Training on Evaluation of Agribusiness Firms for risk management and Potential for Financial Lending

Course title: Training on Evaluation of Agribusiness Firms for risk management and Potential for Financial Lending

Training venue: Nairobi Kenya

Course dates:  

22/08/2022 - 26/08/2022 : https://bit.ly/3O4e1IX

24/10/2022 - 28/10/2022 : https://bit.ly/3O2hkR8

19/12/2022 - 23/12/2022 : https://bit.ly/3RxqZSm

Contact us through: Email: [email protected]; Tel: +254732776700 / +254759285295

Introduction

Despite the importance of Agribusiness opportunities in accelerating nation’s agricultural sector development and addressing poverty, entrepreneurs are constrained by limited access to finances, knowledge and skills to make their businesses as efficient as possible. Access to finance and risk mitigation in particular are important aspects in ensuring the sustainability of agribusiness ventures. This 5 days course aim to equip participants with knowledge on establishing a viable agribusiness enterprise, how to manage risk and acquire finances to sustain the agribusiness.

Duration

5 days

Who should attend?

• Agricultural extension officers,
• Policy makers
• Staffs from funding agencies
• Staffs from research institutions and staff from non-governmental institutions
• Staffs from private institutions

Course objectives

After this course participants will be able to:

• Gain skills in agribusiness investment and agribusiness finance
•  Gains skills in agribusiness lending.
•  Learn major agricultural credit risks alongside the other agribusiness risks
•  Apply a value chain approach in analysing agribusiness firms and their market environment.
•  Identify the steps for building healthy engagement between lenders and agribusiness firms
•  Analyse agribusiness firms using a variety of tools and steps, identifying their constraints and opportunities as well as their suitability for financing.
•  Understand different business models and how they relates with strategy
•  Set up an effective monitoring and evaluation plan for effective loan recovery.
• Understand the do’s and don’ts of lenders in value chain

Course outline

Module 1: Introduction

• Understanding the Agribusiness firms
•  Key differences between agribusiness firms and other firms
• Industry trends in major agricultural sub-sectors in the participant’s country.
•  Importance of agribusiness financial viability in financial lending
•  Value chain approach in analyzing agribusiness firms and their market environment.
• Building healthy engagement between lenders and agribusiness firms.
• Case study: Industry dynamics in the enterprise of interest e.g dairy, poultry and horticulture sectors in the participant’s country.

Module 2: Micro Context Analysis

• Analysis of an agribusiness firm with respect to its management and ownership
• Importance of sound management in agribusinesses
• Key characteristics and features of management styles that have been proven to work
• The power of “management presence” in agribusinesses
• Influence of management and ownership on agribusiness firms success

Analysis with respect to the nature of firm’s strategies.

• Evaluation of firm’s set plans for achievement of goals.
•  Analysis of strategic thinking and planning
•  Analysis of mechanisms put in place for implementation of strategic plans
• Evaluation of strength and health of business models with respect to strategy
• Analysis with respect to the nature of product/services offer.
• Determination of competitiveness of a product
• Product life-cycle theory

Analysis with respect to other internal factors.

• Employees

· Organizational culture

• Economies of scale

Module 3: Macro Context Analysis

• Analyzing market and market development
•  Introduction to market analysis
• · Supply, demand and price setting
•  Standards and certification
• Analysis and evaluation of agribusinesses target market segment strategy
•  Analysis and evaluation of channels of distribution
•  Analysis and evaluation of effect of consumer buying patterns
• Market share, trends and growth potential

Analyzing competition

• Analyzing competitiveness of an agribusiness firm
• Tools and models for analysising and mapping the firms position in the industry with respect to its competitors.

Module 4: PESTLE Analysis

• Mapping a firm’s context with respect to macro-factors
•  Political environment analysis
•  Economic environment analysis (economic sustainability, costs, revenue, profit margin, value added, value share …)
•  Socio-cultural environment analysis
• Technological environment analysis
• Legal environment analysis

Analysis of strength and health of advocacy efforts

• Determination of influence of advocacy on macro environment

Exercise

• Analysis of economic sustainability of selected value chains players in key agricultural sectors in Kenya.

Module 5: Monitoring /Evaluation and Competence/lenders roles

• Effective Monitoring and Evaluation
  • Introduction; concepts and terminology;
  • Development of indicators and selection of analytical tools for effective monitoring and evaluation

Competencies and Roles of value chain financiers (lenders)

• Roles of financiers (lenders) in chain development
  • The do’s and don’ts of financiers (lenders);
  • Key competencies of financiers (lenders)

Conclusion

• Action planning
• Course evaluation