Pro Poor Value Chains

ITC’s Choupal Fresh was one example discussed at the Villgro Fellows Week.  The retail business in India has witnessed a boom in recent years. Securing adequate supply – particularly of fresh fruits and vegetables – however continues to be a challenge. A 2009 Case Study by Rewa Misra, of the Coady International Institute in Canada, looks at the ITC example of establishing supply chains directly from the farmer.  This pro-poor method can successfully integrate smallholder farmer.

The case study uses value chain analysis to highlight three aspects. Firstly, which activities/types of firms/strategies yield higher value than others for small holders. Secondly, what forms of relationships, contractual and otherwise work in the value chain and, thirdly what models work best for service delivery.

The key fact established through the case study is that integrating small holder famers within the fruit and vegetable value chain is possible, if large firms such as ITC take a lead in playing a larger role by fulfilling key functions. It also posits that the model works if inter firm relations are purely market based and mutually beneficial.

Read the entire case study here.