PMCA: triggering innovation and building trust METHODOLOGIES TO FOSTER PRO-POOR INNOVATION PMCA stimulates innovation and generates business opportunities that benefit small farmers. This participatory process involves different market chain actors, including small farmers and the business sector, as well as research and development (R&D) institutions, agricultural service providers and representatives from the gastronomy sector. Participatory market chain approach (PMCA) Participatory market chain approach (PMCA) Phase 1: Diagnosis Objective: Understand market chain actors’ activities, interests, problems and ideas. Phase 2: Analysis of opportunities Objective: Analyze joint business opportunities in thematic groups. Phase 3: Development of innovations Objective: Develop demand-oriented new products, technologies and institutions in a participatory way. Participants R&D institutions Interest Trust Collaboration Leadership Facilitation Backstopping 1 Y E A R A P P R O X How does it work? PMCA uses a carefully structured participatory process focused on market demand, guided by a facilitator, and organized around three phases (diagnosis, analysis of opportunities and development of innovations). Together, the different market chain actors analyze new business ideas and innovative ways to implement them. The PMCA process focuses on building trust among the different actors and fostering effective public-private partnerships. PMCA also provides R&D institutions with an opportunity to capture research demands from farmers and other market chain actors. ies and institutions in a technologie tech atory way. cipato particip 1
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PMCA: triggering innovation and building trust
METHODOLOGIES TO FOSTER PRO-POOR I N N O V A T I O N
PMCA stimulates innovation and generates business opportunities
that benefit small farmers. This participatory process involves
different market chain actors, including small farmers and the
business sector, as well as research and development (R&D)
institutions, agricultural service providers and representatives
Phase 2: Analysis of opportunitiesObjective: Analyze joint business opportunities in thematic groups.
Phase 3: Development of innovations
Objective: Develop demand-oriented new products, technologies and institutions in a participatory way.
Participants R&D institutions
Interest
Trust
Collaboration
Leadership
Facilitation
Backstopping
1
YE
AR
A
PP
RO
X
How does it work?PMCA uses a carefully structured participatory process focused on market demand, guided by a facilitator, and organized around three phases (diagnosis, analysis of opportunities and development of innovations). Together, the different market chain actors analyze new business ideas and innovative ways to implement them. The PMCA process focuses on building trust among the different actors and fostering effective public-private partnerships. PMCA also provides R&D institutions with an opportunity to capture research demands from farmers and other market chain actors.
ies and institutions in a technologietechatory way.cipatoparticip
1
Results
PMCA generates pro-poor, demand-oriented innovations of three types:• Commercial innovations: new products or marketing concepts that offer a comparative advantage to small farmers. Examples: gourmet, selected native potatoes; naturally-colored chips; selected and bagged chuño and tunta (potato product dehydrated through a traditional
method in the highlands).
• Technological innovations: market opportunities generated by the application of PMCA have created demand for research in the areas of production and post-harvest management. Examples: organic alternative for sprout control, aeroponics for production of potato seeds, good processing practices for tunta, postharvest machines for chuño.
• Institutional innovations: organizations or rules that favor competitiveness of the sector and empower small farmers. Examples: stakeholder platforms (see flyer), technical quality standards for production of chuño and tunta.
How was PMCA used? PMCA was originally developed and applied to the potato market chain in the Andes by Papa Andina and its partners. It has subsequently been extended to other market chains such as coffee, milk and fruit in the Andes, and to sweet potato and vegetable market chains in Africa and Asia.
Awards for innovation The result of a PMCA conducted in 2004 in Peru, “T’ikapapa” is an innovative marketing concept that enabled High Andean farmers to sell their native potato production in supermarkets for the first time. T’ikapapa was awarded four prizes, including the United Nations’ SEED Award and BBC, Newsweek and Shell’s World Challenge in 2007.