oxfam gb national agricultural learning event
DESCRIPTION
This presentation by the Seed Group, on the subject of "Linking the Private Sector to Smallholder Ethiopian Farmers" was given at the November 2009 Oxfam GB-sponsored National Agricultural Learning Event in Addis Ababa, Ethiopia.TRANSCRIPT
Private Sector Linking Smallholder Farmers to Formal Markets
Farm Organic International plcAddis Ababa, Ethiopia
Sustainable development through social entrepreneurship
Global Market Linkage
Compost Project
Coffee LeafProject
Clean/Efficient Stove Project
Renewable Energy Project
global market linkage objectives
Coffee• Organic Certification• Profile Development• Market Linkage• Market Info Center• Website Development
Sesame• Market Linkage• Business Feasibility• Joint Venture Setup
Promote local resources for integrated farming, production, marketing & value add
Utilize by-products to protect the environment and increase bio-diversity that facilitate sustainable agriculture for poverty alleviation
Project Executors: FOI and OXFAM GB
Objective: Linking Smallholder Organic Coffee producers into sustainable value chain through new business models
Location: Limu Kossa, Limmu Saqqua and Chora Botor Woredas Jimma Zone, Oromiya Regional Stat
Duration: 3 Years
Start date: August 12, 2009
Beneficiaries: 7000 Small holder Coffee Farmers
Limmu Inara coffee union marketlinkage project
Limmu Inara coffee union market linkage project activitiesEstablishing and Developing Private Sector Linkages• Identification and evaluation of prospective companies
• Link market group in limmu kossa, Limu saqqa and chora botor district to private companies
• Facilitate the consultation b/n producer and private companies
• Facilitation of contractual arrangements b/n producer and companies
Product Improvement and Value Addition• Facilitate and support the Union for Organic Coffee Certification• Support producers for limmu Coffee branding and packaging (include development of marketing and
sales strategy, linking limmu Union with roasting company at global level)
Enabling services provision• Establish market information centre/ web site, community radio…/• Web site development• Support Oromiffa radio and TV Airtime
Learning and communication• Production of business newsletters, best practice including web based publications• Review and reflection
first quarter ongoing activity
• One to one meetings between buyers and the union- to share learning experiences
• Organic Certification RFP preparation, tender floatation, evaluation, contract negotiation, agreement and start of implementation
• Market Information System set-up ( RFP preparation, Short-listed proforma collection, evaluation)
• On-going profile development
• Website under construction
limmucoffee.com
Striving for sustainable development through social entrepreneurship 7
project challenges
• limited stakeholder experience with this partnership type
• limitations in in making business case to private sector
• uncertainty around why and how to engage private sector
• expectation disparity
• limited union capacity and entrepreneurship
focus: Rift Valley Project
• Oxfam / local NGO’s• 160 km from Addis• 4 million farmers• 60-70 unions• 9-10 coops per union• fruits & vegetables• irrigation projects
commercial composting
soil conservation
organic produce
higher yields
erosion control
new end products
1
20 ha: compost
20 ha: demo farm
2-3 ha: academy (FTC)
market standard
demo farming2
3 royal sesame processing
seed
objective: empowerment
Farmers
Coops & Unions
Women
education & training
capacity-building
profit-sharing
jobs
leverage
market linkage
creative financing
technology transfer
sustainable development
farmers/coop X%
private sector X%
ngo X%
government X%
philosophy
today’s value chain
1/2 hectarefarms
hand irrigation
soil & water depletion
productionwaste
lender gouging
80% illiteracy
trader gouging
transport waste waste
market price invisibility
personal finance
market standard
High cost / low
profit
sustainable value chain
action > words
collaborative partnerships
evidence
scale up
Michael Braungart, Cradle to Cradle
virtual global market4• Coffee• Halawa • Honey• Humus • Sesame• Sesame oil• Sesame derivatives• Sweets• Meats• Ready-made meals
…and more sustain-ably produced, Ethiopian agricultural products!
the view from the west…
ethos
• Nov 2009: Rainforest Alliance chocolate Euro launch
• Certified ™ cocoa purchase to increase 10X to 30K T thru 2012
• 2007-2008: Kraft increases coffee purchase by 50% to 30K T
• Feb 2009: $90M over 5 years cocoa and cashew investment in Africa by Kraft, Gates, et al
• 2005-Now: Impact on more than 300K farmers and their families on 60K ha in developing markets
story
300+ million active users
average user : 130 friends
70% users outside the U.S.
70+ translations available
50+ of users return daily
networks of common interest
the network affect
Source: MotiveQuest, LLC
Mavens – 20% of online influencers. Post very frequently and get their
social worth from knowing and sharing
Networked Opinion Formers – the other 80% of the online people looking for information
Offline word of mouth. Get many of their options from their online friends because of the
network effect
mass collaboration
a scale up platform
farms to consumer
brand/packaging collaboration
farms to enterprise
The future is here.
It’s just not widely distributed yet.- William Gibson
seed
thank you
Hussen Ahmed, FarmOrganic International+251-911-226484 (Addis Ababa)
Willow Lundgren, Small Planet PartnersSkype:+ 011 8169141490 / willowlundgren (U.S. & Europe)