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LIMAS value chains. DESEMP Poultry , Honey, Sesame , Cashew Open call for business proposa ls (business forums, media) ( Organic ) pulses, Rice, S unflower , Horticulture Supporting services to VC primary producers

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limas value chains
LIMAS valuechains
  • DESEMP

Poultry, Honey, Sesame, Cashew

  • Open call for business proposals (business forums, media)

(Organic) pulses, Rice, Sunflower, Horticulture

  • Supporting services to VC primary producers

BDS, VBAs, Tractor service, Poultryfeed sales/feedmill, Extension service.

  • Not VC related (business model introduction)

Farm-block, MATI ”incubator” , Contractfarming, Organiccertification

slide2

Some key strategic agribusiness support approaches

  • Demand driven activities –open to new opportunities
  • Introduction of new business models for multiplication
  • Support based on client business plans & profitability
  • Business formalisation –not business as usual; learning through formalisation
  • Long term support/on-site mentoring –short term formal training not effective
  • Support should not distort competition excessively
  • Strengtheninternal value chain collaboration –CF; market, finance, trust building, TA transfer (2 ways)
  • Key players are the VC stakeholders, not LIMAS; the project close and then

2

slide3

Some key strategic agribusiness support approaches

  • Development of local private BDS service –DCs/NGOs not business oriented; ex. DADP funds not utilized effectively.
  • LIMAS does not manage any business or buy any commodities –no commercial experience, unfair to the private competitors
  • Development of VC business service provision -cluster development.
  • Handling of business information –confidentiality; not for public consumption.
  • Strengthenprivate sector; effective demands for services from the public sector
  • PPP is less feasible when the private sector is as weak as in Mtwara/Lindi.
  • Private-public dialog through business forums and specific investment support; raising taxation issues, utility provision etc.
slide5

Key LIMAS business support services

  • Business registration and BP formulation

(incl. stakeholder consultations, training assessments)

  • Business training/mentoring
  • Market linkages & information
  • Pilot technology transfer & skills
  • Land/water titles and processes
  • Finance sourcing; no LIMAS loan facility. Internal savings

LIMAS cannot fund:

  • Machinery & equipment except for pilot technology
  • Raw materials, salaries etc.
business support sequence
Business support sequence
  • Value chainassessment
  • Business support applications
  • Application assessment (scoring) & selection
  • Memorandum of Agreement for support
  • Business plan preparation; plan scoring assessment
  • LIMAS support action plan/budget
  • Support implementation
slide8

Somelessons

  • Up-country businesseswith experience/financeareready toinvestmentin the region
  • Lack of finance/cash management for investment, especiallyamonglocalbusinesses (delayed/reducedcashewpayments a seriousconstraint in thisregard).
  • Manycompanieslack proper accounting systems andfinancial statement
  • Land procurementand titleissuesareoftendelayinginvestment
  • Contractfarmingneeds time to mature and some processors needTA for CF management
  • ”Political” influencein commoditymarkets and farmer organisation an issue.