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Promotion of Cereal Banks and Access to Markets for Farmers in Ethiopia - Evaluation
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Promotion of Cereal Banks and Access to Markets for Farmers in Ethiopia - Evaluation

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Presentation to the DREO team, November 2007

Presentation to the DREO team, November 2007

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  • 1. Promotion of Cereal Banks and Access to Markets for Farmers in Ethiopia - Evaluation Presentation to the ICCO – DREO team 01.11.2007
  • 2. NGO’s or Enterpreneurs
    • Presentation will refer to ICCO’s dilemma to chose between its historical partners (NGO’s) and specialised organisations in developing value chains for resource poor farmers.
    • Joost de la Rive Box reflected on this dilemma in april 2006 and sees two tracks in ICCO’s Africa Program: a fast track and a slow track.
  • 3. Fast track : caracteristics
    • Clear track – a business plan shows the financial sustainability within some years
    • Service delivery to farmers is embedded in commercial transactions
    • Business (oriented) people are in charge of the chain development process
    • ICCO’s approval of the project is based upon a pro-active identification and objective analysis of advantages for target group
  • 4. Slow track : caracteristicss
    • Existing (social) partners are stimulated to facilitate economic activities for target group. Hope for their own survival.
    • Specific expertise needs to be build from scratch
    • Room for internal conflicts in terms of vision and policy that may hinder economic program
    • Longterm dependancy on (ICCO) subsidies. No clear measurable indicators for sustainability.
  • 5. Cereal Bank ≠ Value Chains
    • At that time Joost de la Rive Box also questioned the choice for cereals to develop value chains in Ethiopia.
    • Added value for cereals might be too low to provide all actors with a decent income.
    • Mixing up social goals (food-security) and economic ones (increased income) creates an ambigious situation.
  • 6. Program objectives
    • Overall:
      • Secured cash income for farmers
      • Improved food security at family level
    • Specific:
      • Enhanced capacity of autonomous F.O.’s and networks for better access to good markets
      • Enhanced capacity of the implementing NGOs to promote autnomous F.O.’s and of FFARM (service provider) for new market system development
  • 7. Actors involved
    • Five different NGO’s
    • A service provider FFARM
    • Permanent technical assistance CIDR
    • ICCO country representative
    • Specific technical assistance : I/C and
    • Through Learning Alliance : KIT, SNV, IIRR
    • About 200 CBs in various parts of Oromiya State
  • 8. Program indicators
    • Two years : 2006 – 2007
    • Aim 37 new CBs and support to 112 existing ones
    • 12 CB networks promoted
    • 2 interfaces
    • 3 entreprises doing regular trade with CBs
    • Replaced a 4 year program rejected by EU
    • Steering group (5 NGO’s and FFARM + CIDR)
  • 9. 2007 Evaluation
    • In general most of the quantitive goals were achieved
    • However apart from the older ones, CBs remain extremely weak, both financially and in terms of human capacity.
    • Training for CBs is too limited and too general
    • Most of the CBs largely depend on the NGO’s
    • CBs are not a solution for farmers’ problems (lack of cash at harvest time, good price)
  • 10. 2007 Evaluation (2)
    • Given their small quantities most of the CBs are not an interesting partner for big buyers.
    • FFARM provides support mainly to the NGO’s and especially to their head offices.
    • Support to CBs goes mainly to building the store and buying equipment. Only 2% goes to training and 0,5% to networking (which was a goal that was not achieved).
    • CB networks were not promoted.
  • 11. 2007 Evaluation (3)
    • Concept of steering group is mainly an instrument to ease communication with ICCO and in the past to exchange experiences.
    • There is quite a difference between individual CBs and NGOs, everyone has its own dynamic.
    • Learning Alliance on value chain development is a good initiative but dominated again by NGOs.
    • Value chain development focuses on CIDR concept of interfaces (soy bean = new crop, and Niger seed) = long process, no impact yet.
  • 12. Lessons learned / Dilemma
    • Mixture of objectives : CB concept was for food security, not business oriented.
    • Main objectives of NGOs are social ones, CBs are an (important) (side) activity.
    • No specialised staff in most of the NGOs.
    • Capacity building process is very slow : CIDR -> FFARM -> NGO Head office -> NGO Field office -> few CB leaders
  • 13. Lessons learned / Dilemma
    • Their involvement in economic activities does not provide the NGO’s hope for their financial survival.
    • So why involving social NGO’s in value chain development.
    • There must be more efficient and effective ways to help poor farmers increase their income through value chains.
  • 14. Elements for another track
    • There are a number of dynamic CBs/F.O.s that manage to grow and provide benefits to the farmers.
    • Due to urbanization and industrialisation there is an increasing demand for cereals/grains. Given the rich biodiversity in Ethiopia both mass and niche markets can be served. Cereals can be(come) value chains. (Are all actors adding value?)
  • 15. Elements for another track
    • Other ICCO partners are involved in strengthening of agricultural marketing co-operatives.
    • The Ethiopian Co-operative Promotion Bureau is open minded and willing to support other coops.
    • Exchange visits with other African F.O.’s would enlighten CB leaders.
  • 16. Medium track
    • As the fast track (JdlRB) is not at all farmers oriented, but commodity oriented it does not really contribute to the building of a strong civil society in Ethiopia.
    • A medium track at the pace of F.O.’s and controlled by them could be an alternative approach.
    • This would include a short transition period where NGO’s or FFARM get the assignment to assist market oriented CB to form a network.
  • 17. Medium track
    • Focus would be on training of leaders and staff by specialised institutions and by exchange visits and attending regional workshops.
    • Training both visionary and technical skills to make F.O.s reliable partners.
    • 2nd focus on establishing trade relations with big buyers and processors(quantityand quality, and special varieties, and packaging/grading).
  • 18. Medium track
    • Advising F.O.’s in linking up with service providers and fellow cooperatives.
    • Make F.O.’s real owner of the program and agree about sub-contracting various service providers