Markets & Value Chains in Agriculture Liberia
Contribution ID : SE-0-SE-6-52090011This website displays open data about Swedish aid, which shows when, to whom and for what purpose Swedish aid is paid out, as well as what results it has produced. This page contains information about one of the contributions financed with Swedish aid.
Support to development of markets and value chains within selected agricultural sub-sectors, adopting a 'making-markets-work-for-the-poor' (M4P) approach.
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Support to development of markets and value chains within selected agricultural sub-sectors, adopting a 'making-markets-work-for-the-poor' (M4P) approach.
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Result
Results achieved: The impact of GROWs activities has been numerous, especially in the cocoa and vegetables sector as well as regarding cross-cutting issues. The programme has largely achieved its targets. Some results exceeded project indicators and some results were achieved slightly below planned targets. Some targets have been adapted due to the phasing out of the programme and the handing over of some of the activities to UN'DO during the inception phase of the new programme. During the last months of the programme, GROW has been giving support to UN'DO, including background information, documentation and guidance regarding the operating landscape, cocoa and vegetables sectors, market systems approaches, and staffing and operations in Liberia, in order to take ahead the next programme. In vegetables, GROW was able to identify adequate interventions to address systemic constraints in the core value chain and the regulatory dimension of the market system. This was based on analysis that considers potential for growth for smallholder farmers and systemic constraints that hamper this potential in the input and output markets. Interventions in the output market however were abandoned because they did produce desired results and sufficient traction, even though improvements in that market remain a critical constraint to the growth of the vegetables sector. Efforts were since consolidated more strongly on the establishment of an agro-input distribution network that reaches smallholder farmers. One major success was that GROW succeeded in convincing policy makers to put in place a duty waiver on import duties. This is meant to encourage distributors and other businesses to import agricultural related inputs via the port of Monrovia. The intention is to prompt the substitution of agro-inputs bought across the border. These are subsidized and thus cheaper, but many have instructions in French rather than English and thereby imposing risks of improper use. The assumption and justification of the reduction of import duties is that it will trickle down in the form of lower prices to farmers thereby contributing to their access to more affordable agroinputs in-country. In discussions with farmers, agro dealers and Ministry of Agriculture staff, the duty waiver has been considered a major success. In cocoa, GROW has been effective in selecting interventions that address system constraints in the core value chain and influence the policy environment. Interventions were geared towards generating results for its partners, namely exporters/buyers, cooperatives and farmers, contributing to greater sector coordination and shaping the policy vision for cocoa development in Liberia. While the initial focus was on improving the quality of bulk cocoa, a stronger orientation toward the premium export market emerged overtime as a result of a better understanding of the market including the comparative advantage of Liberia vis à vis its cocoa producing neighbours (e.g. less rigid regulatory setup that is desired by some international buyers) and export opportunities (demand for fine flavour and new origins). GROW has been focusing on improving the quality and increasing the quantity of cocoa, while also addressing issues linked to financing terms, a major constraint in the sector, as well as supporting cooperatives in their ability to manage their business, fulfil their roles as aggregators and provide training to members. GROW has also been active in the national cocoa platform. Liberian cocoa has a poor international reputation due to a history of inconsistent quality, leading to automatic price penalties on the global market. Almost all Liberian cocoa is sold on the bulk market for use in the cosmetics industry. The current market conditions give Liberian farmers little incentive to improve their post-harvest practices such as fermentation and drying of the beans critical to quality and flavour since their efforts do not reap better prices. With negligible national volumes, Liberia has been left trailing behind neighbouring Côte d'Ivoire and Ghana, which together produce some two-thirds of the world's cocoa. This is in spite of fertile soil and an optimal climate for growing the crop. While the world's largest bulk markets of Europe and the US are becoming increasingly saturated, premium cocoa markets are stable and growing. Buyers are prepared to pay more depending on cocoa bean quality, availability and its uniqueness in terms of both physical attributes and the context in which it was grown. GROW Liberia played an instrumental role in positioning Liberia's cocoa industry and farmers for the premium cocoa market and the inclusive, sustainable growth opportunity that it offers. High performing producers have improved their position in accessing premium cocoa markets, with some moving towards certification. Cocoa samples sent by GROW partners to the regional Cocoa of Excellence quality testing competition in Côte d'Ivoire came in first, second, and third place for Liberia. GROW developed an effective approach for the selection and retention of partners, working its way around this key challenge in a thin market like Liberia even if this is happening at the expense of scale considerations. The identification of relevant partners who are interested and committed to pilot interventions is key for a programme like GROW. This has been a central challenge in a context where the MSD approach is not known, organisations are used to receiving grants and materials from donor programmes and NGOs, the market is small and distorted as a result of long history of humanitarian assistance and market concentration, capacities are weak and information is scanty. While initially highly selective, GROW capitalised on lessons learned to change its strategy over time. GROW has been instrumental in building a momentum around policy visions and the roadmap for cocoa development. The issue of positioning Liberia as an international supplier of premium cocoa for instance was not part of &iberias policy discussions before the idea was promoted by GROW. While discussions are still ongoing, GROW has established a good basis for government to be oriented in this direction.
GROW Liberia is an extensive and complex agriculture project that was procured by Sida in 2012. It is implemented by Adam Smith International (ASI) and uses a Market Systems Development (MSD) approach. The overall objective of the contribution is to contribute to sustainable peace and poverty reduction in Liberia by inclusive and sustainable economic development. The expected impact is increased income generation and job creation for women, men and small firms in Liberian agriculture both in terms of people reached and income generated through better yield and improved business practices. The expected outcome is increased business activities, trade and value addition through strengthened capacity and competitiveness of smallholder farmers and owners of micro, small and medium-sized enterprises (MSMEs). The expected outputs are systemic changes in market systems relevant for smallholder farmers and related micro and small enterprises in terms of 1) Improved market functions; 2) Improved performance of support services; and 3) Improved business environment. The direct target group covers targeted market actors, including businesses and structures in support functions and the core value chain, as well as government structures as key actors influencing and implementing rules and regulation. GROW works directly with these actors to stimulate change in the way the market system works for smallholder farmers. The ultimate target group comprises smallholder farmers, as the clients of GROWs business partners, focusing on women and youth whose living conditions the project seeks to ultimately improve.
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