Group discussion session, Group 1, on business strategies to scale out climate smart agriculture at the CCAFS Workshop on Institutions and Policies to Scale out Climate Smart Agriculture held between 2-5 December 2013, in Colombo, Sri Lanka.

1. Business Strategies for Scaling Out
Climate Smart Agriculture
Chair: S. Srinivasan IFFCO Kisan Sanchar Ltd
Co-Chair Michael Sheinkman, CCAFS / IRRI

2. Questions
1. Potential investment opportunities for
private sector (technologies and tools) for
scaling out climate smart agriculture?
2. Potential challenges faced by the private
sector in investing in scaling out climate
smart agriculture ?
3. New research needed to attract private
sector investment to CSA?

3. Questions
Potential investment opportunities for private
sector / NGO (technologies and tools)?
Investments (profit) / CSR (non-profit)
Sustainable Value Chain
Value addition. Need for asset. Return on investment.
Efficiency = added value
e.g. reducing losses in storage (potential to add value).
ICT– dissemination. Is revenue sufficient ?
Climate data / Agro-advisories / Help line
Sale of telephone time / services.
Analysis of queries / help line: agr inputs & services needed

4. Questions
Potential investment opportunities?
Agr Implements / Provide services that use high cost equipment.
e.g. laser leveler (lease equipment). Govt soft loan to investors.
e.g. Alt energy. Biogas units. Solar power
Fertilizers: bio-fertilizers, slow-release fert.
Seeds: focus of private research. Sales & distribution
e.g. Kenya - Govt seed distribution constrained in terms of credit
Bank selling credit. Seed company sell seeds. Insurance
Bundling services
Agricultural inputs – buy fertilizer, insurance premium.
Insurance – selling: Cost estimate. Reporting (payment)
Bank -

5. Questions
Potential investment opportunities?
Commercial crops: tea, coffee, plantations
Tap revenue stream to subsidize services to Small holders ?
Experience - middlemen enter gap and Small holders lose
Supply Chain: (vertically integrated)
e.g. contract farming
Banking: Loans to small holders based upon seasonal forecast
Climate information: to support loans (good year / good return)
Training: pay for training to support lending
Corporate Social Responsibility: smaller than profit
Bundle with investments. Pilots

6. Questions
Potential challenges / constraints / risks ?
Lack of coordinated actions, need to bring actors together
Finance, services, inputs, govt, cooperatives
Customizing information: costly, time, initial investment.
Small plots, small returns
Government market interventions: subsidies and/or taxes
If not well-designed, they can be counterproductive (disincentive)
support poor technologies, retard dissemination, retard investment
Investor unable to collect payment.
Farmers sold poor quality good
e.g. Insecurity of land tenure limits access to credit

7. Questions
New research needed to attract private sector
investment to CSA?
Policy Research
Technologies – What makes a technology widespread.
Farmers – How do they learn from each other (social networks)
Seeds:
private research with potential returns.
Seed company sell seeds.
Need for a Business Model that brings together CSA investors
Need for Evaluations of Climate Smart Agr interventions.
Assessment of effectiveness & impact