Women entrepreneurs cleaning out cattle pens at a dairy facility in India.


Te inclusion of nutrition in value chains is still at an early stage and may offer significant potential for growth. CIAT’s Mark Lundy says, “If biofortified variet- ies are of interest to farmers and show nutritional benefits, can’t we get a major food processor to use these crops in pro- cessed and fresh food products targeted to low-income consumers?”


THE PRIVATE SECTOR


CAN’T GO IT ALONE Te rising consumer demand for higher- value and processed-food products in developing countries has opened up a sizable new opportunity for private- sector companies. But private companies


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and small farmers often can’t meet this need and build thriving value chains without input from other actors, such as NGOs and governments.


NGOs with experience in setting up value chains can provide the sort of guar- antees of quality and reliability that buy- ers like wholesalers or supermarkets rely on. Julio C. Montealegre, TechnoServe's country director in Nicaragua, says, “We help reduce the perceived risk. Before we started, supermarkets were comfortable buying produce from Costa Rica. Chang- ing suppliers is a big commitment—not a one-time thing. We help ensure quality and consistency of delivery.”


Beth Sauerhaft of PepsiCo says, “Partner-


ing with NGOs that are known to growers and consumers may add a certain degree of trust from these groups. And they can help ensure that different players or impact points in the value chain are accounted for—whether the small-scale farmers, rural communities, or the environment.”


Governments also play a critical role in setting appropriate policies, making contracts enforceable, and building infra- structure such as roads. “No exporter is going to buy from farmers who are down at the end of a dirt road,” says CTA’s An- drew Shepherd. In some countries, such as Colombia, governments themselves have taken the initiative to promote value chains in certain products.


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