Agribusiness And Innovation Systems In Africa (agriculture And Rural Development Series)

This Book Examines How Agricultural Innovation Arises In Four African Countries Ghana, Kenya, Tanzania, And Uganda Through The Lens Of Agribusiness, Public Policies, And Specific Value Chains For Food Staples, High Value Products, And Livestock. Determinants Of Innovation Are Not Viewed Individually But Within The Context Of A Complex Agricultural Innovation System Involving Many Actors And Interactions. The Volume Is Based On Qualitative Interviews With Agribusiness Representatives That Were Designed To Shed Light On Their Experiences On Public Policies That Either Enhances Or Impedes Innovation In Africa S Agriculture Sector. Following Are The Volume's Main Messages On Policies, Institutions And Strategies That Nurture Innovation In The Agriculture Sector: 1) Agribusiness Innovation Is In Many Cases Driven By The Need To Maintain Grades And Standards Within The Value Chain, Not Only In The Case Of Export Markets, But Also In Evolving Domestic And Urban Markets And Value Chains; 2) That Staple Food Sector Has Potential To Be A Source Of Growth, Innovation And Poverty Reduction; 3) Successes In Value Chain Innovation And Agribusiness Production Depend Critically On The Structure Of The Whole Agricultural Innovation System And Are Highly Context Specific; 4) Especially Successful Innovation Were Dependent On Creating Synergies Between Market-based And Knowledge-based Interactions And Strong Linkages Within And Beyond The Value Chain; And 5) The Public Sector S Innovation Support Has To Extend To Interactions, Collective Action And Broader Public-private Partnership Programs. This Book Will Be Of Interest To Policymakers, Agribusiness Leaders, Farmer Organizations, Ngos, And Researchers. Value Chains, Innovation, And Public Policies In African Agriculture : A Synthesis Of Four Country Studies -- Ghana : Cassava, Cocoa, And Poultry -- Kenya : Maize, Tomato, And Dairy -- Tanzania : Sunflower, Cassava, And Dairy -- Uganda : Fish, Bananas, And Vegetables. Kurt Larsen, Ronald Kim, And Florian Theus, Editors. Includes Bibliographical References And Index. Contents......Page 7 Preface......Page 13 Contributors......Page 15 Acknowledgments......Page 19 Abbreviations......Page 21 Agriculture and Development......Page 25 The Sub-Saharan African Context and Focus of the Book......Page 26 A Changing Landscape......Page 28 Agricultural Innovation Systems......Page 29 Agribusiness, Value Chains, and Public Policies......Page 30 Main Messages......Page 33 Notes......Page 37 References......Page 38 1. Value Chains, Innovation, and Public Policies in African Agriculture: A Synthesis of Four Country Studies......Page 39 Agricultural Innovation Systems in Sub-Saharan Africa: The Value Chains......Page 44 Agricultural Innovation Systems in Sub-Saharan Africa: Beyond the Value Chains—Support Structures and Services and the Intermediary Domain......Page 62 Agricultural Innovation Systems in Sub-Saharan Africa: The Impact of Public Policies and Institutions on Agribusiness Innovation......Page 73 Conclusion......Page 79 Notes......Page 80 References......Page 81 Part II. The Agribusiness Country Reports......Page 85 Executive Summary......Page 87 Background and Policy Context......Page 89 An Overview of the Subsectors and Their Value Chains......Page 91 Innovation in the Subsectors: Innovations within the Value Chains......Page 96 Support Structures and Services......Page 99 Coordination within the Innovation System: The Systems Approach......Page 100 Public Policy Influence on Agribusiness Innovations......Page 106 2.1 The Facilitators and Inhibitors of Innovation and Policy Options......Page 109 References......Page 110 Executive Summary......Page 113 Introduction to Kenya's Agricultural Sector......Page 115 Overview of the Subsectors, their Value Chains, and Innovations......Page 116 Links and Coordination within the Innovation System......Page 140 3.2 Framework for Ensuring Quality Standards and Market Promotion of Dairy Products in Kenya: The Case of Public Institutional Innovation and the Kenya Dairy Board......Page 145 Conclusion......Page 155 References......Page 156 4. Tanzania: Sunflower, Cassava, and Dairy......Page 159 Background Information......Page 160 Overview of the Subsectors, their Value Chains, and Innovations......Page 163 Further Aspects of Innovation Related to all Subsectors......Page 171 Support Structures and Services......Page 173 Coordination among Key Actors of the Innovation System......Page 175 The Impact of Policies......Page 179 Conclusion......Page 182 References......Page 185 5. Uganda: Fish, Bananas, and Vegetables......Page 187 Background......Page 188 5.1 The Fish Value Chain......Page 191 Links among Key Actors of the Innovation System......Page 197 Policy Influence on Agribusiness......Page 203 Conclusion......Page 208 References......Page 212 Design......Page 215 The List of Interview Questions......Page 218 Note......Page 221 Reference......Page 222 Index......Page 223 1.1 A Conceptual Diagram of an Agricultural Innovation System......Page 31 2.1 WAMCO as an Innovator......Page 98 3.1 The Coordinating Role of ACDI/VOCA......Page 121 3.2 Launching the Warehouse Receipt System......Page 124 3.3 Kenya Initiates Plastic "Greenhouse" Tomato Farming......Page 129 3.4 The Uchumi Supermarket and Farm Concern Partner to Ease Payments to Farmers......Page 131 3.5 Organizational Innovation: Cooperatives: The Undugu SACCO......Page 136 3.6 Innovation in Kenya's Dairy Processing (New KCC and Spin-Knit Dairies)......Page 138 4.1 Sample of Innovations at Power Foods Company......Page 168 4.3 A Sample of Processing and Marketing Innovations from ASAS Dairies Ltd......Page 170 4.4 Innovations among Input Suppliers and Agroproduct Manufacturers......Page 172 5.1 Benefits of Farmer Cooperatives......Page 198 5.2 Institutional Interaction and Learning for Innovation......Page 200 1.1 Input and Output Market Structures Serving African Farmers......Page 43 1.2 How a System of Warehouse Receipts Works......Page 64 1.3 Financial Delivery Structure for the Agriculture Finance Corporation......Page 65 1.4 The Kenya Dairy Board Framework for Ensuring Quality Standards and Promoting Dairy Products in Kenya......Page 78 2.1 The Cassava Value Chain......Page 92 2.2 Total Cocoa Exports (US$ Millions): 2002–06......Page 93 2.3 The Cocoa Value Chain......Page 94 2.4 The Poultry Value Chain......Page 95 2.5 Diagram of Interactions in the Value Chain and Environments......Page 101 3.1 Financial Delivery Structure for Agricultural Finance Corporation......Page 132 4.1 Value Chain Links for Sunflower Oil Processing......Page 164 4.2 Value Chain Links within the Cassava Industry......Page 166 4.3 Value Chain Links within the Milk Value Chain......Page 167 5.2 The Banana Value Chain......Page 194 1.1 Four Principal Contextual Factors for Innovations and Value Chains within Six Sub-Saharan African Countries......Page 40 1.2 Factors within the Value Chain That Conditioned Innovation in Rwandan Coffee and Ghanaian Cassava......Page 45 3.1 Key Characteristics by Miller......Page 117 3.2 Actors in the Maize Industry and Their Roles......Page 119 3.3 Actors in the Tomato Industry and Their Roles......Page 127 3.4 Players in the Dairy Industry and Their Roles......Page 134 Contents 7 Preface 13 Contributors 15 Acknowledgments 19 Abbreviations 21 Part I. Introduction and Main Messages 25 Agriculture and Development 25 The Sub-Saharan African Context and Focus of the Book 26 A Changing Landscape 28 Agricultural Innovation Systems 29 Agribusiness, Value Chains, and Public Policies 30 Main Messages 33 Notes 37 References 38 1. Value Chains, Innovation, and Public Policies in African Agriculture: A Synthesis of Four Country Studies 39 Agricultural Innovation Systems in Sub-Saharan Africa: The Value Chains 44 Agricultural Innovation Systems in Sub-Saharan Africa: Beyond the Value Chains—Support Structures and Services and the Intermediary Domain 62 Agricultural Innovation Systems in Sub-Saharan Africa: The Impact of Public Policies and Institutions on Agribusiness Innovation 73 Conclusion 79 Notes 80 References 81 Part II. The Agribusiness Country Reports 85 2. Ghana: Cassava, Cocoa, and Poultry 87 Executive Summary 87 Background and Policy Context 89 An Overview of the Subsectors and Their Value Chains 91 Innovation in the Subsectors: Innovations within the Value Chains 96 Support Structures and Services 99 Coordination within the Innovation System: The Systems Approach 100 Public Policy Influence on Agribusiness Innovations 106 Conclusion and Summary of Recommendations 109 Notes 110 References 110 3. Kenya: Maize, Tomato, and Dairy 113 Executive Summary 113 Introduction to Kenya's Agricultural Sector 115 Overview of the Subsectors, their Value Chains, and Innovations 116 Links and Coordination within the Innovation System 140 Public Policy Influence on Agribusiness Innovations 145 Conclusion 155 References 156 4. Tanzania: Sunflower, Cassava, and Dairy 159 Background Information 160 Overview of the Subsectors, their Value Chains, and Innovations 163 Further Aspects of Innovation Related to all Subsectors 171 Support Structures and Services 173 Coordination among Key Actors of the Innovation System 175 The Impact of Policies 179 Conclusion 182 Notes 185 References 185 5. Uganda: Fish, Bananas, and Vegetables 187 Background 188 Innovation across the Value Chains 191 Links among Key Actors of the Innovation System 197 Policy Influence on Agribusiness 203 Conclusion 208 Notes 212 References 212 Appendix: Survey Questionnaire 215 Design 215 The List of Interview Questions 218 Note 221 Reference 222 Index 223 Boxes 31 1.1 A Conceptual Diagram of an Agricultural Innovation System 31 2.1 WAMCO as an Innovator 98 3.1 The Coordinating Role of ACDI/VOCA 121 3.2 Launching the Warehouse Receipt System 124 3.3 Kenya Initiates Plastic "Greenhouse" Tomato Farming 129 3.4 The Uchumi Supermarket and Farm Concern Partner to Ease Payments to Farmers 131 3.5 Organizational Innovation: Cooperatives: The Undugu SACCO 136 3.6 Innovation in Kenya's Dairy Processing (New KCC and Spin-Knit Dairies) 138 4.1 Sample of Innovations at Power Foods Company 168 4.2 A Sample of Processing Innovations from TANDAIRIES Company 170 4.3 A Sample of Processing and Marketing Innovations from ASAS Dairies Ltd 170 4.4 Innovations among Input Suppliers and Agroproduct Manufacturers 172 5.1 Benefits of Farmer Cooperatives 198 5.2 Institutional Interaction and Learning for Innovation 200 Figures 43 1.1 Input and Output Market Structures Serving African Farmers 43 1.2 How a System of Warehouse Receipts Works 64 1.3 Financial Delivery Structure for the Agriculture Finance Corporation 65 1.4 The Kenya Dairy Board Framework for Ensuring Quality Standards and Promoting Dairy Products in Kenya 78 2.1 The Cassava Value Chain 92 2.2 Total Cocoa Exports (US$ Millions): 2002–06 93 2.3 The Cocoa Value Chain 94 2.4 The Poultry Value Chain 95 2.5 Diagram of Interactions in the Value Chain and Environments 101 3.1 Financial Delivery Structure for Agricultural Finance Corporation 132 3.2 Framework for Ensuring Quality Standards and Market Promotion of Dairy Products in Kenya: The Case of Public Institutional Innovation and the Kenya Dairy Board 145 4.1 Value Chain Links for Sunflower Oil Processing 164 4.2 Value Chain Links within the Cassava Industry 166 4.3 Value Chain Links within the Milk Value Chain 167 5.1 The Fish Value Chain 191 5.2 The Banana Value Chain 194 Tables 40 1.1 Four Principal Contextual Factors for Innovations and Value Chains within Six Sub-Saharan African Countries 40 1.2 Factors within the Value Chain That Conditioned Innovation in Rwandan Coffee and Ghanaian Cassava 45 2.1 The Facilitators and Inhibitors of Innovation and Policy Options 109 3.1 Key Characteristics by Miller 117 3.2 Actors in the Maize Industry and Their Roles 119 3.3 Actors in the Tomato Industry and Their Roles 127 3.4 Players in the Dairy Industry and Their Roles 134