Building Public-Private Partnerships

Developing Private Sector Extension Services Thank you for this opportunity to present our JibuPlots GDA concept

Introduce:Brian Dotson, Deputy Regional Director for Africa

Mulinge Mukumbu, COP of the Kenya Dairy Sector Competitiveness Program

Agnes Kavatha, JibuPlots Project Manager

Introduce Land OLakes:

If you are from Africa, you know as an implementer of agricultural value chain development programs,

If you are from North America, you know us as a butter company

What you might not know is:We are one of the worlds oldest and largest farmer-owned cooperatives, owned by 300,000 farmer members Only 25% of our $12b annual turnover comes from dairy products We are the 3rd largest distributor of inputs (feed seed and fertilizer) in the U.S., accounting for about 50% or $6b of our annual turnover 1OutlineDeveloping Private Sector Extension ServicesThomas J. Herlehy, Ph.D.

Land OLakes, Inc. Winfield SolutionsAnswerPlot - North AmericaJibuPlot (Kenya) & DemoPlots (Zimbabwe)Cooperation among PartnersJibuPlot Results Households reachedJibuPlot Sustainability modelsQuestions & Discussion2

Deep Roots in DairyMember-ownedOrganized in 1921 by representatives of 300+ Minnesota cooperative creameriesMarketing companyNational success1924 brand is born

3

Expansion into Agr Inputs Late 1920s at the request of dairy membersSeeking secure supply of competitively priced inputs Began with Feed Department

4

TodayFortune 250 companySecond largest cooperative in USA200+ facilities9,000 employeesDo business in all 50 states, Canada,Mexico, China andBrazil

5Today#3 dairy company#1 feed company#1 crop protection products wholesaler#3 farm seed company#2 shell egg marketer

6

Winfield Solutions

Winfield solutions is a key international partner:

third-largest farm seed business and #1 distributor of crop protection products in the U.S. WinField Solutions brands include CROPLAN GENETICS seed AgriSolutions crop protection products, plant nutrients and other proprietary products. unrivaled technical services and knowledge.

Winfield Contribution to the GDA$800,000 investment over 4 years.Plus $71,000 of in-kind technical assistance and training of 20 Kenyan embedded agronomists by Winfield Solutions agronomists.Plus proprietary white hybrid maize seed tests at JibuPlot sites (est. $100,000).Plus potential proprietary lucerne (alfalfa) and soy hybrid seed field tests (est. $100,000).

Other GDA Partners$785,000 total in-kind donationsSeed & CPP & Fertilizer company in-kind donations: new technology products.Seed & CPP & Fertilizer company in-kind donations: technical assistance and training.AgroVet dealer donations: technical assistance and training.KickStart: water management technology.NOVUS: technical assistance & training.

7

AnswerPlot Largest number of sites in North America (+200) includes Canada and Mexico.Farmers have questions we have answers.Collaborative approach cooperate with Monsanto, Syngenta, Bayer Crop Science and fertilizer companies.Unique environmental, agro-climatic conditions.Dont tell me, show me; (because) seeing is believing.The situation with African agriculture is well known to everyone in this room

READ BULLETS

which has prompted a welcome, renewed focus on agricultural development by governments and donors

Including the U.S. in the form of the Feed the Future initiative.8

What is an AnswerPlot?Platform for demonstrating input product performance in local conditions.

Embedded extension services by Winfield Solutions agronomists not sales people.

Foundation of Winfield Solutions $6 billion in annual input sales in North America.Let me take a step back now and share with you the origins of the JibuPlot concept:

As I said earlier, Land OLakes, through our Winfield Solutions subsidiary, does $6b of business in input sales each year.

AnswerPlots are the platforms that are at the center of our sales and distribution system:200 + sites Canada, Mexico, USA (40 states in the USA)AnswerPlots - largest network of demonstration farms in North America.Associated with over 700 of our member coopsTest & demonstrate new technology (e.g. hybrid seeds, fertilizers, micro-nutrients, crop protection products) in different agro-climatic zones. Through them, we sell $6b our own seed (maize and forage) and our partners (Bayer Crop Science, BASF, Monsanto & Syngenta) seed and crop protection products

Knowing that seeing is believing for farmers all over the world, AnswerPlots are places where farmers: Can see different combinations/applications of inputs growing in local conditions Get expert advice from our Sales Agronomists on solutions that will work on their farm and importantly (for us) order the products they need right there.

Through AnswerPlots, we dont tell farmers what they need, we show them.

AnswerPlots are:Level Playing Field for all companies.Building on our commitment to farmers, we promote what works, if that be our products or our partnersLand OLakes, Winfield, and the Sales Agronomists are the glue that makes all the best technology come together to benefit farmers.

9

Adapt AnswerPlot to AfricaJibuPlot (Jibu = Answer in KiSwahili)Embedded agronomist trusted by the community, not engaged in sales.Small-scale farmers (about 1 acre land).Demonstrate traditional practices next to modern practices.Demonstrate new technology.Farming as a business, not a way of life.Partner with companies who sell technology.We and our partners are proposing the JibuPlots GDA to scale up our pilot program and help address this situation by:

READ BULLETS

10

JibuPlots

Platform to help resolve constraints:Low level of access to inputs bring suppliers to rural communities.Low level of extension services (sound agronomic advice) in Kenya = 1 agent for every 1500 farmers.Primary maize growing areas of Rift Valley, Nyanza, and Western Provinces.Leveraging private sector investment and engagement build demand for technology in rural areas.READ Bullets11

JibuPlotsPlatform for cooperation with the GOK Ministry of Agriculture Extension Service officers in the field.Platform for cooperation with:Seed CompaniesFertilizer CompanyCrop Protection CompaniesGrain Storage CompanyWater Management CompanyMarketing companies (buyers)Retail AgroVet dealers

The proposed GDA has an excellent fit with Feed the Futures and USAID/Kenyas development priorities:

READ BULLETS12

Kenya Seed Co. & Simlaw Seeds

Here are some pictures of a Farmer Field Day at one of the Jibu Plots13Monsanto

You can see that they are a great forum both for educating farmers and for our partners to promote their products14Syngenta

CLICK15Farmchem

CLICK16MEA Ltd.

CLICK17JibuPlotReaches an average of 174 community-based farmers directly (25% Female and 75% Male).

57% of these 174 farmers teach an average of 4 neighboring farmers: indirect reach of 400 community farmers.

Total farmers reached: 574.

Zimbabwe Demo PlotsFodder Demonstration Plots 12 nationwidePrivate sector participation agr input companies and silage cutting equipment manufacturer.GOZ Ministry of Agriculture and Livestock extension officers.Farming as a business farm budgets.Farmers prefer to see realistic growing conditions similar to their own farms.Lead farmers trained as embedded agronomists. JibuPlot Results - Input SalesAnecdotal sales results:Farmchem 20 MT of a new (Pioneer) hybrid maize variety (30G19) sold (Nakuru) @ 3.5 m K Shs ($44,000.00) demand generated from its demonstration at the JibuPlot.Farm Focus, an AgroVet dealer participates in JibuPlot Farmer Field Days, increases the number of Crop Protection Products he stocks from 2 to 10 and generates an additional 250,000 K Shs ($3,100.00) in sales.

Our partners were also pleased

While our data collection was not systematic, indications are and our partners attest that JibuPlots drove increased input sales

One measure of this is that our partners participate for free in 2010, but in 2011, they kicked in about $XXXX to support the pilot

20JibuPlot - SustainabilityFour business models for JibuPlot sustainability will be tested, monitored, evaluated and refined:Cooperative-managed: a cooperative establishes and manages JibuPlots, funded by input sales.Supplier-managed: multiple commercial input suppliers cooperate to finance JibuPlots to demonstrate their products to farmers and drive sales growth.

21JibuPlot - SustainabilityFour business models:Agronomist/Entrepreneur managed: a lead farmer establishes the JibuPlot on his/her own land, serves as embedded agronomist and sales agent for multiple agr input suppliers.New Entrant-managed (e.g. Winfield Solutions) enters the Kenyan market as a wholesaler, using JibuPlots to drive agr input sales.

If asked about Winfields perspective on competition:

Winfield Solutions, LLC if it does become involved in the seed or CPP business in Kenya will also need a network of distributors.

Business opportunity for local firms.

Business opportunity for dairy coops.

22Questions & DiscussionThank you!

Thomas J. Herlehy, Ph.D.

Developing Private Sector Extension Services I thank you sincerely for your time and the opportunity to present our proposal to you.

.and I would be happy to take your questions.23