35 million smallholder farmers live under two dollars a day in Latin America. Irrigation technology could enable them to double or triple their incomes but only about twelve percent of agricultural land is irrigated. In order to democratize access to quality irrigation systems, Ashoka has brokered a commercial partnership between a multinational water distribution system company and several citizen sector organizations working on rural issues. The result is the creation of new delivery channels serving low-income farmers.

A snapshot of the HVC Business Model

• CSOs are key market enablers thanks to their deep understanding of small farmers’ needs, and their trust-based relationships with these communities. Their role includes promoting irrigation, mobilizing needed sources of consumer financing and helping farmers link to markets to sell their increased production. Their return includes a commission on sales to cover operational expenses and advance their social programs
• For the company, the countless farmers who are currently deprived of adequate irrigation technology in the world represent a significant market opportunity. It reengineered its traditional business model to increase the cost effectiveness of small individual transactions, especially with regards to quotation, system design and installation. Traditional irrigation solutions have evolved towards simplification and shared use
• The role of Ashoka has ranged from convening partners to co-developing the business model and supporting its implementation and scaling up through access to seed capital and technical assistance

Additional Resources

• FEC Series Volume 2: Hybrid Value Chains: Social Innovations and the Development of the Small Farmer Irrigation Market in Mexico
• Cadenas Híbridas de Valor: irrigación y pequeños agricultores en México