Documentation of Experiences of the Agricultural Value Chain Facility

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Documentation of Experiences of the Agricultural Value Chain Facility Best Practices, Success Stories and Lessons Leanrt from the AVCF Documenting the Experiences of the Agricultural Value Chain Facility (AVCF) in the Northern Region of Ghana Table of Contents Acronyms ................................................................................................................................................ iii Executive Summar ................................y .................................................................................................vi SECTION A Chapter 1- Background ................................................................................................................................ 2 1.1 Introduction ......................................................................................................................................... 2 1.2 Problem Statement .............................................................................................................................. 2 1.3 AGRA/DANIDA Collaboration/Funding ........................................................................................... 3 1.4 Funding/Grant Making Process by AGRA ......................................................................................... 4 Chapter 2- Project Summary ........................................................................................................................ 5 SECTION B Chapter 3– Review of Key Concepts and Related Projec ................................ts ......................................... 8 3.2 Definitions and Concepts .................................................................................................................... 8 3.2.1 Agricultural Businesses ............................................................................................................... 8 3.2.2 The Concept of Agricultural Value Chains ................................................................................. 8 3.2.2.1 The Critical Role of Access to Finance to the Development of Agricultural Value Chains ................................................................................................................................................... 9 3.2.3 Some Relevant Knowledge Capitalization Concepts ...................................................................... 9 3.3 Multi-Stakeholder Partnership in Project Implementation ............... ...........................................10 3.4 Some Integrated Projects and Programme Operating in Northern Ghana.........................10 3.4.1 The Rural Enterprises Programm ................................e ............. ...........................................11 3.4.2 The Roots and Tubers Improvement and Marketing Progr..amme................................12 3.4.3 The Northern Rural Growth Progra mm e ....................................................................... 13 Chapter 4- Methodology for Documentation ............................................................................................. 14 4.1 Introduction ....................................................................................................................................... 14 4.2 Approaches and Assumptions ........................................................................................................... 14 4.3 Sources and Methods of Data Collec................................tion .......................................................... 14 4.4 Sampling Technique ......................................................................................................................... 15 4.5 Instrument Desig ................................n ............................................................................................. 15 4.6 Method of Data Analysis and Presentation ....................................................................................... 15 SECTION C Chapter 5– Project Implementation ........................................................................................................... 16 Chapter 6– Monitoring and Evaluation...................................................................................................... 19 i. SECTION D Chapter 7– Stories from the Field .............................................................................................................. 26 Chapter 8 -Successes, Best Practices, Challenges & Lessons Learned ...................................................... 48 8.1 Module 1: Upgrading the technical know- how of farmers and their umbrella groups through ISFM technologie................................s ..................................................................................... 48 8.2 Module 2: Increasing Smallholder Farmers’ Access to Farm Inputs (seeds and fertilizers) ................................................................................................................................................ 49 8.3 Module 3:I mproving Entrepreneurial and Business Management Capabilities of Smallholder Farmers for Effective Agribusiness Manage ment.............................................................. 52 8.4 Module 4: Improving Access of Smallholder Farmers and -Agro Input Dealers to Credit – A Major Challenge under the AVCF and Lessons Emanating from Component ..................... 53 8.5 Module 5: Promoting the Adoption of Improved Agr- ic Technologies to Community Radio and Edutainment ........................................................................................................................... 56 8.7 Module 7: Lessons from Project Coordination and Management Arrange.............................ments 59 8.8 Module 8: Lesson from the Grant Making Process .......................................................................... 60 Chapter 9- Conclusions and Recommendation .......................................................................................... 61 9.1 Summary of Good Practices, Innovations, Lessons and Successes under the ...................... AVCF 61 9.2 Conclusion ........................................................................................................................................ 63 9.3 Recommendations ............................................................................................................................. 64 Bibliography.................................................................................................................................66 Appendixes..................................................................................................................................68 i.ii. Accronyms ADRA Adventist Development and Relief Agency AGRA Alliance for Green Revolution in Africa AVCF Agricultural Value Chain Facility AVCMP Agricultural Value Chain Mentorship Project AVCMP Agricultural Value Chain Mentorship Project CARD Center for Agricultural Research and Development DANIDA Danish International Development Agency FBO Farmer Based Organization GAABIC Ghana Agricultural Associations Business Information Centre IFDC International Fertilizer Development Center INTAPIMP Integrated Agricultural Productivity Improvement and Marketing Project IPTT Indicator Performance Tracking Table ISFM Integrated Soil Fertility Management M&E Monitoring and Evaluation NRGP Northern Rural growth Project REP Rural Enterprises Programme SARI Savanna Agricultural Research Institute iii. Executive Summary The Agricultural Value Chain Facility (AVCF) aims at enhancing access to finance and business services to commercial as well as rural smallholder farmers, actors in the up and down-stream of promising Value Chains (soybean, rice and maize). The support focuses on improving access to long term finance combined with mentorship (technical assistance) to key players in the value chains. The facility addresses the issues inhibiting the growth of the agricultural sector through three sub-facilities: (I) Mentorship Services, aimed at enhancing the technical and business skills of farmers and their organizations, as well as rural Small and Medium Enterprises, (SMEs) upstream and downstream actors of the value chains. AGRA engaged four grantees: the International Fertilizer Development Center (IFDC); Ghana Agricultural Associations Business Information Centre (GAABIC), Savannah Agricultural Research Institute (SARI) and Adventist Development and Relief Agency (ADRA) for complementary interventions in the twenty districts of the Northern Region of Ghana. (ii) A Financial Capacity Development Facility which is on cost sharing basis will support capacity development of participating commercial banks to handle term lending within agriculture; (iii) A Loan Guarantee Facility from DANIDA to Stanbic Bank to leverage financing and share risks of lending to actors in the agricultural value chains. There are two Projects being implemented under the Facility namely Agricultural Value Chain Mentorship Project (AVCMP) by IFDC, SARI and GAABIC; and Integrated Agricultural Productivity Improvement and Marketing Project (INTAPIMP) by ADRA. With less than six months for the AVCMP to end and a year for the INTAPIMP, the two projects have cumulatively made some progress in achieving their outputs and outcomes. The AVCF is operational in 626 communities in all the 26 administrative districts in the Northern region. It has in the last four years created a network of 740 FBOs, 475 Agro-Dealers, 56 SMEs and other service providers in the Northern Region of Ghana. Other results are: 27,856 farmers registered as project beneficiaries;
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