Farmers’ Organizations and Cooperatives as institutions to link smallholders farmers to agri-food chains

ESA Regional Implementation Workshop 10-13 November 2015 Antananarivo, Madagascar

IFAD FOs partnership: some data /1

IFAD and FOs – partnerships @ design still to be developed

Source : Survey data for IFAD “Partnership in Progress: 2014-2015” Report (forthcoming)

23%

43%

34%30%

15%

55%

7%

36%

57%

14%

35%

51%

15%

45%

40%

67%

33%

No Participation Simple Player Special Player

2006/2007

2008/2009

2010/2011

2012/2013

2014/2015

ESA2014/2015

IFAD FOs partnership: some context data /2

IFAD and FOs – partnerships @ implementation stage still under developed

Source : IFAD “Partnership in Progress: 2012-2013” Report

… yet FOs are important player of agri-food chains – globally and in ESA region

Farmers’ organizations and cooperatives are key player for the integration of producers into agri-food value chains:

• In Italy, total turnover of 5100 cooperatives is € 36 billion (24% of Italian agri-food turnover)

• In Uruguay, co-operatives are responsible for 3% of the GDP. They produce 90% of the total milk production, 340% of honey and 30% of wheat. 60% of co-operative production is exported to over 40 countries around the world

• In Kenya, 63% of the population derive their livelihoods from co-operatives. Approximately 250,000 Kenyans are employed or gain most of their income from co-operatives (ILO 2009)

Sustainability of ESA portfolio

From IFAD 2015 PPR:

• 44 on-going projects• 18 projects maturity > 5 years • At least 28 Market linkages projects• 6700 marketing groups supported (average of

40 members each)• Half empty glass / exit strategy

How can we, in ESA region, further improve integration of SHs in Agri-food chains through FOs and Cooperatives?

Choose a business model (BM) adapted to the situation: depends on relationships between actors, level of integration of FOs in the VC. Outcome Selection of appropriate economic services to support and develop related activities

Conduct Value Chain Analysis and FOs mapping/profilingOutcomes of these analysis:

Typology and SWOT analysis of FOsstakeholders

Main issues and bottlenecks for VC

development

Other VC key actors (ex. Women processors)

Complementary Support functions that FOs should develop for sustainable and effective BM (governance structure and institutional set up, policy dialogue activities)

Design project institutional set up in support to the BM chosenChoose the adequate structure of the project :Type of components, role of National and Local FOs, Implementation modalities and role of SPs

WHO

WHAT

WHAT

HOW

WHO – Mapping and profiling

WHO –Tool for Profiling (1/2)

WHO –Tool for Profiling (2/2)

WHAT – Type of support to economic services

Bottlenecks for VC and FOs’ development

Possible economic services to support

Quality seed multiplication, input decreasing subsidy, support to small dealers, technical support

Collective marketing, harvest advance payments, contract farming, PAM, advisory services (production costs), MIS

FOs, shareholders of post-harvest businesses such as processing, marketing, traders;

Promote and support vc consultations (interprofessions, multi-stakeholders platforms))

Warehouse receipt system, index insurance, revolving fund, guarantee funds, etc.

Capitalization, exchange visits, etc.

Production issues: input quality and access, product quality, productivity

Marketing issues: grouping of supply, securing the prices/transactions, fixing price, competition with imported products

Benefit from value addition activities: for example storing, processing, brands.

Consultation issues: improve the functioning of vc

Financing issues

KM issues

HOW – Key principles and constraints

To guide IFAD-funded Projects setups, 2 key principle and constraints are critical

• Sustainability of the support (exit strategy)

• Adaptation to various contexts – no silver bullet and linked to:

- Value Chains dynamic and mapping - Maturity and structuring of FOs

HOW?

HOW?

HOW – Examples of projects’ set up - Honduras

A two-steps strategy1- Organisational strengthening through Capacity building plans:

• governance, • administrative capacities, • technical packages • and support access to rural

finance

2- Development plans :

• business plans or • productive

development plans

Analysis of gaps, skills and

needs

Project funds directly those plans

HOW – Full fledged support to FOs –PNAAFA Guinea

PNAAFA PMU

FOs Federations (by Value Chain)

NATIONAL FO (CNOP-G)

Component 1

Framework agreement• Maturity assessment

of Federations• KM & Policy dialogue• M&E

CNOP-G provincial antennas• Institutional support to

Federations • Planning & Monitoring

/ AWPB preparation • Technical advice to

federations

Component 1

Component 22 year contracts for Federations Business plans

SMALLHOLDERS’ FARMERS

Implementation of Business Plan and Value Chain partnerships

Mettre en place un réseau performant de paysan dans la production et de distribution

de semences certifiées

Coordination, inter action, relation

entre acteurs et PPP

Professionnaliser les OPR dans la promotion de services

pérennes et rentables

Développement de services pérennes au

sein de 3 OPRAppui à la

gouvernance et accroissement de

l’autonomie

Produire des semences de qualité

Développement des compétences

techniques des PMS

Appui à la production : riz, haricot et

pomme de terre750 tonnes

Madagascar – AROPA le projet professionnel de production de semences / OP Réseaux SOA

Durée : 3 ans Financement : 180.000 USD (75 % AROPA-FIDA et 15% ressources propres de l’OPZone d’intervention : 2 régions

PMS

OPR

OPF SOA

Valeur

NATIONALECoordination et pilotageCommunication/Information Suivi, coaching, outilsAccompagnement certification/labélisationLobbying et dialogue

BASEDéveloppement de compétences Production suivant normes et qualités

REGIONALEFormation des PMSOrganisation et gestion des servicesIntermédiation et partenariat de servicesCommunication, information/Echanges

Partage des rôles

How – other examples from ESA regions

• In Uganda, the new PRELNOR project sought to develop multi-stakeholders’ platforms responsible for managing physical markets with strong FOs involvement

• In Rwanda, the PRICE project works in support of cooperatives through the linkages with the National Cooperation Agency

FOs players for policy changes in support of smallholder agriculture

Stakeholder: Eastern Africa Farmers Federation (EAFF), an apex organization of farmers in East Africa with 20 national-level members.

Policy Objective: establishment of regionally based legal framework for cooperatives (Cooperative Socieities Bill) to:

• enable the formation of regional cooperative societies and unions, and

• expand business opportunities for cooperatives .

30,000 cooperatives registered in EAC region, employing more than 15 million people.

EAC Cooperative Societes Bill / EAFF policy led initiative

Policy process (with support from IFAD – SFOAP programme)

2009: EAFF commissioned a study on ‘comparative analysis of co-operative legislations in Eastern Africa – Ethiopia, Kenya, Tzand Uganda 2010-2013: workshops to galvanise interest on a EAC Cooperative Bill and with experts on coops to discuss the content of the proposed legislation 2013: EAFF meeting with representatives from East African Community (EAC) legislative body – EALA2014: first reading at EALA of the EAC Cooperative Societies Bill (January). Public hearings of the Bill in the EAC countries 2015: the Bill was approved by EALA on January

THANK YOU!

Misaotra Tompoko!