A Value Chain Fund is established within the PCU and is used to provide matching grants to different actors along the value chain. The specific objective of this sub-component is to develop producer-public-private partnerships. The Value Chain Technical Assistance Team addresses the current challenge of absence of quality advice in the region and engaged private sector on developing win-win partnerships for various products/value chains in the region.
Under this sub-component, there is a major programmatic adaptation. The support for value chain service approach has been re-strategized by the IFAD and converted it from the matching grant design into the 4P business model. The activities are focussing on the revised strategy “The 4P Business Development model”. The main fulcrum of this approach is 4P model whereby private-public and producers are linked in mutually responsible partnerships. Some the core responsibilities of VCTAT is,
- Development of bankable business plan
- Development of 4P facilitation manual
- Capacity building of farmers through ToT’s & farmers’ trainings
- Organize international exposure visits for the value chain actors
- Organize trainings & capacity building of value chain stakeholders
- Provide ongoing support to promote commercially viable linkages between the targeted value chain stakeholders (IFAD 4P Model)
- Provide ongoing support to the project team in implementation of approved business plans
The Farmers’ Organizations (FOs), Village Producers Groups (VPGs) and Valley Producers Associations (VPAs) shall be linked with potential private sector companies (promoters) for contract farming under purchase the produce back arrangements through signed agreement deeds. Developing bankable business proposals will be the key elements to address aggregation, quality and marketing challenges. The strategy is expected to develop capacities and networks for sustainable expansion of production and marketable surpluses resulting in increased incomes, employment generation and poverty reduction. The key in 4-P model is the farmers/producers at grassroots level so to maximise their profitability by enhancing productivity and production.