Innovative PPPs
Cooperation between governments, the private sector and civil society can be highly effective in creating shared value throughout the supply chain. Partnerships between commercial companies and African farmers, to promote sustainable agricultural practices, will be key to adapting to climatic shocks.
Through innovative public-private partnerships (PPPs), commercial companies operating in Africa are helping smallholder farmers increase their food production and income by facilitating access to the latest technologies and technical knowledge to help them adapt to climatic variability.
For example, Sourcing for Growth is a partnership between the Ethiopian government, NGO TechnoServe, and Meta Abo Brewery, a subsidiary of global drinks company, Diageo. Together with the Ethiopian government’s Agricultural Transformation Agency, Meta Abo has been working to strengthen the barley value chain. A network of over 6,000 farmers has been created, which supplies seeds, fertiliser, agronomy training, and crop insurance through the programme. Over 50% of the brewery’s raw material is currently sourced from smallholder farmers with an aim to increase to 100% by 2017 although farmers in 2016 have been hit hard by the current drought.
To help African farmers adapt to climate shocks, Diageo is helping to support the supply of alternative local raw materials like sorghum and cassava, which are more climate resilient. Across the continent, over 50,000 farmers currently supply Diageo with 70% of its raw materials. However, David Croft, Diageo sustainable development director, states that while PPP collaboration is key to sustainability, it has to benefit the entire value chain. “Farmers and producers need to be incentivised. To be truly collaborative, we need to get all parties around the table, including policymakers, to cement agreements.”
Nevertheless, developing successful partnerships often presents a challenge. Smallholder farmers are typically not well equipped to negotiate effectively with value chain actors, particularly with regards to price-setting mechanisms, enforcement of contracts, regulatory issues, payment modalities, ownership and coordination. To provide concrete examples of best practices and recommendations for working with farmers in effective value chains, a new guide Farmer Partnership Guide 2.0 has also been published by the Sustainable Agriculture Initiative Platform. The first version (1.0) released in 2014 has been tested by member companies, reviewed by expert external stakeholders and updated. “There is no doubt this revised guide meets a real need,” says Dr Kristin Davis, executive secretary, for the Global Forum for Rural Advisory Services, South Africa. “This is a very good guide helping to address barriers to and opportunities for successful partnering”.
For more information, visit: http://bit.ly/28Ycktq
