Oxfam GB National Agricultural Learning Event

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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.

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  • soil conservation composting drip irrigation sustainable agriculture entrepreneurship personal finance
  • 50 tons of tahina per day
  • Q’uran reference We’re a consortium From Soil through Sale Attract + companies + technology + investment Currently active in + North America + MENA
  • …our philosophy is that of the four-legged stool
  • Looking holistically at the system Designing projects to solve mutliple challenges simultaneously
  • Waste = Food Use Current Solar Income Celebrate Diversity
  • From soil to sale TRANSITION I’m living in Kansas City, MO In-flight magazine, it’s in the crease Known for two things among other Americans that have never been there: fountains and barbecue Though only anecdotal sample, Ethiopia to the west has a similar challenge…
  • So let’s imagine now what private sector engagement with smallholder farmers looks like from Madison Avenue or London… Examine case studies from other sectors that illustrate some of the principles that can invigorate trade worldwide And create new paradigms…
  • Brand with a social mission of "helping children get clean water” August 2003 launch of bottled water product and formed non-profit Ethos International to invest funds from the business in safe water programs 2005 Starbucks purchased the company for $8 million Its products are now sold throughout North America only $0.05 to $0.10 of the retail price ($1.80) goes to charity raised $6.2 million for this purpose It has been argued[6] that donating $100 to CharityWater would be equivalent to purchasing 2,000 bottles of Ethos, without the environmental impact associated with 2,000 bottles composed of non-recycled plastic.
  • TOMS Shoes Was Founded On A Simple Premise: For Every Pair Purchased, TOMS Gives A Pair Of Shoes To A Child In Need. One for One. Brands with social missions have potential to create MOVEMENTS…
  • Over 2.5 million people have been impacted in just two years. (RED) is an ingenious idea that unites our incredible collective power as consumers with our innate urge to help others. (RED) is where virtue meets desire. Each time you buy a (RED) product or service, at no extra cost to you, the company who makes that product will give up to fifty-percent of its profit to buy and distribute antriretroviral medicine to our brothers and sisters dying of AIDS in Africa. Every dollar goes straight to Africa. Straight to the people who need it.
  • Buy (RED), save lives. It's as simple as that. (RED) Desire and virtue. Together at last.
  • STORY AFTER THIS SO PAUSE TO ASK QUESTION.. Last week, Kraft Foods has launched the first mainstream chocolate products in Europe to carry the Rainforest Alliance Certified™ seal. A continuation of work that’s started in 2005 in the Cote d’Ivoire, Kraft has committed to increase current purchases of cocoa beans from Rainforest Alliance Last year, the company increased its year-over-year purchase of coffee beans from Rainforest Alliance Certified(TM) farms by 50 percent, bringing the total to nearly 30,000 metric tons -- once again making Kraft Foods the world's largest buyer of coffee from Rainforest Alliance Certified(TM) farms. In February, Kraft Foods and other industry, government and nongovernmental partners joined with the Bill & Melinda Gates Foundation and announced the launch of a comprehensive program that will invest $90 million over five years to advance the sustainable production of cocoa and cashews in Africa. Over the last five years, the company's partnership with the Rainforest Alliance has benefited more than 300,000 farmers and their dependents on more than 60,000 hectares of farmland in developing markets. Importantly, the decision to source from Rainforest Alliance farms has been both a sustainability and business success. For example, Kraft Foods relaunched several Kenco coffee products in the United Kingdom last year, highlighting Rainforest Alliance certification. Initial consumer impact has been impressive, generating double-digit revenue growth and share growth of 1.2 points in the fourth quarter 2008. In Sweden, sales at a key away-from-home customer of instant and espresso coffee doubled since Kraft Foods began selling coffee with the Rainforest Alliance Certified seal in 2006. In total, eight of Kraft Foods' coffee brands in Europe and North America now carry the Rainforest Alliance seal. This support for farms that have earned Rainforest Alliance certification showcases the commitment our employees have to making a delicious difference in our world. Beginning in France and Belgium, Cote d’Or premium dark chocolate will now contain cocoa from farms that meet the sustainability standard of the Rainforest Alliance Certified™ program. Over the coming months, the certified Cote d’Or range will be rolled out to consumers in the United Kingdom, Germany, Spain, Hungary, Poland, Portugal, the Netherlands, Canada and the United States. It will also be made available to chocolate lovers in Sweden, Denmark and Finland under the Marabou brand and using the Suchard brand in Austria and Switzerland. “ Our collaboration with Kraft Foods and grassroots groups in Cote d’Ivoire will result in long-term, positive changes in the lives of cocoa farmers, their families, communities and the ecosystems on which they depend,” said Edward Millard, director for Sustainable Landscapes, Rainforest Alliance. http://goodandgreen.wordpress.com/2009/11/03/kraft-foods-launches-rainforest-alliance-certified%E2%84%A2-chocolate-products-in-europe/ http://www.reuters.com/article/pressRelease/idUS29321+20-Apr-2009+PRN20090420 http://www.reuters.com/article/pressRelease/idUS29321+20-Apr-2009+PRN20090420
  • A country where agricultural accounts for 90% of exports and 85% of employment -- and there are success stories -- we’ve got a story too. We just need to bring the PLAYERS, PIECES AND PACKAGE together. Perhaps focusing on one lynchpin in raising Ethiopia out of poverty -- such as STRENGTHENING THE EXTENSION SYSTEM. EMPOWERING WOMEN HIGHLIGHT THREE CONSUMER TECH TRENDS…
  • If you are wondering if these new social media channels matter, they do. What do we mean when we say “Social Media”? Online social communications vehicles that help WOM -- opinions, insights, experiences, perspectives and media. -- spread online include efficiently email, blogs, product review sites, discussion boards, newsgroups, IM, social networks, video- and picture-sharing services and wikis. Collaboration possible within organizations in all new ways. INSIGHT - ENGAGEMENT - MEASUREMENT Staggering #s: Video-sharing site You Tube streams 100 million videos / day. That’s equivalent of reaching 1/3 of the U.S. population. Or the equivalent of two Super Bowl audiences. Social networking site Facebook is adding 1 million new members each week. Facebook isn’t a single social network. It’s thousands of mini networks clustered around shared interest. MySpace isn’t just for kids anymore: 33% of their members are over 45 50% are 35 or over 80% are 18 or older -- staggering number. No wonder a watershed event in US politics is imminent: First primary here B4 any state Social media is a game-changer for business and culture. If your brand is relevant you are being talked about and it’s impacting your bottom line. Customer Review Sites - seeing more and more user-generated product info 77% reported increased traffic - Improves conversion - Higher average order value What’s more valuable: 100 passionate customers online discussing your product and category, or 1,000 people who see your banner ad? Even though we know that 71% of all WOM takes place face to face, online behavior is a proxy for offline word of mouth. OPPORTUNITY: MULTI-VARIANT TESTING OF CONCEPTS FOR VERY LOW COS
  • Mavens - Authorities or go-to people who CREATE CONTENT post that online. Bottom line: speakers online, and seekers online have greater influence over the rest of the population. Authority vs. Consensus Do I need back surgery? Which car to buy? Winning over friends
  • Donating money is easy for many people, but what if a WESTERNER WANTS TO DONATE THEIR GRAPHIC OR COPYWRITING SKILLS TO HELP DESIGN PACKAGING FOR ETHIOPIAN FARMERS? s WE CAN MAKE THAT HAPPEN ON THIS PLATFORM. Huge opp’y for cost-effective INNOVATION & CO-CREATION. Let’s look at an example from the B2B perspective. P&G When they look for a molecule that takes red wine off a shirt or absorbs smells in a diaper, it no longer just relies on internal R&D. It puts those requests out on a site called InnoCentive. Scientists around the world can see the challenge, work on a solution and sell it to P&G. Again, the costs of working outside the company are minimal. The Internet makes it possible to rake in expertise from all over. ----- Open Innovation laboratory more ideas and smart people outside your firm than you can ever hope to hire. There is tremendous amount of knowledge and expertise among your customers and partners waiting to be harnessed Large firms find it very difficult to do cost-effective innovation
  • Q’uran reference We’re a consortium From Soil through Sale Attract + companies + technology + investment Currently active in + North America + MENA
  • Oxfam GB National Agricultural Learning Event

    1. 1. Private Sector Linking Smallholder Farmers to Formal Markets
    2. 2. 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
    3. 3. global market linkage objectives <ul><li>Coffee </li></ul><ul><li>Organic Certification </li></ul><ul><li>Profile Development </li></ul><ul><li>Market Linkage </li></ul><ul><li>Market Info Center </li></ul><ul><li>Website Development </li></ul><ul><li>Sesame </li></ul><ul><li>Market Linkage </li></ul><ul><li>Business Feasibility </li></ul><ul><li>Joint Venture Setup </li></ul>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
    4. 4. <ul><li>Project Executors: FOI and OXFAM GB </li></ul>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
    5. 5. Limmu Inara coffee union market linkage project activities <ul><li>Establishing and Developing Private Sector Linkages </li></ul><ul><li>Identification and evaluation of prospective companies </li></ul><ul><li>Link market group in limmu kossa, Limu saqqa and chora botor district to private companies </li></ul><ul><li>Facilitate the consultation b/n producer and private companies </li></ul><ul><li>Facilitation of contractual arrangements b/n producer and companies </li></ul><ul><li>Product Improvement and Value Addition </li></ul><ul><li>Facilitate and support the Union for Organic Coffee Certification </li></ul><ul><li>Support producers for limmu Coffee branding and packaging (include development of marketing and sales strategy, linking limmu Union with roasting company at global level) </li></ul><ul><li>Enabling services provision </li></ul><ul><li>Establish market information centre/ web site, community radio…/ </li></ul><ul><li>Web site development </li></ul><ul><li>Support Oromiffa radio and TV Airtime </li></ul><ul><li>Learning and communication </li></ul><ul><li>Production of business newsletters, best practice including web based publications </li></ul><ul><li>Review and reflection </li></ul>
    6. 6. first quarter ongoing activity <ul><li>One to one meetings between buyers and the union- to share learning experiences </li></ul><ul><li>Organic Certification RFP preparation, tender floatation, evaluation, contract negotiation, agreement and start of implementation </li></ul><ul><li>Market Information System set-up ( RFP preparation, Short-listed proforma collection, evaluation) </li></ul><ul><li>On-going profile development </li></ul><ul><li>Website under construction </li></ul>
    7. 7. limmucoffee.com Striving for sustainable development through social entrepreneurship
    8. 8. project challenges <ul><li>limited stakeholder experience with this partnership type </li></ul><ul><li>limitations in in making business case to private sector </li></ul><ul><li>uncertainty around why and how to engage private sector </li></ul><ul><li>expectation disparity </li></ul><ul><li>limited union capacity and entrepreneurship </li></ul>
    9. 9. focus: Rift Valley Project <ul><li>Oxfam / local NGO’s </li></ul><ul><li>160 km from Addis </li></ul><ul><li>4 million farmers </li></ul><ul><li>60-70 unions </li></ul><ul><li>9-10 coops per union </li></ul><ul><li>fruits & vegetables </li></ul><ul><li>irrigation projects </li></ul>
    10. 10. commercial composting <ul><li>soil conservation </li></ul><ul><li>organic produce </li></ul><ul><li>higher yields </li></ul><ul><li>erosion control </li></ul><ul><li>new end products </li></ul>1
    11. 11. <ul><li>20 ha: compost </li></ul><ul><li>20 ha: demo farm </li></ul><ul><li>2-3 ha: academy (FTC) </li></ul><ul><li>market standard </li></ul>dem o farming 2
    12. 12. royal sesame processing 3
    13. 13. seed
    14. 14. objective: empowerment <ul><li>Farmers </li></ul><ul><li>Coops & Unions </li></ul><ul><li>Women </li></ul>education & training capacity-building profit-sharing jobs leverage market linkage creative financing technology transfer sustainable development
    15. 15. philosophy farmers/coop X% private sector X% ngo X% government X%
    16. 16. 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
    17. 17. sustainable value chain action > words collaborative partnerships evidence scale up
    18. 18. Michael Braungart, Cradle to Cradle
    19. 19. virtu al global market <ul><li>Coffee </li></ul><ul><li>Halawa </li></ul><ul><li>Honey </li></ul><ul><li>Humus </li></ul><ul><li>Sesame </li></ul><ul><li>Sesame oil </li></ul><ul><li>Sesame derivatives </li></ul><ul><li>Sweets </li></ul><ul><li>Meats </li></ul><ul><li>Ready-made meals </li></ul><ul><li>… and more sustain-ably produced, Ethiopian agricultural products! </li></ul>4
    20. 20. the view from the west…
    21. 21. ethos
    22. 25. <ul><li>Nov 2009 : Rainforest Alliance chocolate Euro launch </li></ul><ul><li>Certified ™ cocoa purchase to increase 10X to 30K T thru 2012 </li></ul><ul><li>2007-2008: Kraft increases coffee purchase by 50% to 30K T </li></ul><ul><li>Feb 2009: $90M over 5 years cocoa and cashew investment in Africa by Kraft, Gates, et al </li></ul><ul><li>2005-Now: Impact on more than 300K farmers and their families on 60K ha in developing markets </li></ul>
    23. 26. story
    24. 27. 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
    25. 28. 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
    26. 29. mass collaboration
    27. 30. a scale up platform farms to consumer brand/packaging collaboration farms to enterprise
    28. 31. The future is here. It’s just not widely distributed yet. - William Gibson
    29. 32. 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]

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