Newsletter N° 3 April 2018

E D I T O R I A L

This third issue of our

Newsletter provides more insights on

the work done by the Implementing

Agencies to consolidate the activities

initiated 4 years ago in the different

ACP countries and regions. The vari-

ous interventions are paving the way

to enhancing ACP producers' capacity

to play their role as commercial part-

ners in an environment dominated by

the last segments of the value chains,

leading to a pressurization of the

prices, with dramatic effects on the

livelihood of a vast majority of small-

holders.

In this regard, the various ini-

tiatives launched by the ACP-EU

Commodities Programme are seeking

to address the constraints met by the

family farmers, whether at technical,

organizational, financial or commer-

cial level.

The setting up of productive and

commercial alliances by ITC and

CARDI in the Caribbean region has

led to interesting developments, as

these structures, made of farmers,

processors and buyers, are offering

business opportunities for commercial

and financial partners. In Jamaica

and in Dominican Republic, coconut

and banana industries are starting to

merge their efforts and agendas for a

more concerted approach in defend-

ing the interests of their respective

constituencies.

Training activities have continued in

various areas of production and busi-

ness development. Through the

Farmers Field Schools, an approach

developed and implemented by the

FAO, the production of Irish potatoes

in Uganda and Rwanda has increased

Strengthening producer organizations to provide business

services to their members (GIZ)

The Genesis

The Farmer Business School (FBS)

approach has been developed by GIZ together

with local partners in 2010, during the first

phase of the Sustainable Smallholder Agri-

Business Programme. To sensitize smallholders

about the benefits of being member of a strong

farmer-based organization (FBO), one module of

the FBS curriculum is dedicated to this topic.

With support from the ACP-EU

Commodities Programme, FBS training has been

implemented since end 2014 for 171.866

farmers of whom 52,817 are women. Since

2010, GIZ partners have trained over 450,000

cocoa producers in FBS. FBS training enhances

farmers’ understanding of individual and group

business opportunities. This motivates them to

get organized to access input and product

markets as well as services.

Evaluations of FBS show that FBS-training

“incubates” producer organizations: 40% of

FBS-trained producer groups have registered

cooperatives. Evaluations also revealed that

there is still potential for improvement to

strengthen FBOs’ capacities to provide business

services to their members.

Cooperative Business School as next step after Farmer Business

School

Considering the scale of these impacts and

opportunities, there was a need to develop a

standard support protocol for large scale

outreach to existing and newly registered

producer organizations. As cooperatives are

member-based business entities, their core

business are relevant services of added value to

their members. However, comparison of

ACP-EU COMMODITIES

PROGRAMME

(To be continued on page 2)

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A C P - E U C O M M O D I T I E S P R O G R A M M E

different training manuals revealed that emphasis

was on institutional development (registration,

statutory aspects, accountability), whilst the area of

business services of cooperatives were insufficiently

or not at all tackled.

Beyond institutional development, managing

teams of producer organizations need technical,

economic and organizational skills on the one hand,

and the buy-in of members to succeed with these

business services, on the other.

Contents of Cooperative Business

School

To bridge this gap, SSAB-CFLP has developed

the Cooperative Business School (CBS) training

programme. CBS targets smallholder-based

producer organizations and groups. It strengthens

capacities of these organizations to deliver services

to their members. Starting from practical examples,

farmer leaders and members of producer

organizations acquire knowledge and skills on

services that they can develop.

They also learn how to plan, price, provide and

admini ster them. Market or i entat i on,

entrepreneurship, knowledge of value chains, good

governance of farmer organizations, technical and

economic viability of services are underlying

principles that are crucial for cooperative business

success.

CBS is a full-week, 5-day training facilitated by

professional trainers using an adult learning

approach and creating learning opportunities

through experiential learning, business services and

related business models.

The contents and tools are relevant for all

types of producer organizations in West- and

Central Africa beyond cocoa, and can easily be

adapted to the context of other countries. The

manual is accompanied by a trainers’ guide that

contains short modules (max. 100 minutes long).

These modules can be used either for subsequent

trainings or separately, according to the needs and

interests of the producer organization. The didactic

approach combines presentations on business tools

with related interactive exercise, role games and

simulations of typical situations.

in a range between 50% to 100%. On

the other hand, GIZ is assisting farm-

ers organisations to raise their mana-

gerial and commercial capacities,

through its 'Farmer Business Schools'

training, initiated 7 years ago under

another initiative. This training pro-

gramme has been very successful and

is now being complemented by a

'Cooperative Business Schools' train-

ing, which focuses more on business

services that are provided by coopera-

tives.

Efforts to fight diseases remain a

key priority in all ACP regions. The

outbreak of Coconut Rhinoceros Beetle

is posing a huge threat to the coconut

industry in the entire Pacific region.

SPC is now engaging a harsh action to

try to limit the damages and control

the spread of this invading pest,

through a set of different actions,

mainly in Solomon Islands but also at

regional level.

The combination of actions men-

tioned above is meant to provide a co-

herent and comprehensive pack of

tools and services, aimed at increasing

the capacities of farmers, farmer or-

ganisations, and SMEs in the various

areas of activities. With the "New ap-

proach to ACP Group support for the

development of agriculture value

chains", the ACP Secretariat is seeking

to amplify this trend, by providing a

comprehensive platform of comple-

mentary tools, enhancing the dialogue

among all programme partners, and

filling in the financial gap between the

family farmers and MSMEs, and the

financial institutions.

Viwanou GNASSOUNOU

Assistant Secretary General Sustainable Economic Develop-ment and Trade

(From page 1)

(To be continued on page 3)

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I m p l e m e n t a t i o n o f Cooperative Business School

Implementation of CBS builds on

partners experienced in FBS. Across

Côte d’Ivoire, Ghana, Togo, Nigeria and

Cameroun, 78 partners trainers with a

good FBS track record have been

selected and qualified to deliver CBS

training to management teams and

members of cooperatives. Emphasis is

put on cooperatives that benefitted

earlier from FBS training. Rolling-out

started in 2017 and as at end of March

2018, a total of 1,360 leaders and

members of 232 cooperatives have

benefited from training.

P a r t i c i p a t i n g c oope ra t i v e

delegations comprise 2 cooperative

leaders and 2 to 4 members. Training is

concluded with a round to identify

priority change projects. Certificates of

participation are issued to cooperatives

only if they provide feed-back that they

have shared lessons learnt during the

training and envisaged change projects

with their members.

Towards sustainability of Cooperative Business School

Implementing partners have

expressed interest in CBS from the very

beginning. Their priorities comprise (i)

strong and operational cooperatives as

business entities of smallholders, (ii)

enhancing professional organization of

youth and (iii) youth employment in the

framework of service provision of

producer organizations. Cost-sharing

agreements could thus be achieved

early in Ghana, Togo and Côte d’Ivoire.

Considering the approaching end of

CFLP and SSAB, business models have

been developed for partners to allow

them to mobilize funds for continued

CBS training beyond programme

duration and to prepare trainings based

on producers’ payment of fees. The

average cost is between 280 and 300

euros per participant.

Unlocking the required invest-ment in the Jamaican Coconut Sec-tor (ITC/CARDI)

Market trends

for coconut and as-

sociated indicate tre-

mendous opportuni-

ties for local agri-

business industries

in Jamaica and the

Caribbean. There are

untapped opportuni-

ties for thousands of

smallholder farmers

and SMEs to raise

incomes and profit-

ability by connecting

them to local, re-

gional and interna-

tional value chains

and by developing required productive and marketing

capacities. Indeed, global demand for coconut products

has remarkably increased. Demand for coconut water in

particular is projected to grow 25% per year during

2017-2023.

However, over the last 15 years, supply growth

has been sluggish. This is due to lack of information

and stakeholder collaboration and organization around

existing opportunities. Diseases such as lethal yellow-

ing and sustained lack of investment have depressed

outputs and returns over decades. In addition, financial

and technological constraints contribute to the slow

pace of production and industry expansion. Given the

new market opportunities, quality declared coconut

seedling supply seems to be the major bottleneck;

without rapid multiplication and availability, stake-

holders will not venture into revitalization of coconut

production.

The ACP/EU funded project “Coconut Industry De-

velopment for the Caribbean” is contributing to address

the constraints. In order to secure the required invest-

ment and tap the potential opportunities, ITC and

CARDI are partnering with the Government of Jamaica,

Coconut Industry Board, local firms and other relevant

stakeholders to facilitate productive and commercial

Value Chain Alliances (under “Alliances for Action”).

Promoting strong investment and financial inclusion in-

struments is key to unlocking the potential of the in-

dustry. As part of a regional effort that started with Ja-

maica, the first step to achieve this objective was to

enable the coconut industry, financial institutions, gov-

ernment and research stakeholders to explore options

for improving finance and investment supply.

(To be continued on page 4)

(From page 2)

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Industry stakeholders gathered in King-

ston in March 2018, in the context of the

ACP/EU project, and modeled the projected

economic and financial impacts of investing in

Jamaica’s coconut sector.

Three investment opportunities were consid-

ered:

Investments in revitalized coconut pro-

duction (seedlings and nurseries);

Increased investments in planting and

farming coconuts with focus on domes-

tic market;

Investments in coconut water process-

ing for export.

Investments were explored over a 10-

year period, and assumed an additional

growth of 10,000 acres per year, with 87

trees per acre and an average yield of 60

nuts per tree. A price of J$75 per nut was

considered. These numbers are based on ex-

isting conditions and the extent of under-

utilized plantations in Jamaica currently.

In the coming months, the process will

be repeated in Dominican Republic, Guyana

and other Caribbean states. Inclusive invest-

ment and value chain partnerships will pave

the way for the mobilization of finance and

commitment by lead firms, local institutions

and government.

Range of products marketed by Barnhill Organics, a coconut processor in Jamaica

Initial results from economic analyses

(project life 42 years)

Total investment need

(total per 10y) – (total=A +B

US$ 399.18 million

A. Investment - seedling produc-

tion

US$ 16.82 million

B. Investment – farming US$ 290.49 million

C. Investment – processing US$ 91.87 million

Aggregate expected Internal

Rate of Return (from A -after 10

26%

IRR (from B -after 10 years) 20%

IRR (from C -after 10 years) 16%

New industry jobs created 10,631 jobs

Smallholder farmers reached Up to 40,000 farmers

New tax revenues (per year after

year 6 and during 36 years)

US$ 11.85 / 13.52

million

Export value (per year after year

6 and during 36 years)

US$ 261/ 291 million

Estimated climate value (per

year after year 6 and during 36

2m tCO2e

Site visit during training with farmer group by Coconut Industry Board and RADA, Portland, Jamaica, March 5th

2018

(From page 3)

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Introducing BANELINO, Partner of the “Alliances for Action” in the Dominican Re-public (ITC)

Banelino, a family farmer organization

producing and commercializing Fairtrade or-

ganic bananas in the Dominican Republic,

brings together some 340 smallholder farmers.

Since 2017, it has become a member of the

National Coconut Stakeholder Platform. Such

platforms facilitate public/private partnerships,

develop policies and networks along the value

chain and build capacities of Alliances which

include the producers.

As a strategy to improve its existing pro-

duction and business models, Banelino is in-

vesting in organic coconut production and as-

sociated value-added product manufacturing

Coconuts is a good business for Banelino be-

cause:

Diversifying production is vital for resil-

ience and risk management; in particular

with climate change effects that result in

floods, drought and soil deterioration

causing loss of income and crops

Banelino can complement its income and

improve its farmer members’ cash flow

by diversifying markets, crops, value

adding products and commercialization

channels.

The Banelino family farmer members

have become a strong advocate of crop diversi-

fication for both economic and environmental

resilience and joined the “Alliances for Action”

network – a strategy of partnerships for sus-

tainability that promotes income-risk diversifi-

cation for smallholder farmers – to boost in-

come and improve livelihoods. This initiative

forms part of the Intra-ACP project funded by

the EU for the Coconut Industry Development

for the Caribbean and jointly implemented by

the UN’s International Trade Centre (ITC), the

Caribbean Agricultural Research and Develop-

ment Institute (CARDI), The Ministry of Agri-

culture and Junta Agro Empresarial Dominicana

(JAD). As an Alliance member, Banelino has

benefited from technical assistance including

coconut GAP and seed multiplication as well as

market support to engage in diversification

strategies and expand their farmers’ business

while strengthening their resilience against

climate change.

“When my farm was flooded, only the coco-

nut trees survived. With support from ITC

and the Banelino Farmer Association, I will be

able to diversify production, supplement my

income, and secure my family’s well-being”

shares Maria, a banana – and now coconut –

producer from the Dominican Republic.

Through technical assistance by the co-

conut project and JAD, Banelino has recently

secured the finance required for investment

in productive capacities and the purchase of

31,000 coconut seedlings. The loan amount

was USD 125,000 from the EC’s Banana Ac-

companying Measures (BAM), a support

package for banana-exporting countries in

the ACP region designed to foster competi-

tiveness and encourage crop diversification.

As a result Banelino’s coconut production is

expected to begin in April 2018.

Banelino has become an example for

the country and region on how to form pro-

ductive, commercial and financial alliances

that boost income and resilience through the

connection of banana and coconut value

chains – with guidance and support from the

project. Addressing climate change and its

impacts is high on the new sustainable devel-

opment agenda, with people and communi-

ties experiencing dramatic repercussions.

Taking urgent action that leaves no one be-

hind is a priority.

Maria, Organic Coconut and Banana Farmer, Dominican Republic

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A C P - E U C O M M O D I T I E S P R O G R A M M E

Increasing sustainable mar-ket-led production intensifica-tion of cassava, potato and yam (FAO)

Thanks to the support of the ACP-EU Com-

modities Programme for the Roots & Tubers (R&T),

FAO is promoting a series of activities in the area

of cassava, yam and Irish potato production inten-

sification. The most relevant ones are the Farmer

Field Schools (FFS) for roots and tubers. Only in

Rwanda, 2.745 farmers have accessed these in-

plot trainings, followed by 780 in Ghana and 300 in

Benin.

Among the outstanding achievements of

these activities, in Uganda (3.512 farmers as of

2017), the production of the majority of potato

beneficiary farmers almost doubled after the FFS

trainings (from 6 bags of 120 Kgs to 11 bags of

120 Kgs of potato seeds) while in Rwanda, Im-

proved Practices (Integrated Pest Management)

resulted into 46 percent increase in production

compared with traditional farmer practices for the

Kinigi potato variety. Efforts are in place to dupli-

cate this activity in the neighbouring regions of

Northern Benin, targeting the yam sector.

In addition, as part of the Commodities Pro-

gramme, FAO organized a Regional Workshop on

‘’Experience Sharing on Cassava Production and

Protection” in Kumasi, Ghana, from 05 to 07 De-

cember 2017. Representatives of farmer organisa-

tions and public institutes joined from the countries

where the project is supporting the cassava value

chain (e.g. Benin, Cameroon, Ghana, Ivory Coast,

Malawi)

The agenda of the workshop included

some technical training and related field

visits.– The training were delivered by some

of the most well-known centers of excel-

lence for cassava and yam production and

protection in Africa, namely: (i) the Inter-

national Institute of Tropical Agriculture

(IITA); (ii) the Crop Research Institute

(CRI): (iii) the Kwame Nkrumah University

of Science and Technology (KNUST); (iv)

the African Agricultural Technology Founda-

tion (AATF); and (v) the West and Central

African Council for Agricultural Research

and Development (CORAF/WECARD).

The workshop also included sessions

aimed at sharing knowledge, experiences,

results and lessons learned from the pro-

ject’s implementation. Field visits to the

CRI and KNUST were organized to learn

about the breeding activities and the in-

vitro multiplication of the planting material

used to renew material with virus-free

planting tools and innovations in cassava

mechanization. These trainings and knowl-

edge sharing spaces, will serve to benefici-

aries countries to develop new or improve

existing varietal catalogues and strengthen

the overall system of cassava production.

FFS Demonstrating best potato production techniques in Chogo, Bukimbiri, Uganda

Participants of the field training to the Crop Research Institute, Ghana, organized by FAO under the ACP-EU Commodities Programme

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Coconut Rhinoceros Beetle Outbreak Threatens Pacific in-dustry (SPC)

While countries such as Samoa and Fiji,

which have been impacted by the Coconut Rhi-

noceros Beetle-Pacific type (CRB-P), still struggle

to control beetle populations, an outbreak of a

new variant of the rhinoceros beetle, CRB-G, has

occurred recently. In the absence of control, the

beetle will spread throughout the Pacific, threat-

ening palm industries, food security and putting

at risk the considerable investments in develop-

ing the Pacific coconut industry made by the EU-

funded Coconut Industry Development for the

Pacific (CIDP) programme and other pro-

grammes.

Responding to the call by the Government

of Solomon Islands and other stakeholders for

concerted action against the beetle, the project

steering committee of the CIDP programme has

agreed to support urgent action to help manage

CRB in the Solomon Islands, and to control the

spread of this damaging pest to other Pacific

countries. The CIDP is a component of the ACP-

EU Commodities Programme, being imple-

mented by the Pacific Community (SPC) to the

benefit of the 15 ACP Pacific Member States,

namely: Cook Islands, Federated States of Mi-

cronesia, Fiji, Kiribati, Marshall Islands, Nauru,

Niue, Palau, Papua New Guinea, Samoa, Solo-

mon Islands, Timor Leste, Tonga, Tuvalu and

Vanuatu. Stakeholders who joined the call for

concerted action include the palm and coconut

industries in the Solomon Islands, SPC, AgRe-

search NZ and the University of Guam.

Activities identified in consultation with

Solomon Islands to control the pest include:

Development of a regional communica-

tions plan and of awareness materials for

both Solomon Islands and regional use.

Enhanced surveillance activity at ports,

which includes procurement of trap mate-

rials and pheromones as well as damage

symptom assessment materials

Diagnostic training on beetle and symp-

tom recognition and surveillance materi-

als for focus groups (boat owners, ports

authorities etc). Damage assessment

training as a tool for monitoring beetle

population will also be an integral part of

this training.

To date, efforts to confront the beetle

have been initiated with funding from MFAT

(NZ), ACIAR (Australia) and USDA. The out-

break in Solomon Islands is particularly con-

cerning as it is highly damaging, has entered

commercial plantations, and is threatening

food security and the economic viability of the

coconut and oil palm industries. In Solomon

Islands, the coconut industry contribute

SI$150-200 M to rural economies, and provide

essential food and economic support to the en-

tire rural population. The oil palm industry is

the major employer in the islands, and pro-

vides SI$150-200 M (15-20 million Euro) in

export income.

Given the scale of the problem, additional

efforts are required to provide any real level of

protection to other Pacific countries. Hence the

importance of the CIDP contribution, which will

also support development of a regional biose-

curity system plan for CRB-G in the Pacific.

Example of damages caused by Coconut Rhinoceros Beetle

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Private sector pilot pro-jects awarded in Samoa and Vanuatu (SPC)

The Coconut Industry Development for

the Pacific (CIDP) programme has awarded pilot

project support to six enterprises in Samoa and

Vanuatu. The support is in the form of technical

assistance and equipment. The purpose of di-

rectly supporting pilot projects is to provide

know-how and models for improved coconut

production, processing and marketing that can

be replicated in the region, thereby improving

opportunities for the many smallholders who

depend on coconuts for their livelihood.

An open competitive expression of inter-

est (EOI) process was undertaken and a total of

15 EOIs were received. EOIs were assessed for

compliance to eligibility criteria and, at national

level, governments verified that compliant EOIs

aligned with the national development priorities

for the sector.

An independent business development

expert then undertook due diligence on the

short-listed EOIs and made recommendations

to a technical advisory group (TAG) – an inde-

pendent panel of experts in business, market-

ing, financing and development.

The TAG undertook an in-depth analysis

of the shortlisted proposals, based on the due

diligence reports and the members’ own areas

of expertise, and selected the top-ranking pro-

posals for CIDP support. A priority criterion for

assessment was the impact the project would

have on smallholder livelihoods. The TAG’s rec-

ommendations were then referred to the gov-

ernments of Samoa and Vanuatu for final en-

dorsement.

The enterprises endorsed for support are

listed below.

Samoa

• Mailelani Samoa Body Care. Mailelani has

developed a wide range of coconut-based

body care products. The support will im-

prove production processes and expand lo-

cal and international marketing.

• Samoa Coconut Cluster (SCC). SCC pro-

duces organically certified virgin coconut oil

for local and export markets. The support is

designed to improve the quality of VCO pro-

duced and diversify the range of products

produced by SCC.

• Serendi Coco Samoa Ltd. Serendi Coco

processes organic and fair trade certified

coconut oil for export markets. The support

is designed to develop seed supply and re-

planting of smallholder plantations, leading

to medium-term improved supply and

higher incomes for suppliers.

• Women in Business Development Inc

(WIBDI). WIBDI exports organically certi-

fied virgin coconut oil to various markets,

including The Body Shop International. The

support will allow production of a deodor-

ised VCO, opening up new market opportu-

nities.

Vanuatu

• Elcress Agra. Elcress produces organically

certified coconut oil for the cooking oil mar-

ket. The support intends to develop a coco-

nut oil product that does not solidify in tem-

perate conditions and to build the capacity

of coconut farmers through an ongoing

‘academy’ training programme.

• Ambrym Coconut Farmers Cooperative So-

ciety Ltd (ACFC). ACFC supplies coconuts to

produce virgin coconut oil to the Virgin Co-

conut Oil Factory, and the Happy Islands

Coconut Oil, which market the product. The

support will improve production on the co-

conut plantations, leading to increased pro-

duction.

Women at work at Ambrym Coconut Farmers Cooperative

Society Ltd (ACFC)

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A C P - E U C O M M O D I T I E S P R O G R A M M E

A C P - E U C O M M O D I T I E S P R O G R A M M E

A joint initiative

Implemented by

ACP Secretariat – Avenue Georges Henri 451, B - 1200 - Brussels, Belgium

email : commodities@acp.int

Tel: +32 2 743 06 00

Fax: +32 2 735 55 73

This publication is an initiative of the ACP Secretariat funded by the European Union . Its content is the sole responsibility of the technical

assistance team.

SOME FACTS - Did you know that:

COCOA

World cocoa production is forecast to reach 4.748 M tonnes in 2017/18, of which over 70% will

come from West African ACP countries.

Côte d’Ivoire is one of three countries growing ruby cocoa beans used to manufacture the recently

released ruby chocolate which was put on the market in September 2017.

CASHEW

Some 1.5 million ACP smallholder farmers account for roughly 53 % of the world’s cashew produc-

tion or about 1.2 million tons.

However, productivity stands between 180 to 640 kg/ ha in African countries, compared to as much

as 1,000 – 1,500 kg/ ha in India, Vietnam or Brazil….

Less than 10% of the African output is processed on the continent.

COCONUTS

In 2016, the Pacific and Caribbean countries represented respectively 4% and 1% of the estimated

60 billion coconuts produced worldwide, Southeast Asian countries accounting for 84%

Coconut water is projected to grow at more than 25% per year over 2017-2023, reaching approxi-

mately US$8.3billion in 2023

The intra-regional trade for coconuts in the Caribbean region has risen from 12% in 2008 to 75% in

2014, and from 29% to 36% for all products

In Dominican Republic, the average annual price quadrupled between 2002 and 2017 (from US$7.1

per 100 nuts to US$28.9)

COTTON

The fibre from one cotton bale (227 Kgs) can produce up to

215 pairs of jeans, or 2,100 pairs of boxer shorts, or

250 single bed sheets, or 3,000 nappies, or

1,200 t-shirts, or 4,300 pairs of socks.

Cotton can absorb up to 27 times its own weight in water

In 2015/16, there were 25 cotton-producing countries in Africa,

Outputs expressed in cotton fibre ranged from 1 000 tonnes in Burundi, to some 200 000 tonnes in

Burkina Faso and Mali