The Value Initiative:

Urban Value Chain Development

Partners and Learning Themes

Advancing Urban Value Chain Development

Helping millions of people work their way out of poverty

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 Partners and Learning Themes

Urban Urban
Results Value Value
Assessmen Chain Chain
t: Developmen Finance :
Aly t: Sonali
Miehlbradt Mary McVay Chowdhary
Independent SEEP SEEP
Consultant

The Language
Value Initiative of Value
Chain
UVCD Partners and Development :
Beverley Morgan
Learning Themes Jamaica
Exporters’
Association
Working Social Poverty
Condition Engaging
Networks : Government Outreach :
s: Malka Older Naiomi
Navin Horo :
Mercy Corps Rajiv Lundman
Access - Indonesia AMPATH
India Pradhan
IDE Kenya
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Bangladesh
Where We Work
Urban Value Chain Development
(UVCD)

India
ACCESS Dev. Services
with 4 other orgs.
Jaipur Jewellery
2008/05: Bill Tucker to annual conference in Tunisia
Artisans
2008/11: Karim Fanous elected Development
to SEEP Board
2009/01: Training in Cairo… Project
2009/05: Bill Tucker and Jenny Morgan present at annual
conference in Beirut
Etc.

Jamaica
Exporter’s Kenya
Association Mercy Corps
AMPATH with 2 Indonesia with 3
with 2 other other orgs.
orgs. other orgs.
Value Initiative VIP (Tofu and Tempe)
Jamaican Program
Ornamental Fish (horticultural
Urban Value Chain value chain)

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 Partners and Learning Themes

The UVCD Partners

•Who are they? Who are their partners?
What do they do?
•What sector and population will they target?
•

•What are the strengths and challenges in

their target communities and sectors? How?
•What scale do they hope to reach?
•What learning theme will they lead?
•

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 Access - India

Access Development Services - India

•Social Enterprise NGO
•Emerged from the CARE CASHE program
•Promotes MFI capacity building and
networking
•Supports rural livelihoods and networking

Partnering with:
Jaipur Jewelers Association and 3 community based NGOs

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 Access - India

Access Development Services - India

•

•Sector: The jewelry sector in the city of

Jaipur - large, traditional, informal

•
•
•
•

•Target Group: informal sector, family-based

manufacturers and workers
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 Access - India

Social Strengths
•

•Social networks link

workers, producers,
brokers and owners –
jewelers
•Several CBOs active
•Most families in-tact,
working together
•Government social
services available
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 Access - India

Business Strengths
•Long history in sector, strong
reputation as jewelry center
•Strong basic skill base –
production and marketing
•100 year-old Jewelers’
association

•Stable operating Access and Jaipur Jewelers’ Association

Seminar on Fair Trade - 2009
environment
•Strong jeweler-
broker-producer
linkages 8
 Access - India

Social Challenges
•Low returns on investment, time
•Poor working conditions
•Low access to education, insurance
•Low women’s autonomy and mobility
•
•

•Some young men

separated from
families in rural areas
•Low “graduation” rate
for apprentices
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 Access - India

Business Challenges
•Demand for real gems falling, costume jewelry
growing faster; new designs are key
•Weak design services
•Low awareness of fair
trade opportunities
•Weak producer-to-
producer linkages
•Inefficient traditional
technology

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 Access - India

Value Chain Development Program

•Strategy: link to international and domestic markets
that value design, socially responsible production.
•

•Business services: Links to fair trade, socially

responsible markets; technology & design services;
IT market exchange platform;
finance; group organizing.
•

•Social services: identity cards,

access to health insurance,
education, finance
• 11
 Access - India

Value Chain Development Program

Artisan
receiving
identity card ,
certifying her
legitimate
profession ;
facilitating
access to health 12
insurance and
 Access - India

Target: 20,000 microenterprise owners and workers

Lead learning theme: Improved working conditions

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 Who are our partners?

Mercy Corps - Indonesia

•International Relief and Development Agency
•Has disaster relief, rural market development, urban
issues, microfinance capacity
•A SEEP Network member

•
Partnering with:
•Swisscontact – previously a SEEP PLP partner, expertise in rural enterprise
development, microfinance
•MICRA – Indonesian microfinance technical support agency
•PUPUK - leading Indonesian small business development agency

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 Mercy Corps - Indonesia

Sector - Tofu/Tempe in Jakarta: A large, traditional, informal industry

Target Group: informal sector, family-based producers, vendors and

workers

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 Mercy Corps - Indonesia

Social Strengths:
strong social networks
bring workers to the
city, and help them
graduate from worker,
to business owner,
maintaining strong
rural-urban linkages
•

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 Mercy Corps - Indonesia

Business Strengths
•Large and growing market for a staple food
•Traditional products known and liked
•Business climate fairly open
•Technology, processes simple, well known
•Informal market linkages strong
•Supplies readily available

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 Mercy Corps - Indonesia

Social Challenges
•Low returns, low wages
•Poor working conditions
•Pollution – from liquid waste
•

•Insecure residency and

vendor rights
•Urban-to-rural money
transfer leads to poor
urban living conditions
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 Mercy Corps - Indonesia

Business Challenges
•Increasing competition
•Poor hygiene practices limit demand among
middle income/health aware consumers
•Modern market opportunities out of reach in
the short run
•Traditional technology inefficient
•High fuel costs
•

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 Tofu – Tempe Jakarta Value Chain
Map
Informal and Food Preparation Consumptio
Input Supply Processing Formal Marketing & Snack
Food Vendor

Mini-Mart “Out door eaters”

Soybean Large/lead
producers Hospital Food stalls

Formal
wholesalers

Market
Catering
Medium sized Chart vendors
producers School (cooked product)

Soybean
Agents Wholesaler/
Take home consu-mers
Agents

Renter Renter
Producer producers producers
Group existing VC transaction
Small through informal market
producers a new VC transaction
through formal market

ation of soybean, tofu/tempe producers, and vendors

Food and hygiene inspection Body (BPOM) Consumer associations

of Environment, Ministry of Trade and Industry, Governments, Banks/ MFI, Research Institute
 Mercy Corps - Indonesia

Value Chain Development Program

•Strategy: Market hygienic tofu and tempe to
growing market of health-conscious
consumers, purchasing in informal sector.
•

•Business Services: Technology, improved

production, branding/marketing, links to
government services – training, finance.
•

•Social Services: Improved hygiene, reduced

pollution, improved working conditions.
•

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 Who are our partners?

•Target: 40,000 ME owners and workers

•Theme: Understanding, leveraging and

strengthening social networks 22
 Jamaica Exporters’ Association

Jamaica Exporters’ Association

•20 year old exporters’ association
(200 members)
•Cluster development, market information
•

•USAID contractor

Partnering with :
•
The Competitiveness Company (a JEA company)
Area Youth Foundation (AYF) a performing-arts based youth
movement in City of Kingston
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 Jamaica Exporters’ Association

Jamaica Exporters’ Association

Sector:
Ornamental fish
Kingston
-emerging
export sector,
common hobby
•

Target Group:
Violence affected
communities,
young men
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 Jamaica Exporters’ Association

•
Social Strengths
•Leadership – of dedicated Jamaican “elites” and
emerging young community members
•Resilience, passion, often expressed through
music, dance, visual arts
•Strong community movement: With the
“ I personally
performance arts as an entry point, Area Youth became involved in
Foundation educates and motivates young community work
people for a peaceful and fulfilling future. because I want
things to be
•Strong personal ties different for the
•Global awareness community and I
have the feeling
that I can be an
agent for change .”
Orlando Hamilton of
Mountain View , a
community severely
affected by
Sheila Graham, violence , president
Founder and Director of
Area Youth Foundation of Young Generation25
An educational drama by Club , “ graduate ” of
 Jamaica Exporters’ Association

Business Strengths
•Fundamentally very profitable
•Love, knowledge for ornamental fish,
part of community (male) culture
•Good domestic technical knowledge
•Strong competitive position – can Ornamental Fish
deliver low cost fish to US and Europe Experts
–faster than major competitor Dedicated
(Singapor) Fish
Farmer
•JEA members know how to export
complex “fresh” items – have
experience in horticulture
•Supportive government
•

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Profitability – Jamaican
Ornamental Fish

The market price is $0 . 75 per

fish .

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 Jamaica Exporters’ Association

Social Challenges
•

•Violence – related to gangs, drugs, and

politics – second highest per capital
murder rate in the world.
•Low education levels, poor access
to education
•Family breakdown due to migration, young
parenting, high death rates of young
fathers, high female-headed families
•Economic and social exclusion
•

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 Jamaica Exporters’ Association

Business Challenges
•New industry – few businesses, low volumes,
few varieties and market linkages, need to
build reputation among importers
•
•
•
•Low trust among few businesses in the
market – significant social divisions
•Low trust of development projects, low faith
in change in general
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 Jamaica Exporters’ Association

Business Challenges
•Current technology is very basic; upgrade
requires a lump sum of capital, no access

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 Jamaica Exporters’ Association

Value Chain Development Program

•Strategy: Target US, Canada and European
market, undercut Asian competition –
increase volume, variety, delivery quality at
a lower price.
•

•Business Services: Market linkages,

consolidator function, finance,
technology/training
•

•Social Services: Life skills, peace and

reconciliation, empowerment
• 31
 Jamaica Exporters’ Association

Target: 6,500 microenterprise owners and workers

Lead Learning Theme: the language of value chain development

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 AMPATH - Kenya

AMPATH – Kenya
•Partnership between Moi University, Indiana
University and other universities
•10 year old HIV prevention, treatment and
care program (70,000 patients)
•Rift Valley and Western Kenya
•Commitment to economic strengthening
Partnering with:

••FINTRAC: global agricultural marketing company reaching 50,000 Kenyan

farmers
•Export Promotion Council: leading quasi-government agency

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 AMPATH - Kenya

Sector: Horticulture - growing passion fruit, processing juice

Targeting: HIV impacted communities, range of vulnerability

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 AMPATH - Kenya

Social Strengths
•AMPATH has strong social service program
•Awareness about HIV and stigma prevention
efforts are a decade old and on-going
•Peace and reconciliation efforts are on-going
•Church movement is strong
•

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 AMPATH - Kenya

Social Strengths
•Historically, strong culture of social cohesion,
looking after one another, and “self-help” –
strong family ties
•In less affected, stable communities, social
cohesion among a single ethnic group is
strong – it’s easy to form groups
•

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 AMPATH - Kenya

Business Strengths
•Passion fruit is very profitable – farmers
regularly increase their incomes by tenfold
in one year by converting from marginal
maize to passion fruit.
•Strong international, national and domestic
demand for healthy food/drinks – fast
growing and unsatisfied local demand for
juice.

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 AMPATH - Kenya

Business Strengths
•Vegetables and passion fruit are
relatively easy crops to grow;
have short seasons; passion
juice is easy to make with a
blender
•Crop marketing channels are
established
•Microfinance is available
•Towns and cities in the region
are relatively supportive of
informal sector business
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 AMPATH - Kenya

Social Challenges
•High HIV rates, social networks overwhelmed, family
abandonment and stigma prevalent, widows loose
access to land, child and grand-parent headed
households
•Political/ethnic violence in 2008, resulting in reduction in
trading activity, loss of stocks and loss of traders and
customers, distrust in markets
•Gender inequity prevalent
•Weak governance
•Low functioning public institutions

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 AMPATH - Kenya

Business Challenges
•In basic vegetables: erosion of tradition in
growing healthy vegetables, re-introduction
underway.
•In passion: higher volumes required by
market, and fetch high prices; higher grades
fetch higher prices. Inputs, technical
assistance and capital needed.
•In passion juice: new cottage industry in the
area, requires clean water, regular supply of
fruit or pulp, for very marginal women,
access to markets is a challenge
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 AMPATH - Kenya

Value Chain Development Program

Strategy:
•Increase volume of fruit and juice sold to
domestic and regional markets
•Focus on small-scale input suppliers,
informal trading network and leader of
farmer groups as key dissemination nodes
•Offer “graduation” model to reach most
vulnerable in all value chain functions –
farmers, traders, juice processers
•

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 STRATEGY FOR MARKET UPTAKE: FUTURE MARKET SYSTEM

= micro -enterprise activity

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 AMPATH - Kenya

Value Chain Development Program

•

•Business Services: Comprehensive

“package” of services targeted to farmers,
processers, traders – delivered by informal
traders and suppliers, made up of:
•Inputs, equipment
•Technical advice, on-going support
•Capital
•Access to markets
•

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 AMPATH - Kenya

Value Chain Development Program

•

Social Services:
•Door-to-door primary care, health/HIV
awareness, links to deeper treatment/care
•Gender equity support –
•Targeting vulnerable women
•“Farming as a family business”
approach with in-tact family to
encourage financial and labor
planning, gender and intergeneration
equity and knowledge transfer
•
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 AMPATH - Kenya

Target: 7,000 microenterprise owners and workers

d from maize to passion fruit and vegetable farming. My income enables me to educate my children in

Lead Learning
Theme : Reaching
Mr. Joseph Cheboi is a lead passion fruit farmer Vulnerable
in Eldoret. He expanded from 0.25 acres to 2
acres of passion fruit through assistance by Populations –
Fintrac. He promotes passion fruit farming and Poverty Outreach
trains other farmers through KASS radio
programs. 45
 Partners and Learning Themes - Recap

Urban Urban
Results Value Value
Assessmen Chain Chain
t: Developmen Finance :
Aly t: Sonali
Miehlbradt Mary McVay Chowdhary
Independent SEEP SEEP
Consultant

The Language
Value Initiative of Value
Chain
UVCD Partners and Development :
Beverley Morgan
Learning Themes Jamaica
Exporters’
Association
Working Social Poverty
Condition Engaging
Networks : Government Outreach :
s: Malka Older Naiomi
Navin Horo :
Mercy Corps Rajiv Lundman
Access - Indonesia AMPATH
India Pradhan
IDE Kenya
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Bangladesh
 How will we share our learning?

Get Involved!
1.SEEP Members: Join us on-line for members only dialogue,
exchange and updates – review research plans, publications and training
materials to ensure they meet your needs!

2.All practitioners, researchers, funders:

•Join us for public on-line discussion and seminars
•Download our publications and training materials
•Attend our training events

3. Trainers/technical assistance
providers:
•Join our training & TA network

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 How will we share our learning?

It’s fun!

Geoffrey Nyamota of Fintrac (Kenya) –

playing football with children in
Jakarta, Indonesia
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For More Information
Contact me directly:

Mary McVay,
Director, The Value Initiative
mcvay@seepnetwork.org

edexchange.seepnetwork.org/

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