Guidance Notes
What is agribusiness?
In the context of this brief, agribusiness refers to agriculture conducted on a commercial basis involving the buying and selling of agricultural goods and services and includes all stakeholders producing goods or delivering services in the value chain of an agricultural commodity or product.
Why do we need an agribusiness assessment tool?
Many organisations in the Pacific – national and local governments, NGOs, regional institutions, development agencies and research organisations – support agribusiness development in various ways. Interventions may include diverse areas of support from research to address production issues, improving market access to export markets, product marketing advice and support, strengthening the governance of commodity and farmer organisations, farmer and extension service training, and expanding credit to the agricultural sector. It may include support to specific individual agribusiness operations, farming groups or associations or other actors along the value chain.
The rationale for public intervention to support specific agribusinesses to grow and expand their markets is based on the premise that greater demand for agricultural products leads to greater income generating opportunities for all stakeholders involved in the value chain including primary producers.
A large proportion of Pacific Islanders remain engaged in agriculture on a subsistence or semi-subsistence basis. Supporting more of these farmers to enter commercial value chains can improve incomes and livelihoods for farmers and help boost domestic and international trade.
However, the expansion of specific agribusinesses or value chains creates different opportunities for farmers depending on the nature of the value chain in question. For example, the number of vanilla farmers is small in comparison to the number of kava farmers so efforts to address a supply-side constraint for kava producers and processors (e.g. meeting the quality requirements of the US market) can have potential spill-over benefits to a wider number of agribusinesses and producers as a result.
A systematic framework that can support a better understanding and evaluation of the expected and actual income and livelihood benefits of agribusiness research interventions across different value chains is necessary to ensure that:
- interventions are prioritised based on evidence of their potential to improve income and livelihoods, and
- interventions are evaluated to measure the actual income and livelihood benefits resulting from the interventions.
The rationale for public intervention to support specific agribusinesses to grow and expand their markets is based on the premise that greater demand for agricultural products leads to greater income generating opportunities for all stakeholders involved in the value chain including primary producers.
A large proportion of Pacific Islanders remain engaged in agriculture on a subsistence or semi-subsistence basis. Supporting more of these farmers to enter commercial value chains can improve incomes and livelihoods for farmers and help boost domestic and international trade.
However, the expansion of specific agribusinesses or value chains creates different opportunities for farmers depending on the nature of the value chain in question. For example, the number of vanilla farmers is small in comparison to the number of kava farmers so efforts to address a supply-side constraint for kava producers and processors (e.g. meeting the quality requirements of the US market) can have potential spill-over benefits to a wider number of agribusinesses and producers as a result.
A systematic framework that can support a better understanding and evaluation of the expected and actual income and livelihood benefits of agribusiness research interventions across different value chains is necessary to ensure that:
- interventions are prioritised based on evidence of their potential to improve income and livelihoods, and
- interventions are evaluated to measure the actual income and livelihood benefits resulting from the interventions.
When should it be used and for what purpose?
The assessment tool can be used at various stages during an intervention.
- Before an invention to assist decision makers in selecting focus areas for support.
- At the start of an intervention to gather baseline information and to highlight areas where more information may be needed. The tool may flag gaps in our knowledge for example on environmental issues or potential livelihood impacts.
- During an intervention to gather information to fill knowledge gaps.
- After an intervention to document improved information and knowledge relating to a particular value chain / commodity.
High Level Critieria
1
Scale / Target Group
How significant is the value chain / commodity to the country / area? Is it a priority in national / local priorities, strategies and plans? How broad is the geographical area of relevance? How many people are involved? How relevant is it for men, women and youth? What is the income generation potential?
2
Market Development Potential
How strong is the recent sector performance? What domestic and export opportunities exist? Can the interventions be upscaled post-intervention?
3
Potential for Income and Livelihood Improvement
Across the five capital assets (sustainable livelihoods framework) what is the current status? Where are the opportunities for strengthening these capital assets?
4
Enabling Environment (Structures and Processes)
Do supporting structures (infrastructure, extension services, diverse value chain actors) and processes (government policies etc) exist?
5
Vulnerability and Risk
Are there significant vulnerabilities and risks to the value chain / commodity expansion? If so, can the interventions reduce these?
Traffic Light System
Red Light
A number of serious areas of concern highlighted. Unlikely to warrant support.
Amber Light
A number of areas of concern that should be addressed during the intervention if support progresses.
Green Light
Value chain / commodity rates highly across all categories. Few concerns highlighted in proceeding with interventions to support.
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