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Abstract

This article explains how new practices of public-private partnerships (PPPs) can work for overall development of agriculture sector. As we know that the public sector provides a promising organized atmosphere for the agricultural development and also provides funds for research with local relevance. On the other hand, private sector having substantial capability in product development and distribution. But there are some effective ways through which the public and the private sector could work together and jointly improve agricultural sustainability. Under Public-Private Partnerships, it can be supposed to offer public organizations access to private-sector properties, including pioneering scientific expertise and technologies for overall development of agriculture sector.
AGRICULTURE & FOOD:
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Volume 3 - Issue 10
October 2021
Monthly online magazine in
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Public-Private Partnerships in Agriculture
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Public-Private Partnerships in Agriculture
Article ID: 12130
Rede G. D.1, Ingle S. G.1
1Teaching Associate, Department of Agricultural Economics, College of Agriculture, VNMKV, Parbhani,
(M.S.).
Abstract
This article explains how new practices of public-private partnerships (PPPs) can work for overall
development of agriculture sector. As we know that the public sector provides a promising organized
atmosphere for the agricultural development and also provides funds for research with local relevance. On
the other hand, private sector having substantial capability in product development and distribution.
But there are some effective ways through which the public and the private sector could work together and
jointly improve agricultural sustainability. Under Public-Private Partnerships, it can be supposed to offer
public organizations access to private-sector properties, including pioneering scientific expertise and
technologies for overall development of agriculture sector.
Introduction
Green Revolution made great progress in agriculture sector during the 1960s and 1970s. Companies and
public sector organizations around the world continue to achieve breakthroughs in many areas that
contribute to global food security.
Nonetheless, yields in key crops still vary significantly between farming regions, and often remain far below
their optimal potential. Crop losses pre- and post-harvest continue to prevent an estimated 40 percent of
agricultural produce from actually reaching the marketplace (Oerke et. al., 1996). There are many reasons
for these shortfalls, but one frequent cause is farmers’ lack of access to technology, adequate extension
services and poor market integration (Marco and Paul, 2011).
Conventionally, the public and private sector have tried to provide solutions distinctly, with the exception
of certain sections in the long path from basic research to well-known sustainable organization where
partnership was necessary. Agriculture sector is a knowledge and resource intensive sector. So for
sustainable development of the sector, special emphasis must be needed. Public sector in this context has
the lack of resources, so for sustainable development, involvement of private sectors proving as benefited
now a day.
Public Private Partnerships
PPPs are a popular type of collaboration in many sectors of the economy around the world. In one form or
another, partnerships between public institutions and private individuals or organizations have existed for
centuries. Public Private Partnership is a cooperative arrangement between one or more public and private
sectors, typically of a long-term basis.
Government have used such a mix of public and private endeavors for various public interest project. It is
a contractual agreement between a public agency (Federal, state or local) and a private sector entity.
Though this agreement, skills and assets of each sector (public and private) are shared in delivering service
or a facility for the use of a general public. In this partnership each party shares risk and reward potential
in the delivery of the service and/or facility.
The Public Partners in a PPP are government entities, including Ministries, departments, municipalities,
or state-owned enterprises whereas the private partners could be local or international and may include
business or investors with technical or financial enterprise relevant to the project. PPPs may also include
Non-Government Organizations (NGOs) and/or Community Based Organizations (CBOs) who represent
stakeholders directly affected by the project.
The Government’s contribution to a PPP may take the form of capital for investment (available through
tax revenue), a transfer of assets, or other commitments or in-kind contributions that support the
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partnership. The government also provide social responsibility, environmental awareness, local knowledge,
and an ability to mobilize political support. Where the private sector’s role is to make use of its expertise
in commerce, management, operations and innovation to run the business efficiently. The private partners
may also contribute investment capital depending on the form of contract. The structure of the partnership
should be designed to allocate risks amongst the partners based on their capabilities to manage those risks
and thus, minimize cost while improving performance.
PPPs can take a variety of forms. They are not limited to bilateral collaboration between a government
agency and a private corporation. PPP for sustainable agricultural development can also include, for
example, multi-partner structures that bring together private companies with entities such as non-
governmental organizations (NGO), university research institutes and foundations.
These structures have sometimes been termed “Hybrid Value Chains” that create shared value (Drayton
and Budinich, 2010). Broadly PPPs include both these forms and the many other possible for-profit/not-for-
profit combinations. Whatever form they take, successful PPPs have a number of features in common. The
rationale for their creation is always the same: to achieve more through partnership than any of the parties
could do on their own (Braun, 2011).
A PPP in agricultural research and development (R&D), for example, can overcome both the public sector’s
usually limited ability to take research outputs to market, and the private sector’s limited scope for
operation where there is no commercially viable market. Contracts, planning, inter-partner relationships
and the distribution of tasks within the PPP should all contribute to maximizing synergies between the
parties involved. There is also a growing realization of the value of PPP in agriculture, and particularly for
projects that benefit farmers in developing countries.
A pillar of PPP success is transparency. Partners need to understand and respect each other’s
communication requirements. In a PPP, ensuring full transparency and yet enabling collaborators to keep
some competitive advantage from privileged knowledge is a recurring challenge. Public sector parties are
not always comfortable with this aspect of deal-making, and may wish to postpone discussions until more
trust and understanding have been established. Experience suggests, however, that it is better to agree on
the fundamentals of commercial rights and transparency before investing a lot of time and money in other
aspects of the PPP.
The Advantages from this Partnership are as Follows
1. After involvement of private sector, On-time delivery of inputs, seeds, pesticides to the farmers.
2. Integration of resources of both sectors.
3. Creation of added value in the product.
4. Providing better public services.
5. Creation of better marketing facilities for the farmers
6. Supplementing limited public sector capacities.
7. Shared risk & responsibilities, so more effectiveness.
8. Benefits to small-scale, resource-poor and marginal farmers.
Conclusion
From the above article it is concluded that the usefulness is by no means limited to agricultural
development, but PPPs can make a major contribution in agriculture sector. PPPs are not automatically
the right choice to solve every challenge in agriculture. But in recent years there has been a trend towards
privatization of government extension services. For that reason, partnership of public and the private
sectors are made. The public sector must take earnest efforts to organize farmers and motivate and direct
them so that they can demand appropriate and better extension services from the private sector also. There
is also a need for transparency and trust between partners. After all collective action is needed for fulfilling
the needs of resource poor farmers and food-insecure consumers as most of the people of the country are
poor.
References
1. Braun, H. Wheat Rust; CIMMYT: Mexico. Available online: http://www.syngentafoundation.org/index.cfm?pageID=691
(accessed on 17 June 2011).
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2. Drayton, B.; Budinich, V. A new alliance for global change. Harvard Business Review, September 2010. Available online:
http://hbr.org/2010/09/a-new-alliance-for-global-change/ar/1(accessed on 17 June 2011).
3. Hall, A.J. (2004), Public private sector partnerships in an agricultural system of innovation: concepts and challenges. UNI-
MERIT Working Papers Series 2006-2, United Nations University, Maastricht.
4. Marco Ferroni and Paul Castle (2011) Public-Private Partnerships and Sustainable Agricultural Development. Sustainability,
3:1064-1073
5. Oerke, E.C.; Dehne, H.W.; Schönbeck, F.; Weber, A. Crop production and crop protectionEstimated losses in major food and
cash crops. Agric. Syst. 1996, 51, 493-495.
6. Richards, P. (2004), ‘Private versus public? Agenda-setting in international agrotechnologies.’ In: Jansen, K. and S. Vellema
(Eds.), Agribusiness and Society. Corporate Responses to Environmentalism, Market Opportunities and Public Regulation.
Zed Books, London, pp. 261-287.
7. Text Book of Agricultural Extension with Global Innovation- Sagar Mondal
8. Von Braun, J.; Ferroni, M. Public-Private Partnerships in Agriculture Research: Towards Best Practice and Replicable Models;
The World Bank: Washington, DC, USA, 2008.
... This is because partnership 4.0 is oriented to partnerships that are able to organize, empower, and direct farmers, so that they can demand appropriate and better extension services from the private and government sectors. The service is expected to be able to answer the need for transparency and increase trust between partners (Dilipkumar and Ingle, 2021). For all of this, partnership 4.0 is interpreted as a collective action aimed at meeting the needs of farmers through a mutually beneficial, transparent and empowering partnership pattern. ...
... By utilizing the Partnership 4.0 application, each party involved in the partnership can monitor each other's agricultural business processes. Based on research by Dilipkumar & Ingle (2021), the process of outreach and community empowerment as well as public services requires increased transparency and trust between partners. The Partnership 4.0 application has the potential to answer the need for transparency and increase trust between the parties involved. ...
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The current pseudo-partnership pattern causes the farmers' income to be low from the results of their farming activities, so a partnership pattern is needed that is able to create a mutual partnership. The research which was conducted in Cikarawang Village, Bogor Regency, West Java Province – Indonesia aims; (1) recognize the existing condition of farmers and the use of agricultural land; (2) knowing the distribution of agricultural commodities; (3) identify existing partnership patterns; and (4) provide solutions for partnership patterns that benefit farmers. By using mixed-methods combined with the Drone Participatory Mapping (DPM) approach to produce Data Desa Presisi (DDP), this study succeeded in identifying three statuses of farmers, namely: cultivators, owners and cultivators of their own land, and owners who work on their own land at the same time working on other people's land, with an average access to land management of 3,437.32 m². The small access of each farmer in land management is further exacerbated by the variety of agricultural commodities that are cultivated by farmers. There are at least 19 types of agricultural commodities that are cultivated, but do not meet the economic scale that is able to improve the welfare of farmers. This condition opens up opportunities for the partnership pattern between farmers and middlemen to continue to survive which is actually detrimental to farmers. Partnership 4.0 innovation is present to replace the old partnership pattern by focusing on the basis of technology and information that is fully accessible to farmers to jointly control agricultural activities (upstream-downstream). Partnership 4.0 places farmers and offtakers on an equal footing, so that smallholders can benefit and help achieve the welfare of smallholders.
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Agriculture in Africa is not sustainable because average yields have been stagnating for decades due to underinvestment, especially in the development of agricultural markets, crop improvement and the sustainable management of agricultural systems. Low public sector funding for agricultural research and lack of incentives for the private sector to operate in areas where there is no market largely explain the yield gap in many food-importing developing countries. Yet, there are effective ways in which the public and the private sector could work together and jointly improve agricultural sustainability in poor countries. The public sector provides a favorable institutional environment for the development of agricultural markets and investment in rural infrastructure, facilitates local business development and funds research with local relevance. The private sector, in return, brings its considerable expertise in product development and deployment. This article illustrates how new forms of public-private partnerships (PPPs) for agricultural development can work in challenging environments. It discusses three promising examples of PPPs in which the Syngenta Foundation for Sustainable Agriculture (SFSA) is actively involved, and shows that an experimental approach can sometimes be more effective than social planning in efforts to achieve sustainable agriculture.
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The potential for publicprivate sector partnerships is likely to grow. However, despite a number of high-profile success stories, promoting partnerships has proved more difficult than many assumed. This article argues that such partnerships need to be viewed in the framework of an innovation system and a development scenario where networks of local agro-enterprises will underpin rural development and poverty reduction. This view helps reveal the importance of embedding public research organizations within these local networks and highlights the fact that constraints to building partnership is institutional in nature i.e. it relates to habits, practices and patterns of trust. The article concludes by suggesting that efforts should be focused on building social capital in agricultural innovation systems and cautioning that this should be done in contextually relevant ways.
Public-Private Partnerships in Agriculture Research: Towards Best Practice and Replicable Models
  • Von Braun
  • J Ferroni
Von Braun, J.; Ferroni, M. Public-Private Partnerships in Agriculture Research: Towards Best Practice and Replicable Models; The World Bank: Washington, DC, USA, 2008.