In this blog post we discuss our experiences collaborating with for-profit agribusinesses to evaluate an initiative promoting poultry rearing for smallholder farmers across East and West Africa — and what we learned about tailoring impact evaluation tools to work with the private sector. We recently concluded baseline surveys and we will share more results and reflections in the coming year.
Potential chicken customers gather for an information session in West Africa
Smallholder farmers account for 60% of Africa’s workforce, 40% of whom are women. In populous African countries, small-scale farmers produce the bulk of domestic agricultural output, yet the majority live on less than US $2.00 per day.
Agribusiness that enhances the productivity of smallholders has the potential to grow Africa’s agricultural sector while contributing to poverty reduction efforts. Yet the evidence on how agribusinesses impact farmer profits is mixed so far. Policymakers and development partners face a key question: how can agribusinesses work with smallholder farmers to improve livelihoods while still making a profit?
To contribute to this knowledge base, IDinsight joined an initiative to evaluate a corporate model where agribusinesses market fast-growing chickens to smallholder farmers in East and West Africa.1 While the model may be profitable for the suppliers, our role is to determine whether smallholder families also see improvements in welfare. To do so, we designed a series of impact evaluations to measure changes in revenue, family nutrition, and women’s decision making power for over 2,000 farmers in more than 250 communities across two countries, over the course of three years.
Relative to our NGO and government partnerships, conducting a successful impact evaluation with for-profit agribusinesses requires an even more tailored and dynamic approach. In this post, we highlight three lessons on how to adapt impact evaluations to collaborate with the private sector. We hope these lessons can serve as useful guideposts for other research teams exploring the intersection of agribusiness and development.
Governments and NGOs often take time to create inclusive processes and refine their activities based on the interests of many different stakeholders. In contrast, private companies prioritize serving and expanding their customer base, and can act quickly and flexibly to respond to market dynamics without needing to consult voters or donors. For example, one agribusiness we work with found that distribution sites were too scattered across a particular region, limiting its ability to maintain a consistent supply of chickens for sale. To increase efficiency, it decided to focus its expansion on a more limited area that might be easier and more economical to serve. These market-driven adjustments, while logical for a business, at times posed serious challenges to maintaining the technical rigor of our impact evaluations.
In response, we adapted our approach in two important ways:
Data privacy is especially important in the private sector, in part because customer information can give a business its competitive edge. It was really important for us to take time to build trust with our corporate counterparts, so they knew how we would safeguard their data and protect their market competitiveness.
Our collective efforts to meet face-to-face layout our respective goals, and directly exchange information were critical to building relationships that enabled our research. We found it useful to:
Our ability to measure the social impact of this for-profit model depends on the companies’ willingness to adhere to the evaluation design — essentially, to market chickens in treatment communities and not in control communities.
To maintain buy-in and create value for the companies even before we know the final results, we worked to collect and share business and operational insights that speak to the companies’ bottom line.
Whenever possible we aim to pair social impact findings with a discussion of markets and customers to keep the companies engaged in our research and pave the way for subsequent phases of the impact evaluations.
Agribusinesses are important partners in agricultural development efforts and there is more to learn about how they can also positively contribute to smallholder farmer livelihoods. As we continue to work on this and other market-based initiatives, we hope to further refine how we tailor our impact evaluations to ensure that measuring social impact can result in more inclusive outcomes while also helping a company’s bottom line.
We work with business and social enterprise leaders to streamline operations, quantify social impact, and to pilot, perfect, and scale-up programs.
13 March 2020
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27 December 2020
2 February 2021