INPUT  SUPPLY  SYSTEM    CASE  STUDY  

Market  System  Development  Case  Study  from  the  Kenya  Markets  Trust  

 POOR    FARMERS  

DEVELOPMENT  ORGANIZATION  

CAPA

CITY

 FINAN

CE  

MAR

KETS  

•  NGO  staff  provide  technical  assistance  

•  NGO  staff  provide  training  

•  NGO  sets  up  demonstra7on  plots  

•  NGO  provides  vouchers  for  inputs  

•  NGO  provides  loans  or  links  to  MFIs  

NGO  

INPU

TS   •  NGO  staff  provide  inputs  and  equipment  

•  NGO  works  with  community  members  to  represent  farmers  or  give  out  samples  (paid  or  volunteer)  

 

Typical  Development  Model  

•  NGO  buys  products  

•  NGO  links  farmers  to  buyers  

•  NGO  sets  up  producer  groups  MAR

KETS  

CUSTOMERS    (POOR  FARMERS)  

INPUTS  AGRODEALER  

CAPA

CITY

 FINAN

CE  

MAR

KETS  

•  No  inten7onal  capacity  building  

•  Agrodealer  gives  advice,  oEen  incorrect  

•  No  financial  services  extended  

•  Agrodealer  sell  for  cash  only  

•  No  explicit  links  with  producer  groups  or  markets  

INPU

TS   •  Agrodealer  provides  inputs  at  store  only  

•  Inputs  could  be  expired  or  inappropriate  

•  Agrodealer  runs  no  special  promo7ons  

 

Typical  Input  Supply  Model  

CUSTOMERS    (POOR  FARMERS)  

INPUTS  AGRODEALER  

FINAN

CE  

MAR

KETS  

•  Agrodealer  provides  financing  op7ons    •  Agrodealer  provides  new  payment  methods  

•  Agrodealer  sets  up  inputs  buying  clubs  with  producer  groups    

•  Agrodealer  links  farmers  to  buyers  

INPU

TS  &  CAP

ACITY  

New  distribu7on  channels:  •  Agrodealer  sets  up  village  agents  •  Village  agents  give  hands-­‐on  technical  advice  •  Agrodealer  runs  village  promo7on  events  •  Agrodealer  builds  capacity  of  preferred  stockists  •  Agrodealer  sets  up  buying  clubs    

New  marke7ng  strategies:  •  Agrodealer  sets  up  customer  loyalty  clubs  •  Agrodealer  sponsors  rural  radio  agric  shows  •  Agrodealer  sets  up  sms  promo7ons/market  

research  •  Agrodealer  runs  demonstra7on  plots  

Agrovet  bundles  sales  with  services  

• Management  improvements  &  staff  training  • Business-­‐to-­‐business  training  

Feedback  loops  from  farmers  

 

Market  Systems  Development  Model  

CUSTOMERS    (POOR    

FARMERS)  

INPUTS  AGRODEALER  

 

Intervening  in  Market  Systems  

NGO  

ICT  /    Finance  

Buyer  

DEVELOPMENT  ORGANIZATION  

SUPPORT  FIRMS   BUYERS  

CUSTOMERS    (POOR    

FARMERS)  

INPUTS  AGRODEALER  

NGO  

ICT  /    Finance  

Buyer  

DEVELOPMENT  ORGANIZATION  

SUPPORT  FIRMS   BUYERS  

Feedback    loops  

 

Intervening  in  Market  Systems