Accomplishment Report Sulalah (v2)

Report of
Accomplishment
ANTONIO D’AGNANNO
RURAL DEVELOPMENT EXPERT
APRIL-JULY 2015
Project: “MOVING HERDERS FROM AID DEPENDENCE TO SELF-
SUSTAINING GROWTH THROUGH LIVESTOCK HUSBANDRY
DEVELOPMENT AND MARKET EXPANSION” – “Sulalah”.
Antonio D’Agnanno – GVC Rural Development Senior Expert, Palestine
“Technical support and advisory services to the
project ‘Sulalah’ and evaluation of technical capacity,
good practices and quality management of Fodder
Centres Network in West Bank – Palestine”.
Prepared by
Antonio D’Agnanno –
Rural Development Senior Expert
Tel. +972 549408424
1, Alley 7, Derech Hizma, Beit
Hanina, Jerusalem, Israel antonio.dagnanno@libero.com

Pag. 01 Fodder Centers Network in West Bank
Summary
Summary ________________________________________________________________ 1
Scope of the assignment and Methodology ______________________________________ 2
Activities Undertaken _______________________________________________________ 5
Main Findings _____________________________________________________________ 7
Recommendations ________________________________________________________ 10
Suggested Strategies ______________________________________________________ 17
SWOT analysis of the FCN _________________________________________________ 19
Preliminary Action Plan for the FCN___________________________________________ 21

Scope of the assignment and Methodology
The RDE Evaluation is related to the Activity Cluster 2.2-Capacity Development of
existing and developed fodder centres and cooperatives. The project approach to Activity
Cluster 2.3 is focused on: 1) human resource development, 2) system development, and
3) infrastructure improvement/equipment provision. These activities enable fodder centres
and cooperatives with the knowledge, skills, and tools necessary to meet the needs of
constituents in the long-term.
This specific activity is the A2.2.3, Supporting development of standard operating
manuals for the fodder centres: “standard operating procedure (SOP) manuals will be
developed jointly with fodder management enhancing credibility, consistency and cost
efficiency of operations”.
The Sulalah Project leads the efforts to assess the current situation at seven fodder
centres present in the West Bank (Al-Carmel -Hebron, Azwaidein-Hebron, Aqabet Jaber-
Jericho, Abu Deis-Jerusalem, Ennab Alkabeer-Hebron, Za’tara-Bethlehem, Ein Albeida-
Tubas).
Three of the Fodder Centres are governed by local committees composed from UAWC and
the local community, while the other four centres are governed by regional cooperatives (in
this text sometimes called “sponsor”).
Currently the Ennab Alkabeer FC is no longer operative, and actually it isn’t present as a
member inside the Palestinian Committee of Management of FCs (cfr. MoA Decree nr.
4332/48/2014). This Committee was expressively created to manage all FCs as a whole
system, called Fodder Centres Network (FCN).
The RDE’s assignment was undertaken for the achievement of the overall objective to
provide technical support and advisory services to the ‘Sulalah’ project partners and, in
consultation with GVC Development Coordinator, provide supervisory and coordination
support to GVC’s activity components and project sectors.
The Objective of the present Evaluation is to produce sheep/goats feed on farm for that
farm’s own use that is ‘fit for purpose’ i.e. fresh, palatable, safe and nutritionally balanced for
the class of stock the feed is intended, and with the minimum wastage.
Quality Management is one ofr the essential Prerequisite Programs (PRP) for the successful
implementation and maintenance of a HACCP or an ISO program, for example.
Good practices management enhances product quality and shelf-life, reduces maintenance
costs, and contributes to operational efficiencies. At the moment, only marketing and
purchasing agreements set the standard of quality “acceptable” to the FCN.
Grain handling standards apply to feed manufacturing, and involve employee safety, while
good manufacturing practices include sanitation elements, including building and grounds,
equipment, and equipment cleanout procedures. It also includes personnel practices,
facilities, equipment design and operation, pest control, and warehousing.

Methodology
The RDE conducted desk research, data collection, and literature reviews of the available,
current, and previous research studies prepared by various parties to obtain a solid
background of major issues and previous initiatives associated with the GVC targets.
Based on this information, the RDE developed three analytical outputs.
- First, the RDE produced FC Process Activity Maps describing the FC structure,
intra-organizational relationships, and enabling quality systems.
- Second, the RDE created a rigorous SWOT analysis relating to the strengths,
weaknesses, opportunities, and threats perceived among the relevant FC’
stakeholders.
- Third, the RDE took advantage, internally at the same Sulalah Project, of the
Value Chain Analysis by the VC Consultant, which identified the cost structure
of the various activities carried out in the WB sheep sector.
For rolling out the RDE’s Evaluation, the tasks performed were as follows:
1. Provided analysis and advices on best practices and approaches for achieving
results related to Livestock in the Rural Development sector, including potential
risks, opportunities, and linkages with other programs and sectors, as well as
cooperation with other donors;
2. Prepared, implemented and coordinated rural community consultations;
3. Assessed the capacity of local organizations and institutions linked to Livestock
sector to implement Rural Development initiatives to achieve meaningful results,
and identify potential partners with appropriate Rural Development programming
capacity;
4. Provided advice to Project Managers and Partners on Livestock issues to be raised
in policy dialogue with Government, Donors, Civil Society Organizations and private
sector;
5. Identified major leverage points for Livestock value chain development and
Livestock market opportunities as basis for better livelihoods of small herders,
support Project’s partner organizations to stimulate and plan Livestock value chain
development and strengthen Livestock value chains through increased national and
international Livestock market access;
6. Supported Project’s partner organizations and upstream Livestock stakeholders in
building and sustaining Livestock networks and partnerships;
7. Built capacity and promote local economic development awareness and related
benefits among Project’s partner organizations.
In order to perform the above tasks the RDE consultant worked in cooperation with the other
local and international experts and project staff members simultaneously following two
processes:
- Desk work: building knowledge about institutional and socio-economic background
information, assessments and strategy formulation. The consultant collected all
relevant (sector) studies and materials already produced or collected by the project
and other donor/government/NGO organizations in the recent past, and detailed the
outcomes of these studies. (See Annex 2. Main documentation and
bibliography). The RDE consultant also performed a review of GVC’s Experts
outputs and intermediate products.
- Field work: The Rural Development expert was engaged in the implementation of
activities as per the GVC Work Plan and supported the provision of regular monthly
reports on activities carried out. Particularly the RDE consultant performed the
following activities:

1. Cooperative Business Development. Following up technical assistance for two
beneficiary cooperatives.
2. Fodder Centre Network. Supporting the development of Standard Operating
Procedures (SOP) and a Manual for the Fodder Centres.
The Evaluation implemented the following steps of analysis:
1) Context analysis and field visits, secondary data collection and analysis, technical
bibliography review;
2) Review of key issues related to Palestinian small milling and mixing;
3) Implementation of a self-assessment for milling good practices;
4) Analysis of results, mapping out the core processes and evaluation of local
operational environment for FCs (Process Map);
5) Drafting of SOPs for milling activities, defining each activity into a series of steps and
determining the required records, forms, and management metrics;
6) Drafting of a related SOP Manual, building specific documents, reports, graphs, and
all the management systems;
7) SWOT analysis, improvement, final Recommendations, Action Plan and
conclusions.
To better evaluate actual conditions and operational environment, a Self– Assessment
Guide for Good Practice Small Milling and Mixing of sheep feed was written, taking the
structure from international technical bibliography.
It is recommended that the present Self-assessment be completed (at least) annually, to
encourage on-going improvement in every FC.
This self-assessment identifies action areas (recommended to be addressed within three
months), and for every Action area an action list is foreseen, and control checks as “date to
check progress” and “completion date”.
By analysing the weaknesses, and opportunities of the FC, the members of the Board will be
challenged to address their own needs. The key is to have cooperative management
mirroring the private sector, and to let the members analyse the gaps and the opportunities
for the FC development.

Activities Undertaken
In the RDE Evaluation mission, made in West Bank – Palestine, the following activities were
undertaken according to the schedule elaborated in preparation of:
- Calendar of Implemented Activities: see Annex 5. RDE TIMING
ACTIVITIES
- Calendar of Meetings: see Annex 1
- Calendar of Field Visits: see Annex 1.
The field visits provided an overview of the flow of the activities and actors in the livestock
sector in West Bank.
The information collected, validated by data and literature review, was the base for the
elaboration of the analysis and for drafting the Final Evaluation Report, the Technical
Annexes and all the related Technical Documents.
We also carried out an Assessment of the FCN, based on the following criteria:
1. Growth Potential – offers a clear promise for future growth, leading to expanded
and new investments in productive Palestinian FCs;
2. Cluster Readiness – demonstrates a level of interest, organizational capacity,
leadership, and dynamism; and
3. Palestine-specific Factors – includes the potential for rapid employment creation,
and sensitivity to possible border closures in case of conflict.
During all these activities, the RDE initiated contacts with the FC’ stakeholders and
conducted introductory meetings. Official FC meetings were conducted subsequently to
trigger two types of Activities:
(1) Institutional assessment activity (called Self-assessment, and Guideline Rationale) to
assess the Governance of these organizations and their readiness to engage in a future
Program of Development; and
(2) Formation of core fodder industry Workshop groups to work with GVC and UAWC
on validating desk research, baseline facts, and the Activity Process maps, with a vision to
involve more Network members on the way.
Institutional assessments were conducted for one organization as a sample (Ein Al Beida),
and reports were finalized for discussion with the respective organizations of the Network, to
design the Program intervention areas.
As a result, all of the FC Network examined so far will have industry-validated facts and
figures (Manuals, SOPs, etc.), SWOT analyses, Value-Chain Analyses, and identified
Network initiatives.
A list of Technical Documents delivered, is furnished in the following Table.

# DOCUMENT DESCRIPTION
I FCN EVALUATION REPORT
General framework of reference for context, analysis,
findings and recommendations. In progress. To complete
after the Workshop.
II
Annex 1. Self-Assessment Guide
for Good Practice Small Milling
and Mixing of Feed.
Working tool used (with findings)
III
Annex 2. Feed Milling
CHECKLIST. PRESENTATION
GUIDELINES – RATIONALE.
Working tool used (with findings)
IV
Annex 3. Schematic layout of
small scale milling and mixing of
sheep feeds.
Theoretical reference framework
V
Annex 4. Schematic Layout -
Reality
The actual set-up as in the Ein al Beida FC
VI
Annex 5. SCHEMATIC LAYOUT
Ein Al Beida MILLING AND
MIXING – technical proposals.
The same Activity Process Map but with possible
improvements to do ASAP.
VII
Annex 6. Comprehensive Fodder
Centers Network Initiative
Framework
Factors and actors playing a role for Policies useful for an
improvement of the FCN.
VIII MANUAL of SOPs for the FC
A handbook of SOPs, Policies and Guidelines describing
the procedures to follow within the FC facility in different
domains.
IX PPF Template - 1
General SOP (Policies, Procedures and Forms)
describing the overall framework of activities and
responsibilities generated in the FC facility of Ein al Beida,
reference for all the other SOPs.
X Annex a. FC FSHS PRP
Fodder Center Ein al Beida – Food Safety, Health and
Sanitation– PREREQUISITE PROGRAM EXAMPLE. SOP
that describes all quality activities of the FC facility about
the Food Safety management.
XI
Annex b. Milling Mixing FC SOP
001
SOP specific to the manufacturing of the FC for the
preparation of fodder mix.
XII
Annex c. RECORDS FC SOP
002
SOP specific to the management of records and the
documents control in the FC.
XIII
Annex d. Value Stream FC
Activity Map
Important analysis of the current Activity process in the Ein
el Beida FC, with suggestions for an improvement of the
Value stream, and related sheet about the ranking of
Improvement Opportunities.

Main Findings
Following the self-assessment, some of the most significant comments to improve the
quality of management and of production are:
- The facility does not have a shelter for incoming trucks in case of rain to protect
the grain: in this case management has an agreement with the driver to avoid
rain days or to take advantage of raining stop time. In any case, the problem is n
ot serious in this specific geographical area since the days of rain are few.
- More important is the problem of inside water leakage in case of heavy rain,
since there is a sloping plot. The management of external ground to have an all-
weather and well-drained compact layout is quite important, as working on the
big windows.
- The control of invasive animals, pests and moisture is very weak and needs
urgent improvement.
- The accidental mixing of different feeds is rather common and needs urgent
minimization measures.
- The current level of hygiene and cleaning quality is very low and needs urgent
improvement.
- The storage management is understaffed and suffers mismanagement and
improvisation.
- The awareness of hazards and safety is very poor, and consequently the
operating procedures are very risky and unhealthy.
In addition to the Self-Assessment, Feed Milling Presentation Guidelines were produced.
At this scope, we thought to a Checklist, composed by nr.84 criteria, clustered in 14 main
matters. At the end, only 24 elements of the checklist were fulfilled, that means the FC
is working at 28% of its potential Quality System. So, the Checklist confirms the
urgent need quality management improvement.
As the basis for using the FCN scores for planning, cluster categories rooted in the zero to
five scoring index were designed with a Scoring Range from 0 (very low) to 5 (very
high). To define the categories, first the numerical index was divided into percentage
groupings. The ranges of these groupings can be seen below:
From the four groupings, three cluster categories were delineated:
• “Advanced,” which encompasses the top 25 percent of the numerical index: 75% to 100%
- 3.75 to 5.0;
• “Developing,” which includes the range of 60-74 percent of possible points: 60% to 74% -
3.0 to 3.74;
• “Emerging,” which covers the scoring range of 40-59 percent: 40% to 59% - 2.0 to 2.99;
• “Non-competitive,” comprised of the lowest 39 percent: 0% to 39% 0 to 1.99.
The highest and lowest categories are self-explanatory. The rationale for the “developing”
and “emerging” cluster categories is twofold.

Tab. Nr.1: FCN EVALUATION
GROWTH POTENTIAL
Category Key findings Score
International
Market outlook
 Global fodder market is expanding.
 Competition from both developed and developing parts of the world
is severe.
 Increasing importance of food safety standards.
 Healthier food is requested.
 Globalization and reduction in barriers benefit agribusiness
companies.
 Increased importance and value of processed food.
 Increasing population.
 Strong demand in the Gulf Region.
 The Arab market is expanding.
4
Competitive
position
 Natural competitive advantage from the cultural, political and
religious legacy.
 Strong competition from other countries on both ends of quality and
price.
3
Recent
performance
 Strong fluctuations in production performance.
 Product mix slowly evolving to focus on religious and organic food.
 Target markets for exports have expanded in the recent past.
3
FCN READINESS
Category Key findings Scores
Commitments  Limited history of collaboration among FC, associations, institutions
and cooperatives.
 Members of the FCN willing to cooperate.
4
Dynamism  Some dynamism in product offering, product mix expanded in recent
years.
 Geographic market expanded.
 FCs are insufficiently proactive on investing in quality and supply
chain efficiencies.
 Long history of FC rivalry and lack of a common vision.
3
Critical Mass  Many grain processors and manufacturers.
 Inadequate support organizations/ enablers.
 Financing institutions are risk averse, resort to traditional schemes.
 Limited technical assistance from third parties.
3
FACTORS SPECIFIC TO THE WEST BANK

Category Key findings Scores
Potential for
employment
 Employment can be expanded rapidly if political and economic
conditions remain conducive.
5
Insensitivity to
border closures
 Very sensitive 2
Summary of Main challenges of Palestinian Fodder Centres in general:
• The staff is few, unsafe and poorly trained.
• The centres require maintenance efforts for machinery.
• Limited marketing abilities, and selling mechanism.
• Limited or absent storage space.
• Absence of filling machines.
• Limited office spaces.
 Toilets in bad condition.
 Introducing effective data bases.
 Introducing functional archiving systems.
 Enhancing fodder quality.
 Rehabilitation of fodder buildings.
Other key obstacles to a quality production for Palestinian FCs:
 Horizontal structure of FCs: all members are performing similar tasks and receive
similar training without diversification in type of production or diversification of tasks.
Poor management practices and a general lack of strategy create ineffective FCs;
 FCs generally do not have paid staff members or a secretariat. FCs sometime
depend on one (powerful) leader or family that manages the funding and its
activities. In some cases financial mismanagement is detected, but members of the
management board cannot or do not want to take any action;
 Most FCs have been established by donor organizations, and therefore members of
management do not share the required ‘cooperative spirit’. A shared vision, strategy
and goal are absent, and FCs are ‘activated’ according to available funding.
 There is a limited ability to invest capital into the FCs. Regularly members of
management do not pay service fees. The FC therefore does not operate as a
service provider.
 Poor marketing and commercial planning and weak linkages to other FCs.

Recommendations
A. Key Recommendations, split in 3 main areas:
1. Marketing
 Incentivise existing investors to improve their engagement with FCN through
competitive processes that reward purchase commitments, provision of inputs and
advice, and transparency in engaging with suppliers.
 Attract new investors who are ready to commit to targeting new higher value
markets and sourcing from Palestinian FCs with packages of limited market and
credit support.
 Support FCs as private sector players to work closely with the PA to strengthen
fodder export market (Jordan, Egypt) awareness of Palestine as a certified origin,
with the development of a “Palestine fresh fodder brand”.
 Implement awareness programs of the importance of adopting international
standards and best practices using external technical and financial support.
 Improved industry regulation and self-regulation is needed to improve quality
controls (Public authorities will have to at least oversee this). There is currently no
quality certificate for fodder products. Similar Standards could be developed by PSI
together with the Ministry of Health. The use of GMP certification serves the purpose
of guaranteeing the quality of production and it can simultaneously foster
competition versus Israeli producers. This should depend on the needs of the
Palestinian private sector.
 Reorganizing the structure of FCs, and support throughout the Value Chain, with a
special attention to marketing, bulk production and bulk purchasing.
 Incentivise Fodder Centre processors to explore alternative ways of sourcing from
small local farmers, based on improved supply chain efficiencies, quality
enhancement and risk reduction, to take advantage of lower cost supply and
import substitution opportunities.
 Incentivise improvements in feeds and feeding practises through import
substitution – with particular focus on linking local barley farmers to feed
businesses, and the more organised farmer groups. The intent is to incentivise
barley farmers to increase their productivity (which is relatively low, at only
approximately 256 kg/du.) training them in best practices in the semi-intensive
model (such as managing water quality), and increasing the area under fodder crops
by integrating fodder production in crop rotations.
 Incentivise FC processors (e.g. through a challenge fund) to invest in expanding
their value adding activities, to produce more fodder for the Palestinian local
markets (import substitution).

 Improved industry regulation and self-regulation is needed to improve quality
controls (Public authorities will have to at least oversee this.) An improved system of
industry data collection – on production, import/export, sales, prices, etc. – would
help build and maintain competitiveness
 An improved system of industry data collection – on production, import/export, sales,
prices, etc. – would help build and maintain competitiveness.
 Work with fattening operations and other livestock stakeholders to develop systems
and incentives for fodder processors to better orient their production to the market.
This is likely to include aspects of seasonal demand and differentiated demand,
e.g. for holidays and to suit consumer interest for meat (differentially priced) from
both younger and older animals. These same livestock stakeholders can be
supported to put in place the improved access to financing needed for additional
working capital requirements. To support these efforts, development of appropriate
Member Business Organisations (MBOs) for post-production enterprises should
be explored.
2. Organisation
 The organizational structure and the existing cooperative structure are of vital
importance for the economic performance of the FC. The intervention should
address the need to develop the cooperative management capacity to maximize the
FCs’ effectiveness and economic performance.
 Create a private sector network that includes fodder producers/suppliers through
existing associations, or to aggregate in groups into an umbrella business unit. Once
a business case is proven for such groups, the farmers would be naturally
incentivised to support the formation of these marketing units to achieve economies
of scale and efficiencies in accessing inputs, finance, and other needed services.
The fodder processors in turn would be able to manage their procurement more
easily from these larger, better managed and more efficient units. Developed as a
business “hub”, a fodder rural bulking centre can support its
suppliers/members/owners by coordinating and improving their access and linkages
to a range of services, credit, inputs, training, etc.
 Use some identified business cases and their advantages in order to mobilise the
FCs, initially the 2 more advanced and entrepreneurial. A mix of lead firms and
traders, other private sector actors, public sector agencies, and NGOs should be
incentivised to engage them with training in financial literacy, business skills and
improved processing practises – with a particular focus on addressing quality needs.
 Encourage service providers as honest brokers to support the FCs’ governance,
transparency (supported by audits) and management capacity building.
 Organize cooperatives and associations all around the FCs among herders and
farmers, mobilize them for a collective action and/or to be recipients of investments;

 Key objectives in development programs for FCs should be to strengthen the
cooperative spirit, and support increased quality and quantity of production and
linkages to the private sector through a profit-oriented approach.
 There is a lack of specialized (and paid) staff within FCs. Therefore FCs should
focus on hiring experienced and specialized staff members and a management
team (admin, finance, production). Capacity building programs (for FC with a weak
business case) have mostly not proven to be of great impact, and can be seen as a
top-down activity with low participation rates.
 Enhancing the manager’s role as in the private sector.
 Increase of paid and specialized staff members in the FCs and the FCs
administrative board.
 Incentivise faster change among the more advanced and entrepreneurial small
Milling /Mixing Centres (“lead” FCs) - for example, in the adoption of specialized
management, use of improved inputs as local fodder, and adoption of Good
Practises for Quality Management. This would help them achieve greater success
(even abroad) and support them to use that success to demonstrate the potential
value of improvements to the less entrepreneurial FCs.
 Facilitate investments in and raise finance for maintenance, new equipment, other
inputs. Initially these should be partially subsidised to offset the risk, while ensuring
the FCs pay something; over three years, the FCs should be able to take over full
payments of the operating costs/working capital.
 Help FCs tackle their main challenges (including difficult access to markets and poor
management skills) through a combination of assisting with access to professional
training and extension services and supporting for improved governance.
 Improve the competitiveness of the FCN platform to incentivise fodder processers’
organisations to upgrade their businesses, especially to improve their ability to
access the new export market services.
 Overcome governance challenges: Governance is a critical element of capacity
within FC business network or their cooperatives. Typical governance challenges in
organizing FCs into business oriented Network include:
a) Honest leadership, but lack of open transparent engagement with group
members
b) Too much focus on the core business, which leads to the exclusion of those who
are not yet ready to fully participate in the business activities.
c) Promotion of open and transparent internal communications, physical and
financial transaction record-keeping and external/internal audit processes.
Buyers, donors and financiers should come to expect to see the transparent
records as part of the terms for continuing to develop and deepen their
commercial/economic relationships.

d) Governance structures and processes should be regularly ‘audited’, from
greater commitment of leadership to full member participation. Supporting
training interventions is necessary to strengthen leaders’ skills. In this sense, we
support the vision, inside the same Project, of the Consultant Faraj Ghunaim,
about an “Audit and Supervisory Committee” elected directly by the General
Assembly of the FCN.
 Support to the remaining extensive fodder farmers could include:
a) Building consensus and common advocacy for access to land.
b) The design and development of rangeland CBNRM systems (community-based
natural resource management) so that overgrazing (one of the main causes of
rangeland desertification) is avoided. It would be important to develop community
and user understanding of the carrying capacity of the rangelands in different
geographies, and work with them to manage their use based on that capacity, pro
moting the planting/propagation of beneficial native shrubs.
c) Development of local mediation services and systems to resolve herder – farmer
conflicts.
3. Enabling environment
 Current groups of fodder producers and FCs cooperatives are not profit oriented.
They should be supported in having their focus on profit orientation and quality
maximization.
 Working more on identification of the specifications and standards.
 Provide technical project-based assistance to the management of FCs with regard
to best-practices techniques, good fodder production, and raw material supply;
 Advocate for the establishment of a semi-governmental institution, that is
specialized in the quality development and upgrading.
 Improve technical production systems so they will depend on supply and demand.
 Facilitate and develop the FC working environment by creating and finding financial
and technical resources. Improvements in access to financial services are needed
both ‘internally’ at the FCN or livestock groups’ level, and ‘externally’, via links to
formal sector financial institutions.
1. ‘Internally’- development of more lending schemes at the village, cluster of
villages, or governorate level should be supported. NGOs can assist with lending
group mechanisms and structures, provide training on savings and
recordkeeping, and link the lending groups to available finance and micro-finance
facilities.
2. ‘Externally’- Palestinian banks need help to understand smallholder financial
service needs and their related business opportunities, and support in adapting
their financial products accordingly. Intermediaries can help with this, as well as
in training FC staff and their sponsor groups in financial literacy, recordkeeping,

and savings to improve the attractiveness of these individuals and organisations
as borrowers.
 Develop and promote a new vision and strategy for a modern, more integrated
domestic fodder sector as a multi-stakeholder initiative, and encourage the adoption
of improved produce standards for the domestic fodder markets, improved FCs
infrastructure and physical marketing arrangements.
 Facilitate development of systems and links that support commercial connections
between herders’ desires to improve practises and potential providers/suppliers of
needed livestock goods and services.
 Support establishment of trade agreements specific to fresh fodder and
concentrates, and enforcement of existing ones between oPt and Arab countries.
 Support the Palestinian Authority with legal and technical assistance to negotiate
with the Israelis to ease access to imported inputs (especially grains), navigate
through checkpoints; increase transparency and predictability of crossings to Israeli
markets and export markets through Israel and Jordan.
 Encourage the establishment of specific sub-sectorial business service providers
by supporting the development of clear and aggregated demand for their services
from the FCs and their organisations. Private Service providers should be
encouraged and appropriately supported and incentivised – initially -- wherever
possible (such as for the exporting pack-houses providing inputs and services on
credit, or input providers supplying extension). Some services will have to be the
domain of public agencies (e.g. for local standards development and food
safety).
 Improving the information available about the livestock sector involves the
implementation of two types of information related activities, those concerned with:
a) Overall livestock sector information, and
b) Market Information System (MIS) development.
a) Recommendations for overall livestock sector information include the
following:
1. Improve the collection of data on exports and imports, both in terms of value
and volume traded, with a level of product disaggregation that is relevant and
adequate to the specific markets and products being supplied (e.g. imported
volumes of fodder, and grains)
2. Improve the reliability of demand data, namely by reconciling demand
information based on farm data, and demand information calculated based on
trade balances at the macro level
3. Improve the analysis of trends of the main livestock sectors
b) Recommendations focused on MIS development include the following:

Develop a MIS that would provide two types of services for FCs:
Static information (information about inputs, characteristics and usage)
Dynamic information:
- Information about input prices, quality, and availability
- Information about local and international prices of the FCs products
- Further services like weather information (in this case, mainly for logistics) and
agronomic (about fodder crops) recommendations.
Based on experience from other countries, an MIS initiative will need to be initially
supported by donors and government funding and/or financial support from a
telecom company (which might provide the service at no or low cost to FCs), and
then developed into a commercially viable model. Over time, the system could be
expanded to enable transactions, mobile payments, and even to credit services
linked to predictable or committed future payments, etc.
Given oPt mobile penetration (reported at approximately 60% and rising),
investigate opportunities to develop information channels such as:
‐ SMS (short message service), where the FC sends a request by text message,
and receives the answer by the same channel
‐ USSD (unstructured supplementary service data) menu available on the mobile
phone (where the user navigates through a menu of options and then receives an
SMS with the requested information)
‐ Interactive Voice Response (IVR), which is similar to the USSD, but is a voice-
based service, instead of text-based. Given the high literacy rates in oPt, the need
for the investment in a voice-based service should be carefully evaluated, in light of
FCs’ preferences (despite being literate, he or she may prefer to access a voice,
instead of text, based service)
‐ For the introduction of more sophisticated services (like trading
recommendations), an option would be to establish a call centre for the delivery of
content not covered by the three channels above. In other experiences, SMS,
USSD, and IVR have proven able to cover 80% of the typical farmer’s needs.
Other channels might include radio or local newspapers.
 Enforce quality control of locally produced fodder products, both at farm gate and
at the industrial FC processing level. Foreign buyers are particularly unforgiving.
One bad quality shipment not only leads to it being rejected, but will blacklist the
exporters for months or more. On the domestic market side, quality norms and
consumer expectations are less well established. It is expected that the incentive for
this would come primarily from within the private sector itself, especially for export
fodders. But more is required by the Ministry of Agriculture to continue to review and
upgrade quality standards and inspection systems. Trips to other countries that

have implemented such systems and reaped rewards would assist in building
understanding among Ministry officials.
- At the farm gate, the Ministry of Agriculture should continue and reinforce the
inspections it performs on the products that are going to be exported
- At the industrial FC processing level, and specifically in fodder processing, quality
inspections should be introduced to guarantee the final quality of the fodder
product (for instance, by controlling the use of GMO grains) and ensuring proper
product labelling.
- Enforce quality control of imported inputs and products, e.g. by improving control
over fodders that are beyond their sell-by date.
- Define and enforce standards for the selling of fresh fodder, e.g. by a shift to
selling by standard box weight.
- Increase consumers’ awareness and farmers’ knowledge about relevant
regulations.
In addition, it will be essential to create and adopt uniform produce marketing
standards for the domestic markets.
The PNA, in collaboration with the Palestinian Standards Institution (PSI), should
take the lead on implementing all these activities.
B. Impact
These recommendations have the potential to increase the value of marketed production
in the fodder sector, also according to a modelled cumulative approach by the Consultant
Nicola Pagani.
This would be the first stage in a broader industry fodder transformation that would scale to
the rest of the local feed processors in the years beyond on the basis of successful
businesses expanding their by-then proven models.

Suggested Strategies
The principal objective of an FCN competitiveness program is to create a Framework and
process for productive change. Such a program not only facilitates the development and
communication of a shared vision of competitiveness but also creates a process to ensure
that actions are taken to build an enabling business environment.
The success of an FCN Competitiveness Program ultimately depends on the commitment
of all stakeholders to translate into results the strategy and action plans developed through
this common process. For this reason, the FCN approach maximizes interaction and
collaboration with key stakeholders in order to obtain their buy-in from the very beginning.
Fig. nr.1: A Comprehensive FCN Initiative Framework
The scheme below instead presents an overview of the SOP area of intervention.
Fig. 2: Proposal of program components for the establishment of a QMS in the
Palestinian FCN.

SWOT analysis of the FCN
Factors HELPFUL HARMFUL
internal
STRENGHTS (to enhance)
 Favorable geographic location,
Mediterranean climate, long historical,
religious, and cultural legacies.
 Presence of active NGOs, Universities
and Research Centers for technical
support.
 Availability of educated labor force and
HRs.
 Tolerance and adaptability in the face of
challenges and crisis.
 Ongoing organizing collective lobby in
order to achieve VAT exemption;
 On-going linkages to other FCs and the
private sector;
 Bulk purchasing from fodder suppliers
through the FC network would give
economic advantages;
WEAKNESSES (to resolve)
 Low engagement of public agricultural
institutions.
 Low productivity, weak performance and
profitability and weak efficiency.
 Inappropriate organizational structure,
number of staff and functions. Poor
management practices and a general
lack of strategy create ineffective and
horizontal structure.
 High dependence on imported raw
materials and high potential of being
affected by fluctuation of international
prices.
 Poor quality control.
 High logistics/transportation costs.
 Lack of marketing and promotion
resources.
 Lack of storage facilities/ distribution
services.
 Weakness in meeting the packaging and
labelling of target markets.
 Lack of cooperative role in purchasing
inputs and marketing: not functioning as a
service provider;
 Not many paid staff members.
 Dependency on one powerful leader or
family (weak participation in decision
making);
 General lack of knowledge of good
farming practices (hygiene, health,
sanitation, separation of materials, etc.);
 General lack of access to an awareness
of chemical treatments and lack of
knowledge on disease prevention,
management and control;
 lack of training access and incentives;
 No awareness of market outside
Palestinian area;
 Limited business knowledge and a poor
business mentality, and weak
coordination;
 Weakness in fodder security supplies and
shortage in national basic commodities
warehouses.
 Weak regulatory environment.

external
OPPORTUNITIES (to exploit)
 Large and regional overseas (Arab)
markets (exemption from custom fees).
 Meeting local and international (Jordan,
Egypt, UAE, etc.) demand on fodder
products. A trend of increasing demand
for fodder is expected to continue.
 Increasing local interest in new products.
 Demand for ethnic/cultural products in
export markets as Halal Food.
 Organic production of fodder.
 Support increased quality and quantity of
production and positive public- private
sector linkages through a profit-oriented
approach;
 Hiring experienced and specialized staff
members and a management team
(admin, finance, quality production);
 Encourage the role of cooperatives for
FCs in bulk purchasing, production and
marketing;
 Reducing middlemen when purchasing
imported inputs;
 New or refitted local rangeland to have
more Palestinian fodder;
 Upgrading productivity (upgrade quality
products), manufacturing and upgrade of
machinery;
 Development and modernization of the
equipment used in production;
 Analyzing regular and seasonal demand,
and price differentiation (product type vs.
market);
 Exploring market needs on certification
of fodder products;
THREATS (to avoid)
 Very limited budgetary appropriations for
agriculture needs.
 High donor dependency (majority of FCs
created by donors);
 Limited access to capital;
 Clients sometimes do not pay the fees, or
pay with long delay;
 High reliance on production inputs
imported from Israel through local and
Israeli middlemen + no quality control on
imported materials;
 Difficult to access some of the inputs
(supplements) and general high price of
inputs (fodder);
 VAT not reimbursed/double taxation;
 Farmers purchase fodder on an individual
basis and are stuck in a vicious cycle;
 FCs and cooperatives depend fully on the
local market, consisting of middlemen,
dealers, wholesalers and traders, both
Israeli and Arab;
 Current political situation—closure, lack
of free movement, impeded access to
sources of supply and markets.
 Crop losses and incidental
diseases/hazards.
 Monopolistic suppliers control the fodder
input supplies.
 Heavy competition in markets.
 Low awareness of the importance of
dealing with the new agricultural changes
such as GMOs and climate change
(droughts).

Preliminary Action Plan for the FCN
The AP laid out in the following figure below is based on an “achievable” programme to
launch and scale up new or improved initiatives within approximately 5-years. This is not an
all-inclusive design of such a programme with a comprehensive set of strategies and tactics
driving outcomes through a specified logical framework. Rather, it is an indication of how to
potentially phase adoption of specific programmatic type actions that are based on the
broader set of recommendations in this document overall.
Objective Activity/Initiative Stakeholders/
Resources
Term Status
1 Improvement of
the quality and
efficiency of
production
Preparation of an internal Self-
Assessment (incl. showing the
ROI in having paid staff)
Coops, FCs,
NGOs
Short An FCN Plan of
implementation
exists
2 Getting fodder
at lower price by
marketing
contracts
Bulk purchase fodder/grains by
FCs and cooperatives network
(lobby, social enterprise, micro
loans, etc.)
MoA, MFIs,
NGOs, Coops,
traders
Short Obtained a
legislative Decree
and an official
Agreement.
3 Getting local
Palestinian
fodder “at Km
0” and improved
access
(advocacy) to
land resources
management
Installation / improvement of
grazing area/ creation
/rehabilitation of rangeland
with local plants and tolerant
seeds
MoA, CBOs, Short Actions already
taken are not
sufficient or
sustainable
4 Getting fodder
at lower price by
Policy and
regulatory
reforms
Advocacy campaign towards
Min of Finance to except VAT
on fodder purchase, forming
PPP, and participating in
drafting of regulations for
Livestock strategy, FS
compliance, patent rights etc.
MoF, MoA,
UAWC, PARC,
PACU, CBOs,
Coops, NGOs
Medium At the initial
stages. Needs
stronger
coordination and
advocacy as a
lobby
5 Getting
Palestinian
Fodder and
Concentrates at
lower price
avoiding Israel
Linkage between existing
Fodder Centers and re-
activating them on local
productions/crops by contracts
signed with feed producers
MoA, CBOs,
NGOs,
farmers
Medium At the initial
stages. Needs
stronger
organization.
6 To have well
trained and
aware working
staff
Establishment/expansion of
demonstration farm (good
practices, training, fodder
supply) implementing TQM-
total quality management best
practices
MoA, NGOs,
CBOs, farmers
Short Actions already
taken are not
sufficient or
sustainable
7 Improved access
to standardized
quality services
and increased
efficient
productivity
Certification of quality: develop
certificate to guarantee health
standards and competitive
advantage, and prepare to
build a brand name and trade
mark for Palestinian fodder
PSI, MoA,
Coops, NGOs
Long Currently it is only
a work
programme
8 Improving
Quality
Standards
Outsourcing the best suppliers
of fodder inputs, and preparing
for good warehousing facility
and good processing/storage
management
PSI, MoA,
Coops, NGOs
Short Currently it is only
a work
programme

9 New Market
penetration
Conducting and participating in
agro-product expositions, and
local, regional and
international fairs, and
encouraging strategic alliances
and networking in local and
Arab market
MoA, MNE,
Coops, NGOs
Short Already done for
other sectors of
Agribusiness.
Should be applied
to Palestinian
fodder.
10 Improving
distribution
chain
Partnering with marketing and
sales distribution channels,
enhancing customer services
MoA, MNE,
traders,
NGOs, Coops
Long Strategy already
envisaged in the
PPP plan
11 More access to
finance
Preparing for collective
bargaining to negotiate best
offers and networking with
best financial institutions
MoF, MoA,
NGOs, Coops
Medium Needs stronger
coordination and
advocacy as a
lobby.
12 Research and
Technology
transfer
Upgrading testing labs
infrastructure and providing
modern technical support,
engineering improvements and
good maintenance
MoA, MoE,
Universities,
NGOs, Coops,
Long Still in the initial
stages.
13 Best practices in
HR
Matching curricula with
practical needs of fodder
industry, and designing
continuing technical learning
programs for fresh graduates
MoA, MoE,
Universities,
NGOs, Coops,
Long Still in the initial
stages.
14 Fundraising and
CB
Creating fodder sector
databases for performance
benchmarking and networking
with other BDS providers (even
international)
MoA, MNE,
NGOs, Coops
Medium Needs stronger
coordination and
advocacy as a
lobby to start
efficiently.
Table nr.2: Action Plan/ Resume of Interventions for the FCN in Palestine.
Note: The AP as presented above focuses on outward-leaning market-oriented activities; it
does not include programme design and management activities, or the establishment of
programme participant and beneficiary baselines, and even the engagement of stakeholders
in committing to the execution of a 5-year programme is only a first picture.

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