Agricultural Innovation and Rural Diversification

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Agricultural Innovation and Rural Diversification

• Shailaja Fennell
• Research Director, Cambridge Central Asia Forum

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Value Chain Analysis

• A value chain analysis identifies the sequence of
  activities that farms, firms and workers
  undertake to bring a product from conception to
  the end use and disposal after use (Kaplinsky,
  2002 Ponte, 2010)
• The agricultural value chain is composed of a
  series of steps involved in the production -from
  field to fork-is a material flow that is embedded
  in a context of social actors such as growers,
  traders, and state institutions (Fold 2000)
• The value chain analysis is composed of four
  major components (a) specific input-output
  structure and geography, (b) the governance
  structure, (c) institutional framework of the
  chain and (d) upgrading. (Gibbons 2003 Ponte
  2010)

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Agricultural Value Chain and Possibilities for
Processing and Storage
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The evolving logic of agricultural diversification

• To encourage rural entrepreneurship to transition
  to create a more diversified and dynamic
  agricultural production basis (World Bank 2007)
• Through the use of public private partnerships
  to permit risk sharing across households and
  facilitate agricultural innovation in smallholder
  agriculture (IFPRI 2008)  
• Agricultural innovation takes place within
  social, political, ecological and economic system
  (Poteete, Janssen and Ostrom 2010)
• Household technology choice is based on locally
  constructed values accorded to agricultural
  products and production techniques (Cornwall and
  Scoones 2011).

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Bolwig et.al. 2008 38
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Opportunities in Agribusiness

• Exports of (organic) high value fruits and
  vegetables
• Generation of renewable (on and off grid) energy

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Share of Ecological Regions in Total Land Area
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Gross Value Added
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Employment by Sector
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Azerbaijan Energy Targets

• Azerbaijans 2020 Targets
• 20 share of renewable energy in electricity (10
  in 2011 9.8 hydropower, 0.2 other RE)
• 9,7 share of renewable energy in all energy
  consumption (2.3 in 2011)

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Cambridge Innovation Ecosystem

• Science based research-measurement and testing,
  grading and accreditation
• Social science-household surveys for valuation of
  natural resources, agricultural inputs, community
  focus groups for an embedded understanding of
  risks and bottlenecks