Inclusive agribusiness: trends, options and questionsAndy Hall, CSIRO, Australia

Research: what and who?

• Regional policy overview and landscape.– Prof  Paul Teng, NIE, Sing.  SEARCA 

• 40 case studies of agri‐companies looking at how and why companies are shifting towards inclusive business practice.  

• 7 regionally based research teams– IPSARD, Can Tor Uni, Bogor Uni, Business Innovation Center,  PBSP, 

ASEI, AIT

• Preliminary analysis:  ordering the story

The big picture is a complicated picture

• Multiple ways of implementing inclusive business

• Multiple motivations

• Reflects complex of commodity, country, company size and reach and company origins.

• A number distinctive pathways to arrive at inclusive business

• Lens to help think about practice, scaling and options for public, private and donor investment? 

Inclusive agri‐busness is happening

• Innovation in business modles of companies large and small is creating opportunities for smallholders:

– access to value chains domestic and export– access to inputs including products and delivery arrangements 

targeting smallholders– services that target smallholders and create wider opportunities– building capacity; social organisation, technical advice, market 

preparedness. 

Why are companies doing it?

• Shift in corporate policy towards sustainability and share value propositions.

• Recognition of large markets of smallholders• Policy support: schemes, but often alignment of national 

development plans, goals and investments with company goals

• Enabling technologies, particularly ICT, create new inclusive business opportunities

• Opportunities that previously didn’t exist• Growing community of socially aware entrepreneurs

Who is involved?

• Doing inclusive business– MNC’S– National Agribusiness companies– Pioneering SMEs– Pioneering new era social enterprises– Traditional social enterprises

• Enabler organisations– NGO’s (traditional and new, policy advocacy, non‐profit companies) 

CSR foundations, research organisations, global backbone organisations setting standards and practice.

How is inclusiveness business implemented: Many permutations

– Social organisation of farmers coupled with technical assistance.  With partner help

– Partnering with farmers associations

– Clustering of support services: public and private

– Formal or social contracting

– Products and allied advisory services targeted small holders, bundled with production purchases.

– Services made accessible to smallholders: bundled with other implementation strategies; through clustering; 

– the creation of new inclusive service provider businesses. 

Pathways to inclusive business:

• Piloting inclusive schemes within existing business models.

• Adapting existing business models to include inclusive elements

• Transforming existing business models 

• SME’s pioneering entirely new inclusive businesses / models.

• Pioneering new era social enterprises 

• Upgrading traditional social enterprises.

• Traditional community embedded SMEs

Inclusive agribusiness at scale

Pathways are different routes to achieving inclusive agri‐business at scale

Companies becoming more inclusive

Players• Global• NABC• (SMEs)

Pathways• Piloting• Adapting• Transforming 

Scaling Possibilities• Good practice emerging• Narrow set of approaches/  

commodities, wide reach 

Becoming more business‐like

Players• Co‐op plus• New era social 

businesses

Pathways• Up‐grading• Pioneering

Scaling Possibilities• Good practice well understood• Large reach, but dairy and oil palm only??????• Doesn’t work in all countries

Community embedded companies

Players• Family 

SME?• Others??

Pathways• Social shaping• Incidental 

inclusiveness• Others??

Scaling possibilities• Incidental good practice exists, in many forms.• Large number, small reach• Unknown, but untapped??

Players• Pioneering SMEs• Social 

entrepreneurs• Entrepreneurial 

scientists

Pathways• Incubation.• Pre‐competitive development • Trailblazing SME• Market disruption

Inclusive pioneers

Pathways for inclusive agribusiness at scale

Scaling possibilities• Helping the continuous 

development of new practice.• Individually small reach, but 

collectively large, diversity of commodities, products and service.

Companies becoming more inclusive

Becoming more business‐like

Community embedded companies

Inclusive pioneers

Actions for inclusive agribusiness at scale

Public private and donors priorities. Helping national international business collaborationOthers ???

Knowledge gapsScope and economic potential

Public, private and donor prioritiesImproving the business environment?  Science and technology support?Others ???

Knowledge gapsEstablish potential ???

Public, private and donors prioritiesPioneer financing Innovation support services Science and technology Alliance with big value chain playersOthers ???

Knowledge gapsMetrics of scope and potential

Public, Private & Donor prioritiesAlignment of private and policy goalsStronger global back bone organisationsOthers ???

Knowledge gapsSocial and economic effectiveness

Thank you Questions ???

Dr Andy HallFood Systems Innovation Project LeaderCSIRO, Australia