Oxfam GB National Agricultural Learning Event

Private Sector Linking Smallholder Farmers to Formal Markets

Farm Organic International plc Addis Ababa, Ethiopia Sustainable development through social entrepreneurship Global Market Linkage Compost Project Coffee Leaf Project 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 market linkage project

Limmu Inara coffee union market linkage project activities
Establishing 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

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
dem o farming 2

royal sesame processing 3

objective: empowerment
Farmers
Coops & Unions
Women
education & training capacity-building profit-sharing jobs leverage market linkage creative financing technology transfer sustainable development

philosophy farmers/coop X% private sector X% ngo X% government X%

today’s value chain transport waste waste market standard High cost / low profit 1/2 hectare farms hand irrigation soil & water depletion production waste lender gouging 80% illiteracy trader gouging market price invisibility personal finance

sustainable value chain action > words collaborative partnerships evidence scale up

Michael Braungart, Cradle to Cradle

virtu al global market
Coffee
Halawa
Honey
Humus
Sesame
Sesame oil
Sesame derivatives
Sweets
Meats
Ready-made meals
… and more sustain-ably produced, Ethiopian agricultural products!
4

the view from the west…

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

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) [email_address] Willow Lundgren, Small Planet Partners Skype: + 011 8169141490 / willowlundgren (U.S. & Europe) [email_address]

Oxfam GB National Agricultural Learning Event

by Willow Lundgren on Jan 04, 2010

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Oxfam GB National Agricultural Learning Event — Presentation Transcript

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