Smallholder Innovation Journey Map

Page 1

TRANSFORMING AGRICULTURAL BUSINESS MODELS TO

IMPROVE PROFITABILITY &

LIVELIHOODS 1

CURRENT APPROACH TO SMALLHOLDER INVESTMENTS

2

IDH’S JOURNEY WITH PARTNERS: FROM SMALLHOLDER TO SMALL BUSINESS

3

CONVENING TO CO-DESIGN THE FUTURE: SEPTEMBER 26-27, AMSTERDAM

4

RESULTING SHARPENED VISION AND COMMITMENT

1 CURRENT APPROACH TO SMALLHOLDER INVESTMENTS

ROI for investors (including farmers) CHALLENGES Low adoption rates Low productivity

Economically viable business models

Market

1

Capital

Improper use of agrochemicals

3

2

Convening

People

Farmer livelihood improvements

Impact

Creating plans

High deforestation

Implementation Mitigation of deforestation

How can I improve the sustainability of my supply?

How can I get access to the inputs I need for a productive farm?

Companies

Farmers

PAIN POINTS

Financial Institutions

Donors

How do I know this approach will create impact?

This is too risky, I'll find another opportunity

We can do this better

IDH can help transform these pain points into

BETTER BUSINESS...

...by applying a data driven approach, to help service providers set up

FINANCIALLY SUSTAINABLE BUSINESS MODELS

2 IDH’S JOURNEY WITH PARTNERS: from smallholder to small business

We analyzed models of service delivery to smallholder farmers

Products

Buyers

Payments

Co-funding training

SDM Operator

Crop payments minus pre-financed inputs

Crops

Research Standard procedures

Field staff

Set-up Working capital Salaries

Input distribution centers

Farmers own & operate Sell (organic) inputs

Gap training

R&D

Seed research station

Inputs on credit

IDH, Investors, donors

Seeds Knowledge

Public research institutes

Land for production Feedback

Seeds on credit

Farmers & Cooperatives Cash flow

Flow of goods and services

Analyze outcomes Click here to dive deeper!

Identify key success drivers

Enabling environment challenges Funding needs

Opportunities for innovation

Potential to upscale

First insights report Click here to dive deeper!

This is a promising approach, let’s do more!

30+ SDMs in 16 countries

Covering a range of crops

Coffee Cashew Cocoa Cotton Maize Vanilla Chili Rice Sorghum

Varying in size

Largest 500K farmers, cost of $8M

Smallest 166 farmers, cost of $133K

Executive summary of second insights report Click here to dive deeper!

OUR KEY LEARNING Farmers as clients Financially sustainable service delivery Reducing information asymetry Sound enabling environment Technology & innovations

Can we improve & scale this?

With these insights I can… prototype, innovate

We need to get more people on board and hear what our partners think

We can work together

3 CONVENING TO CO-DESIGN THE FUTURE: September 26-27, Amsterdam

Have you thought about developing human capital for the future??

Have you thought about ICT?

I need a data system.

TAKE AWAYS FROM THE WORKSHOP

Click here to watch!

Click here to enlarge!

Interest in benchmarking against a growing database to speed up internal adoption of best practices Need for “deep dives” into the insights Looking for insights to bundle services to farmers for efficiency gains Need to link service providers operating in the same geographies with different types of farmers Upscale digital approaches; from mobile payments and financial services, to inter-operability of data systems Development of human capital for the future Create visibility for FIs and donors into the relationships at farm level, that help to identify feasible opportunities to invest Significant funding available for scaling efforts, but short supply of farmer-focused business models- SIP is seen as an important source of “deal flow” Multiple funding opportunities can create competition between banks, driving innovation in service offerings

Report from Co-Design Forum Click here to dive deeper!

Thanks for the input!

4 RESULTING SHARPENED VISION AND COMMITMENT

SHARPENED

VISION PATHWAY FOR SERVICE PROVIDER IMPROVEMENT

SMALLHOLDER

INNOVATION

PLATFORM 1

ANALYTICS INFLUENCING GOVERNMENTS TO IMPROVE ENABLING ENVIRONMENT AND TRIGGERING LOCAL ENTREPRENEURSHIP

Snapshot of service delivery model

P&L Farm

Convening

EXPERTISE CENTER FOR CROSS CUTTING INNOVATION Best practice in farmer engagement Technology & data

Advocacy

P&L of Entity

Unconventional partnerships

Mobile payment & financial services Development of human capital

SENSITIVITY ANALYSIS BENCHMARKING FINANCING NEEDS & STRATEGY

2

INNOVATION Expertise Coinvest Prototype 3

SCALE WITH INNOVATIVE BLENDED FINANCE

OUR

COMMITMENT STAFF GROWING CONSULTANT BASE CO-INVESTMENT FUNDS FOR INNOVATIVE SERVICE PROVIDERS LINKING TO BANKS & FUNDS FOR BLENDED FINANCE DIGITAL PROGRAM COUNTRY SPECIFIC ADVOCACY TO BUNDLE LOCAL SERVICE PROVIDERS CULTIVATE UNCONVENTIONAL PARTNERSHIP

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