Agricultural Value Chain Finance

Course Description

This course on AgVCF provides an understanding of the gaps and challenges of agriculture finance. It defines AgVCF, different business models, and the available instruments for accessing financial services. Furthermore, it examines the risk mitigation tools with innovative methodologies and systems that have worked in services development. The provision of credit and general financial services to all the actors in the AgVC in developing countries, although high in demand, has not been widespread due to lack of extension of knowledge and appropriate financial instruments. In this course, the participants will learn to analyse the products and their delivery mechanisms with the risk mitigation tools to serve the actors of the entire AgVC.

The course takes a case study approach to analyse what works and what does not in the context of AgVCF. Facilitators will provide an overview of each topic and highlight the issues through an examination of case studies. Participants will be encouraged to share their own experiences and facilitate the discussions throughout the course.

Objectives

To sharpen the awareness of the fundamental issues of financing agriculture and agribusiness using an AgVCF approach and to build the skill set required in designing the instruments and delivering innovative services for all actors in the AgVC.

Prerequisites

The participants should have a basic understanding of financial services, such as agriculture finance, rural finance, microfinance, development finance, banking and/or rural economic development. Some knowledge of agricultural market development services and agribusiness would be helpful.

Audience / Participants

The intended course participants for the training include: agricultural finance officers from different banks and financial institutions, government and non-government development agencies, micro-finance institutions (MFIs), donors who advise in and work with agriculture finance, and faculty staff and students of universities specializing in agriculture/rural finance.

Resources

resource title type year resource
Digitalization for Agricultural Value Chains in China and India: practical examples of software platform-based solutions for smallholder producers Report 2019 English (en)
This resource appears in: ICT applications, Value chain development
This resource appears in: Agricultural Value Chain Finance

The Rural Finance Best Practices Project (RuFBeP) by the Asia-Pacific Rural and Agricultural Credit Association (APRACA) and IFAD have released a publication on how information and communication technology (ITC) networks in China and India make the agricultural value chain significantly more efficient. 

The study presents the following cases:

1. Nixn, the leading high-tech agricultural enterprise in China; through its subsidiary company, Nxin Internet Technology Co., Ltd., it offers a suite of software solutions that links multiple players in the agricultural value chains. The Nxin Mall platform is an online store that gives farmers increased access to agricultural input suppliers and offers transparency of pricing as well as built in safeguards to help prevent price gouging.

2. E-Commerce Platform-Driven Agricultural Value Chain Finance: The initiatives of Ant Financial in China; Ant Financial provides integrated software platforms using cloud-based services and a Software-as-a-Service (SaaS) model;

3. SourceTrace, a new generation social enterprise that leverages the strength of ICT to fuel the growth in agriculture of the Green Revolution based on eService Everywhere (ESE™) that uses the SaaS model and cloud-based networking;

4. National Collateral Management Services (NCMS) Ltd., India’s leading post-harvest management organization, providing technology-enabled warehousing and supply chain solutions.

APRACA  -  English (en)

Author Prasun Kumar Das Michael Hamp
Publisher APRACA under the auspices of the IFAD grant supported ‘RuFBeP’ project
Number of Pages 92 pages
Region / Country Asia
Keywords Digitalization, Ict, Agriculture, Value Chains, smallholder producers
Facilitator Guides Document 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Module 01 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 02 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 03 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 04 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 05 Presentation 2012
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 06 Presentation 2012
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 07 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 08 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 09 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 10 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Module 11 Presentation 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Recommended Reading Document 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Syllabus Document 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance
Test Questions and Case Reviews Document 2015
This resource appears in: Agricultural Value Chain Finance
Author FAO
Region / Country Global
Keywords Agricultural Value Chain Finance

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