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The relationship between irrigated schemes, farms and agro-food processors may provide leeway to improve water saving and water productivity. This study was conducted in the dairy supply area of the Tadla irrigation scheme in Morocco and in the oasis area in southern Tunisia where dates are;town for export. The study was based on (i) a framework conceptualizing the relationship between production/marketing of agricultural raw material and water saving and productivity and (ii) a participatory research method aimed at supporting stakeholders in solving their production problems. Analysis of the organization of the two supply chains revealed the central role of intermediate operators in aggregating raw material and providing services to farmers. A decision support approach for dairy farmers was designed and tested in the Tadla scheme. Its use is illustrated by four scenarios that simulate the impacts of changes in both forage crops and irrigation techniques on farm income and water consumption and productivity. Lessons drawn from this work concern support for stakeholders and the integration of production functions from the irrigated scheme to the agro-processors in the whole Supply chain. Copyright (C) 2009 John Wiley & Sons, Ltd.