Miller and Jones (2010) Agricultural Value Chain Finance: Tools and Lessons
This study is built around actual case studies that were presented at a series of FAO conferences, which took place in Asia, Africa and Latin America in 2006 and 2007, as well as additional work in Eastern Europe and Central Asia in 2008. As a result of using real world examples, descriptions of specific financial models and instruments are often teased out of a complex system that exhibits a range of financial, agricultural, institutional, regulatory and socio-cultural variables.
The study elaborates four broad value chain business models of smallholders (producer-driven, buyer-driven, facilitator-driven, and integrated), providing descriptions and illustrations of characteristics and rationale of each model, with the various applications of financial models that apply in different situations.
it provides examples of value chain finance mechanisms and tools from traditional products such as trader credit, to more complex instruments such as factoring.
It is stated that more learning and a deeper analysis is required for addressing key constraining factors to promote value chain financing. Most important among these is research to help improve: 1) improved policies and regulation for some of the value chain finance instruments; 2) approaches for optimal financial inclusion; and 3) contract enforcement.