The Participatory Market Chain Approach (PMCA) stimulates innovation among actors along agricultural value chains. It builds trust between farmers, intermediaries, processors, retailers, consumers, and research organizations. Over multiple phases, PMCA uses participatory analysis and group work to identify market opportunities and develop new products, technologies, and institutions. It has helped transform native potatoes from a staple crop into value-added products in Andean markets. Lessons show PMCA is most effective when combined with other programs and evolves over time, sparking second and third generation innovations. It has also been adapted successfully in other regions through approaches like Farmer Business Schools in Indonesia.

1. The Participatory Market Chain
Approach – PMCA
Innovation for Sustainable Value Chain Development
from the Andes to Africa and Asia
International Food Security Dialogue 2014
”Sponsored By: Hosted By:
André Devaux, Regional Director, LAC, CIP

2. Native potatoes, an opportunity for
Andean farmers
…but undervalued in modern society
• Seen as staple, “rural” food
• Few native varieties in urban markets
• How to transform opportunity in
competitive advantage for Andean farmers?

3. Outline
 Introduction
 Characteristics of PMCA and its
development
 Experiences of implementation and its
evolution from the Andes to Africa and
Asia
 Some lessons learned

4. Stimulating innovation along value chain
Innovation
Process
Producer Intermediary Wholesaler Processor Retailer Consumer
Commercial Innovations
Institutional Innovations
Technological Innovations
Research outputs:
Creative ideas,
methodologies
Dynamic Markets
New products,
added value,
Andean farmer’s asset:
Potato biodiversity Interaction with
different stakeholders
Capacity to
innovate
Partnership,
new working
relations

5. Participants R&D Orgs.
Interest
Trust
Collaboration
1yearapprox.
Diagnosis: Specific market chain
Understand market chain actors activities,
interests, ideas, problems
Participatory analysis new market
opportunities: Work in thematic groups
Objective per Phase
Phase 1
Phase 2
Phase 3
Develop market driven innovations:
•new products
•new technologies
•new institutions
Public Event 1
Public Event 2
Final Public Event
Leadership
Facilitation
Backstopping
Consolidation of created innovations
A systematic R&D process that:
•Builds trust among market chain actors and with R&D organizations
•Stimulates market driven innovation of different types
PMCA

6. PMCA User & trainer guides

7. PMCA in summary
• Characteristics:
• Helps the different actors of the market chain, including
farmers, to express better their needs to R&D
organizations
• Stimulates innovations of different types among market
chain actors through collective learning and trust building
• Facilitates partnership among farmers, market chain actors
and service providers for improving the VC efficiency.
• PMCA needs good facilitation, a champion
• Knowledge of local social culture, political sense
• Good networking, specially with the private sector

8. 5/13/2014
PMCA development: time line
and partners

9. PMCA Peru

10. Implementaion in Uganda and Indonesia

11. 11
Fase 3Uganda ”  Regreso

13. Experiences from the Andes,
expanding and learning from
other regions.

15. 2002 2006
Growth of the native potato chip market
2008
MT
1000
2000
Challenge
Creative
imitations
Large
companies
Challenge
=> CSR +
Technologies
2004
Industry
• Quality
Volumes
Regularity
Formality
• Asimetric
bargaining
power
Commercial
innovation
2009

16. RESEARCH DEMANDS :
TECHNOLOGICAL INNOVATION
NEW FORMS OF ORGANIZATION :
INSTITUTIONAL INNOVATION
NEW MARKET
OPPORTUNITIES :
COMMERCIAL INNOVATION
PMCA
PMCA as a trigger to stimulate innovations
POLICY INCIDENCE AND ADVOCACY:
NEW NORMS,
NATIONAL POTATO DAY

17. FARMER BUSINESS SCHOOL
Market Chain-Wide
Learning Approaches
Farmer Field School
Participants are farmers
Learning cycle covers cropping season
Learning content focuses on crop prodn
Participants are actors in market chain
Learning cycle covers prodn-marketing
Learning content focuses on marketing
Participants are farmers; includes interactive events with other chain actors
Learning process based on FFS principles of experiential learning
Learning cycle covers prodn-marketing
Learning content is based on market chain framework
Indonesia: Farmer Business School (FBS)
FBS Combines the Best of FFS and Market-Chain Approaches

18. Lessons learned
The PMCA as a new way to do agricultural R&D with a strong
innovation focus
• Contributed to change work and relationship between the
heterogeneous market chain actors (institutional
innovations),
– Key to have a champion to facilitate the process
• Triggers innovation process, evolves over time, second and
third generation innovations emerge after PMCA has ended
• PMCA is most effective when applied together with other
measures as part of a broader intervention (program or
project)
– Innovation platforms, farmers’ organizations, public awareness,…
• PMCA developed in the Andes was enriched from global
applications in other regions through South-South learning :
– Farmer Business School in Indonesia and Asia
– Gender tools in Uganda and East Africa

19. a.devaux@cgiar.org
Thank you!

20. Andean farmers’ asset:
native potato biodiversity
Appealing for high value, niche markets
Comparative vs. competitive advantage
Colorful, nutritious, healthy, natural, cultural identity