COMPONENT 2:STRENGTHENED VALUE CHAIN COORDINATION AND MARKET LINKAGES
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- COMPONENT 1:RESILIENT PRODUCTION SYSTEMS
- COMPONENT 2:STRENGTHENED VALUE CHAIN COORDINATION AND MARKET LINKAGES
This component will promote agricultural commercialization and foster exports through investing in post-harvest facilities within the established hubs. Efforts will be undertaken to build business linkages between producers, buyers, financiers and local stakeholders through multi-stakeholder platforms (MSP).
Sub-Component 2.1-Enhancing efficiency of value chain operations
This sub-component will apply an integrated value chain approach, defining interventions in all value chain functions from input supply, production, aggregation and storage, processing, to defining marketing channels, and export. BRECSA will support agricultural commercialization within the established Hubs through funding of aggregation facilities, and on-site small-scale processing facilities equipped with washing, grading, packing and storage. The Hubs will be supported with training and serve as a Farmer Field School for the adjacent network of farmers for building knowledge on agro-ecological farming.
Based on demand, the Hubs will serve as an input supplying centre for provision of seeds and vegetative planting material, bio-inputs, and other basic inputs for the farmer network. The Hubs will also serve as an aggregation point for the farmer network to deliver their produce based on a guaranteed minimum price and profit sharing. Additional processing and marketing facilities will also be supported and strategically located based on the Dzongkhag ARPs. All construction related to processing and marketing facilities will be preceded with a feasibility study, detailed supply chain and economic and financial analysis, and business plan.
Sub-Component 2.2-Business linkages and multi-stakeholder platforms
BRECSA will facilitate the establishment and functioning of sub-sector specific multi- stakeholder platforms (MSPs) to support business development and commercialization at Thimphu and Dzongkhag levels. These MSPs will bring together all relevant stakeholders that engage in the agricultural sector including representatives of women and youth. The MSPs, in partnership with relevant departments and agencies, will work to establish market linkages for farm produce for both the domestic and export markets.
MSPs will also engage in investment planning to attract potential financiers into the sector. Based on the initial value chain analysis and defined investment strategies, a Strategic Investment Plan (SIP) will be prepared for each selected commodity. The SIP will provide a framework for inviting farmers and their groups, entrepreneurs, the government, development projects, private investors and service providers to co-invest in the project area, thus facilitating access to markets, knowledge, technology and capital for smallholder rural farmers.