BoP Markets as a Driver for Inclusive Value Chain and Business Development
Date
2017
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Abstract
This paper provides an overview of two partnerships between the GUTS Agro Industry, a nutritious food processing company in Ethiopia, and the 2SCALE consortium in two different contexts: Ethiopia and Benin. The partnerships aimed to develop and offer nutritional food products to base-of-the-pyramid (BoP) markets and improve value chain efficiency. In Ethiopia, the partnership focused on sourcing raw materials (maize and soybean) from smallholder farmers' organizations, improving quality and traceability, and developing a marketing and distribution strategy for a fortified food supplement called Supermom. The partnership improved farmer cooperatives' governance, increased production, reliable sourcing, and reduced costs for GUTS Agro-Industry. A micro-franchise distribution model was also implemented, empowering women as Likie micro-franchisees to sell the products door-to-door. In Benin, the partnership supported soybean producer and processor organizations to improve market development for soybean products, enhance incomes, and promote soybean-based products in the local market. The partnerships showcased the potential collaboration between agribusinesses and smallholder farmers or women processors, leading to improved value chain performance, market access, and socio-economic benefits for the involved stakeholders.
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Keywords
Partnerships, Value chains, Soybeans, Maize