Growing Profits

Growing Profits is a business-based approach to agricultural development focused on increased productivity and profits throughout agricultural value chains. Growing Profits combines more traditional approaches to agricultural development with new analytical tools such as return on investment analyses, advanced crop budgets, and value chain profit capture strategies focused on increased farmer incomes in both absolute and relative terms.  By utilizing economic comparative advantage as its primary analytical lens, the Growing Profits approach identifies development solutions that are realistic, profitable, diversified, and environmentally sustainable.  The approach also focuses on the development of commercial input systems for smallholder farmers in order to increase productivity (and income), and to develop ancillary small and medium agro-enterprises.  Creative finance mechanisms, such as input supplier finance, buyer credit, and pooled-risk solutions ensure that farmers have access to the capital they need to grow their business.  Growing Profits also utilizes time-arbitrage mechanisms to help famers to capture higher prices prevalent during non-harvest periods through improved and appropriately-scaled storage solutions, access to finance utilizing stored commodities as collateral (e.g., warehouse receipts systems), and to smooth the supply of staple food crops throughout the year.  Such mechanisms help farmers take advantage of improved market linkages and creative marketing arrangements central to the Growing Profits approach.