November 22, 2023

Connecting for Success: Unlocking Opportunities through Agribusiness Clusters (ABC) Meetings

Animal Production Related

Staple Crops

Ethiopia

Ghana

At the core of 2SCALE's mission lies the Agribusiness Cluster (ABC) approach, a powerful engine driving the development of inclusive and sustainable nutritious food systems. By fostering crucial business relationships among actors at the grassroots level, the ABC model creates a multi-actor network around primary food producers, facilitating input, service, and market coordination. Through Public-Private Partnerships (PPPs), 2SCALE collaborates with private actors, empowering them as business champions to lead the development of agricultural value chains using the ABC approach.

To ignite local business networking and unleash opportunities, ABC meetings have emerged as a pivotal instrument. Introduced in Ghana, Nigeria and Ethiopia in 2022, these meetings convene before planting and during harvesting, aligning with the cropping calendar. Actors gather to coordinate input arrangements based on available market products from the business champion.

Nevertheless, ABC meetings are not confined to these specific events; they can be held as frequently as required, given that the actors are in close proximity to one another. These gatherings are instrumental in kick-starting networking, aligning business interests, monitoring performance, and sharing valuable lessons learned.

Success Stories in Ghana

In Ghana, ABC meetings have proven functional in organizing input and market access, promoting information sharing, understanding business interests, and addressing challenges faced by actors within the clusters. Maize farmers in the 2SCALE-KEDAN partnership, for instance, received support in overcoming input financing obstacles through credit offered by input suppliers and the business champion. Service providers found the platform useful for sharing information about their services, leading to positive outcomes.

Since 2022, 2SCALE partnerships in Ghana have witnessed over 10,000 smallholder farmers accessing farm services through the ABC meetings, mobilizing over 30,000 tons of raw material from farmers for respective business champions, and generating business worth over GHS 5,000,000 (USD 416,667) through service provision. These impressive results demonstrate the efficacy of local B2B engagement, that is, the interactions and collaborations between businesses, through the ABC approach.

For Alhassan Dassan, a farmer and member of a youth service provision gang at Agogoso in the Nyinahin cluster under the 2SCALE-Rockland Farms partnership, the ABC meetings have been very beneficial. He narrates,

Through these meetings, I established a relationship with an input dealer who extended credit to me, providing inputs worth GHS 1,600 (USD 133) during the 2022 minor season. Additionally, access to tractor services in our area has improved as a direct outcome of these meetings. Our youth service gang was formed in response to farmers' complaints about accessing timely services, such as planting, spraying, and harvesting, which were discussed during ABC meetings.

Empowering Ethiopia's Poultry Sector

In the 2SCALE-Chico Meat Ethiopia partnership, ABC meetings have proven instrumental in the development of two strong ABCs. Chico Meat Ethiopia, the business champion, is a chicken meat slaughtering business that sources broilers from out-growers. In December 2022, an ABC meeting brought together various stakeholders in the value chain, including out-growers, Yofarm-day old chicken supplier, the Livestock Office, the Revenue Authority Office, the National Veterinary Institute (NVI), the university and the Ethiopian Poultry Producers and Processors Association (EPPPA), to explore the significance of local business coordination for mutual growth and gain.

During the meeting, the out-growers raised challenges related to access to effective vaccines, taxation issues based on income rather than accounting for mortality losses, and access to land. Supportive functions from other actors acknowledged the misalignment of services and pledged to address these concerns. This constructive exchange of ideas resulted in several tangible benefits for the participants.

For example, one out-grower successfully secured farmland for poultry expansion, facilitated and advised by the supporting offices in the cluster. Additionally, through professional support from the Livestock Office, out-growers and the business champion managed to access the market after the government halted meat sales due to food safety concerns. This collaboration saved them from potential losses.

Furthermore, the representative from the Revenue Office became aware of the tax levy process on out-growers and took action to inform the back office, ensuring fair taxation. The National Institute of Vaccine also promptly responded to feedback, making necessary adjustments in vaccine production, while the Veterinary College offered capacity-building opportunities. These interactions created clear lines of communication, enabling the out-growers to access proper services. As a result, out-growers became members of the association, opening doors to growth and fostering sustainable networking.

One of the participants of the ABC meeting, an expert from the Woreda Revenue Authority Office, shares,

I was not aware of the challenges out-growers face up till this meeting. What we do normally is count the farm-arrived day-old chicks and levy the tax. Now, it is clear that the office should work closely together with the office of livestock to estimate the tax on out-growers only on the chicken sold.

ABC meetings have emerged as a game-changer, propelling local B2B networking in the agribusiness sector. Through these gatherings, actors connect at a business level, aligning interests, unlocking challenges, tapping into opportunities, and strengthening networks. The success stories in Ghana and Ethiopia exemplify the transformative potential of the ABC approach, paving the way for inclusive and sustainable food systems with strong local base.

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