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Azb sunrise azb
Azb sunrise azb
Azb sunrise azb
Azb sunrise azb
Azb sunrise azb
Azb sunrise azb
Azb sunrise azb
Azb sunrise azb
Azb sunrise azb
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Azb sunrise azb

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  1. NEW BUSSINESS MODEL MECIS ECONOMIC JUSTICE COMMUNITY 0F PRACTICE LEARNING WORKSHOP RAMILA, AZERBAIJAN MARCH 17-20, 2014
  2. Page 2 LINKING SMALLHOLDER FARMERS IN GLOBAL SUPPLY CHAINS- SUNRISE PROJECT IN AZERBAIJAN BENEFICIARY NUMBERS: (300 households)1500 persons: 51% women LOCATION: Barda, Tartar, Aghdam (10 villages) STAFF AND PARTNER NAMES: Oxfam staff PROJECT DURATION: 3 years YEAR OF IMPLEMENTATION: 2010-2013
  3. Page 3 SECTION I: CONTEXT ANALYSIS • Borders – Iran, Russia, Turkey, the Caspian Sea, Armenia, Georgia • 1848-49 - World's first oil well • 1879 - Nobel brothers • 1918 - Independence • 1920 - Red Army • 1991 - Independence • 1988 – Mountainous Garabagh • 1994 – Cease Fire • 1994 – Contract of the Century Oil Boom vs Agricultural Decline • Inefficient mangement system • Obsolete agricultural methods knowledge • sustainable market and income constraint
  4. Page 4 SECTION II: Planned Intervention • Processor sources directly from smallholder farmer co-ops for initial Unilever volume requirements • Local market programme in 10 villages and neighbouring IDP settlements • Waged workers benefit through work on improved labour standards • Extension services delivered to the wider community, not just the smallholders supplying UL • Evidence from this country project and impact will inform wider relationship A Catalyst Unilever Demand for Vegetables Parallel Markets Local Market development, driven by market access and improved agronomy An Example Potential for wider influence of agricultural policy within Azerbaijan, and to showcase a working smallholder model globally
  5. Page 5 WHAT DID YOU DO? • 2010 – Azerbaijan selected • 2010 – 3 farmers - first trial plots • Spring 2011 – WHITE ONIONS • Sep 2011 – 5 farmers - trial – Agrotara - Unilever. • June 2012 – 4 times more expensive • June 2012 – Strategy revisited for Sunrise Azerbaijan • Sep 2012 –Good Agricultural Practices - yields and dry matter- TRIPLED • Dec 2012 – Revision of the strategy • October Spring 2013 – Unilever exit as lead firm
  6. Page 6 SECTION III: STAKEHOLDER ANALYSIS • UNILEVER - top corporate/farmers’ trust • OXFAM GB – farmer’s trust • CIIC – Unilever as the key driver • AGROTARA – CIIC shareholder • AKTIVTA – long term partner • FARMERS – reliance on credibility • GOVERNMENT – least engagement
  7. Page 7 SECTION IV: WHAT DID YOU ACHIEVE? FARMERS’ knowledge • Best agricultural practices • New precision seeders • Working in groups • Women involvement in groups • Understanding of value chain • Failure of expectations and trust AKTIVTA - Advanced knowledge on agricultural practices AGROTARA - Upgraded management and production systems, new business vision AGRO-LEASING – new machinery in the region INPUT SECTOR – State programme on local seed production LEGISLATION – cooperative law (policy briefs) PRESIDENT – Decree on agricultural strategy (external mission) OXFAM GB – work with private sector, member of working group for strategy development Visual practice of applying new technologies and increasing yield
  8. Page 8 SECTION V: WHAT WORKED WELL AND WHAT DIDN’T? Successful: • Local capacity building Unsuccessful: • Crop selection - no existing domestic markets • Regulation of relations (contracts) Success factors: • Strong desire by local farmers; • Unilever existence lead firm • Oxfam GB as facilitator Constraints • Processor capacity insufficient; • Miscalculations; • Little time for such ambitious target; • High risk of dependence on sole market;
  9. Page 9 SECTION VI: LEARNING AND RECOMMENDATIONS What differently: • State stakeholders from the beginning; • Smallholders from the initial phase; • No new crop with no local market; • Roles and responsibilities clear cut to ALL; Advise • Realistic commercial assessment • Feasibility before expectations • Invest in (capacity, processing facility, seeds) and then try and decide • Larger time frame – Don’t expect to create sustainable systems change within a short period of time • Alternative markets in particular domestic;

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