Achieving a Sustainable, Well-Functioning Service Coalition Through a Service Coalition Manager

• No restrictions on crop/country
• Suitable for service coalitions in which farmers’ service needs are broad or the coalition involves many partners

• Document the roles and responsibilities of different coalition members
  
• Set up a reporting structure between the SCM and all coalition partners
• Hire an SCM that is mobile (can visit partners and farmers), knows the sector, and has excellent communication skills

• Geographical concentration of interconnected companies
• Complementary services offered by coalition partners

As of the date of publication of this case, the SCM onboarded 4 new processors and 3 aggregators to the coalition, resulting in signed contracts between farmers and processors. This facilitates farmer access to finance (reduced time for loan approval, increased number of disbursed loans). Syngenta has recorded increased sales of inputs since expanding access to structured markets and finance for farmers.

Joint farmer visits by the SCM and off-takers, reduce sourcing costs for the off-takers, who would otherwise have had to identify and engage with farmers independently. Syngenta benefits from integrating market access because farmers are more likely to increase yields and subsequently volumes to meet their contractual off-take demands, potentially requiring more inputs from Syngenta.

Data exchange on product requirements (seed varieties, other input usage, and quality specifications) between Syngenta and off-takers allows Syngenta to tailor farmer trainings. This has the potential to increase yield and thereby sourcing volume for off-takers. Clarity on situationally appropriate inputs and increased yield can lead to repeat customers for Syngenta.

Different partners are taking on more responsibility for different aspects of the coalition, setting it up for long-term sustainability by making the model less dependent on Syngenta. Market linkage partners have recruited field personnel to support with aggregation and farmer activities. Financial partners have allocated account managers by branch, with involvement and support from leaders at every level of the organization.

Enhanced communication resulted in better symmetry of information on input specifications (quantity, quality, price) and allowed farmers to purchase correct quantities of appropriate inputs to meet quality requirements. They also gained market knowledge, improving ability to negotiate prices. Consequently, farmers reported securing a market for a larger share of produce and a 14-27 % increase in farm-gate price.

Increased collaboration between coalition partners on service delivery not only created efficiencies, but also ensured farmers access to complimentary services in a timely manner (having access to markets, inputs and finance at start of a planting season).

As part of their facilitation role, the SCM is able to use experience and market knowledge to pre-negotiate floor prices with off-takers on behalf of the farmers. From there, farmers have the autonomy to continue negotiations on their own. This prevents farmers from being pushed into agreeing to unfair prices based on lack of business acumen or insufficient market information.