Partnering for value: Lessons from Public Private Producer Partnerships (4Ps) in practice
This paper (PDF) by SNV outlines factors that are important for successful Public Private Producer Partnerships (4Ps) business cases. The first factor is size of the private enterprise. While large enterprises are more likely to reach scale, small and medium enterprises (SMEs) are usually more impact driven. For pro-poor impact, it is recommended to set up 4Ps with SMEs that are locally rooted in the area where the producers are located. The second factor is the structure of the market. Some market dynamics are less suitable for a 4P, as is often the case with saturated, unregulated or unstable markets. When there is a stable market and clear investments are needed to meet a certain market demand, there is a clear rationale to build long-term 4Ps. The third factor is focusing on raw materials versus value adding activities. A strong motivator to start a 4P when partners are interested in taking up market functions related to value addition. In contract, when the focus is on raw materials without further value adding activities, there is usually less incentive to invest in each other and start a long-term cooperation. In such cases, it is recommended to look for more open, flexible set-ups where partners jointly explore in which they can still support each other. The last factor is the level of co-ownership and equal participation by all partners; which should be a continuous priority during 4P brokering for success. To achieve a real meaningful partnership, capacity building if often needed for all partners. A major conclusion is that there is a sound basis for the role of 4Ps in rural development. Long-term 4Ps can contribute to development of agricultural value chains. However, many factors should be take in into account to increase the likelihood of success and benefits for all partners.