Development of a Business Model Canvas for Producer Organizations
International Executive Service Corps
Kenya
2d ago

Development of a Business Model Canvas for Producer Organizations

Problem Statement :

The dairy subsector contributes approximately 8% of Kenya’s Gross Domestic Product (GDP) with annual milk production of 3.

43 billion liters. Kenyan milk production accounts for 3% of the 18% total global production by Sub Saharan African countries.

Although smallholder d airy farmers make up to 80% of total dairy producers and produce 60 to 70% of total milk in Kenya, they are constrained by low quantity and quality of feeds, lack of reliable statistical information on milk market outlets, poor rural infrastructure, lack of collateral for loans, low technical skills on husbandry practices, and reduced access to veterinary and artificial insemination (AI) services.

Organizing smallholder dairy farmers into producer organizations (POs) helps dairy producers to overcome these constraints.

Dairy POs are widely heralded as leading contributors to poverty reduction and the achievement of food security. As such, the professional management of these POs is essential.

POs must be equipped with skills for long-term strategic business planning to establish the right priorities for investments , be able to adapt to new opportunities and threats and conduct annual operational planning to guarantee that cash flow and human resources are used in an efficient way.

More so , they need to link these aspects to administrative processes , which include planning the product flow, cash flow and investments, bookkeeping, and reporting for internal discussions with the board and members, as well as external information to give confidence to financial institutions and buyers.

This will not only improve their efficiency as well as the services they provide to farmers but will also make them attractive to partners such as the private sector.

These partners include financial institutions who could provide the POs with funds to scale up their operations or lend to farmers through the producer organization.

Therefore, the Farmer - to - Farmer Access to Finance Program is seeking a volunteer to support a PO to develop a business model.

The volunteer will lead the PO and its stakeholders through a technically grounded, consultative and participatory planning process to review their business plan.

The substantive outcome will be a Business Model Canvas. With a viable business model, the PO will be able to gain the confidence of external partners , the private sector and / or financial institutions to obtain finance for the farmers the PO represents.

Ultimately, this will increase access to financing for farmers and improve their livelihoods.

Objectives of the Assignment :

Conduct a Strengths , Weaknesses , Opportunities, and Threats ( SWOT) business analysis of a Producer organization

Develop a Business Model of the PO through a Business Model Canvas.

  • Recommend steps for implementing a business model for the PO.
  • Tasks to be performed : In the U.S. :

    In the U.S. :

  • Review data and supporting documents from the producer organizations including business plan, strategic plan, and audited financial statements.
  • Develop key points of discussions with stakeholders, which include staff, board, smallholder farmers and other market players, for example, agro vets and transporters .
  • Hold call with F2F team and PO to discuss assignment objectives and plan.
  • In Kenya :

  • Attend orientation with F2F staff in Kenya.
  • Hold an introductory meeting with PO to finalize the work plan and assignment schedule.
  • Conduct SWOT business analysis of PO through : Interviews with PO’s staff, board and smallholder farmers to determine the key market players, relationships, and suppliers of the PO.
  • This information will be used in developing the canvas.Discussions with county government officials to understand the regulatory framework, strategic plans as well as other government policies in place.

    Discussions with market players that compete with the PO both from the supply as well as the demand side. The volunteer will seek to understand other milk collection organizations that operate in the area as well as the products being consumed.

  • Develop a presentation on SWOT analysis and suggested recommendations as it relates to business models.
  • Present findings and recommendations, and obtain feedback from PO.
  • Finalize Business Model Canvas with feedback from PO integrated.
  • Hold debriefing meetings with PO.
  • Hold debriefing meeting with F2F staff and USAID.
  • End of Assignment Report and Other Deliverables Required :

  • Business model canvas for PO
  • Final trip report detailing work completed over the course of the assignment as well as recommendations for the host organization
  • F2F Programmatic Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP) Requirements :

    The assignment will not provide any assistance for the use or procurement of pesticides, the volunteer will likely be in the field and may have the opportunity to obtain feedback on the use of pesticides through he will not provide any information or good or bad use.

    The volunteer is not expected to recommend or provide advice on specific pesticide active ingredients or products. For this assignment, the volunteer must do the following for a Type 3 assignment :

  • Review the F2F Environmental Brochure and the F2F Programmatic Pesticide Evaluation Report-Safe Use Action Plan (PERSUAP) and shall comply with requirements described in Section 4 of the SUAP when providing assistance for the procurement or use of pesticides.
  • The volunteer is not expected to provide recommendations for the specific pesticide active ingredients or products, but rather to provide advice, if necessary, on the safe use of pesticides, and to discourage poor practices in pesticide use, transport, mixing, storage, application, and disposal.

    Expertise of Volunteer Expert Requested :

  • Degree in Business Management, Marketing, Organizational Development or a related field of study
  • 5-10 years of experience in the dairy sector
  • Experience in Kenya or East Africa preferred
  • Experience in the business planning process and implementation
  • Demonstrated capacity to conduct market and business research and report writing
  • Experience in the application of participatory methodologies including adult learning, participatory planning, monitoring, and evaluation methods and techniques
  • Demonstrate a clear understanding of production and management challenges experienced by smallholder farmers
  • Ability to manage stakeholder relationships and expectation
  • Strong analytical and problem-solving skills
  • Strong leadership and communication skills and the capacity to plan strategically and flexibly
  • Sufficiently physically fit, with appropriate medical clearance
  • This is a United States government-funded program. Therefore, for the purpose of achieving desired results in accordance with the work plan and submitting requisite reports, written and spoken fluency in English is required.
  • The ability to work through translators in the field, however, is essential. This requires deliberation and sensitivity to cultural issues in communication

  • Good writing and analytical skills, interpersonal communication and presentation skills (adult education skills), ability and desire to teach in both classroom and field settings.
  • Volunteer Outreach :

    USAID and IESC encourage all F2F volunteers to participate in public outreach. An important objective of the program is to increase awareness of Americans’ good work in developing countries.

    Volunteers should select at least one outreach activity from the list below, to be completed within two months of return to the US :

  • Write an entry for the IESC blog
  • Post a photo, video or text related to the F2F assignment on a personal website, blog, Facebook page, Twitter or other social media sites (and send a link to IESC staff)
  • Send a press release to a local newspaper(s) in the volunteer's hometown (IESC can help as needed)
  • Write something for alumni or professional association newsletter or other publications (IESC can help as needed)
  • Give a presentation about the F2F assignment to colleagues, students, church groups, rotary club, etc.
  • Send an email about F2F to friends, family or colleagues
  • Other
  • Description of the Program :

    The International Executive Service Corps (IESC) serves as the lead implementer for the Farmer-to-Farmer (F2F) Access to Finance Program (2018-

    2023) to address deficits in the financial ecosystem hindering investment and growth in agriculture for individual farmers, as well as micro, small, and medium-

    sized enterprises through the delivery of volunteer technical assistance. IESC has designed a thematic F2F program to generate sustainable, broad-

    based economic growth and create jobs in the agricultural sector with a special focus on assistance to women and youth. IESC is joined by Grameen Foundation, with outstanding experience in digital finance and technology for the agricultural sector, to provide voluntary technical assistance and address the gaps in the financial ecosystem.

    Funded by the U.S. Agency for International Development, F2F initiatives generate rapid, sustained, and broad-based economic growth in the agricultural sector.

    These programs also promote international goodwill, understanding of U.S. foreign assistance programs, and private involvement in development activities.

    Through the F2F Program, USAID facilitates the delivery of a broad range of U.S. agricultural expertise using U.S. volunteers who work with farmers, agricultural support systems and associations, and agribusinesses, in developing countries.

    The work of volunteers helps improve the quality of the agricultural sector workforce through training and advisory services provided to a wide range of agriculture sector actors.

    Volunteer assignments are designed to improve farm and agribusiness operations and agricultural systems.

    Focusing on Kenya, Tanzania, and Sri Lanka, the F2F Access to Finance Program will work with local partner organizations and volunteer hosts to field pro bono experts from the U.

    S. agriculture, corporate, and banking sectors to address systemic capacity constraints for farmers and lenders in each targeted country and unlock finance for improved agricultural production leading to utilization of agricultural technologies and increased sales and incomes.

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