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Market Systems Innovations – From the Field

DFID has been one of the leading agencies in Making Markets Work for the Poor (M4P), a market systems approach that works with the private sector to catalyze changes in markets that benefit the poor. DFID’s flagship M4P project in Kenya is the Market Assistance Programme (MAP), managed by Mike Field, a recognized leader in value chain and M4P approaches. Field and his team are exploring innovative, scalable solutions in cross-cutting systems and specific value chains.

Early Lessons Targeting Populations with a Value Chain Approach

The value chain approach has been applied with a pro-poor focus for many years by different donors. By applying this framework to specific target populations or to specific settings, such as post-conflict, USAID takes the approach one step further by tailoring interventions to meet the needs and circumstances of specific groups. A unique aspect of this approach is that it takes a market-driven methodology and applies it under circumstances of regional instability, or when tribal tensions, disease, or psychological trauma are prevalent.

Formalization of the Warm Milk Channel in Kenya: A Study in Effective Facilitation (Presentation)

SITE’s work in Kenya's warm milk trade has been an iterative process, relying on numerous types of facilitation to address each challenge as it unfolded, incentivizing a fragmented informal sector without lead firms to collaborate, improve its performance and increase the benefits to its participants. By demonstrating the benefits to regulation and formalization, there has been significant upgrading in the value chain, crowding in of new entrants, and substantial increases in the volumes of milk traded and profitability for the actors.