3ADI+: Accelerator for Agriculture and Agroindustry Development and Innovation

Amid growing worldwide demand for value-added agricultural products, agroindustry development can be a key engine of economic growth, particularly for developing countries. Agribusinesses and agro-industries add value to agricultural products through processing and manufacturing and can generate a wealth of employment opportunities in the food industry and related support services.

3ADI+ is a joint value chain and market systems development programme spearheaded by the Food and Agriculture Organization of the United Nations (FAO) and the United Nations Industrial Development Organization (UNIDO). It aims to develop inclusive and sustainable value chains by ensuring that investments in agricultural industrialization have positive social, economic and environmental impacts. It combines capacities of local, national, regional and global actors on analysis, technical assistance, facilitating linkages, policy dialogue, and investment promotion to deliver maximum impact on the Sustainable Development Goals (SDGs).

The programme facilitates the development of inclusive and sustainable food value chains and market systems, in line with the three pillars of sustainability:

Economic: effectively link small and medium agricultural producers and processors to end markets through value addition, thereby acting as an effective basis for industrialization and generation of decent employment, in particular for rural women and youth.
Social: supply higher-value, nutritious and differentiated food, fibre, feed and fuel products to consumers to improve diets and nutrition.
Environmental: utilize natural resources in a sustainable manner, including through climate change adaptation and mitigation measures.

The value propositions of 3ADI+

1. Creates partnerships and facilitates linkages

3ADI+ brings the combined technical expertise, resources and investment promotion capacities of national, inter-governmental, development and finance partners by creating global, regional and country-level partnerships.

3ADI+ is a nexus for expertise, which benefits from joint planning and implementation by FAO and UNIDO at the global level. It also bears the potential to be linked to support from the International Trade Centre (ITC), the International Labour Organization (ILO) and the International Food Policy Research Institute (IFPRI). At the regional level, 3ADI+ works with development banks and agencies, while at the country level, 3ADI+ is implemented primarily in partnership with relevant ministries and private sector entities, and works to create and facilitate linkages between value chain actors and with service providers.

1. Develops an enabling policy environment

3ADI+ consults stakeholders, foremost in the private sector, to identify challenges in the business environment. Based on a comprehensive value chain and market systems analysis, 3ADI+ devises recommendations and provides guidance to the public sector on industry-led policy design. 3ADI+ advocates for policy alignment and incremental policy changes that enable inclusive and sustainable value chain and market systems development.

1. Leverages and de-risks investments

The programme supports governments and the private sector in investing responsibly in agriculture and agroindustry through the provision of technical assistance to reduce investment risk. It ensures that investments made across value chain segments are compliant with the SDGs and key principles for responsible investment. It unlocks largescale funding from international financial institutions such as IFAD, the African Development Bank (AfDB), the World Bank and others to further de-risk public and private sector investments.

1. Builds capacities and shares knowledge

3ADI+ strengthens local capacities and institutionalizes knowledge on value chain and market system development by partnering with government and local institutions – including research institutes, consulting firms, universities – to jointly conduct field research and value chain analysis, as well as develop and implement an action plan.

The programme links local partners to a global knowledge platform to ensure the continuous exchange of information, tools and best practices on sustainable food value chain and business model development. In addition, 3ADI+ strengthens capacities by providing technical assistance to value chain actors including producers and processors as well as input and service providers.

The 3ADI+ process

3ADI+ is a four to five-year programme with a proven approach for value chain development, based on experiences in pilot countries – Bangladesh, Suriname and Tanzania – and previous value chain work by the FAO and UNIDO. The 3ADI+ eligibility criteria include:

The value chain development request must be submitted by high-level governmental officials
There must be an ability to conduct a broad and integrated value chain diagnostic
There must be an availability of public and private investments opportunities
UNIDO and other agencies must be able perform technical assistance activities

The 3ADI+ support programme involves the following steps:

A) INCEPTION & SELECTION

The 3ADI+ kicks off upon receiving a request from the Government and meeting the above eligibility criteria. The 3ADI+ team, including country representatives from the FAO, UNIDO and other agencies, then engages in a dialogue on cooperation prospects and on the selection of promising value chain development opportunities. The inception phase seeks Government endorsement of the 3ADI+ programme and selected value chain.
B) INTEGRATED VALUE CHAIN DIAGNOSTICS

The 3ADI+ brings together a team of experts from the Government, local agencies as well as UNIDO and the FAO. The team conducts a value chain and market systems analysis by collecting qualitative and quantitative data and using a combined set of value chain analytical tools. The diagnostics helps identify value chain development opportunities, potential business models along the value chain and required policy actions.
C) VALUE CHAIN DEVELOPMENT STRATEGY

The 3ADI+ team develops, in close collaboration with the stakeholders, an action plan for value chain development. This includes actions for specific actors, investment needs, development targets, technical assistance functions and incremental policy changes.
D) INVESTMENT PROMOTION

The 3ADI+ team discusses investment options with investors based on business models developed through the diagnostics. Engaging with local investment promotion agencies, the team develops investment profiles and market investment opportunities to help promote matchmaking between private investors and development finance institutions.
E) ROLL OUT OF ACTION PLAN

The 3ADI+ team supports the implementation of activities identified in the action plan – including of business and investment plans of public and private investors – to develop inclusive and sustainable value chains. This includes the provision of technical assistance.
F) MONITORING & ADJUSTMENT

The 3ADI+ team monitors progress on the implementation of the action plan and changes in the framework conditions (e.g. market and policies) and continuously defines additional actions and adjustments to be made to policies and investment plans.

Pilot counties

BANGLADESH

3ADI+ is developing the dairy and beef sector, to:
- - improve nutrition and food safety
- - increase incomes and market access for businesses in the sector at a very large scale
- - reduce the environmental impact of milk and beef production and processing
Additional employment opportunities through value addition will create a more dynamic, modernized and formalized sector with benefits for the poor rural population that relies on dairy for their livelihoods. Negative environmental and health impacts from improper handling of cow manure, wastewater, slaughterhouse waste, and adulterated products, as well as energy-inefficient processes are being reduced through improved coordination and the introduction of clean production technologies.
SURINAME

3ADI+ is developing the pineapple sector, to:
- - increase incomes through decent work on the farms and in the collection and processing centres
- - sustain economic growth through diversification of exports, improved market access and value addition
- - safeguard the environment by promoting environmentally sound production and processing
The pineapple sector has great potential for upscaling to commercial production and processing. 3ADI+ is linking producers and processors to niche markets – such as organic and Fairtrade pineapples – improving product quality, increasing productivity through sustainable intensification, and promoting an enabling environment to support the agro-industrial sector, particularly small and medium enterprises.
TANZANIA

3ADI+ is developing the palm oil sector, to:
- - reduce poverty through increased incomes for 30,000 smallholder palm oil producers and rural families
- - promote gender equality by reducing women’s work burden and valuing women’s work
- - develop a new system of sustainable palm oil production and reduce pressure on forests and water
3ADI+ is developing, on a large scale, an environmentally sound agroforestry production system which is inclusive of many of the smallholder palm oil producers in the Kigoma region. It is also developing agro-processing and value addition businesses that are profitable and food safety-compliant, and introducing improved, energy-efficient technology for processing to reduce women’s work burden and increase the supply of safe, local edible oils.

Contribution to the SDGs

3adi+ sdgs

3ADI+ will contribute to and monitor its impact on the SDGs. The programme will focus on SDG 1 on poverty reduction, SDG 2 for zero hunger, SDG 8 on decent work and economic growth, SDG 9 on industrial development, SDG 12 on responsible consumption and production and SDG 17 on partnerships for the goals by delivering as one. 3ADI+ will also contribute to SDG 5 on gender equality, SDG 13 on climate action and SDG 15 on sustainable forest management.

The aspirations of the programme are fully recognized in the Third Industrial Development Decade for Africa (IDDA3). Its approach is also well aligned with UNIDO’s innovative model for accelerating inclusive and sustainable industrial development in Member States, the Programme for Country Partnership (PCP).

3ADI+: Accelerator for Agriculture and Agroindustry Development and Innovation

The value propositions of 3ADI+

1. Creates partnerships and facilitates linkages

1. Develops an enabling policy environment

1. Leverages and de-risks investments

1. Builds capacities and shares knowledge

The 3ADI+ process

A) INCEPTION & SELECTION

B) INTEGRATED VALUE CHAIN DIAGNOSTICS

C) VALUE CHAIN DEVELOPMENT STRATEGY

D) INVESTMENT PROMOTION

E) ROLL OUT OF ACTION PLAN

F) MONITORING & ADJUSTMENT

Pilot counties

BANGLADESH

SURINAME

TANZANIA

Contribution to the SDGs

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