LIVE TALK 03. Examples of agri-SME risk management and post-COVID policy implications

Context and Rationale

The current COVID-19 crisis is bringing into sharp relief the vulnerability of agri-food systems and creating new challenges whose repercussions may be felt in the sector for a long time. Among other things, it is showing the limits of our capacity to anticipate shocks and is testing the risk management capacity of all actors active in supply chains, as well as in government, finance, and other sectors. In this context, many agri-SMEs are already suffering significantly from disruptions in supply chains and markets, causing cash flow problems. Many also lack the capital and capacity to undertake the investments that would be required to strengthen their resilience to the enduring crisis and prepare for its likely after-effects.

This is, therefore, an opportune time to take a closer look at the range of tools available in the area of agricultural risk management, and identify those that can be deployed both to address the current crisis, particularly from the agri-SME standpoint, as well as to prepare for its long term repercussions. Such an assessment will also serve to highlight the main gaps or areas where innovative products, delivery mechanisms, or complementary measures are needed. The convergence of interests and experiences of ILO, PARM and SAFIN around these issues provides an opportunity to address them with reference to practical experiences and examples.

Objective

Overall, the aim of the Live Talks Series is to assess the general offering and limitations of the agricultural risk management “toolbox” in light of the ongoing experience with COVID-19, from the perspectives of agri-SMEs and agri-lenders. Furthermore, the series presents practical learnings related to the use of specific tools and the impact achieved by both sets of actors (SMEs and lenders) through a review of case studies.

Live talk 03

This webinar builds on its previous sessions:

• LIVE TALK 01 Risk management for agri-SME finance: addressing new challenges in the era of COVID-19, held on 24 September 2020;
• LIVE TALK 02 Case study analysis: examples of risk management for agri-SME finance, held on 29 October 2020.

This third and final session of the Live Talk series will focus on concrete examples of agricultural risk management (ARM) tools that have been implemented by agri-SMEs before and since the COVID-19 crisis. The session will also explore emerging policy issues in ARM. The first portion of the webinar will include three case study presentations covering distinct ARM solutions deployed in specific value chains, operational and geographical contexts. This will be followed by a moderated panel discussion where the case study presenters will examine the evolution of risks since the pandemic, and the effectiveness and limitations of ARM tools available to agri-SMEs to address them, as well as the policy implications to be considered as we look to building back better post-COVID. A short Q&A will provide an opportunity to answer questions from the audience, before concluding the session and the series with final conclusions and closing remarks.