Reduction of the vulnerability of agriculture supply chains and farmers

Project completed

Since 2002 SECO and the Dutch Ministry of Foreign Affairs have provided support through a Multi Donor Trust Fund (MDTF) to the Agriculture Risk Management Team (ARMT) of the World Bank to carry out a program of work focused on promoting the application of market-based measures to manage selected risks in developing country agriculture. The current phase of this program started in 2010 and has been prolonged until end 2016 for a total initial budget of USD 5?000?000.- including a SECO contribution of USD 3?800?000.-

Country/region Topic Period Budget
Global
Sustainable trade
01.03.2009 - 31.12.2016
CHF 7'980'000
Background

In the recent years, it has become increasingly clear that the prevalence of multiple risks facing the agriculture sector (not only weather and price) and the failure to address them on an ex-ante holistic basis continues to leave both countries and their agriculture supply chains at risk. The realization of these risks leads to a continual situation of shock recovery and post event coping that endangers sustainability of ongoing development initiatives and remains a major impediment to the development of agricultural sectors.

Objectives

ARMT assists developing country stakeholders (governments, commercial sector, agribusinesses, producer groups and producers) in better comprehending the complexity of agriculture risk management and develop appropriate solutions to mitigate-transfer-cope risks associated with agriculture. It achieves this through the provision of technical assistance and development of a number of risk management tools for use by the wider development community and stakeholders themselves.

Medium-term outcomes

The key outcomes of the project are the following:

1. provide assistance in diagnosing and characterizing a broader array of agricultural risks and possible risk management solutions?to inform policy/regulatory reforms and broader development assistance planning-

2. promote the broader utilization of weather, agronomic, and other data for purposes of stakeholder risk management

3. complement other on-going commodity-related initiatives, including those pertaining to sustainable agriculture and certification, by grafting risk management training/Technical Assistance onto other interventions- and

4. strengthen a currently loose ?network? of organizations active in the agricultural risk management field to foster more cooperation and knowledge/experience sharing.

Results

Expected results:  

Activity 1. Agricultural Supply Chain Risk Assessments

Activity 2. Development of Cash Crop "Early Warning" tool

Activity 3. Agricultural Risk ?Stress Test? for Developing Country Governments

Activity 4. Forum for Agricultural Risk Management and Development (FARM)

Activity 5. Enhancing Risk Management Capacity Within ?Sustainable? Production Initiatives

Activity 6. Capacity Transfer and Training in Agricultural Risk Management


Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • World Bank - International Bank for Reconstruction and Development


Budget Current phase Swiss budget CHF   7'980'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   5'000'000
Project phases

Phase 1 01.03.2009 - 31.12.2016   (Completed)