Five Routes to Profitable Sourcing From Smallholder Farmers: Investor Perspectives on the ‘Deal’

This month CASA Programme is encouraging as many people to join as possible by making this an open event. They encourage you to register but you can also join the meeting directly by clicking on the following link on the day of the event:

Zoom link: https://cabi.zoom.us/j/96484149601?pwd=blpMVVBKZFY2K2lXT1JHWVp3UXVldz09

Meeting ID: 964 8414 9601
Passcode: 26052021

As demand for food increases, most analysts think that sourcing from small-scale producers will be critical to food security…

This webinar will build on a recent publication by the CASA Technical Assistance Facility:Sourcing from smallholders: complex challenge or commercial opportunity? Perspectives from investors and agribusinesses.The publication captures investor perspectives on the commercial viability and development impact of sourcing from smallholder farmers. Five specific routes will be identified for investors, agribusinesses and development partners to support investment in smallholder-sourcing models. The discussion will also acknowledge and address the challenges in sourcing from smallholders can bring and use case study evidence to show what can be achieved.

Investors should map the investment gap…through systematic classification and tracking of smallholder-sourcing agribusinesses to provide greater clarity on this ‘asset class’. This can improve guidelines on the blend of capital and Technical Assistance (TA) required to boost effectiveness.

Agribusinesses should invest in thorough upfront…including supply chain, context and end-market analysis, before implementing a small-scale producer sourcing model. In-depth, early analyses helps manage the complexities of the models. This analysis should also pinpoint where private capital should be deployed when commercial gains are evident, and highlight where public funding is needed.

Partnerships between investors, donors and agribusinesses provide essential upstream support to smallholder suppliers.

Investors could establish agricultural investment vehicles…with longer investment horizons than the typical Venture Capital or Private Equity timeframes. An example would be a Permanent Capital Vehicle (PCV),with flexibility for investments to generate returns at their own rate.

Agribusinesses and investors…should leverage monitoring and impact measurement to improve business operations and integrate impact data into existing management systems.

Time: 12:00 (noon) BST (GMT+1)

Location: Virtual

Date: Wednesday, May 26, 2021