Work programme 3

Climate resilient optimum business models generation and piloting

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Work programme 3
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The third work package WP3 is structured in two streams. The first stream of WP3 is focused on establishing and co-create new frameworks with key stakeholders of agricultural supply chains and crop buyers in particular. The purpose of the stream is to gather necessary data and evidence to demonstrate the added-value of a change in structural model relative to the business-as-usual procurement model baseline.

The frameworks developed allow to devise new procurement strategies that favour long term relationships and contracts with farmers that decrease purchasing costs, while also increasing farmers revenues. The new procurement models developed enable to allocate optimally investments in infrastructure and technology optimally between off-takers and farmers, distinguishing investments with positive, neutral, or negative profit effect for farmers and off-takers.

The development and validation of the frameworks will enable to ensure that the value of the investments carried out in implementing optimum crop production solutions are converted into monetary flows to compensate the costs required. The second stream of the work package builds on the outcome of the framework generation and experimentation stream.

It is focused on designing economic incentive mechanisms aimed at ensuring contract compliance, both by farmers and buyers. The stream activities build on integrating knowledge in risk economics and contract theory with ground-level interaction with buyers in order to test and introduce the new incentive mechanisms within the de-risked supply chains.

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