Value chain explained

Summary

In East Timor, farmer Gil struggles with low income due to outdated horticultural practices. Researcher Amivi from the International Labour Organization (ILO) identifies a lack of access to modern farming techniques as the core issue. By analyzing the market, Amivi partners with Erin, a distributor, to provide training and quality inputs to farmers in exchange for fair-priced produce. This collaboration enhances productivity, creating new market relationships and increasing income for farmers like Gil. The ILO's value chain development approach has proven successful in improving livelihoods and sustainability across various sectors worldwide.

Takeaways

• 😀 Gil, a farmer in East Timor, struggles with low income and poor living conditions due to the limited returns from horticultural farming.
• 😀 Despite hard work, Gil cannot earn enough to support his family, highlighting the need for better opportunities in East Timor's agricultural sector.
• 😀 Amivi, a researcher from the International Labour Organization (ILO), investigates the obstacles preventing farmers like Gil from achieving a better livelihood.
• 😀 Amivi uses the value chain development approach to understand how horticultural products reach the market and the roles of different market players.
• 😀 One key issue Amivi identifies is the lack of modern cultivation knowledge among farmers, which limits their productivity.
• 😀 The lack of access to essential information in rural areas, like where Gil lives, prevents farmers from improving their practices and yields.
• 😀 Amivi discovers that market-led solutions can help address these barriers, especially by connecting farmers with knowledgeable distributors.
• 😀 Erin, a specialized distributor, agrees to provide training and quality inputs to farmers like Gil in exchange for a fair price for their produce.
• 😀 The collaboration between Erin and the farmers improves knowledge sharing, increases productivity, and strengthens the supply chain.
• 😀 This value chain approach, which includes market relationships, leads to higher income and better working conditions for farmers and other stakeholders in the agricultural sector.
• 😀 The ILO has successfully applied value chain development in many countries, demonstrating the sustainable impact of this approach in diverse sectors.

Q & A

What is the main issue that Gil faces in his farming career?

Gil struggles with low income and poor living conditions due to the low returns from Timorese horticultural farming. Despite working hard, he cannot make enough money to support his family.

What is Amivi's role in the story?

Amivi is a researcher for the International Labour Organization (ILO), and she aims to understand why farmers like Gil cannot achieve a better livelihood, particularly in East Timor's horticultural sector.

How does Amivi approach understanding the issues in East Timor's horticultural market?

Amivi uses the value chain development approach by investigating how horticultural products get to market. She looks at the roles of various market players, including farmers, traders, wholesalers, and supporting functions.

What obstacle does Amivi identify in the horticultural sector?

Amivi identifies the lack of knowledge about modern cultivation techniques as a major obstacle, which limits productivity for farmers like Gil.

Where does Amivi find the missing information about cultivation techniques?

Amivi discovers that information about modern cultivation techniques is exchanged in larger, more central markets, which Gil has no access to.

How does Amivi attempt to solve the issue of low productivity in East Timor's horticultural sector?

Amivi proposes a solution by connecting Gil and other farmers with Erin, a specialized distributor, who agrees to provide training, sell quality inputs, and buy back produce at a fair price. This solution helps improve productivity and market access.

What benefits does the agreement between Amivi, Erin, and the farmers bring?

The agreement leads to better access to information, higher productivity, and improved income for the farmers. It also allows Erin to grow her business by expanding her distribution network and increasing sales.

What role does Erin play in improving the horticultural value chain?

Erin, a specialized distributor, plays a crucial role by providing farmers with quality inputs, training them in modern cultivation techniques, and buying their produce at fair prices, which enhances the overall value chain.

How does the value chain development approach differ from short-term solutions?

The value chain development approach focuses on understanding the entire system, identifying root causes of problems, and creating long-term, sustainable solutions. Unlike quick fixes, it addresses the systemic issues that prevent long-term progress.

What has been the broader impact of the ILO's value chain development approach?

The ILO has applied the value chain development approach successfully in many countries and sectors, cooperating with governments and NGOs to achieve sustainable success and improved livelihoods for farmers and other actors in the value chain.