Paepard presentation pastoralism financing

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14th Annual Meeting of the Inter-Agency Donor Group (IADG) on pro-poor livestock research and development “Development of Livestock Value Chains through strengthened Public-Private Cooperation” sponsored by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) May 22-24, 2013, Berlin

Text of Paepard presentation pastoralism financing

  • 1. Presentation by Francois Stepman 14th IADG meeting in Berlin, 22nd-24th May

2. The growing global demand foragricultural innovation makes it vitalto assess the characteristics thatseparate effective from ineffectiveinnovation fund mechanismsDESIGNING AND IMPLEMENTINGAGRICULTURAL INNOVATION FUNDS:Lessons from Competitive Research and Matching Grant Projects 2010 The International Bank for Reconstruction andDevelopment/ The World Bank 3. What went wrong withfunding agricultural research for development? 4. The absence of well-elaborated national policy,over-compensated by an excess of donor initiatives The unrealistic time frame of donor initiated-development goals The frequent adjustments according to the donorsown priorities and the methods and procedures infashion Donors and their aid administrators have shortmemories, repeating the same mistakes 5. Too many disorganized, uncoordinated andtechnically weak actors at all levels, resultingin a multitude of fragmented, competing,contradicting, parallel activities which haveoften interfered with the development ofnational institutional capacities by enticing thebest people to come and work for them Low enabling environment for privateinvestments and for farmers to re-invest intheir farms 6. How to finance innovations inpastoralism? 7. 1. Value chain financing2. Value chain based funding3. National research calls4. SME development funds 8. Agricultural Value Chain Finance Toolsand LessonsCalvin Miller and Linda JonesPublished by FAO and Practical ActionPublishing 2010195 pages What is value chain finance, how is it applied andwhat can it offer to strengthen agriculturaldevelopment? How can financial systems, governments andservices be prepared for the demands of financingmodern agri-food chains? How does agricultural value chain financing affectinclusion, especially for small producers and whatcan be done to make these systems moreinclusive? What can governmental and non-governmental(NGO) agencies do to support increased and moreeffective agricultural financing through valuechains? 9. As agriculture and agribusiness modernize withincreased integration and interdependentrelationships, the opportunity and the need for valuechain finance becomes increasingly relevantIt can improve the overall effectiveness of thoseproviding and requiring agricultural financing.It can improve the quality and efficiency of financingagricultural chains 10. identifying financing needs for strengthening thechain; tailoring financial products to fit the needs of theparticipants in the chain; reducing financial transaction costs through directdiscount repayments and delivery of financialservices; using value chain linkages and knowledge of thechain to mitigate risks of the chain and its partners. 11. Meeting the challenges of consumer trends and thedemand for more processed or value addedproducts requires increased investment inequipment, working capital, and skills andknowledge. Such investment is not only costly for individualvalue chain businesses, but can only be undertakenif there is an assurance from elsewhere in the chainfor supplies, produce or markets. 12. Some countries have managed to put in placestructures for platforms to encourageoperational use of research results byproducers and took a serious option forsolving the problem of financing the system. 13. In Ivory Coast 18 value chains work with theFond Interprofessionnelle de la Recherche et duConseil Agricole (FIRCA) and 13 to 14 arecollecting fees.The value chain actors identify the projectswhich FIRCA finances in the field of appliedresearch, agricultural advice, technical trainingand the reinforcement of capacities.Examples: hevea , palm oil, coffee, cacao,pigs, poultry, fruit-citrus 14. In Burkina Faso, the Ministry of ResearchScience and Innovation created in January 2011the National Fund for Research and Innovationfor Development (FONRID).orientation of research towards demand andnational priorities;improving the quality of scientific research;the promotion of invention and innovation;diversification of the scientific, technical andfinancial partnership. 15. Most businesses focus on managing theiroperations.They are not necessarily focused on howto improve their competitiveness throughinnovation? Many businesses have limited ability to developgood proposals. Developing concept notes andgrant proposals and assembling the requireddocumentation entails transaction costs (time,resources).The private agri-sector may find it verydifficult (or reluctant) to provide time and cash tomatch the grant? 16. Limited experience and mistrust make the privatesector reluctant to engage with NGOs orgovernment-driven research activities andthereby prevent actors outside the private sectorfrom entering into collaborative arrangements? Besides, the challenges of working withsmallholders in out grower schemes limits theprivate sectors interest in submitting proposals 17. The Delegation of the European Union to Uganda willlaunch a SME Development Fund (Equity Fund) over2- 3 months.It will be open to all sectors of agribusiness, includinglivestock.The selection will be made on the basis of socio-economic-environmental criteria and financial returncriteria.The EU/Uganda aims at targeting at least 25-30companies with the first closing of the fund. 18. GlobE - Global Food Security.Federal Ministry of Education and Research of Germany Reduction of Post Harvest Losses andValue Addition in EastAfrican FoodValue Chains (University of Kassel): pastoralmeat value chains Trans disciplinary research: Stakeholder processes,knowledge integration and collaborative learning Two new Dutch Funding instruments on foodsecurity challengesNetherlands Organisation for Scientific Research the Global Challenges Programme (preliminary applications9 July 2013) the Applied Research Fund 19. ERAFRICA JOINT CALL Themes: Renewable Energies , Interfacing Challengesspecific call, New Ideas Participating countries:South Africa, Germany, Austria, Belgium, BurkinaFaso, Cte dIvoire, Egypt, Finland, France, Kenya,The Netherlands, Norway, Portugal, SwitserlandetTurkey. Deadline 15 April 2013.