Innovative partnerships - Revision history

Avinash Kumar at 15:40, 8 June 2016

2016-06-08T15:40:29Z

Irena Irmler at 19:40, 19 February 2014

2014-02-19T19:40:02Z

Irena Irmler at 16:10, 14 March 2013

2013-03-14T16:10:58Z

Jana Herold at 06:43, 1 March 2013

2013-03-01T06:43:32Z

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Jana Herold: /* Public-private partnerships */

2013-03-01T06:42:30Z

‎Public-private partnerships

Jana Herold: /* References */

2013-03-01T06:39:15Z

‎References

Jana Herold: /* Background */

2013-03-01T06:36:49Z

‎Background

Jana Herold at 06:33, 1 March 2013

2013-03-01T06:33:26Z

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Felix Zeiske at 13:52, 28 February 2013

2013-02-28T13:52:52Z

Felix Zeiske at 13:51, 28 February 2013

2013-02-28T13:51:56Z

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 Contract farming, an effective and increasingly popular method, can be defined as an agricultural production system carried out according to a formal or informal agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products. Typically, the farmer commits to providing agreed quantities of a specific agricultural product which should meet the quality standards of the buyer and be supplied at the time that the buyer determines. In turn, the buyer agrees to purchase the product at agreed pricing conditions and, in some cases, to support production, for example through easing the access to and the supply of farm inputs, land preparation and the provision of technical advice.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Contract farming is also referred to as ‘out-grower schemes’, whereby farmers are linked with a large farm or processing plant which supports production planning, access to inputs, extension advice, transport and marketing. Based on the business relationships within an out-grower scheme, access to finance is often crucial for small-scale farmers, who are forced to sell their produce for a lower price to traders and processors to obtain financial liquidity.
-However, contract farming needs a specific set of guidelines and legal frameworks that enable both buyer and producer to establish and maintain a good relationship to discourage a deterioration of the farming operation through opportunistic behavior or other unfair practices. Such a win-win situation can only be achieved if the contract promotes agricultural production and guarantees a secure market for the commodity, thereby allowing farmers to earn increased revenue and buyers to obtain a return on their investments.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Contracts must be clear and readable to specify the parties’ responsibilities; transparent; fully disclosed; provide due attention and regularly reviewed; independently advised by legal experts; and ensure the agreed price is satisfactory to both sides whilst strictly honoured to allow continuous trust between both parties. While buyers must strictly adhere to the concluded agreement and a fair and transparent procedure of assessing the quality of the products, the farmers must agree to produce the commodities as stated in the contract, e.g. using the agreed fertilizers, using clean water, maintaining farm equipment and hygienic standards and post-harvest handling of the produce to prevent losses. Moreover, fairness of delivering input supply and proper use must be transparently provided by the buyer and farmers. There should also be a possibility of renegotiation of the contracts in case of crop pests and animal diseases to ensure [[Corporate_water_risks|risk]]-sharing between both parties. In case of disputes over the agreed contractual agreement, the farmers and buyers should agree upon a neutral third party to mitigate between both sides.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Development cooperation can provide the necessary advice on capacity development of smallholders, independent legal and technical advice for smallholders and observation of fair procedures.
+However, contract farming needs a specific set of guidelines and legal frameworks that enable both buyer and producer to establish and maintain a good relationship to discourage a deterioration of the farming operation through opportunistic behavior or other unfair practices. Such a win-win situation can only be achieved if the contract promotes agricultural production and guarantees a secure market for the commodity, thereby allowing farmers to earn increased revenue and buyers to obtain a return on their investments.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Contracts must be clear and readable to specify the parties’ responsibilities; transparent; fully disclosed; provide due attention and regularly reviewed; independently advised by legal experts; and ensure the agreed price is satisfactory to both sides whilst strictly honoured to allow continuous trust between both parties. While buyers must strictly adhere to the concluded agreement and a fair and transparent procedure of assessing the quality of the products, the farmers must agree to produce the commodities as stated in the contract, e.g. using the agreed fertilizers, using clean water, maintaining farm equipment and hygienic standards and post-harvest handling of the produce to prevent losses. Moreover, fairness of delivering input supply and proper use must be transparently provided by the buyer and farmers. There should also be a possibility of renegotiation of the contracts in case of crop pests and animal diseases to ensure [[Corporate water risks|risk]]-sharing between both parties. In case of disputes over the agreed contractual agreement, the farmers and buyers should agree upon a neutral third party to mitigate between both sides.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Development cooperation can provide the necessary advice on capacity development of smallholders, independent legal and technical advice for smallholders and observation of fair procedures.
 = Examples =

@@ Line 1: / Line 1: @@
-After decades of under-investment and at a time of high population growth and changing natural conditions due to climate change, the agricultural sector in developing countries will require additional investments of approximately USD 83 billion per year<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> to achieve food security by 2050. Since the food value chain is almost entirely in the hands of private sector companies, development agencies have identified concepts to engage the private agricultural sector in developing countries while adhering to specific socio-economic conditions, such as the prevalent [[smallholder_agriculture|smallholder agriculture]]. These innovative concepts seek to use governance and legal tools, such as contract farming, public-private partnership (PPP) models and new investment models, in smallholder agriculture (FAO 2004).<ref name="Giordano">Giordano, Meredith, de Fraiture, Charlotte, Weight, Elizabeth and van der Bliek, Julie (2012). Water for wealth and food security: Supporting farmer-driven investments in agricultural water management. AgWater Solutions Project: Accra. Available online: http://awm-solutions.iwmi.org/Data/Sites/3/Documents/PDF/publication-outputs/water_for_wealth_and_food_security.pdf [ 18.01.2013]. </ref><ref name="GIZ2010">Gesellschaft für Internationale Zusammenarbeit (2010). Topic Sheet: Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector. Eschborn: GIZ. </ref>
+After decades of under-investment and at a time of high population growth and changing natural conditions due to climate change, the agricultural sector in developing countries will require additional investments of approximately USD 83 billion per year<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> to achieve food security by 2050. Since the food value chain is almost entirely in the hands of private sector companies, development agencies have identified concepts to engage the private agricultural sector in developing countries while adhering to specific socio-economic conditions, such as the prevalent [[Smallholder agriculture|smallholder agriculture]]. These innovative concepts seek to use governance and legal tools, such as contract farming, public-private partnership (PPP) models and new investment models, in smallholder agriculture (FAO 2004).<ref name="Giordano">Giordano, Meredith, de Fraiture, Charlotte, Weight, Elizabeth and van der Bliek, Julie (2012). Water for wealth and food security: Supporting farmer-driven investments in agricultural water management. AgWater Solutions Project: Accra. Available online: http://awm-solutions.iwmi.org/Data/Sites/3/Documents/PDF/publication-outputs/water_for_wealth_and_food_security.pdf [ 18.01.2013]. </ref><ref name="GIZ2010">Gesellschaft für Internationale Zusammenarbeit (2010). Topic Sheet: Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector. Eschborn: GIZ. </ref>
 = Background =
@@ Line 10: / Line 10: @@
 = Public-private partnerships =
-Another model for innovative partnerships in the agricultural sector is the concept of public-private partnerships (PPP). Although there is no widely accepted definition of the concept, PPP refers to arrangements between the public and private sectors whereby part of the services or works that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/or public services.<ref name="WB2013">World Bank (2013). About Private Public Partnerships. Available online: http://ppp.worldbank.org/public-private-partnership/overview [18.01.2013]. </ref> Although generally deployed in other economic sectors than agriculture, the concept has also found application in the primary sector in developing countries where public capital is scarce while high investment in agriculture is required to achieve food security.<ref name="ADB2010">African Development Bank (2010). Handbook on Public-Private-Partnerships. ADB: Manila. Available online: http://www.apec.org.au/docs/ADB%20Public%20Private%20Partnership%20Handbook.pdf [18.01.2013]. </ref> The PPP concept seeks to pool private capital and the expertise of the private sector while simultaneously prompting governments to provide sound regulatory frameworks.<ref name="GIZ2013">Gesellschaft für Internationale Zusammenarbeit (2013). DeveloPPP. Available online: http://www.developpp.de/en/What_is_PPP.html [18.01.2013]. </ref> In agriculture, PPPs are used to deploy private capital and the expertise of the input and food industry to improve on-farm management, infrastructure and [[Water_and_Adaptation_to_Climate_Change|adaptation to climate change]] while at the same time fostering [[Capacity_Development|capacity development]] and introducing an [[Category:Enabling_Environment|enabling environment]] to improve governance schemes through public funding.
+Another model for innovative partnerships in the agricultural sector is the concept of public-private partnerships (PPP). Although there is no widely accepted definition of the concept, PPP refers to arrangements between the public and private sectors whereby part of the services or works that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/or public services.<ref name="WB2013">World Bank (2013). About Private Public Partnerships. Available online: http://ppp.worldbank.org/public-private-partnership/overview [18.01.2013]. </ref> Although generally deployed in other economic sectors than agriculture, the concept has also found application in the primary sector in developing countries where public capital is scarce while high investment in agriculture is required to achieve food security.<ref name="ADB2010">African Development Bank (2010). Handbook on Public-Private-Partnerships. ADB: Manila. Available online: http://www.apec.org.au/docs/ADB%20Public%20Private%20Partnership%20Handbook.pdf [18.01.2013]. </ref> The PPP concept seeks to pool private capital and the expertise of the private sector while simultaneously prompting governments to provide sound regulatory frameworks.<ref name="GIZ2013">Gesellschaft für Internationale Zusammenarbeit (2013). DeveloPPP. Available online: http://www.developpp.de/en/What_is_PPP.html [18.01.2013]. </ref> In agriculture, PPPs are used to deploy private capital and the expertise of the input and food industry to improve on-farm management, infrastructure and [[Water and Adaptation to Climate Change|adaptation to climate change]] while at the same time fostering [[Capacity Development|capacity development]] and introducing an to improve governance schemes through public funding.
 = Contract farming =
@@ Line 16: / Line 16: @@
 Contract farming, an effective and increasingly popular method, can be defined as an agricultural production system carried out according to a formal or informal agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products. Typically, the farmer commits to providing agreed quantities of a specific agricultural product which should meet the quality standards of the buyer and be supplied at the time that the buyer determines. In turn, the buyer agrees to purchase the product at agreed pricing conditions and, in some cases, to support production, for example through easing the access to and the supply of farm inputs, land preparation and the provision of technical advice.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Contract farming is also referred to as ‘out-grower schemes’, whereby farmers are linked with a large farm or processing plant which supports production planning, access to inputs, extension advice, transport and marketing. Based on the business relationships within an out-grower scheme, access to finance is often crucial for small-scale farmers, who are forced to sell their produce for a lower price to traders and processors to obtain financial liquidity.
-However, contract farming needs a specific set of guidelines and legal frameworks that enable both buyer and producer to establish and maintain a good relationship to discourage a deterioration of the farming operation through opportunistic behavior or other unfair practices. Such a win-win situation can only be achieved if the contract promotes agricultural production and guarantees a secure market for the commodity, thereby allowing farmers to earn increased revenue and buyers to obtain a return on their investments.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Contracts must be clear and readable to specify the parties’ responsibilities; transparent; fully disclosed; provide due attention and regularly reviewed; independently advised by legal experts; and ensure the agreed price is satisfactory to both sides whilst strictly honoured to allow continuous trust between both parties. While buyers must strictly adhere to the concluded agreement and a fair and transparent procedure of assessing the quality of the products, the farmers must agree to produce the commodities as stated in the contract, e.g. using the agreed fertilizers, using clean water, maintaining farm equipment and hygienic standards and post-harvest handling of the produce to prevent losses. Moreover, fairness of delivering input supply and proper use must be transparently provided by the buyer and farmers. There should also be a possibility of renegotiation of the contracts in case of crop pests and animal diseases to ensure risk-sharing between both parties. In case of disputes over the agreed contractual agreement, the farmers and buyers should agree upon a neutral third party to mitigate between both sides.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Development cooperation can provide the necessary advice on capacity development of smallholders, independent legal and technical advice for smallholders and observation of fair procedures.
+However, contract farming needs a specific set of guidelines and legal frameworks that enable both buyer and producer to establish and maintain a good relationship to discourage a deterioration of the farming operation through opportunistic behavior or other unfair practices. Such a win-win situation can only be achieved if the contract promotes agricultural production and guarantees a secure market for the commodity, thereby allowing farmers to earn increased revenue and buyers to obtain a return on their investments.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Contracts must be clear and readable to specify the parties’ responsibilities; transparent; fully disclosed; provide due attention and regularly reviewed; independently advised by legal experts; and ensure the agreed price is satisfactory to both sides whilst strictly honoured to allow continuous trust between both parties. While buyers must strictly adhere to the concluded agreement and a fair and transparent procedure of assessing the quality of the products, the farmers must agree to produce the commodities as stated in the contract, e.g. using the agreed fertilizers, using clean water, maintaining farm equipment and hygienic standards and post-harvest handling of the produce to prevent losses. Moreover, fairness of delivering input supply and proper use must be transparently provided by the buyer and farmers. There should also be a possibility of renegotiation of the contracts in case of crop pests and animal diseases to ensure [[Corporate_water_risks|risk]]-sharing between both parties. In case of disputes over the agreed contractual agreement, the farmers and buyers should agree upon a neutral third party to mitigate between both sides.<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> Development cooperation can provide the necessary advice on capacity development of smallholders, independent legal and technical advice for smallholders and observation of fair procedures.
 = Examples =
@@ Line 63: / Line 63: @@
 Africa Cashew Alliance: [http://www.africancashewalliance.com/ http://www.africancashewalliance.com/]

@@ Line 1: / Line 1: @@
-After decades of under-investment and at a time of high population growth and changing natural conditions due to climate change, the agricultural sector in developing countries will require additional investments of approximately USD 83 billion per year<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> to achieve food security by 2050. Since the food value chain is almost entirely in the hands of private sector companies, development agencies have identified concepts to engage the private agricultural sector in developing countries while adhering to specific socio-economic conditions, such as the prevalent smallholder agriculture. These innovative concepts seek to use governance and legal tools, such as contract farming, public-private partnership (PPP) models and new investment models, in smallholder agriculture (FAO 2004).<ref name="Giordano">Giordano, Meredith, de Fraiture, Charlotte, Weight, Elizabeth and van der Bliek, Julie (2012). Water for wealth and food security: Supporting farmer-driven investments in agricultural water management. AgWater Solutions Project: Accra. Available online: http://awm-solutions.iwmi.org/Data/Sites/3/Documents/PDF/publication-outputs/water_for_wealth_and_food_security.pdf [ 18.01.2013]. </ref><ref name="GIZ2010">Gesellschaft für Internationale Zusammenarbeit (2010). Topic Sheet: Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector. Eschborn: GIZ. </ref>
+After decades of under-investment and at a time of high population growth and changing natural conditions due to climate change, the agricultural sector in developing countries will require additional investments of approximately USD 83 billion per year<ref name="FAO2012">Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: http://www.fao.org/docrep/016/i2858e/i2858e.pdf [18.01.2013].</ref> to achieve food security by 2050. Since the food value chain is almost entirely in the hands of private sector companies, development agencies have identified concepts to engage the private agricultural sector in developing countries while adhering to specific socio-economic conditions, such as the prevalent [[smallholder_agriculture|smallholder agriculture]]. These innovative concepts seek to use governance and legal tools, such as contract farming, public-private partnership (PPP) models and new investment models, in smallholder agriculture (FAO 2004).<ref name="Giordano">Giordano, Meredith, de Fraiture, Charlotte, Weight, Elizabeth and van der Bliek, Julie (2012). Water for wealth and food security: Supporting farmer-driven investments in agricultural water management. AgWater Solutions Project: Accra. Available online: http://awm-solutions.iwmi.org/Data/Sites/3/Documents/PDF/publication-outputs/water_for_wealth_and_food_security.pdf [ 18.01.2013]. </ref><ref name="GIZ2010">Gesellschaft für Internationale Zusammenarbeit (2010). Topic Sheet: Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector. Eschborn: GIZ. </ref>
 = Background =
@@ Line 10: / Line 10: @@
 = Public-private partnerships =
-Another model for innovative partnerships in the agricultural sector is the concept of public-private partnerships (PPP). Although there is no widely accepted definition of the concept, PPP refers to arrangements between the public and private sectors whereby part of the services or works that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/or public services.<ref name="WB2013">World Bank (2013). About Private Public Partnerships. Available online: http://ppp.worldbank.org/public-private-partnership/overview [18.01.2013]. </ref> Although generally deployed in other economic sectors than agriculture, the concept has also found application in the primary sector in developing countries where public capital is scarce while high investment in agriculture is required to achieve food security.<ref name="ADB2010">African Development Bank (2010). Handbook on Public-Private-Partnerships. ADB: Manila. Available online: http://www.apec.org.au/docs/ADB%20Public%20Private%20Partnership%20Handbook.pdf [18.01.2013]. </ref> The PPP concept seeks to pool private capital and the expertise of the private sector while simultaneously prompting governments to provide sound regulatory frameworks.<ref name="GIZ2013">Gesellschaft für Internationale Zusammenarbeit (2013). DeveloPPP. Available online: http://www.developpp.de/en/What_is_PPP.html [18.01.2013]. </ref> In agriculture, PPPs are used to deploy private capital and the expertise of the input and food industry to improve on-farm management, infrastructure and adaptation to climate change while at the same time fostering capacity development and introducing an enabling environment to improve governance schemes through public funding.
+Another model for innovative partnerships in the agricultural sector is the concept of public-private partnerships (PPP). Although there is no widely accepted definition of the concept, PPP refers to arrangements between the public and private sectors whereby part of the services or works that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/or public services.<ref name="WB2013">World Bank (2013). About Private Public Partnerships. Available online: http://ppp.worldbank.org/public-private-partnership/overview [18.01.2013]. </ref> Although generally deployed in other economic sectors than agriculture, the concept has also found application in the primary sector in developing countries where public capital is scarce while high investment in agriculture is required to achieve food security.<ref name="ADB2010">African Development Bank (2010). Handbook on Public-Private-Partnerships. ADB: Manila. Available online: http://www.apec.org.au/docs/ADB%20Public%20Private%20Partnership%20Handbook.pdf [18.01.2013]. </ref> The PPP concept seeks to pool private capital and the expertise of the private sector while simultaneously prompting governments to provide sound regulatory frameworks.<ref name="GIZ2013">Gesellschaft für Internationale Zusammenarbeit (2013). DeveloPPP. Available online: http://www.developpp.de/en/What_is_PPP.html [18.01.2013]. </ref> In agriculture, PPPs are used to deploy private capital and the expertise of the input and food industry to improve on-farm management, infrastructure and [[Water_and_Adaptation_to_Climate_Change|adaptation to climate change]] while at the same time fostering [[Capacity_Development|capacity development]] and introducing an [[Category:Enabling_Environment|enabling environment]] to improve governance schemes through public funding.
 = Contract farming =

@@ Line 8: / Line 8: @@
 Therefore, the required market transition requires governance models to be designed and institutionally built in a technically feasible and effective way for the objective of poverty reduction and food security to be reached by 2050 (ESFIM 2012). Innovative agricultural partnerships also provide an alternative in developing countries to [[Foreign_direct_investments_in_land|foreign direct investment]] or [[Land_and_water_grabbing|land grabbing]], i.e. large swaths of land leased out to foreign investors to produce agricultural produce on bigger production units. For this purpose, several tools and concepts have been designed in development cooperation to transform and adapt farmers to arising challenges by innovative governance models that promote a partnership between farmers, governments, input providers and buyers.
 = Public-private partnerships =
-Another model for innovative partnerships in the agricultural sector is the concept of public-private partnerships (PPP). Although there is no widely accepted definition of the concept, PPP refers to arrangements between the public and private sectors whereby part of the services or works that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/or public services (World Bank 2013). Although generally deployed in other economic sectors than agriculture, the concept has also found application in the primary sector in developing countries where public capital is scarce while high investment in agriculture is required to achieve food security.<ref name="ADB2010">African Development Bank (2010). Handbook on Public-Private-Partnerships. ADB: Manila. Available online: http://www.apec.org.au/docs/ADB%20Public%20Private%20Partnership%20Handbook.pdf [18.01.2013]. </ref> The PPP concept seeks to pool private capital and the expertise of the private sector while simultaneously prompting governments to provide sound regulatory frameworks.<ref name="GIZ2013">Gesellschaft für Internationale Zusammenarbeit (2013). DeveloPPP. Available online: http://www.developpp.de/en/What_is_PPP.html [18.01.2013]. </ref> In agriculture, PPPs are used to deploy private capital and the expertise of the input and food industry to improve on-farm management, infrastructure and adaptation to climate change while at the same time fostering capacity development and introducing an enabling environment to improve governance schemes through public funding.
+Another model for innovative partnerships in the agricultural sector is the concept of public-private partnerships (PPP). Although there is no widely accepted definition of the concept, PPP refers to arrangements between the public and private sectors whereby part of the services or works that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/or public services.<ref name="WB2013">World Bank (2013). About Private Public Partnerships. Available online: http://ppp.worldbank.org/public-private-partnership/overview [18.01.2013]. </ref> Although generally deployed in other economic sectors than agriculture, the concept has also found application in the primary sector in developing countries where public capital is scarce while high investment in agriculture is required to achieve food security.<ref name="ADB2010">African Development Bank (2010). Handbook on Public-Private-Partnerships. ADB: Manila. Available online: http://www.apec.org.au/docs/ADB%20Public%20Private%20Partnership%20Handbook.pdf [18.01.2013]. </ref> The PPP concept seeks to pool private capital and the expertise of the private sector while simultaneously prompting governments to provide sound regulatory frameworks.<ref name="GIZ2013">Gesellschaft für Internationale Zusammenarbeit (2013). DeveloPPP. Available online: http://www.developpp.de/en/What_is_PPP.html [18.01.2013]. </ref> In agriculture, PPPs are used to deploy private capital and the expertise of the input and food industry to improve on-farm management, infrastructure and adaptation to climate change while at the same time fostering capacity development and introducing an enabling environment to improve governance schemes through public funding.
 = Contract farming =

@@ Line 45: / Line 45: @@
 The Africa Cashew Alliance (ACA) was established in 2005 by local and international cashew businesses to tackle the adverse conditions in cashew production, processing, marketing and sales throughout the value chain. Funded by USAID, international agribusinesses and the Bill and Melinda Gates Foundation, GIZ has become the implementing partner in the ACA initiative. GIZ has partnered in a PPP with three private sector companies in the cashew value chain to strengthen the capacity of workers in cashew production, processing, distribution, marketing and workers’ health. The private sector companies involved in this initiative are Global Trading & Agency BV (GTA), a broker and trading agent in various nuts and dried fruits, based in the Netherlands; Miranda Industrial Lda., a family owned cashew processing company in Mozambique; and Afokantan Benin Cashew SA, a cashew processing company in Benin. These three private sector stakeholders in the PPP provide training to staff members in the various companies along the value chain to improve the efficiency of cashew production in order to add value to the cashew nuts produced in Africa and to retain that value in the producing economies. A major PPP focus is the prevention and treatment of HIV/AIDS, tuberculosis and malaria: the staff is tested and further educated on how to limit the spread of the viral and bacterial infections through appropriate treatment and prevention mechanisms. Overall, PPP has reached approximately 500,000 people, i.e. workers and their family members. The partnership has also induced higher revenues for smallholders and producers, thus increasing revenues and taxation that remains in the producing economies.<ref name="GTZ2010">Gesellschaft für Technische Zusammenarbeit (2010). Status Report: Improved Cashew Value Chain in Africa. Eschborn: GTZ. </ref>
 = References =
 <references />
 Felgenhauer, K. and Wolter, D.(2010). Outgrower Schemes – Why Big Multinationals Link up with African Smallholders. OECD:Paris. Available online: [https://www1.oecd.org/dev/41302136.pdf https://www1.oecd.org/dev/41302136.pdf] (accessed 18.01.2013).
-Food and Agriculture Organisation of the United Nations (2012). Guiding principles for responsible contract farming operations. FAO: Rome. Available online: [http://www.fao.org/docrep/016/i2858e/i2858e.pdf http://www.fao.org/docrep/016/i2858e/i2858e.pdf] [18.01.2013].
+Peltzer, Roger and Tiemann, Alexa (2011). Are the COMPACI and CmiA models financially sustainable. Cotton International 11/11.
-−
-Gesellschaft für Internationale Zusammenarbeit (2010). Topic Sheet: Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector. Eschborn: GIZ.
-−
-DEG Invest and Gesellschaft für Internationale Zusammenarbeit (2011). COMPACI Background. Köln and Eschborn: DEG/GIZ.
-−
-Gesellschaft für Technische Zusammenarbeit (2010). Status Report: Improved Cashew Value Chain in Africa. Eschborn: GTZ.
-−
-Gesellschaft für Internationale Zusammenarbeit (2013). DeveloPPP. Available online: [http://www.developpp.de/en/What_is_PPP.html http://www.developpp.de/en/What_is_PPP.html] (accessed 18.01.2013).
-−
-Meredith Giordano, Charlotte de Fraiture, Elizabeth Weight and Julie van der Bliek (2012). Water for wealth and food security: Supporting farmer-driven investments in agricultural water management. AgWater Solutions Project: Accra. Available online: [http://awm-solutions.iwmi.org/Data/Sites/3/Documents/PDF/publication-outputs/water_for_wealth_and_food_security.pdf http://awm-solutions.iwmi.org/Data/Sites/3/Documents/PDF/publication-outputs/water_for_wealth_and_food_security.pdf] (accessed: 18.01.2013).
-−
-The Economist (2009). Idea: Vertical Integration. Available online: [http://www.economist.com/node/13396061 http://www.economist.com/node/13396061] (accessed 18.01.2013).
-−
-Roger Peltzer and Alexa Tiemann (2011). Are the COMPACI and CmiA models financially sustainable. Cotton International 11/11.
 Gil Ton (2012). Empowering Smallholder Farmers in Markets. Available online: [http://www.esfim.org/wp-content/uploads/ESFIM-newletter-February-2012.pdf http://www.esfim.org/wp-content/uploads/ESFIM-newletter-February-2012.pdf] (accessed: 18.01.2013).
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 = Links =

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	The challenge to produce 70% more food for an additional 2.3 billion people by the year 2050 in the context of climate change requires multiple initatives to increase agricultural productivity and innovation. Global agriculture has increasingly been transformed by large agribusinesses through vertical integration that provides essential farming technology and trade facilities. Vertical integration is defined as merging together of two businesses that are at different stages of production (The Economist 2009). Since the majority of producers in developing countries are smallholders, farmers will need to gain access to regional and international markets for production inputs and to provide the necessary additional produce to food value chains. The challenge here is, however, to overcome the imbalances of market power, information asymmetries and financial and technological disparities between input providers, buyers, and farmers (OECD 2010).		The challenge to produce 70% more food for an additional 2.3 billion people by the year 2050 in the context of climate change requires multiple initatives to increase agricultural productivity and innovation. Global agriculture has increasingly been transformed by large agribusinesses through vertical integration that provides essential farming technology and trade facilities. Vertical integration is defined as merging together of two businesses that are at different stages of production (The Economist 2009). Since the majority of producers in developing countries are smallholders, farmers will need to gain access to regional and international markets for production inputs and to provide the necessary additional produce to food value chains. The challenge here is, however, to overcome the imbalances of market power, information asymmetries and financial and technological disparities between input providers, buyers, and farmers (OECD 2010).
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	Therefore, the required market transition requires governance models to be designed and institutionally built in a technically feasible and effective way for the objective of poverty reduction and food security to be reached by 2050 (ESFIM 2012). Innovative agricultural partnerships also provide an alternative in developing countries to <u>foreign direct investment</u> or <u>land grabbing</u>, i.e. large swaths of land leased out to foreign investors to produce agricultural produce on bigger production units. For this purpose, several tools and concepts have been designed in development cooperation to transform and adapt farmers to arising challenges by innovative governance models that promote a partnership between farmers, governments, input providers and buyers (FAO 2012).		Therefore, the required market transition requires governance models to be designed and institutionally built in a technically feasible and effective way for the objective of poverty reduction and food security to be reached by 2050 (ESFIM 2012). Innovative agricultural partnerships also provide an alternative in developing countries to <u>foreign direct investment</u> or <u>land grabbing</u>, i.e. large swaths of land leased out to foreign investors to produce agricultural produce on bigger production units. For this purpose, several tools and concepts have been designed in development cooperation to transform and adapt farmers to arising challenges by innovative governance models that promote a partnership between farmers, governments, input providers and buyers (FAO 2012).