on dairy import; • Potential investors in processing (yoghurts
• Link demand to a better production, supply etc.).
chains, policies and advocacy with end-users;
• Strengthening of the National Dairy Develop-
ment and Marketing Commission.

. 31 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

SMEs Campina has committed itself to buying the


milk, the state to investing in infrastructure sup-
In the past, dairy enterprises have tried to de-
porting local sourcing practices of Friesland
velop. They failed particularly because of a lack
Campina, and IFDC to supporting farmers. To
of sufficient inputs. In addition their scale was
fulfill its part of the agreement, Friesland Campi-
not cost effective. There are some SME suppliers
na has established Milk Collection Centers in
left, for instance the Shonga Farms that produce
2 states (Oyo and Kwara) and plans to expand
80% to Friesland Campina, see below. Shonga
to Abuja soon. The programme eventually will
Farms has 5 farmers with a combined capacity
reach out to 5 more states. The Mueller compa-
for producing an excess of 8.700 litres of raw
ny provides the equipment. Total investment of
milk per day. They also collect milk from local
Friesland Campina lies in the range of USD 3 mil-
herders and with technical support from IFDC
lion for 40 collection point structures, USD 3 mil-
ensure that the milk is the right quality. The chal-
lion for equipment and USD 2 million extra for
lenge is to deliver the right quality and quantity
Abuja. The Dutch government (DGIS) funds part
for the market.
of the programme (see IFDC). Currently Friesland
Lead firm constraints and needs in Campina sources from 3,500 farmers, eventually
this needs to expand to 20,000 farmers.
local supply
Friesland Campina/WAMCO is the biggest of a The challenge is to achieve transparency in the
very few players in the dairy industry in Nigeria chain. The farm to fork approach that is imple-
that sources fresh local milk. Other (potential) mented by Friesland Campina is needed to di-
lead firms and SMEs are Nestle, Olam, L&Z , GAR- minish health safety risks. Finding suppliers that
KO, Naigari farm, Mazuibe farm, and Farm Fresh. fulfil all quality requirements is difficult. Extra
support is particularly needed in:
In agreement with the government, Friesland
• Advocacy for investments in infrastructure,
Campina started to source 10% of the dairy in-
amongst others for access to drinking water
puts locally. Friesland Campina will need 15,000
– 20,000 litres per day by 2016. A Memorandum
• The organization of (more) farmers
of Understanding between Friesland Campina, • Policy development on land governance
the state and IFDC was signed with the aim to • Learning from practice, monitoring and dis-
set up the Nigerian Dairy Programme. Friesland semination

. 32 .
Training sessions

Session 7
B. Chain analysis from a gender perspective

Content of the module Gender mapping has the following objectives:


Before intervening, it is important to have a • To gain a gender-sensitive picture of the value
clear understanding of the supply chain. But it chain, the actors involved and the percentag-
is equally important to understand livelihoods es of men and women in each segment.
systems and gender issues to better target the • To gain insight into the differences between
activities. For example, if a SDP targets the maize men and women in terms of their activities,
supply chain, it is important to understand the and their access to and control over resources.
importance of maize in a livelihood: is it mainly • To identify opportunities for women to up-
a food crop, and are only surpluses sold, or is it grade their position.
already a cash crop? What happens to the food • To identify constraints and opportunities for
security of farmer families if maize is becoming women to participate in the value chain as
a cash crop? And who is responsible for what well as analyse differences in power in the
activity related to maize production, processing value chain governance.
and marketing within a household. And is this
In the previous session, participants prepared
likely to change once a SDP comes in? Equally
a value chain map and identified opportunities
important is to understand the possible impact
and constraints. In this session, groups will revisit
of an intervention on the environment. If any
their results and reflect on the gender aspects.
harmful impacts can be expected, the SDP will
not be sustainable. This session on gender map- Objective
ping focuses on understanding gender dimen-
sions of a supply chain and addressing them in To raise awareness of the different stakeholders
the design of the SDP. that they act in a complex system with mutual
influences that can be positive or negative.
It is important to understand gender issues
in a value chain at various levels, enabling the
underlying causes to be identified and suitable
interventions to be understood and if required
addressed in the design of the SDP. Gender
mapping aims to make women more visible
when mapping a value chain. Although wom-
en participate in most agricultural value chains,
they tend to be invisible.

. 33 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Learning methodology and process Training tips


• In the previous session, participants prepared • The facilitator should explain that it is import-
a value chain map and identified opportuni- ant to understand livelihood systems, gender
ties and constraints. The facilitator asks the issues and environmental issues related to the
groups whether they distinguished between supply chain. Only if these aspects are taken
men and women while doing the mapping into account a sustainable supply chain could
exercise and whether men and women are be developed.
visible in the map. • In the toolkit, more gender sensitive analytical
• The facilitator asks the groups to revisit their tools are provided that could be used in this
supply chain map following the next steps: exercise.
êê Make invisible women stakeholders visible: • In any case, the facilitator needs to refer par-
women who are (probably) not mapped ticipants to these tools.
in the first supply chain mapping because
Learning materials
they are not considered owners of the
business, such as wives or daughters in the • Flipcharts, markers, coloured cards, masking
family business, or women labourers. You tape
can do this by putting coloured cards on • PPT 7B
the actor mapping.
Timing
êê Activity mapping: identify which activities
in the value chain are done by men, and • 1 hour
which by women. Give special emphasis Reference
to activities that generate value or improve
quality: these may be key to identifying op- KIT, Agri-ProFocus and IIRR. 2012. Challenging
portunities for empowering women. chains to change: Gender equity in agricultural
value chain development. KIT Publishers, Royal
êê Identify opportunities and constraints for Tropical Institute, Amsterdam.
women. Analyse the constraints that ham-
per the competitiveness of women and
restrict their inclusion in the value chain.
What can reduce these potential limita-
tions? And what are the opportunities for
economic empowerment of women?
• Plenary presentations and discussion by the
groups.
• Bring to the table the fact that a similar ap-
proach can be used to do a youth mapping of
the supply chain.

. 34 .
Training sessions

Session 8
Supply chain planning

Content of the module 3. Facilitating linkages (selection of upgrading


strategy and business models, contracting,
For developing Supply Chains, strategies need
etc.)
to be developed and translated into practi-
cal supply chain implementation plans which, 4. Policy Advice (creating an enabling environ-
before starting implementation, need to be ment: favourable policies and investment cli-
agreed upon by all stakeholders and involve mate, market regulation, taxation, etc.)
implementing partners through a partnership Objective
agreement. So the objective of this phase is to
Participants understand the ASDP 4 key-func-
develop and formally agree upon a supply chain
tions to develop a supply chain.
development plan.

The Supply chain planning phase consists in the Learning methodology and process
following activities: • The facilitator presents the 4 ASDP Key func-
• Selecting strategies and business models. tion (see PPT).
• Developing implementation plans includ- • Based on the results of the Supply Chain Di-
ing interventions, timing, responsibilities, agnostic exercise (constraints and opportu-
required extra investments and milestones nities), participants (in the same sub-groups)
through a validation workshop with Lead are asked to identify actions that could be ini-
Firms, selected suppliers and other support tiated to enhance the supply chain, i.e. to en-
organization. sure markets for smallholders and to ensure
• Setting up and signing chain partnership supply to Lead Firms.
agreements aiming at setting up/improving • Participants write the options on cards (one
supply chain relations. option per card).
• Participants regroup the actions according to
In this session, participants will reflect on the the 4 ASDP key functions.
functions of an ASDP based on their own cases.
• Each group prepares an “action thermometer”
Four ASDP key functions are distinguished:
on a flipchart (see PPT) by sticking the cards
1. Organizing support for suppliers: e.g. access on the flipchart according to the activities,
to inputs, advisory services on GAP, access to starting on line 1 at each key function.
finance, organization of producers, manage-
ment training, Business Development Ser-
vices, etc.
2. Sharing supply chain information throughout
the chain (market information, etc.)

. 35 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

• Plenary reflection and discussion. The group • What, according to participants is the priority
results provide information on the priority key function in their country.
function: more cards in a certain key function
make it a “hot issue”. Few cards imply less pri-
Learning materials
ority for a certain key-function. • Flipcharts, coloured cards, markers, masking
tape,
Training tips • PowerPoint slides
• Make sure the groups do not ignore the re-
sults of their gender analysis! Timing
• The facilitator can ask what activities might be • 1.5 hour
required under which conditions. For example:
if farmers are not organized and production
levels and quality are relatively low, “organiz-
ing support to farmers” will be a first priority. In
the case that agricultural production is up to
standards, but farmers have problems estab-
lishing linkages with other stakeholders such
as processors or traders, “facilitating linkages”
might become more important.

10
9
8
7
6
5
4
3
2
1
0
Organizing Sharing Facilitating Policy
support information linkages advice

. 36 .
Training sessions

Session 9
Supply chain planning

Content of the module Learning methodology and process


The objective of this phase is to successfully • The facilitator asks participants to read the
implement all identified interventions that are case (15 minutes).
needed to improve supply in the respective • In groups, participants are asked to identify
supply chains. During a period of approximately actions in the case study that were initiated to
four production seasons the suppliers, togeth- enhance the supply chain (similar to the pre-
er with key partners (NGO programmes, public vious sessions).
and finance service providers etc.), improve pro- • Participants write the activities on cards (one
duction and productivity, quality management, activity per card).
price, lead time and organizational structures, • Participants regroup the actions according to
while the buyers invest in improving their tech- the 4 ASDP key functions.
nical and financial support towards suppliers, • Each group prepares an “action thermometer”
communication of specifications and regula- on a flipchart (see PPT) by sticking the cards
tions and in-time payments. This should go hand on the flipchart according to the activities,
in hand with additional investments in physical starting on line 1 at, each key function.
hardware and inputs supply, by both suppliers • Plenary reflection and discussion. The group
and buyers. results provide information on the priority key
In this session participants reflect on a case study function: more cards in a certain key function
for a SDP in Sierra Leone. Together they discuss make it a “hot issue”. Few cards imply less pri-
the different activities implemented, but also ority for a certain key-function.
constraints and opportunities that emerged. Training tips
Objective • Make sure the groups do not ignore the re-
sults of their gender analysis!
Participants understand the supply chain activi-
ties implemented in Sierra Leone, and reflect on Learning materials
emerging constraints and opportunities. • Flipcharts, colored cards, markers, masking
tape,
• PowerPoint slides
Timing
• 1.5 hour

. 37 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Case study 3a:


Local sourcing of sorghum in Sierra Leone
(Source: KIT 2012, www.local-sourcing.com)

Starting in Sierra Leone, Heineken saw oppor-


tunities to substitute part of the imported raw Total costs for the five year project in
material by locally produced goods. Together two countries (Ghana & Sierra Leone):
with an NGO, they explored possibilities to build USD 2.897.000
relations with local farmers from whom they
could source sorghum. The drive for Heineken to Of which the following parties
do this was not solely economic, as they could contributed:
also contribute to the livelihood of poor farmers CFC:
and provide them with an income. They started USD 1.527.000 (grant)
over five years ago, and are now in the process SLBL:
of making the sourcing process sustainable on USD 372.000
its own.
Guinness Ghana Breweries:
USD 531.000
Local sourcing of sorghum
Other Counterparts:
Beer consists of several ingredients: water, malt-
USD 647.000 (212.000 for Sierra Leone
ed barley and hops. Malted barley is a raw ma-
and 255.000 for Ghana)
terial that has to be imported, since it does not
grow in Sierra Leone. However, sorghum has po-
tential to partly substitute malted barley and can
be grown locally. Project kick-off in Kambia & Port
Loko (2006)
Steps towards local sourcing of • Approx. 150 farm families were regis-
sorghum tered
The first step for starting to source locally was to • Average farm size was small – 1 hectare
study the feasibility (2005). In 2006 the Common was utilized
Fund for Commodities (CFC), a UN organization • Mixed cropping was mainly practiced
with the aim of promoting commodity trade, which resulted to low yield
became interested in the project. CFC funded • Massive sensitization, training work-
a joint sorghum sourcing project in Ghana and shops & field days areas of production
Sierra Leone together with Heineken and Guin- expanded and the production of sor-
ness (the two major shareholders in both brew- ghum increased tremendously
eries). A five years trajectzory for Sierra Leone, • Construction of two stores in Kambia
leading to a sustainable supply of sorghum was district provided proper storage facili-
designed. The NGO EUCORD (The European Co- ties for communities
operative for Rural Development) was appointed
as the implementing agent.

. 38 .
Training sessions

1. Develop, test and introduce new industrial 3. Training of producer associations and credit
sorghum varieties and technologies groups
In 2005, VANCIL (a consultancy company) The nucleus farmers received workshops.
was hired to manage local implementation They were taught how to calculate costs of
of the supply of sorghum. The SLARI (Sierra investments and profits. They also received
Leonean Agricultural Research Institute) was training on agricultural practices of sorghum
hired to do research on agricultural condi- (how to get the right moisture content, how
tions and suitable varieties of sorghum for to weigh the bags of sorghum, pre-harvest-
the production of beer. Three varieties were ing and pre-planting training). The nucleus
selected by SLARI and VANCIL and tested in farmers then were required to visit farmers
two districts (Kambia and Port Loko). and convince them to join the out-grower
scheme. Out-growers received direct cash for
2. Establishment of rapid-multiplication
the sorghum they delivered to the nucleus
enterprises and collection centres
farmer. If out-growers were in need of cash
In the first two years, it proved difficult to before harvesting, they could request the nu-
get farmers enthusiastic to start with the cleus farmer for pre-financing. They needed
sorghum production. Some reasons were to pay the loan back when they delivered the
that most farmers were engaged in sub- sorghum. The nucleus farmers in term have
sistence farming only. Another reason was access to finance from the bank Finance Si-
that farmers did not trust NGOs. The farmers erra Leone.
that agreed to join and plant sorghum got
4. Development of contract/partnership
direct cash for their produce and were satis-
mechanisms between producers, input
fied. When other farmers took notice the ball
providers, intermediate agents and agro-
started rolling. Quickly the local growing of
processors
sorghum for the brewery took off. In order to
manage growth VANCIL started to identify Contracts between producers, input provid-
nucleus farmers in several districts who then ers, intermediate agents and agro-processors
worked with out-growers. include pricing, quotas, services & inputs and
finance. In the beginning contract/partner-
ship mechanisms were set up between the
farmers, VANCIL and SLBL. From 2012 SLBL
took over all the tasks and services of VANCIL.
This transition meant that the sorghum proj-
ect became a long-term sustainable business
section within the company.

. 39 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

5. Training of input dealers and credit Local Sourcing from smallholders takes time,
providers costs money and requires knowledge on lo-
cal farming: To set up a local sourcing project
All nucleus farmers and some agents and
takes time and costs money. This local sorghum
out-growers received training from VAN-
project took six years to become cumulatively
CIL and SLARI, organized by EUCORD, in-
profitable for SLBL. It involves building trust and
cluding financial training, pre-planting and
managing relationships with several new stake-
pre-harvesting trainings, and farmer field
holders. Especially in a ‘foreign’ setting, this is
school demonstrations. The nucleus farm-
challenging. Through partnering with CFC, SLBL
ers need to pass on their new knowledge to
was able to cover part of the total costs for com-
out-growers. This is also in the interest of the
mitting farmers to sorghum production.
nucleus farmers, since they need high quali-
ty and quantities of sorghum. Use local staff and outsource activities – in order
to build trust with the farmers: Involvement of
Lessons learned local staff and service providers such as Vancil
Win-win situation: Local sourcing for SLBL is a su- and EUCORD to build up relations with the farm-
perb business case for all actors involved. It has ers is extremely important. Hiring local experts
been successful because farmers did not have and development/agricultural experts speeds
sufficient alternative sources of income. The in- up common understanding and communica-
come out of rice was little and thus opportunity tion. Once farmers were convinced by local staff
costs for producing sorghum were low. Growing members to join the sorghum programme, they
sorghum therefore attracted many local produc- saw the benefits. This created a snowball effect:
ers. Simultaneously the costs for using sorghum other farmers wanted to join when they saw
are substantially lower than importing barley their neighbour, family member or friend bene-
and therefore also the company gains by local fitting from local sourcing.
sourcing.

. 40 .
Training sessions

Session 10
Phasing out

Content of the module • The facilitator asks if there are any other cri-
teria.
Phasing-out refers to the gradual withdrawal of
• The facilitator shows the slide with the phas-
resources and involvement. In an ASDP phas-
ing out model showing the four criteria:
ing-out happens at two levels: at supply chain
project level and at the ASDP programme level. êê Sustained capacities
êê Sustained resources
From the time when a supply chain becomes êê Sustained motivation
sustainable, meaning that future supply from
êê Sustained linkages
suppliers to off-takers is assured, external sup-
• The facilitator asks if there are any other crite-
port from that specific supply chain should be
ria that need to be added to the list.
phased out gradually.
• In groups, participants are asked to reflect on
In this exercise, participants reflect on the Sierra the Sierra Leone case and are asked to check
Leone case and make their own assessment on whether the criteria they identified are met.
phasing-out the SDP. • Groups prepare a flipchart with their answers.

Objective Training tips


Participants have reflected on the criteria for If groups think that certain criteria are not met,
phasing out. the facilitator can ask what needs to be done in
order to meet the criteria and make the supply
Learning methodology and process chain sustainable before phasing out.
• The facilitator asks participants to answer the Learning materials
following questions in pairs:
• Flipcharts, markers, masking tape
êê When can a programme phase-out from a
• PowerPoint slides
specific ASDP project?
êê When can an ASDP Programme be closed? Timing
• The facilitator asks the pairs to write down • 1 hour
their answers.
• In plenary, an inventory of answers is made
and the facilitator writes the answers on a flip-
chart.

. 41 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Session 11
Monitoring & Evaluation and learning

Content of the module Objective


There are many reasons why different stakehold- Participants know the M&E framework for an
ers would require M&E. The most common ones ASDP, and in particular its milestones.
include (upward) accountability and operational
management. In M&E for accountability the ob- Learning methodology and process
jective is to justify, often in retrospect, the use • The facilitator explains that an ASDP is difficult
of resources. However, for ASDPs, strategic man- to plan and that continuous monitoring is re-
agement and knowledge generation would be quired. In this exercise, participants are asked
equally important purposes. Learning from ex- to reflect on the following 3 situations (1 per
periences, for the benefit of improving the ASDP group):
itself, but also for the benefit of future initiatives, êê Over production
is central to M&E.
êê Monopoly
In ASDPs there are two levels of êê Power of nucleus farmers
Monitoring and Evaluation: • The facilitator has prepared the case studies
(printing and cutting)
1. The development of the ASDP
• In groups, participants are asked to reflect on
2. The development of supply chains these 3 situations (1 per group) that emerged
In addition, knowledge sharing in a sub-sector in the local sourcing of sorghum in the Sierra
programme like ASDP, is essential because it can Leone case, answering the following ques-
be applied to trigger scaling up lessons learned tions:
and thus to reach wider sustainable develop- êê What are the implications for farmers?
ment. Learning from the ASDP is important êê What are the implications for off-takers?
for all direct stakeholders in the supply chains êê Who is bearing the risk?
(farmers, SME suppliers, off-takers and service
providers), yet also for more indirect stakehold-
êê What solutions would you propose?
ers, namely the national government, the agri-fi- êê How could you prevent a situation like this?
nance banking sector, NGOs, donors etc., who êê What are the related indicators that require
can then replicate lessons learned and increase monitoring?
impact of the programme. In this session, 3 situ-
ations related to the local sourcing of sorghum
in the Sierra Leone case are provided. Partici-
pants will reflect on the situations and discuss
the importance of M&E.

. 42 .
Training sessions

Case study 3b:


Local sourcing of sorghum
in Sierra Leone

(Source: KIT 2012, www.local-sourcing.com)


• Groups present back to plenary. The facil-
itator allows for discussion. 1. Over production: In 2010 too much sorghum
• The facilitator asks participants what is was produced by the farmers.
the importance of M&E. êê What are the implications for farmers?
• The facilitator explains that there are two êê What are the implications for off-takers?
levels of M&E and Learning: the supply êê Who is bearing the risk?
chain level and the ASDP as a whole. The êê What solutions would you propose?
example concerned the supply chain.
êê How could you prevent a situation like this?
• The facilitator reminds participants that
for each phase, milestones are available
êê What are the related indicators that require
monitoring?
(and already presented).
Learning materials
2. In Sierra Leone, an unintended monopoly po-
• Cards with the problem descriptions and
sition of SLBL emerged.
questions, Flipcharts, coloured cards,
markers, masking tape êê What are the implications for farmers?
• PowerPoint slides êê What are the implications for off-takers?
êê Who is bearing the risk?
Timing êê What solutions would you propose?
• 1 hour êê How could you prevent a situation like this?
êê What are the related indicators that require
monitoring?

3. At one point, nucleus farmers lowered the


price paid for sorghum to the out-growers.
êê What are the implications for farmers?
êê What are the implications for off-takers?
êê Who is bearing the risk?
êê What solutions would you propose?
êê How could you prevent a situation like this?
êê What are the related indicators that require
monitoring?

. 43 .
Block D
Action planning / way forward

Session 12

D
Towards an ASDP Roadmap

Session 13
Financing an ASDP

. 44 .
Training sessions

Session 12
Towards an ASDP Road Map

Content of the module During this session, participants start develop-


ing a roadmap for their ASDP. If there are rep-
A first step in designing an ASDP is the develop-
resentatives from more countries participating
ment of a roadmap. An ASDP roadmap provides
in the training, the participants are regrouped
general directions for a more detailed action
according to their countries. During the next
plan. The development of the roadmap is the
session, participants will prepare a budget for
responsibility of the UN Country Office, but can
their ASDP.
be supported by a consultant or other service
providers with expert knowledge on supplier

D
Objective
development programmes. Although there is
no blueprint for a roadmap, a typical roadmap • Participants understand how to develop an
provides the following information: ASDP roadmap.
• Participants have developed a first draft Road-
• Country context (a description of the political
map for their country.
and socio-economic context)
• Sub-sectors : an overview of the selected Learning methodology and process
sub-sectors, facts and figures, main charac- This exercise is based on the assumption that
teristics, important actors, opportunities and potential sub-sectors have already been identi-
constraints, potential for an ASDP. fied in session 6. Based on the selection made,
• An overview of potential partners and stake- participants will develop a roadmap for the de-
holders, including: velopment of an ASDP in their country.
êê Off-takers for the selected sub-sectors • Participants are asked to develop an ASDP
êê An implementing organization roadmap for their respective countries, based
êê Service providers on earlier exercises. They are requested to de-
êê Donors velop the roadmap, following the provided
• Roadmap outline.
• Socio-economic development potential of an • The budget will be prepared in the next ses-
ASDP sion once the roadmaps are prepared.
• Recommended strategic framework : pur-
pose, objectives, activities
• Next steps / action plan
• Risk assessment
• Budget

. 45 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Training tips
• An example from Nigeria is provided (case ASDP Roadmap
study 4)
• If certain information is not available, partici- I. Country context
pants can add the information after the train- A description of the political and
ing. socio-economic context
• The risk assessment is an important part of
this exercise and might need additional at- II. Sub-sectors
tention.
An overview of the selected sub-
Learning materials sectors, facts and figures, main
characteristics, important actors,
• Laptops
opportunities and constraints,
• Case study 4
potential for an ASDP.
• PPT presentation
Timing III. Involved actors
• 2 hour An overview of potential partners
and stakeholders, including:
A. Off-takers for the selected sub-
sectors
B. An implementing organization
C. Service providers
D. Donors
IV. Roadmap
• Development potential of an ASDP
• Recommended strategic framework
purpose, objectives, activities
• Next steps / action plan
• Risk assessment
• Budget

. 46 .
Training sessions

Case study 4a:


Roadmap for a Nigerian ASDP

Development potential of a The expected result of an ASDP would be to


Nigerian ASDP scale-out independent value chain successes to
sectorial level change and as such contribute to
Because companies are ready to invest in food increased income generation, job creation and
markets, the Federal Government of Nigeria is ultimately poverty reduction as well as develop-
very supportive to diversify its economy and ment of the Nigerian economy.
invest in the agricultural sector, and support-
ing institutions are fully ready for a market led Recommended strategic
approach. The key conclusion of the feasibility framework
mission is that it is the right time to develop a
Nigerian ASDP. Projects have already started to The purpose of a Nigerian ASDP is: “... to improve
connect lead firms (markets) to small scale farm the productivity of Nigerian smallholder farmers
suppliers. An ASDP could add value to existing and SME agribusinesses by facilitating support
initiatives by replicating good practices, devel- (training, advice, access to inputs, organization,
oping and disseminating knowledge on lessons standardization etc.) and linking up with off-tak-
learned, and institutionalizing services in the ers. Sustainability and inclusion aspects, espe-
current economic-political system. It would cially women and youth play an important role”.
benefit both off-takers, smallholder farmers,
SMEs as well as the wider economy:

Lead Firms Farmers SMEs Government


Increased quality Secured /increased Secured /increased access Increased private
access to markets to market investments in the
agri sector
Increased volumes Secured /increased Secured /increased Increased tax
income turnovers/sales income
Increased secure Increased productivity Increased (cost) efficiency increased trade
supply (less losses due to higher balance
quality and in-time
delivery)
In time delivery Access to (financial Access to (financial) GDP growth
services /support services support
Cost reductions Increased Food Increased Value added Job creation /
Security employment
Increased flexibility Increased Knowledge/ Increased Knowledge/ Increased poverty
( in local chains) capacity capacity and Food security
Improved policies/ Improved policies/ Improved policies/
government support government support government support

. 47 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Objectives are to: • Organize the provision of services (Good Ag-


• Improve the supply of Nigerian agricultural ricultural Practice training, certification/stan-
products by farmers and SMEs towards mar- dardization of supply, access to value chain
ket quality standards; finance, organizational strengthening, infra-
structure etc.) to supply chain actors;
• Secure and offer lead firms efficient and high
quality agricultural products supply; • Advocate for improving policies in the
sub-sectors;
• Contribute to the development of the Ni-
gerian economy by developing agricultural • Develop and disseminate practical knowl-
products that can substitute imports and can edge in and cross sub-sectors;
access export markets; • Institutionalize the knowledge and services
• Contribute to sustainable development goals, through training and ultimately handing over
especially food security and poverty reduc- responsibilities to a permanent desk.
tion, through job creation and income gen- It is recommended to follow a staged approach
eration. where the programme starts working in 2
ASDP activities within the already existing Trans- sub-sectors and adds another 2-3 sub-sectors
formation Agenda include to: along the course of the programme (see the
graph below). This approach allows the pro-
• Play a facilitating role in linking up lead firms gramme to build up capacity, pilot services of
with smallholders and related support orga- the programme and improve these, and select
nizations (government and non-government) the right sub-sectors that fulfill the selection cri-
in the value chains; teria of both the Nigerian government as well
• Develop supply chain training and build ca- as UNDP.
pacity of a roster of Nigerian supply chain
consultants that are ready to facilitate the de- It is suggested to start the programme in the
velopment of supply chains; tomato and dairy sectors because of the inter-
• Develop and share full information through est of lead firms to expand, the number of small
the supply chain (through tailor made infor- scale farmers, particularly women in the sup-
mation systems) to create value chain trans- ply chains, the potential for SME development
parency at all levels; in processing. Aquaculture has not (yet) been
selected because of the lack of lead firms that
want to invest. Cassava has potential. Additional
research into interested lead firms need to take
place before a decision can be made on the fea-
sibility of this sub-sector for an ASDP.

. 48 .
Training sessions

Time: T=0Y T=1Y T=2Y T=3Y T=4Y T=5Y T=6Y

Sub sector 1: tomato


Preparation Implementation
• Developing sub- Subsector programs
sector plans • Organizing services
Sub sector 2: dairy
• Contracting Part- • Information mgmt
ners • Facilitating sub sector link-
lead firms, farmers ages
Sub sector 3:
• Training materials
• Training Consul-
tants
Sub sector 4:
• Info Systems

M&E and Known development: M&E, developing/implementing knowledge program,


platform facilitation, sector activties(eg. standard development, policy developement)

Involved actors
Implementing partner: with regards to the sus- Potential organizations are:
tainability of the ASDP it is recommended to
establish the programme in an existing national • Bank of Industry (BoI): The BoI is well estab-
service organization. ASDP staff should be work- lished in the private sector;
ing from within such an organization and, de- • Nigerian Association of Chambers of Com-
pending on the feasibility, eventually handing merce, Industry, Mines and Agriculture (NA-
over the services to this organization. Expected CCIMA): This institute is well established and
roles are displayed in the graph below. particularly high-valued by the private sector
as an relatively independent unit;
• Nigeria Incentive-Based Risk-Sharing System
for Agricultural Lending (NIRSAL): This insti-
tute is independent and private. Also it adds
value due to its role in accessing finance from
commercial banks for value chain actors;

. 49 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

• Nigerian Association of Small and Medium In-depth consultations are needed to make a
Enterprises (NASME): This institute is well re- solid decision on this. Decision criteria should
ceived by SMEs and private sector actors; include:
• Community of Agricultural Stakeholders of • ability to attract donor funding;
Nigeria (CASON), part of Nigeria Economic
• acceptability to Lead Firms as collaborators
Summit Group (NESG): CASON already works
for supplier development;
closely with the Federal Ministry of Agricul-
• effective systems and mechanisms for deliv-
ture, as a platform for government engage-
ering ASDP services;
ment with the private sector on agriculture
• ability to respond quickly to client needs;
and agribusiness development.
• being supportive to the overall objective of
sustainable and inclusive development.

Off takers: Provide market,


Communicate/inform, Train on the
job, Pay on time, Access to finance,
Access to quality inputs, Invest
UNDP CO Government

Farmers/Suppliers: Get Service providers: Provide


organized, Improve GAP, Supply (improved) services (GAP, inputs,
quality products, Respect standardization, finance, group
contracts, Communicate, Invest formation etc.)

Implementing partner: Implement


the programme, Monitor interventions,
Challenge, Suggest and innovate linkages,
Derive and share knowledge

. 50 .
Training sessions

Partners on the ground: Depending on the A Steering Committee consisting of UNDP, gov-
sub-sectors the following partners are recom- ernment, private sector and smallholder repre-
mended to start off the sub-sector programmes sentatives as well as donors and other support-
with. ers (for instance UNIDO, Nigerian Export Import
Bank, Bank of Industry or the African Business
Tomato: Lead Firm: Dangote; Farm groups: Round Table) should be established to govern
Kano state; Support organizations: IFCD (farm the programme.
support), UNIDO (infrastructure) and NIRSAL
(credits). The cost items need to be incorporated in the
eventual budget that will need to be prepared
Dairy: Lead Firm: Friesland Campina/WAMCO; for the formal ASDP project document.
Farmer groups: To be consulted; Support or-
ganizations: IFCD and IFAD (farm support) and Donors that were mentioned in the interviews
FMARD (infrastructure). and that need to be approached are:

For both sectors it is important to involve more • Bill & Melinda Gates Foundation, which is al-
lead firms and SMEs. For the M&E and knowl- ready supporting UNDP Nigeria;
edge development component the programme • DFID, which is also active in Nigeria and has a
could work with respected knowledge organi- special interest in trade development;
zations such as the Royal Tropical Institute (KIT) • IFAD, which is already supporting pro-
and/or local knowledge institutes/universities. grammes in Nigeria and is also a potential im-
plementing partner on the ground;
UNDP’s role: UNDP has a facilitating and incu-
• DGIS (Dutch embassy) which is supporting
bating role. It is mostly involved in the design
development through Dutch businesses
and incubation of the programme, collabora-
(Friesland Campina);
tion with the Nigerian government, fund raising
• UN basket funding (UNDP, UNIDO, UNCTAD
and overall coordination.
etc.);
Next to the Federal Ministry of Agriculture • Loans from African Development Bank (Proj-
(FMARD), and in particular the value chain ect Preparation Facility or Middle Income
leaders of dairy and tomato (and the other 2 Countries facility (MIC), Nigeria Export Import
sub-sectors), also the Federal Ministry of Trade Bank and/or Bank of Industry.
and Commerce and the Ministry of Finance will
play a facilitating role. FMARD’s role is providing
(extension) services, investing in infrastructure
and developing accommodating policies.

. 51 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

The Central Management/Coordination Unit Risk matrix for a Nigerian ASDP


would be funded separately from specific im-
plementation programme for which separate Risk Why
funders need to be attracted.
Farmers Many farmers are
Next steps may not be subsistence farmers that
Potential next steps being discussed for devel- committed have different interests
oping an ASDP are to: than lead firms

• Finalize consultations with potential partners


of the programme: lead firms (Nestle, Olam,
etc.), programmes (USAID Markets) and insti-
tutes (NACCIMA, NASME, CASON);
• Commit and involve national government
into the programme by consultations at min-
ister / senior level as well as executive level; Insufficient To date only little lead
• Prepare the project document with support lead firms firms invest in improving
from AFIM and KIT; for scaling- supply
• Start attracting donor funding; out existing
• Nigerian representatives to attend AFIM SDP activities
Roll-Out and Implementation Workshop.
Security In Northern regions
there are safety issues for
visiting people (including
Nigerians)

Finance There are little applied


financial products for
financing investments in
the agricultural sector

Government There is a certain level


image of mistrust by private
sector players with
regards to effectiveness
of governmental policies
including the ATA

. 52 .
Training sessions

Level Mitigation level

• Farmers need to be incorporated in designing the sub-sector programmes from


the start.
• A medium term approach is needed in which sufficient time is scheduled for sen-
sitization and capacity building.
• The programme should partner with respected support organizations in the
states (NGOs etc.).
• Lead firms need to commit themselves for a longer time.
• Services should be adapted to the users, i.e. mostly female farmers.
• Farmers could be aggregated around lead farms who will support mechanization,
facilitate extension services and guide compliance with quality standards.

• The programme should embed sensitization activities in its plan to attract lead
firms.
• The Nigerian government should invest in creating an enabling environment for
respective lead firms (particularly infrastructure investments).

• The programme should (for the time being) refrain from working in these areas
until safety can be secured.

• NIRSAL is a potentially good partner that could bring in financial capacity and
access to banks (this needs to be validated).
• Sensitization of finance providers should be part of the programme.

• The ASDP should be located in a relatively independent institute that is respected


by the private sector such as NACCIMA (this needs to be validated).

. 53 .
African Agribusiness Supplier Development
Programme (AASDP) Training Manual

Session 13
Financing an ASDP

Content of the module Objective


The budget for setting up and running a multi Participants have insight in the costs of an ASDP
annual programme such as an ASDP usually and the possible funding modalities.
consists in fixed and variable costs. The total size
of the budget depends on the number of sup- Learning methodology and process
ply chain projects that will be implemented. • In plenary, participants are asked to brain-
storm about the cost items of an ASDP.
Next to funding from government, UNDP, oth-
• The facilitator lists the answers on a flipchart
er donors and the chain actors, funding should
or whiteboard.
be shared with already existing programmes on
farmer support from other organizations. Several • After the brainstorming, the facilitator hands
funding tools exist for ASDP programmes, rang- out the proposed roadmap and budget for
ing from commercial funding to public funding. the ASDP Nigeria.
With the aim of catalysing independent supplier • Provide 15 minutes to read it.
development services, the programme should • Plenary discussion.
however be commercially funded as much as • The facilitator asks participants to discuss pos-
possible. A public-private partnership model in sible ways of funding (work in pairs, 5 min-
which both public and private players contrib- utes).
ute is therefore most suitable. In order to attract • The facilitator asks pairs to share their ideas
funding UNDP country offices should consider and notes the ideas on a flipchart or white-
the following options: board.
• The facilitator gives a PowerPoint presenta-
• Payments by users of the services of an ASDP, tion.
including suppliers and SMEs;
• Match funding of private companies: in the Training tips
Mexican and El Salvadorian programmes • Funding depends on the size of the ASDP and
companies finance 30% of the costs for con- the kind of activities that are required.
sultancy and training in their respective sup- • The facilitator can ask participants to discuss
ply chains; potential funders in their country for the se-
• Commercial funding through development- lected sub-sectors.
and commercial- banks as part of their goal to
stimulate local, national and regional (agricul- Learning materials
tural) markets; • Flipchart, markers, masking tape, whiteboard
• Public funding through national govern- • PPT presentation
ments, e.g. through ministries; • Case study 4b
• UNDP funding through Country Office or the
Regional Bureau for Africa; Timing
• Funding through other international organi- • 1 hour
sations, such as IFAD, World Bank, IFC.

. 54 .
Training sessions

Case study 4b:


Non-validated indicative figure for a Nigerian ASDP

Building blocks Cost types Cost indication


Feasibility Feasibility 25,000 USD
Preparation Developing programme document 100,000 USD
Training material development: adapting 25,000 USD
training material to Nigerian context*
Training (20) consultants 25,000 USD
Information system development: adapting 25,000 USD
forms to Nigerian context*
Management and overhead for 1 year 150,000 USD
Sub-sector off takers supply Sub-sector off takers supply chain diagnostics, 2,000,000 USD
chain activities (4 sub sectors planning and implementation programs
* 3 years) (facilitation by trained consultants, specialist
support, GAP and other training to suppliers
etc.)
Management (including monitoring) and 450,000 USD
overhead for 3 years
M&E and knowledge M&E design 15,000 USD
development
Knowledge program design 15,000 USD
Mid-term and final evaluations 50,000 USD
Knowledge program implementation 500,000 USD
(platform facilitation, developing and sharing
knowledge)
Total 3,380,000 USD

*Assumption is that programme materials from Latin America SPDs are available to this extent

. 55 .
ANNEX
© IFAD
Annex

UNDP  Regional  Programme  on  Private  Sector    


and  Inclusive  Market  Development  in  Africa    

An  introduc+on  to  the  


African  Agribusiness  
Supplier  Development  
Programme  (ASDP)

 
 
Introduc*on  

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Session 1. Objectives of the training

• Introduce  the  ASDP  to  par*cipants,  including:  


– The  objec*ves  of  an  ASDP  
– The  benefits  of  the  ASDP  to  different  stakeholders  
– The  major  underlying  concepts  of  an  ASDP  
– The  roles  and  responsibili*es  of  different  stakeholders  
– The  implementa*on  of  an  ASDP:  phases  
• Agree  on  an  ac*on  plan  to  developing  an  ASDP  in  the  country.  

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Training programme

Introduc)on  
Session  1.    Introduc*on:  par*cipants’  expecta*ons,  objec*ves  
   
Block  A.  Agriculture  Supplier  development  programme      
Session  2.    An  Agribusiness  Supplier  Development  Programme    
Session  3.    Key  success  factors    
Session  4.      What’s  in  it  for…..  World  Café    
   
Block  B.  Stakeholders’  roles  and  responsibili)es      
Session  5.      Stakeholders’  roles  and  responsibili*es  in  an  ASDP  

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Block  C.  Phases  of  an  ASDP    


Session  6.    Feasibility  &  Programme  prepara*on  
Session  7.      A.  Supply  chain  diagnos*cs  
   B.  Chain  analysis  from  a  gender  perspec*ve  
Session  8.      Supply  chain  planning    
Session  9.      Supply  chain  implementa*on  
Session  10.    Phasing  out  
Session  11.      Monitoring  and  evalua*on  and  learning  
   
Block  D.  Ac)on  planning  /  way  forward  
Session  12.      Towards  an  ASDP  Roadmap  
Session  13.    Financing  an  ASDP  

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Block  A.  Agribusiness  Supplier  
Development  Programme  

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Session 2. An African Agribusiness Supplier


Development Programme
 
 
 
Exercise:  write  down  on  cards  3  words    
(one  word  per  card)  you  associate  with  Agribusiness  Supply  Chain    

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ASDP Rationale

Agriculture  contributes  >60%  to   FAO  es*mates  that  less  than  15%  of  Africa’s  
total  arable  land  is  under  cul*va*on.    
employment  and  >25%  to  GDP  in  SSA  
 
 
 

Hugo  Ahlenius,  UNEP/GRID-­‐Arendal  2006  

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ASDP Rationale (continued)

Figure XX: Risks to Agribusiness Investment in SSA


Category Examples
Political War and civil disturbance, Corruption, Expropriation, Breach of contract, Non-
honouring of sovereign obligations
Economic/Finan Credit risk, Financial risk, Currency inconvertibility, Volatile terms of trade,
cial Price risk, Illiquidity, Cost and availability of capital, Uncertainty of investment
returns, Limited availability to maintain and grow equity
Social Low education/productivity, Disease, Lack of social capital
Environmental Crop loss, Climate risks, Drought, Flood, Wind, Climate change
Source: Collection of sources in Evans School Policy Analysis and Research Group, 2010

“Eighty  per  cent  of  all  farms  in  Sub-­‐Saharan  Africa  are  under  smallholder  produc9on  
supplying  up  to  90%  of  the  food  produc9on  in  some  countries  (ASFG,  Livingstone)”  

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ASDP Definition

“An  ASDP  intends  to  improve  the  produc9vity  of  farmers  and  SME  
agribusiness  suppliers  by  facilita9ng  support  (training,  advice,  access  to  
inputs,  organiza9on,  standardiza9on  etc.)  and  linking  up  with  off-­‐takers.”  

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ASDP Objectives

• Improve  the  supply  of  agricultural  products  by  farmers  and  SMEs  towards  
market  quality  standards;  
• Secure  and  offer  efficient  and  high  quality  agricultural  products  supply  to  
off-­‐takers;  
• Contribute  to  the  development  of  the  na*onal  economy  by  developing  
agricultural  products  that  can  subs*tute  imports  and  can  access  export  
markets;    
• Contribute  to  sustainable  development  goals,  including  food  security,  
poverty  reduc*on  and  gender  equity,  through  job  crea*on  and  income  
genera*on.  
 

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Approach: training specialist consultants

Supplier
1
1or2
Consultants
ASDP

Client
Supplier
Supplier 4
2

Supplier
3

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Session 3. Key success factors

• ASDP  should  be  in  line  with  na*onal  and  regional  policies;  
• Availability  of  markets  in  the  form  of  commiked  off-­‐takers;  
• The  availability  of  poten*al  and  commiked  suppliers;  
• Collabora*on  with  and  integra*on  of  projects  and/or  other  service  suppliers;  
• A  suppor*ng  and  applied  informa*on  system;  
• The  availability  of  skilled  consultants    to  support  the  supply  chain  projects;  
• Commitment  of  the  financial  sector  to  develop  suitable  financial  products;  
• Public  funding  for  financing  the  programme;  
• Profitability  and  profit  margin  within  the  supply  chain.  

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Exercise: Key success factors

 
Discuss  in  sub-­‐groups  the  Kenya  Soy  Bean  Sub-­‐Sector  case  Study  and  assess  
whether  success  factors  are  (using  the  table)    
 
– In  place  
– Not  in  place  but  likely  to  be  realized  by  ASDP  
– Not  in  place  and  not  likely  to  be  created  

– What  informa*on  s*ll  lacks  to  answer  the  ques*ons?  

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Key success factors

Not  fully  in  place


In   Likely  to  be  
Key  success  factor Not  likely  to  be   Remarks
place realised  through  
created
ASDP
1.  ASDP  should  be  in  line  with  na+onal  and  regional  policies
2.  Availability  of  markets  in  the  form  of  commiIed  off-­‐takers  /  
lead  firms  
3.  The  availability  of  poten+al  and  commiIed  suppliers

4.  Collabora+on  with  and  integra+on  of  projects  and/or  other  


service  suppliers
5.  A  suppor+ng  and  applied  informa+on  system

6.  The  availability  of  skilled  consultants    to  support  the  supply  


chain  projects
7.  Commitment  of  the  financial  sector  to  develop  suitable  
financial  products
8.  Public  funding  for  financing  the  programme

9.  Profitability  and  profit  margin  within  the  supply  chain

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Session 4. What’s in it for……?

Exercise:  discuss  at  4  tables  the  


opportuni*es  of  an  ASDP.  Each   Set the
CONTEXT
table  discusses  one  specific  
Cr pita E
ho SPA

stakeholder  group.  Aner  15  


ea b
DI colle are
OV ive

s
IES

te le
Sh
SC c t
ER

minutes  one  changes  tables.  In  


C

total  each  par*cipant   the


par*cipates  in  3  table   World Café
that mTIONS
atter
QUES lore

discussions.  
principles for
for in

Exp
toge hts
LISTE r

hosting
the
sig

conversation
that matter e
Con rag
d
nec cou ne’s NS
PER ivers t En ryo TIO
SPE e
CTI eve RIBU
VES NT
CO

Sources:  hkp://www.theworldcafe.com"  

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What’s in it for……?

• Table  1:  What  are  the  major  constraints/opportuni*es  smallholder  


producers  are  facing  in  accessing  markets?  What  are  the  possible  benefits  of  
an  ASDP  for  smallholder  suppliers?    
• Table  2:    What  are  the  major  constraints/opportuni*es  SMEs  are  facing  in  
accessing  markets?  What  are  the  possible  benefits  of  an  ASDP  for  SMEs?    
• Table  3:    What  are  the  major  constraints/opportuni*es  off-­‐takers  are  facing  
in  sourcing  locally?  What  are  the  possible  benefits  of  an  ASDP  for  off-­‐takers?  
• Table  4:    What  are  the  possible  benefits  of  an  ASDP  for  governments?    

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What’s in it for…… off-takers


• Increased  quality  
• Increased  volumes  
• Increased  secure  supply  
• In  *me  delivery  
• Cost  reduc*ons  
• Increased  flexibility  (in  local  chains)  
• Improved  policies/government  support  

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65
• Secured  /
increased  
access  to  
African Agribusiness Supplier Development
markets   Programme (AASDP) Training Manual
• Increased  
produc*vity  
• Secured  /  
increased  
income   What’s in it for…farmers
• Increased  
food  security   • Secured  /increased  access  to  markets  
• Access  to   • Increased  produc*vity  
(financial)   • Secured  /  increased  income  
• Increased  food  security  
services/ • Access  to  (financial)  services/support  
support   • Increased  knowledge/capacity  
• Increased   • Improved  policies/government  support  
knowledge/
capacity  
• Improved  
policies/
government  
support  
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What’s in it for……. SMEs

• Secured  /increased  access  to  markets  


• Secured  /  increased  turnovers/sales  
• Increased  (cost)  efficiency  (less  losses  due  to  higher  quality  and  in-­‐*me  delivery)  
• Access  to  (financial)  services/support  
• Increased  value  added  
• Increased  knowledge/capacity  
• Improved  policies/government  support  

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What’s in it for……. the Government

• Increased  private  investments  in  the  agribusiness  sector  


• Increased  tax  income  
• Increased  trade  balance  
• GDP  growth  
• Job  crea*on  /  employment  
• Decreased  poverty  and  improved  food  security  

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Block  B.  Stakeholders’  roles  and  
responsibili+es  
 

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Session 5. Stakeholders’ roles and responsibilities

Off-­‐takers  
 
UNDP  CO   Government

Implemen*ng    
partner  

Farmers  /   Service  
Suppliers   providers  

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Exercise: functions

In  groups  of  6,  akribute  each  card  (func*on)  to  one  of  the  following  
stakeholder:  
 
– Small  suppliers  (producers)  and  SMEs  
– Off-­‐takers  
– Service  providers  
– Implemen*ng  partner  
– Government  
– UNDP  CO  
 
Are  there  any  other  func*ons  you  could  think  of?  

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Off-takers

 
 
 
 
Provide  market    
Communicate  
Inform  
Train  on  the  job  
Pay  in  *me    
Access  to  finance  
Access  to  quality  inputs  
Invest  
 
 
 

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Service providers

Provide    
(improved)  services    
 
(GAP,  inputs,  standardiza*on,  
finance,  group  forma*on,  ICT  
etc.)  
 

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Farmers / suppliers

 
 
Get  organised  
Improve  prac*ces    
Supply  quality  products  
Respect  contracts  
Communicate  
Invest  
 
 

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Implementing partner

-­‐  Implement  the  programme  


-­‐  Monitor  interven*ons  
-­‐  Challenge,  suggest  and    
innovate  linkages  
-­‐  Derive  and  share    
informa*on    
and  knowledge  

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Government role

-­‐ Provide  data  


-­‐ Par*cipate  in  discussions  
-­‐ Access  the  right  people  and  other  (semi-­‐)  public  and  private  
organiza*ons  for  support  
-­‐ Research  finance  op*ons  (own  budget  /  nego*a*ng  with  others)  
-­‐ Ac*vely  par*cipate  by  crea*ng  an  enabling  environment  for  agribusiness  
supply  development:    
-­‐ improve  and  implement  public  services  and  policies  
-­‐ invest  in  public  goods  (infrastructure,  water,  electricity  etc.)  

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UNDP CO

-­‐ Broker  rela*ons  between  key  actors  of  an  ASDP  


-­‐ Involve  key  government  partner  in  developing  an  ASDP    
-­‐ Ensure  synergy  between  na*onal  policies  and  ASDP  
-­‐  Align  the  country  ASDP  with  regional  UN  ambi*ons  and  programmes;  
-­‐ Involve  and  commit  off-­‐takers  
-­‐ Involve  NGO  partners  and  exis*ng  local  private  sector  service  providers  
for  farm  support  
-­‐ Involve  finance  organiza*ons  including  commercial  banks;  
-­‐ Akract  donor  funding  
-­‐ Monitor  progress  and  integrate  learning  

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Roles of an implementing partner per programme


phase
Programme  phases Role  of  implemen+ng  partner
1.Feasibility -
2.Programme   Prepare  the  programme  including  the  finaliza*on  
prepara+ons of  the  programme  document,  select  support  staff  
(including  consultants)  and  make  all  other  
prepara*ons  in  order  to  start  the  programme.
3.  Supply  chain   Hire  consultants  for  doing  the  analysis;  Coordinate  
diagnos+cs and  monitor  research  conducted  by  consultants

4.  Supply  chain  planning Monitor  supply  chain  project  plans;  Contract  off-­‐
takers  and  suppliers  and  other  partners.

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Roles of an implementing partner in the ASDP


programme

Programme  phases Role  of  implemen+ng  partner


5.  Implementa+on Monitor  progress  of  the  implementa*on  of  the  
supply  chain  projects;  Encourage  coopera*on  
among  chain  actors;  Learning  in  and  between  
projects.  
 
6.  M&E  and  impact   Monitor  all  stages  of  the  programme  and  
measurement coordinate  external  evalua*on.
7.  Programme  phase-­‐out Ensure  follow  up  to  the  programme,  by  handing  it  
over  to  a  suitable  party.

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Required Skills for Implementing Partners

• Project  management  skills:    


– Planning,    
– M&E  
– Logis*cs  
– Repor*ng  
– Budge*ng    
– Human  resources  management  
• Contents  knowledge  on  supply  chain  development  

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The implementing ASDP team

Programme  director:  responsible  for  achieving  


promised  outputs  and  outcomes  within  budgets  

Accountant:  managing   Programme  assistance  (administra*on  


financial  flows   and  logis*cs):  organizing  logis*cs,  
rela*on  management  etc.  

Supply  chain  development    


Supply  chain  development    
expert  1:  coordina*ng  and     expert  2:  coordina*ng  and    
steering  the  implementa*on     steering  the  implementa*on    
of  the  programme’s  ac*vi*es   of  the  programme’s  ac*vi*es  
 

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Approach: specialized consultants per client

Supplier
1
1or2
Consultants
ASDP

Client
Supplier
Supplier 4
2

Supplier
3

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Block  C.  Phases  of  an  ASDP  

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Session 6. Feasibility

M&E  &  Learning

Supply  chain  ac*vi*es

1.  Feasi-­‐  
-­‐ 2.  Pre-­‐ 3.  Diag-­‐ 4.  Plan-­‐ 5 Imple-­‐ 6.  Phasing
bility   para*on nos*cs ning menta*on out

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Feasibility

Ac+vity   Milestone  
Government  consulta*ons   Pre-­‐selected  poten*al  sub-­‐sectors  in  
  line  with  governmental  policies  and  
  UNDP  objec*ves  
 
Shortlis*ng  poten*al  sub-­‐sectors   Commitment  from  na*onal  
  government  partners    
 
Feasibility  study  in  a  country  ASDP  for   Feasibility  report  and  roadmap  for  
shortlisted  sub-­‐sectors   sesng  up  an  ASDP  
   
 

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Exercise: selecting a commodity sector

 
Discuss  in  groups  :  
 
Which  commodi*es  are  suitable  for  developing  an  
 Agribusiness  Supplier  Development  Programme?  
 (use  table  next  slide)  

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1) List  criteria  for  selec*ng  commodity  sectors  


2) Describe  each  criteria  (what,  how,  why)    
3) Write  *  beside  the  criteria  you  think  are  most  important  
4) How  well  does  the  criteria  fit  sectors?  EXCELLENT,  OK,  POOR  

Criteria   Descrip*on   Value    chain  1   Value  chain  2  


*  Poten*al  to   …..   EXCELLENT   …  
engage  with  lead  
firms  
*  Poten*al  for  lead   OK   …  
firms  to  engage  
with  small  holders  
Criteria  3…  
Criteria  4…  

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Programme preparation

M&E  &  Learning

Supply  chain  ac*vi*es

1.  Feasi-­‐  
-­‐ 2.  Pre-­‐ 3.  Diag-­‐ 4.  Plan-­‐ 5 Imple-­‐ 6.  Phasing
bility   para*on nos*cs ning menta*on out

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Programme preparations

Ac+vity   Milestone  
Development  of  a  programme   Na*onal  ASDP  programme  plan  in  
document  and  strategy   place  

Selec*on  of  an  implemen*ng  partner   Implemen*ng  partner  in  place    

Development  of  programme  systems   Adapted  informa*on  system  and  


related  training  materials  in  place  

Training  and  selec*on  of  supply  chain   Base  of  trained  supply  chain  
consultants   consultants  

Commisng  off-­‐takers  and  other  key    Commitment  of  off-­‐takers  and  other  
partners   key  partners  (formalized  through  an  
  LoI)  

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Session 7A. Supply chain diagnostics

M&E  &  Learning

Supply  chain  ac*vi*es

1.  Feasi-­‐  
-­‐ 2.  Pre-­‐ 3.  Diag-­‐ 4.  Plan-­‐ 5 Imple-­‐ 6.  Phasing
bility   para*on nos*cs ning menta*on out

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Supply chain diagnostics

Ac+vity   Milestone  
Analysing  constraints  and  opportuni*es   Pre-­‐selected  poten*al  sub-­‐sectors  in  
based  on  value  chain  analysis,   line  with  governmental  policies  and  
Livelihoods  analysis  (including   UNDP  objec*ves  
environment  condi*ons),  Gender    
analysis  
 
Repor*ng  constraints  and   All  required  forms  for  the  informa*on  
opportuni*es  in  off-­‐takers’  chains   system  filled  in/accepted  (indica*ng  
constraints  and  opportuni*es  for  an  
ASDP)  
 

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Objectives of supply chain mapping

To  iden*fy  and  understand:    


• the  physical  flow  of  goods  
• the  price  structure  of  these  goods  
• the  (power)  rela*ons  between  chain  actors  
• exis*ng  markets  
• available  resources  
• opportuni*es  and  constraints  for  chain  development  and  actor  
empowerment  

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Value chain components

Functions: Producers Processors Manufacturers / exporters

Land Steaming Selection


Chain operations: preparation Drying Grading
Tree planting Grading Packing
Pruning Peeling Export
Pest and Selection
disease control
Harvesting
Marketing raw

Chain actors

1000 farmers 10 small scale units, 1 medium scale factory


Sales price App. 100 workers Offering 20% premium price
3.24 Euro/kg for dried peanuts

Chain supporters: Service providers: Government support:


training, micro credits, Cashew promotion
technical assistance Source:  KIT,  Value  Chain  Training  2008  

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Value chain mapping

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Supply chain diagnostics

• Func*onal  analysis:  descrip*on  of  the  different  func*ons  and  technical  


opera*ons  in  a  chain;  
• Actor  analysis:  specifica*on  of  the  main  actors  in  the  chain  and  their  
rela*ons;  
• Drawing  the  chain  map;  
• Iden*fica*on  and  analysis  of  boklenecks  in  the  chain  with  regards  to  
technical  issues,  organiza*onal  issues  as  well  as  access  to  services.  

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Chain mapping – group exercise

For  the  selected  sub-­‐sectors  /  commodi*es:  


 
• What  are  the  different  func*ons  and  technical  opera*ons  in  the  selected  
value  chain  (func*onal  analysis)  ?  (list)    
• Who  are  the  main  actors  in  the  chain  what  are  their  rela*ons  (list)?  
• Draw  the  chain  map  
• Iden*fica*on  and  analysis  of  boklenecks  in  the  chain  with  regards  to  
technical  issues,  organiza*onal  issues  as  well  as  access  to  services.    

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Session 7B. Gender mapping objectives

• To  gain  a  gender-­‐sensi*ve  picture  of  the  value  chain,  the  actors  involved  and  
the  percentages  of  men  and  women  in  each  segment.  
• To  gain  insight  into  the  differences  between  men  and  women  in  terms  of  
their  ac*vi*es,  and  their  access  to  and  control  over  resources.  
• To  iden*fy  opportuni*es  for  women  to  upgrade  their  posi*on.  
• To  iden*fy  constraints  and  opportuni*es  for  women  to  par*cipate  in  the  
value  chain  as  well  as  analyse  differences  in  power  in  the  value  chain  
governance.  

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Analysing the chain from a gender perspective

• Make  invisible  women  stakeholders  visible  by  pusng  coloured  cards  on  
the  actor  mapping.  
• Ac*vity  mapping:  iden*fy  which  ac*vi*es  in  the  value  chain  are  done  by  
men,  and  which  by  women?  Give  special  emphasis  to  ac*vi*es  that  
generate  value  or  improve  quality.  
• Iden*fy  opportuni*es  and  constraints  for  women.    

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Session 8. Supply chain planning

M&E  &  Learning

Supply  chain  ac*vi*es

1.  Feasi-­‐  
-­‐ 2.  Pre-­‐ 3.  Diag-­‐ 4.  Plan-­‐ 5 Imple-­‐ 6.  Phasing
bility   para*on nos*cs ning menta*on out

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Supply chain development planning

Ac+vity   Milestone  
Selec*ng  strategies  and  business   Clear  strategy/business  model  for  the  
models   respec*ve  supply  chain  
Developing  implementa*on  plans   Validated/approved  supply  chain  
including  interven*ons:   development  plans  
-­‐ *ming  
-­‐ responsibili*es  
-­‐ required  extra  investments    
-­‐ milestones  
Sesng  up  and  signing  chain   Signed  chain  partnership  agreements  
partnership  agreements  aiming  at   between  suppliers,  off-­‐takers  and  
sesng  up/improving  supply  chain   other  support  organiza*ons  (NGOs,  
rela*ons  
banks  etc.).  

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Key functions of the programme

Organizing   Sharing   Facilita*ng   Policy  


support   informa*on   linkages   advice  

Cross  Sector  Learning

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Key functions of the programme

• Organizing  support  for  suppliers  (with  specialized  consultants):  e.g.  access  


to  inputs,  advisory  services  on  GAP,  access  to  finance,  organiza*on  of  
producers,  management  training,  Business  Development  Services,  …    

• Sharing  supply  chain  informa+on  throughout  the  chain  (market  informa*on  


through  applied  IT  systems),    

• Facilita+ng  linkages:  selec*on  of  upgrading  strategy  and  business  models,  


contrac*ng,…  

• Policy  Advice:    crea*ng  an  enabling  environment:  favorable  policies  and  


investment  climate,  market  regula*on,  taxa*on,….  )  

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Planning exercise

 
 
Based  on  the  results  of  the  Supply  Chain  Diagnos*c  exercise  (constraints  and  
opportuni*es),  in  the  same  sub-­‐groups:  
 
Iden*fy  ac*ons  that  could  be  ini*ated  to  enhance  the  supply  chain,  i.e.  to  
ensure  markets  for  smallholders  and  to  ensure  supply  to  Lead  Firms.  

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Activity planning

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Organizing   Sharing   Facilita*ng   Policy


support informa*on linkages advice

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Session 9. Supply Chain Implementation

M&E  &  Learning

Supply  chain  ac*vi*es

1.  Feasi-­‐  
-­‐ 2.  Pre-­‐ 3.  Diag-­‐ 4.  Plan-­‐ 5 Imple-­‐ 6.  Phasing
bility   para*on nos*cs ning menta*on out

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Supply chain development implementation

Ac+vity   Milestone  

   
Carrying  out  interven*ons   Interven*ons  successfully  
  implemented  (Milestones  defined  in  
Supply  chain  development  plans)  
 

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Implementation exercise

Iden*fy  ac*ons  in  the  case  study  that  were  ini*ated  to  enhance  the  supply  
chain  (similar  to  the  previous  sessions).  

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Session 10. Phasing out

M&E  &  Learning

Supply  chain  ac*vi*es

1.  Feasi-­‐  
-­‐ 2.  Pre-­‐ 3.  Diag-­‐ 4.  Plan-­‐ 5 Imple-­‐ 6.  Phasing
bility   para*on nos*cs ning menta*on out

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Phasing out

Ac+vity   Milestone  
   
Developing  and  implemen*ng    phasing   Phasing-­‐out  strategies  at  supply  chain  
out  strategies  for  the  supply  chain   level  in  place    
projects  and  eventually  the  ASDP      
programme   Phasing-­‐out  strategy  at  programme  
level  in  place  

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Phasing-out exercise

Answer  the  following  ques*ons  in  couples:    


 
– When  can  a  programme  phase-­‐out  from  a  specific  ASDP  project?  
– When  can  an  ASDP  be  closed?  

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Phasing out

Sustained  
Impact  
 

Sustainable  Supply  
Chains
 

Enabling  environment  
Sustained  service   Sustained  
  Sustained  
delivery supply demand

Sustained   Sustained   Sustained   Sustained  


resources capacities motivation linkages

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Elements of a phasing out strategy

• Specific  criteria  for  exit  


• Specific  and  measurable  indicators  for  assessing  progress  toward  mee*ng  
the  criteria.  By  pusng  a  number  to  the  indicators  targets  are  set  
• Iden*fica*on  of  ac*on  steps  to  reach  the  stated  criteria  and  of  the  
responsible  par*es  to  take  those  steps  
• A  *me  line,  recognizing  that  the  *me  line,  especially  in  early  stages,  needs  
some  flexibility  
• Mechanisms  for  periodic  assessment  of  progress  toward  the  criteria  for  exit  
and  for  possible  modifica*on  of  the  exit  plan.  

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Session 11. M&E and Learning

M&E  &  Learning

Supply  chain  ac*vi*es

1.  Feasi-­‐  
-­‐ 2.  Pre-­‐ 3.  Diag-­‐ 4.  Plan-­‐ 5 Imple-­‐ 6.  Phasing
bility   para*on nos*cs ning menta*on out

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Milestones: Monitoring, Evaluation and learning

Ac+vity   Milestone  
Informing  stakeholder  on  progress  on   Annual  progress  reports  of  the  
the  development  and  the   programme  and  projects  
implementa*on  of  the  ASDP      
   
Informing  stakeholders  on   Mid-­‐term  and  impact  evalua*ons  
achievements  of  the  ASDP  (outcomes  
and  impact)  

Cross-­‐sectoral  learning Learning  products  developed  and  


shared

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M&E exercise

Read  the  case  study,  reflect  on  the  3  situa*ons  (1  per  group)  and  answer  the  
following  ques*ons:  

• What  are  the  implica*ons  for  farmers?  


• What  are  the  implica*ons  for  off-­‐takers?  
• Who  is  bearing  the  risk?  
• What  solu*ons  would  you  propose?  
• How  could  you  prevent  a  situa*on  like  this?  
• What  are  the  related  indicators  that  require  monitoring?  

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Over-production

• In  order  not  to  harm  rela*ons  with  the  farmers,  SLBL  decided  to  buy  the  
overproduc*on.    
• In  subsequent  years  this  problem  was  solved  by  introducing  produc*on  
quotas.    
• Memoranda  of  Understandings  are  now  signed  on  quotas  for  the  nucleus  
farmers.    
• The  lesson  learned  is  to  clearly  manage  and  communicate  required  volumes.    
• This  almost  made  the  project  fail  and  raised  costs  for  SLBL.    

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Monopoly situation

• There  is  no  real  alterna*ve  market  yet.    


• This  created  risks  for  both  the  farmers  and  SLBL.    
• For  the  farmers  it  is  risky  since  they  are  dependent  on  SLBL  as  the  only  buyer  
and  price  seker  for  sorghum.    
• If  SLBL  is  unable  to  buy  all  the  produce,  the  rela*onship  with  farmers  will  be  
harmed.    
• The  only  thing  SLBL  can  do  is  to  clearly  communicate  about  price  sesng,  
make  clear  agreements  on  volumes,  and  offer  a  compe**ve  price.  

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Power of nucleus farmers

• It  is  in  SLBL’s  interest  to  make  sure  all  farmers  benefit,  not  only  to  secure  
supply  but  also  for  the  social  drivers  of  local  sourcing.  
• SLBL  now  checks  the  prices  that  out-­‐growers  receive,  and  makes  sure  they  
benefit  substan*ally  from  producing  sorghum.  
• Nucleus  farmers  receive  a  set  price  they  have  to  pay  the  out-­‐growers,  and  
this  is  monitored  by  SLBL  staff.  

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Session 12. Towards an ASDP Roadmap (1)

I. Country  context  (a  descrip*on  of  the  poli*cal  and  socio-­‐economic  


context)  
II. Sub-­‐sectors:  an  overview  of  the  selected  sub-­‐sectors,  facts  and  figures,  
main  characteris*cs,  important  actors,  opportuni*es  and  constraints,  
poten*al  for  an  ASDP.  
III. An  overview  of  poten*al  partners  and  stakeholders,  including:  
• Off-­‐takers  for  the  selected  sub-­‐sectors  
• An  implemen*ng  organiza*on  
• Service  providers  
• Donors  

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Session 12. Towards an ASDP Roadmap (2)

IV. Roadmap    
• Socio-­‐economic  development  poten*al  of  an  ASDP  
• Recommended  strategic  framework:  purpose,  objec*ves,  ac*vi*es    
• Next  steps  /  ac*on  plan  
• Risk  assessment  
• Budget  

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Session 13. Financing an ASDP

Exercise:  
• In  plenary:  brainstorm  about  the  cost  items  of  an  ASDP.  
• Read  the  case  study  
• Par*cipants  discuss  possible  ways  of  funding  (work  in  couples,  5  minutes).    

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Funding mechanisms

Possible  mechanisms  for  funding:  


 
-­‐ Private  /  commercial  funding    
-­‐ Public  funding  
-­‐ The  programme  should  however  be  commercially  funded  as  much  as  
possible.  
-­‐ A  public-­‐private  partnership  model  in  which  both  public  and  private  players  
contribute  is  onen  most  suitable  

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Thank  you!  

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Copyright © 2013/2014

United Nations Development Programme


Africa Regional Service Centre
Addis Ababa, Ethiopia

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