Small Scale Farmer

Coffee Export Project

Private Bag X341, Post Dot Net, Crossroads, Lilongwe, Malawi

Cell: +265 999 664 818+265 881 164 973

e-Mail: convergentintl@yahoo.comlaricoTRUST@gmail.com

  

Convergent International (Ci)

Rumphi District, Malawi

&Income

& FoodSecurity

Private Sector Engagement

Coffee Value Chain AugmentationSMME Incubation

“Climate-Smart” Agri-Business

Small Scale Farmer Coffee Export ProjectAn Equitable Partnership

Small Scale Farmer Coffee Export Project

Rumphi District, Malawi

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We Recognise “Faces” in the “Crowd”

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Gender Balance

Youth & Elderly

Gender Balance

Income, Food & Nutrition

Security

We “Balance” our interventions to “Maximise” our impact

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Initial Geographical Area

Zone DistrictChigwere Nkhata Bay Highlands, Livingstonia; Phoka highlands,

Rumphi Khanga HillsApproximately 300 small-scale farmersMphompha

RumphiNtchena ChenaApproximately 250-350 smallholder farmers

Small Scale Farmer Coffee Export Project

Cost & Income Distribution

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

100.00%

69.00%

77.57%

5.23%

25.77%

3.20%

22.57%

3.33%

19.23%

72.33%

Year One Cost, Expenditure & Income (Percentages)

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Capital Investment USDEquipment (CAPEX) 25,850.00Inputs 19,500.00Vehicles 16,000.00Total 61,350.00

Schedule Four – Trust Fund Agreement (Sections ONE & TWO)

We agree to contribute USD 0.10 (United States Dollars Zero Point One Zero), or 10 (ten) American cents per kilogram of all parchment sold, to the trust fund, as “equity “or “capital formation” contribution.

This will allow the small-scale farmers to:

Have access to inputs financing – fertiliser; Have access to micro-finance for social commitments;

Wedding Contributions; Funeral Contributions; Other Social Demands:

__________________________(Comment) School Fees Medical Costs. Small, Micro & Medium Enterprise Development &

Loans;

The TRUSTEES will explore CERTIFICATION Considerations: i.e. The RAINBOW ALLIANCE

Farmer “TRUST FUND” Implication

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 Payment Terms (FOT & FCR*) FOT(Free on Truck)

Loading at sellers' premises - Mzuzu S - LocalInland transport (from the named place) - Mzuzu B - BuyerTrade documentation at origin - Malawi S - LocalCustoms clearance at origin - Malawi S - LocalExport charges - Malawi S - LocalLoading terminal handling charges (THC) – Dar-es-Salaam B - BuyerOcean freight - Dar B - BuyerUnloading terminal handling charges (THC) – European Port B - BuyerPhytosanitary Certificate by the Ministry of Agriculture and Irrigation.Certificate of OriginExchange Control – CD1 FormThe Commercial Invoice

* FCR – Forwarders’ Cargo Receipt

Delivery Schedule, Freight Terms

June July Aug Sept Oct

KG (Green Bean) 20,000 20,000 20,000 40,000 40,000

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2014 – Activity Gantt ChartMonth Activity/Description

March

April May June July Aug Sep Oct

                   

Establish

1. Farmer Groups; Quantity/Quality Contracts;                2. Establish Banking Facilities, Farmer Accounts                3. Logistics - Buying Centres, Transport,                4. Warehousing/Processing Centre: (FOT) and                5. Quality Assurance/Grading/Sorting/Training Facilities

               

Farm Activities

1. Weeding, Spraying - to harvest;                2. Provide Hand Pulpers; Drying Racks                3. Pulping. Drying              

QA Quality Assurance - Cherries                1. Parchment Collection,                

QA Quality Assurance - Parchment                

Processing1. Primary Processing - Hulling; 2. Sorting, Grading, 3. Bagging;

               

QA Quality Assurance - Green Beans                

Export facilitation

1. Trade Documentation;- Phytosanitary Certificate ;- Certificate of Origin, - Exchange Control – CD1 Form, - The Commercial Invoice

               

Sales By container; per month       20 20 20 40 40Preparation - 2015

1. Provide/Deliver Inputs                2. Establish Nurseries   TBA TBA          

                   

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Value chain links the steps the coffee takes from the farmer to the consumer. It may include: Research and Development, Technology, Input – treelings, seed; fertiliser; extension services, and Finance. We also ensure projects are: Gender inclusive, and address: Quality – cultivation, irrigation, pre-and post-harvesting (Certification) Climate change – mitigation, adaptation, Value Chain Augmentation– cultivation, primary, secondary processing, and Market-making

The farmer combines these resources with Land,

Labour Local Knowledge, Skills & Expertise

In our value chain approach and marketing system, farmers are linked to consumers' needs, and similarly, through flows of information and products, consumers are linked to the needs of farmers. Under this approach, and through continuous innovation, the returns to farmers are increased and livelihoods enhanced. Rather than focusing profits on one or two links, players at all levels of the value chain benefit.

An integral component of this approach is the agricultural supply chain, with a focus on continuity of supply and a commitment to consistent quality

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&Income

& FoodSecurity