Making Markets Work for the Poor: Supporting Food Security - PowerPoint Presentation

Slide1

Making Markets Work for the Poor: Supporting Food Security Resilience

John Meyers

Managing Director – North America

SwisscontactSlide2

Programs should not only strengthen the household’s or community’s productive

capacity

, but also strengthen capacity to adapt to changing conditions and withstand market shifts and external events…entrepreneurship.Luca Alinovi and his team at FAO…describe the household as a “complex adaptive system”See: Alinovi et. al. Livelihoods Strategies and Household Resilience to Food Insecurity: An Empirical Analysis to Kenya. 2010. http://erd.eui.eu/media/BackgroundPapers/Alinovi-Romano-D%27Errico-Mane.pdf

Food security resilienceSlide3

Geographical/Ecological

Social/structural

Individual capacitySources of resilienceSlide4

How can the natural environment support a wide-range of economic

activities and contribute

to diverse potential for income opportunities How can the inputs (seeds, fertilizers, disease control, bees) be introduced into the geography to support food security How can these inputs be adapted or improved for greater outcomesResilience: Geographical/Ecological Slide5

Stakeholders - government, business, producers, finance

sector: understand roles and responsibilities

Trust: Building trusts in the market networks (producer/buyer; borrower/lender)Knowledge: Supporting systems of knowledge development and transferResilience: Social/structuralSlide6

Interest in and understand benefits of developing new skills necessary to

increase income in

a sustainable way.Entrepreneurial skillsResilience: Individual/HouseholdSlide7

Making Markets Work for the Poor (M4P) 

Based on premise that impoverished communities are dependent on market systems for their livelihoods

 Goal: Change market systems to work more effectively for the poor Making Markets Work for the PoorSlide8

Systemic action – where market systems are failing to serve the needs of the poor….required understanding of the players and functions within the

system

Sustainable change achieved by aligning market functions and players with incentives and capacity to respond to changeLarge scale impact through greater accessFacilitate market development…not displace key actors Source: www.m4phub.orgM4P: Key elementsSlide9

Katalyst (

www.katalyst.com.bd

) Goal: Increase income by increasing competitiveness of 16 key sectors: vegetable, prawn, potato, maize, jute, furniture, fish, tourism, seed, fertilizer and ICT.Targets: Over two million people and small businesses by the end of its second phase in 2013.Methodology. Using M4P strategy,

Katalyst

focuses on sectors which are relevant to large numbers of poor people and which have the greatest potential for inclusive growth and sustainable change.

Funders

: Swiss Agency for Development and Cooperation, the UK Department for International Development, the Canadian International Development Agency and the Embassy of the

Netherlands.

Implemented

under the Ministry of Commerce of the Government of the People’s Republic of Bangladesh by

Swisscontact

and

GIZ.

Katalyst

: BangladeshSlide10

Situational analysis

Domestic

demand for maize steadily growing steadily mainly from the poultry sector, where it is consumed as a feed ingredient.Due to lack of local capacity, Bangladesh imported (mainly from India and Myanmar) over 30% of the total required – and as the poultry sector continued to grow (by 15% annually), so did the demand for maize.

Katalyst

: Maize sectorSlide11

Introduce maize in particular in areas, where other crops (e.g. rice) are difficult to produce (on river islands flooded in summer), or in seasons where farmers leave their land fallow (summer maize

).

Constraints impeding the sector’s growth:Low productivity due to lack of access to cultivation know-how and inputs (including finance)Low quality of maize due to inadequate post-harvest facilitiesMarket access and high dependency on the poultry industry making it vulnerable to market shocks.

Proposed solution….constraints identifiedSlide12

Demand stimulation: Promoting maize-based cropping patterns

 Improving access to quality inputs Expanding contract farming systemAccess to financial services Introducing technological innovation  Intervention strategiesSlide13

 Promotion was made primarily by input companies (through their retailer networks) and feed-mills + traders, demonstrating the impact of market player in stimulating production.

Katalyst

tried, with limited success, to promote partnerships between input companies and the Department of Agriculture Extension to promote maize-based cropping patterns in locations with potential. Demand creation: Promoting maize-based cropping patternsSlide14

Increased access and use of quality seed (in the chars and the hill tracts) through seed companies.

Information

on best cultivation practices and production techniques also disseminated through ICT-channels, local business associations, media and fertilizer and pesticide companies. Improving access to quality inputsSlide15

Provides built-in market-driven production.

This

model enables farmers to link with traders who can provide them with know-how regarding maize production, access to larger buyers (the feed mills), and credit to buy inputs. Expanding contract farming systemSlide16

To help scale up the model, Katalyst

signed MoUs with two banks (National Bank Ltd. and Agrani Bank Ltd.) to support the introduction of dedicated credit lines to maize contract farmers.Access to financeSlide17

Encourage and support market actors to provide producers with information on best agricultural practices

Supporting innovationSlide18

Thank you