2. I. PROJECT MANAGEMENT
NATIONAL LEVEL AGRIBUSINESS AND PRIVATIZATION PROJECT MANAGEMENT: THE PRIVATE
SECTOR
COPof twomajor national levelUSAIDprojectsfora total of 7 years.Both of these projects were funded
at more than $13.5 MM. They were bothsuccessful. Sustainingthe RestructuredFertilizerSectorin
AlbaniaSRFSA closedin1999. The second,the Assistance toAlbanianAgricultural Trade Associations
AAATA wasto followforafull five years inthe three plustwocontract.
USDA CountryDirectorfor the Foodfor Progressproject whichranparallel tothe lastyear of the AAATA
projectand byauctioningUS yellowcornandsoybeansraised$4MM. These fundswentto a revolving
creditfundinthe AlbanianAmericanBank focusingonlarge dairyoperations andtechnical assistance
for supportto the two national level Apex agricultural associations(ABMCandKASH) targetinganimal
feedproduction.AsCountryDirector,besidesmanaginglogisticsandauctions,Isuccessfullycoordinated
a national campaigntogain parliamentaryacceptance of USGMO products.This campaignwas based
on a national mediadebate (TV,radioandprint) andsupport activitiesbyseveral agricultural trade
associationsaswell asthe national farmers union(BKSH).
These twoprojectsaddressedmarketdevelopmentinbothinputandoutputmarketswhichhadto be
resurrected after45 yearsof Stalinistagriculturalpolicy.
INSTITUTIONALISATION OF AGRICULTURAL AND RURAL DEVELOPMENT: THE PUBLIC SECTOR
Helpedplanand establishaDepartmentwithin the NigerianMinistryof Agriculture tomanage IBRD
fundedstate wide integratedrural developmentprojects. Thisinstitutionthe Federal Agricultural
CoordinatingUnit(FACU) was createdbythe IBRD underitsAgricultural Technical Assistance Project
(ATAP) implementthe GreenRevolutionin Nigeria.This agency still functionsandhasestablished23
statewide agricultural developmentprojects(asof 2010)
Besides planningandimplementingthisinstitution,provided policyandprogramconceptsforthe
catalyzationof several statewideAgricultural DevelopmentAreas(ADAs) whichwerethe precursorsof
the IBRD partiallyfinancedAgricultural DevelopmentProgram(ADPs) andintime were phasedinto23
full IBRDADP projects. Ihave workedinconnectiontothese projectsformore than25 years andhow
theyhave developedovertime.
Besideshelpinginthe establishmentof FACU,assistedinconceptdevelopmentforvariouselementsof
these projects: commercial Services(inputs),extension(didaproposal forinstitutingthe T&V system to
the Ministryof Finance) andprojectagricultural research.Ialsohelpedaddressfoodsecurityissues
connectedwiththese projects.Ialsohelpedinstitutethe inputfunctioninthree ADASinGongola,
Bornu,and Imostates.
3. The most important lessonfromthisexperience isthatitprovidedaconceptual baseline foragricultural
projectscarriedouton a national level whethertheyare publicorprivatelyoriented.
PROJECT MANAGEMENT IN CONFLICT AND/OR POLITICALLY UNSTABLE AREAS
Developedanapproachto managingprojectsat a distance made necessarybyproblemsdue tohost
countryconflictsanddestabilizingpolitical events. Asan example asCOP,I successfullymanaged
planningandimplementation amultimilliondollarUSAIDproject forAlbania(USAID/AAATA)whenout
of countryfor a periodof nine months. Inthe same period,Ihelped manage the closure of another
USAID project. Thisapproachwas first developedwhenevacuatedbyhelicopterfromAlbaniain1997 in
whichthe USAID SRFSA projectwasmanagedout of Rome for three months.
Thisapproach wasalso basedonexperience learnedfromimplementing variousIBRDprojects inNigeria
duringtwocoup d’étatinNigeriaaswell asotherconflictsituations. Ileadorwaspart of negotiating
teamsdealingwithethnicconflictsordisputes.InBornustate,I negotiated withFulani pastoralists
concerningterritorial issuesinfertilizerdistribution andworkedwithKanuri DistrictandVillage Headsto
arrange forfertilizertransportandstorage on weeklymarketdays. Manylessonswere learnedin
implementingthe procurementanddistributionnationallyof 850,000 MT of IBRD fertilizerimmediately
afterthe 1983 militarycoup.
Part of mediatingteambetween MWKelloggandthe National FertilizerCompanyof Nigeria(NAFCON)
and communityleadersonlandissuesandeffective partnershipwithtribal/local governments
concerningtribal landuponwhichtwolarge internationalstandardfertilizerfactorieswere built.Ethnic
issuescanimpede the managementof projectsandneedssome negotiationskillstoresolvewhatcan
become the critical pathto any program.
II.AGRICULTURAL INPUTS
FERTILIZER
Nigeria1
Workedwiththe IBRD to makingmajorpolicychangesinthe Nigerianfertilizersectorwhichatthattime
was totallycontrolledby the Federal Governmentof Nigeria.Basedonstate levelexperimentation,
increased the national retail price tocoverlogisticsanddistributioncosts andcreated nearly60 new
distributionpointsreducingtransportcostsbydeliveringfertilizerclose tofinal rural markets.
Developedasystemof distributingfertilizerinthe deepSavannabasedonusingweeklyperiodic
marketsand agreementswithlocal andvillage governance toprovide freestorage sothatfertilizercould
remainat village marketsuntilfollowingmarketdays. Use of periodicmarketsmade constructionof
projectownedretail andstorage inputinfrastructure unnecessaryandmodified previousIBRD
approachesto fertilizerdistributioninitsAgricultural DevelopmentProjects.
4. Under the IBRD NigeriaFertilizerLoanof 1984 ($250MM), managedthe marketingandlogisticsof the
importationanddistributionof nearlyamilliontonsof fertilizerintoNigeriawhichconsistedof 55 ships
(10,000 to 25,000 MT) throughfive portsusingapproximately700 unittrainsand 25,000 lorryloadsto
all distributioncentersinall statesof Nigeria. The projectalsoutilizedbargesonthe Benue Riverwhich
had notbeendone previously.Bargeswentfromthe NigerDeltaall the waytoYolaand Jimetaonthe
Cameroonborder. Deliverywasmade tostate ministriesof agriculture,IBRDprojects,university
researchcenters,riverbasinauthorities,andstate farms.All deliverieswerebasedonagronomicneeds
of productionsuchthatbasal fertilizerswentfirstmovingsouthtonorthaccordingto rainfall patterns,
whichincludedbothdouble(SouthernNigeria-rice andmaize) andsingle seasons(NorthernNigeria-
sorghum,millet,andcowpea.
Introducedhighnutrientfertilizers,particularlyUreaandDAP.DAPhad neverbeenusedinNigeria
before.Bothfertilizerswere partof the GreenRevolutionpackage of practices.
Thiseffortwas praisedinthe 1985 Financial TimesNigeriaSupplement.
Albania
IntroducedDAPforthe firsttime intoto Albaniawhichhadpreviouslyusedalow grade Single
Superphosphate(SSP).Itwasauctionedoff initiallyatbelow marketpricesbutwithinayeardue to
performance wassoldatinternational price levels.
Withthe introductionof hightechIsraeli greenhousesintroducedliquidfertilizersusedinfertigation
systems.
Nigeria2
Under the USAID MARKETS project in2006 conceivedandimplementedanational levelfertilizersurvey
underthe auspicesof The FertilizerSuppliersandProducersAssociationof Nigeria(FEPSAN).Thissurvey
was coordinated withState Ministriesof Agriculture andvariousagricultural projects whichcarriedout
questionnaires.Thissurveyfoundthe FAOestimatestobe deficientinseveral areas.Thissurveystill
providesabaseline forNigerianfertilizerdemand several yearslater.
SEED
Albania
Subsequenttonearly50 yearsof governmentseedproductionandcontrol underStalinistagriculture,
catalyzeda private seedproductioncapabilityin Albania.Thiswasdone byfirstintroducingfrom
surroundingcountries(Greece andItaly) qualityseedvarietiesproducedinmodernscientificconditions.
Thisrequiredachange in the seedlawas lobbiedforbyAFADA andIFDC. Subsequentlyasformer
governmentseedworkersbecame involvedinfertilizermarketing,assisted themviatechnical expertise
and finance tobegincertifiedseedproductionforthose cropsinwhichtheyhadexpertiseand
experience. . By 1999 private sales of certified seed is valued at $3.8 MM. 5000 MT of certified
seed.
5. The projectassistedinreformingthe National Seedlaw andopenedanew marketforimportedand
locallyproducedseed.Asatechnical follow-up,the projectinstalledanational seedlabandgermplasm
preservationfacility.
Resurrectionof the l seedindustryactivitiesfroman$18,500 businessincertifiedseedinthe beginning
of the projectgrewto almost$4 MM in fouryearsacross multiple firmsandcrops.The CPC business
grewequallyfastgoingfromnil in1995 to $5.3 MM in 1999.
Nigeria
As agricultural advisortothe large USAIDMARKETS projectinNigeria,helpeddevelopaprivate seed
industry, workingthe NationalNigerianSeedAssociation. Coordinationwiththese new seedsuppliers
enabledthe projecttointroduce anewnational rice varietyinNigerState whichisthe largestrice
producingstate inNigeria. The three companiessupportedbythe projectprovidedthe certifiedseed
uponwhichthe package of practiceswasbased.
Under the IBRD ATAPprogramme,introducednew andbetterseedforgrainssuchas corn, sorghum,
and milletbasedonseedbreedingbyFederal andState researchfarmsaswell asbestvarietiesof
cassava as developedbyIITA. These were marketedlocallyviathe commercialservicesunitsof the IBRD
integratedrural developmentprojects(ADPsandADAs).
CPC
Under the auspicesof USAIDMARKETS, the projectwasable to provide amajor value chainintervention
basedon introducinganewrice varietyina package of practicesledbytwomajor CPCgroups.This was
an innovationasitwas one of the fewcaseswhere suchchanges in inputpackagesof practices were led
by CPCcompanies versusseedorfertilizercompanies. Thiswasnecessitated Inthe Nigeriansituation,
because fertilizerislargelyimpactedbygovernmentandthere wasa limitedprivateseedindustry.
The introductionof the newpackage of practiceswas part of a commodityvalue chainInterventionto
move rice productiontotypespreferredbyurbanpopulationswhowerelargelydependenton imports
fromSoutheastAsia.The varietiesintroduced,Faro44 and 52 are longgrainand have qualities similarto
the popularThai rice imports.The package of practicesinitiallytargetedatthe FadamaNorth of the
NigerRiverwentstatewide infirstseasonquadruplingexpectedadopters.A private sectoragro-
processor,basedonthissuccess,introduced similarrice productiononthe Fadamasouthof the Niger
RiverinKwara state.
III.COMMERCIALIZATIONAND PRIVATIZATION:SECTORS, INDUSTRIES, AND
FIRMS
COMMERCIALIZATIONOF GOVERNMENT AGENCIESAND PARASTATALS
6. Commercializingas muchas possible governmentagenciesorparastatalsbringsaboutefficienciesand
benefitstofarmers.Ingeneral itisalessdesirable approachthanprivatization,butsometimesthe
political contextwill notallow the latter.Igive three examplesof commerciallyorientedadjustments
made to governmentfertilizerdistributionunits;two atthe state level in Nigeriaand thenreformsmade
at the Federal level.Inthese situations,state andfederal distributionagenciesactedmore like
commercial entities resultingin the firstsuccessful fertilizerdistributioncampaigninthe country’s
history.See the NigerianSupplementof the Financial Times1985.
Bornu State
My earlyworkonIBRD IntegratedRural DevelopmentProgramssoughtpractical adjustmentstothe
Commercial Servicesunits.One importantpointof interventionwas logisticsandtransport.InNigeria,
my national level work/reformwasbasedonexperimentsatthe state level. InBornustate (Northern
Nigeria), Iinstitutedtwo logistical solutionsthatactivatedthe state fertilizerdistributionsystem.First,I
arrangedwiththe Federal ProcurementandDistributionDivisionof the Ministryof Agriculturetosend
fertilizerlorries(35MT) to locationsinthe state havingstorage and staff ratherthan havingitbe
offloadedatthe central depot.Notonlydiditreduce the numberof timesfertilizerwasoffloadedand
reloaded,itenabledtogetthe fertilizeroutbecause the state transportunithadcollapsed.Once lorries
offloadedatlocal governmentstores,itwaspossibletofurtherrefinedistributionbyestablishinga
village transportsystembasedonusingsmallertrucks(rentedratherthan State owned) takingfertilizer
to villagesonmarketday.Thisintentional use of periodicmarketsallowedtransportdirectlytothe
villages.Villageschosentoparticipate inthisscheme wereselectedbasedonagreementswithdistrict
and village headstoprovide freesecure storage close tothe marketsuchthatunsoldfertilizercouldbe
keptthere until the followingmarketwhenitwent forsale again.
A majorcause of the breakdownof the state transportfleetwasthat there were manybrandsinthe
fleetcause fromgivenprocurementcontractstoseveral people connectedtogovernment.Thismeant
that there wasno possibilitytocannibalize partsfromone truckto another.A major reformwasa
determinationbythe Ministryof Agriculture toinsist onone brand of tractor allowingforthe possibility
of cannibalizationforreplacementparts.A similarproblemplaguedthe state tractorunitsandit also
was changedtofocus ona particularbrandof tractor. Many efficienciescame fromthese reforms.
FertilizerinNigeriawascorruptat all levelsfromporttostate storage.Theftat central warehouse was
commonand there wasa needto determine actual levelsof fertilizeravailableandthatmissing.Rather
than inventoryingfertilizerbagsat these warehouses,intactbagswere transportedoutandsoldinthe
marketand once all bags were gone;itwaspossible todeterminethe quantitymissingandfindthose
accountable. TransportefficiencieslearnedfromBornuwere laterappliedonanational level.
Imo States
In institutingefficienciesinImoState where the situationwasworse bothintermsof warehousingand
fertilizerloss.Ministrytruckswere similarlybroke down andafterlobbyingthe State Council of
Ministersitwasagreedto raise the price of fertilizersufficienttocoverthe cost of distribution. This
council wasbrave in that itwas essentiallydisregardingthe Federal imposedprice.Itwasconsidereda
7. breakthroughbythe IBRD. Truckswere able to be rentedonce a successful negotiationhadbeenmade
withthe state lorry union.
Federal Level
In 1984, the IBRD made a controversial loantoNigeriatoprovide $250 MM forfertilizertoNigeriafor
the 1984 and 1985. Basedon the leverage providedbythe loanthe Federal Ministryof Agriculture
agreedto several reformswhichweredetailedintwoIBRDPreparationReportsinwhichIwas the
marketingandlogisticsexpert. First, fertilizerprocurementwasbasedona transparenttenderand
biddingprocessresultinginsignificantsavingstothe country.Inthe country’sfirsttenderunderthe new
democraticgovernment1981 resultedinfertilizerbeingpriceddoubleinternational rates.Secondly,the
price of fertilizerwasincreasedbyamargin correspondingtothe costof distribution.Thirdly,the
numberof national receivingpintswasincreasedfrom19to 60 resultinginsignificantsavingsin
transportcosts. Procurementof lorry transportwasalsobasedon a tenderprocesswhichwas
completive ascontractorsbidbasedontransportgeography;eachcontractor biddingacrossten
concentricdeliverybandsfromeachof the five ports.Importantly,transportbecame intermodal,with
successful use of the trainsystembasedonunittrains,andbarge trafficupthe NigerandBenue rivers.
Similarcompletive procurementof clearingagents wasmade basedonelementsof clearingatthe five
Ports:Lagos (2), Warri,Port Harcourt, and Calabar.Thisdistributioneffortwasconductedduringa
periodof political transitiondue tothe 1983 coup.
My mostimportantefforttoliberalize the Nigerianfertilizerdistributionsystemcame ina1994
consultancytothe NigerianMinisterof agriculture inwhichIrecommendedatwoyeartransitionin
privatizingthe sector.Underthis‘bigbang’approachI recommended thatgovernmentlooktolarge
commodityfirmstotake overmuch of fertilizerimport. While myrecommendationwasnotfollowed
completely,the Nigeriangovernmentliberalizedthe fertilizermarketin1997.
Sadlywiththe returnto a democraticallyelectedgovernmenttwoyearslateranew subsidysystemwas
instituted.Itisanabsolute thatif governmentisinvolvedinanywaywiththe commercial functionsof
fertilizerdistribution,farmerswill ultimatelypayapremiumonproductand the fertilizerwill be
deliveredlate. My positionagainstsubsidiesof anykind,includingthe voucherapproachwasvindicated
by IFPRIin2013. Oldhabitsdie hard.
PRIVATIZATION OF MARKETS, INDUSTRIES, AND COMPANIES
Albania
The goal of any interventionininputmarketshouldbe complete privatizationof the process.By
successfullyauctioningUSAIDUREA andDAP in1992 my projectcatalyzedentrepreneurswhotogether
ultimatelycreated aprivate marketinfertilizerandotherinputsafterdecadesof Stalinistagriculture.
These newentrepreneurs notonlyprovidedabasisfora free marketininputsbutalso sparked
privatizationinthe outputsector.The privatizationof the Albanianoutputsystembothproductionand
processingwasmore complicatedthanthatof inputs.There wasa debate concerningapproachesto
privatizationof these typesof facilities.There wasastrongopinionbysome Europeanspecialiststhat
8. there neededtobe reconstructionbefore privatizationandthere wasadebate onthis matterat a
national congressconvenedbythe IFDCProject. Inthe end,the debate wasirrelevanttowhatactually
happened.Entrepreneursdecidedwhichapproachwasappropriate butgenerallyfacilitieswere just
takenoverand made to worksubsequenttoownershiportheyjustbuiltsimilarmore modernfacilities
fromscratch. The projectsupportedthese effortsbycollaboratingandsupportingentrepreneursas
organizedintrade associations.Trade associationsbecame the targetforfinance andtechnical
assistance.
Successincatalyzingentrepreneurstosustainamarketininputsledtoother consultancy worksome of
whichare givenbelow:
In summary, concerning privatization, entrepreneurs will generally arise to well thought out
opportunities, particularly if supported on a parallel basis by finance and technical assistance.
In this process, donor projects and programs do best if they do not try to achieve transition to
free markets by incremental solutions. Many bad ideas come from incremental approaches. As
an example, some experts in the IBRD suggested converting project commercial services units
into limited liability companies to be registered on the Nigerian stock market. It never
happened because markets do not stop at administrative boundaries. Much time was spent in
thinking about this approach and piecemeal introductions when THE transition came when the
Government of Nigeria liberalized the fertilizer market in one year. Companies either
integrated fertilizer into their bulk commodity business or entrepreneurs/companies sprang up
to sale newly freed fertilizer product. Another example, of experts killing privatization by over
think was a specialist team, recommending to government that the subsidy on fertilizer should
be reduced by ‘47%’ over a seven year period. This concept was the competing approach to the
‘big bang’ two year transition recommended by myself.
IV.ENVIRONMENTAND FOOD SECURITY
My involvementinappropriate environmental practiceshasbeenprimarilyfocusedon soil protection
especiallyasitfertilizedtoincrease foodproduction.Thishasbeendone intwoways,modifying
approachesto fertilizeruse and analysisof soilsastheymaybe overdosedwithparticular
macronutrients.
ENVIRONMENT AND SOILS
Nigeria
It was an objective of the IBRD$250 MM loanto Nigeriathatthere be a shiftto highanalysisfertilizer,
specificallyUrea,DiammoniumPhosphate (DAP)andMuriate of Potashnot onlybecause theyare labor
and cost efficientinthatlesstransport,storage,andapplicationisrequiredbutalsobecause theyare
more efficientinapplicationof the appropriate rate of nutrient.Nigeria’spreferencefora1:1:1 ratio
such as 15:1`5:15 loadssoilswithunnecessarylevelsof phosphorusandpotassium.InthisIBRDloan
9. projectthere wasan intentional efforttoreduce potassiumapplicationratesinNorthernNigeria(the
largestconsumingarea) andas much as possible givenverylimitedprovide farmerapplicationratesthat
wouldoptimize phosphoroususe.Thisconcernresultedinthe initiationviaNAFCON in1987 to develop
a national soil map,similarthatprovidedbythe FertilizerAssociationof India.Contractswere made
withseveral researchinstitutesanduniversitiestoundertake thisactivity.Developmentof a national
soil maptook 20 yearsfinallycompletedunderthe initial orientationbyFAO.
Thissoil map allowedseriousanalysisof the appropriate levelsof macronutrientapplicationinhigh
consumptionzonesof NorthernNigeria.Thusnearly20yearsafterhavingstartedthe developmentof
the Nigeriansoil mapIwas able toassessthe implicationsof existingfertilizeruse in2006. Thiswas
done ina collaborativeeffortwiththe Soil ScienceEmeritusof the Universityof Ibadanandthe FAOSoil
Scientists.ThiseffortresultedinUSAIDpublishingthe Nutrient Rationalization in Nigerian Compound
Fertilizers (NPK) with Special Focus on Phosphorous and Potassium Utilization .Thiswasthe firsttrue
analysisof fertilizeruse ona global scale inNigeriaafterspending$Billionsovera30 yearperiod.
Began the developmentof anational soil mapof Nigeriaaspart of the 1987 NAFCON marketingplan
whichwasultimatelycompletedbythe FAOandwas usedin2006 to determine whetherthe structure
of fertilizeruse inNigeriawasenvironmentallyandeconomicallyappropriate.ThisUSAIDstudy Nutrient
Rationalization in Nigerian CompoundFertilizers(NPK)With a Special Focuson Phosphorousand
Potassium, co-authoredwithtwoof Nigeria’sbestsoil scientistsclearly showedthe overuse of PandK
comingfromthe applicationof the 15:15:15 Europeanproduct.Thisproduct hadbeena preferred
productof the FertilizerDivisionof the NigerianMinistryof Agriculturesince the 1970s. Co-authored
majorstudywithFAO utilizationof fertilizerproductinNigeria, NutrientRationalization in Nigerian
Compound Fertilizers(NPK) withSpecialFocuson Phosphorousand PotassiumUtilization,which is now
presentlywidelydistributedinAfricaanddownloadable onthe internet. Myco authorand Technical
Referee isnow the National Presidentof OrganicAgricultureinNigeria. The endresultof thisstudy
alreadyevidenttoseriousfertilizerexpertswasthatwhile there were some areasneedingK,several did
not andthe use of 15:15:15 throughthe years resultedinoverloadinginmuchof the mid-beltstatesand
inthe twomajor consumerKanoandKaduna.However,the mostglaringdiscoverywasthe Phadbeen
systematicallyoverloadedinasmuchof the Northhad highor moderate Pin the soils.Again,the
15:15:15 fertilizerproductalwayspurchasedbythe governmentandmanyprivate firmsjustfollowing
the governmentexample andformal fertilizerapplicationratesmeanthat$100s of millionshave been
wastedandbecame a burdenon small farmerswhowere payingtoomuchfortheirsoil amendments.
Importantly,thisfertilizerproductisassociatedwithmuchof the procurementcorruptionthathastaken
place inNigeriainthe last30 years.
Thisstudywhichis controversial tothose still abusingNigeriansoilscanbe downloadedtosee my
technical workas the study’sSOWwas developedbymyself knowingthe general problemwell andwas
editedtoclarifytechnical issuesbymyunit.Several hundredcopieswere distributedtothe states. An
indicationof itsimpactontechnical thinkingwasastrong counterargumentbythe Federal
ProcurementandDistributionDivisionof the FederalMinistryof Agriculture.
10. Lessonslearnedhere isthatthe solutiontobigproblemsrequireslongtermcommitmentand
perseverance.Similartechnical issuesexistinmanyareasof developingagriculture andrequirealong
termplan toresolve them.
Albania
Based on my Nigerian experience, when USAID introduced DAP into Albanian in 1992, it was
marketed well and became the fertilizer of choice with Urea. Concomitant with the institution of
a soil and fertilizer laboratory, the project supported the National Soil Institute in carrying out a
large K study in Albania to determine what levels it existed in Albanian soils and what fertilizer
types would be appropriate for Albanian farmers. This also had been a long term question that
was solved by large scale soil study as facilitated by the project.
FOOD SECURITY
The NigerianATAPprojectwasthe IBRD’seffortto introduce the GreenRevolutionintoNigeriaandwas
fromthe beginningafoodsecurityeffort.Helpingfarmersproduce more meansmore foodforthe
population.Itdidthisbyintroducingpackagesof practicesfornew more highyieldingvarietiesof crops
traditionallygrownbyNigerianfarmers.Notonlywasaconcernfor foodsecurityintegratedintothe
policiesof FACU,eachstate inwhichan Agricultural DevelopmentProjectwasinstitutedwasprovided
newvarieties,newgrowingtechniquessuchasminimum tillage,andinmanycasesthe promotionof a
newcrop normallynotgrownby farmersbutwhichcouldcontribute toincreasedcarbohydrate
availability.Asanexample in ImoADA, the projectintroducedconceptof minimumtillage concept in
whathad been formerly aslashandburn agriculture. Thisintroductionwas basedonIITA experiments.
Otherissuesaddressedwere the proteindeficiencyoftenaccompanyingthe cassavadependencyof the
Igbodiet. The minimumtillageaspectsof asoil managementprogram forsoil fertilityaddresseddirectly
the soil destructioncomingfrom exposure of lateriticsoils.
V.ENTREPRENEURIAL CATALYZATIONAND DEVELOPMENT
Workedto catalyze inputentrepreneursviavariousmethodologiesinseveral countries. These are given
by countrywhere these methodologieswere implemented.
Albania.
My earlyworkinAlbaniawhichresultedinthe creationof astrongcadre of complete inputdealers
basedon earlyauctionsof USAIDfertilizerbecame atemplate inseveralcountries,thoughthe
commoditydifferedinsome cases.The inputmarketinAlbaniawasactivatedby auctioningUSAIDUrea
and DAPfertilizerproduct.These newentrepreneurswentontonot onlyprivatize the marketsfor
11. marketsforcertified seedandCPC. Havingbeencapitalizedbythe salesof USAIDfertilizerproductthey
were able totake advantage of the oversupplyof CPCbythe EU andIBRD who hadprovidedtothe old
state systemandboughtup virtuallyall the inventoryof the EU and IBRD programs.
Developmentof theircapabilitieswasmade possiblebyestablishingtheirowntrade unionAFADA
(whichrecentlycelebratedtheir20th
year anniversary). Thistrade associationineffectbecame atarget
clusterfortechnical assistance andfinancial aid.AFADA alsoledtothe firstactive governmental
lobbyingeffortbythe private sector.New lawswere enactedandotherreformswere made underthe
auspicesof AFADA.OtherindustriesinAlbaniafollowedthe trade associationdevelopmental approach
whichkickstartedprivate managementof severaloutputindustriesdetailedinthe sectionontrade
association.
Subsequently,entrepreneurshipinAlbaniafocusedonoutputmarketingandprocessing.Asbythat
time,all governmententerpriseshadbeenprivatizedbybeingsoldoff toinvestors,the majoreffortto
developagribusinesswasbytrainingandtechnical assistance.Onanumericbasis,itisestimatedthat
AAATA supported5,900 entrepreneursviaindividual TA,trainings,andtrade missions.Formal trainingin
situwas provided toover300 agribusinessesandtheirstaff. The projectsupportedsevencore
agricultural trade associations,twoassociationapexes,the largestof whichKASHwasconstitutedby28
associationsandorganizations,twocreditunions,the nationalfarmers union,andanassociationbased
thinktankconsistingof technical expertsfromthe variousindustriessupported.
Elsewhere
Similarfollow-onactivitieselsewhere includedaUSAIDfundedcommodityauction(feedconcentrate)in
Romaniaand provisionof astrategyforan IBRD projectinArmenia.A similardevelopmentalapproach
was usedinNigeriaforcertifiedseedcompanieswhichwere broughtfromearlytechnological
developmenttomarketactivityinseveral cropareas,mostnotablyrice.
VI. FERTLIZER COMPANY MARKETING MANAGEMENT
Nigeria
Significantexperience inthe internationalprivate sector,particularlymarketing. Earlyworkwaswith
MW Kellogg,the fertilizerengineeringfirm.Earlyonwaspart of itsmarketingteamsecondedtothe
Ministryof Agriculture FertilizerProcurementandDistributionDivisiontomarket845,000MT of fertilizer
product.Later whenithad builtitstwofertilizerfactoriesinOnne,Nigeria;IwaspromotedtoNational
MarketingConsultantresponsible forall domesticmarketingfromthe Urea/AmmoniaandCompound
FertilizerFacilities.Thiswasasa part of it jointventure withthe NigerianMinistryof IndustriesNAFCON
(National FertilizerCompanyof Nigeria.IestablisheditsNorthernoffice inKadunawhere fertilizer
demandwasgreatest.Laterbecame National Logisticsmanagerresponsibleforprocurementof
transport(all modes),clearingagents,andexpertonthe plannedextensionof the NigerianNational
Railwaytothe Onne facilities.
12. Lead efforttoprovide Indianengineeringstaff tobothfactoriesbasedonimportanteconomiesuntil
Nigerianstaff couldbe broughtupto standard. NegotiatedinNew Delhi withseveralprivate fertilizer
companiesinIndiaaswell asthe national parastatal,the FertilizerCompanyof India tosupplytargeted
staff. Thiseffortwasultimatelyrejectedresultinginhigherrunningcoststhatmay have resultedinearly
closure because of costof US staff and limitationsof Nigerianengineers.
Albania
Developedmarketingpoliciesforthe twoAlbaniafertilizerfactoriesone producingUrea,the otherSSP.
Marketingpolicesforthe Urea factoryenabledthe governmentcompanytoclearthe productthat had
accumulatedandcongesteditsfacilities. Establishedatrade creditpolicywithnewlycatalyzed
entrepreneurswhichresultedinfinancedfertilizerbeingsoldintargetedproductionareasandwithin
logistical perimetersconsistentwithappropriate use of projecttrucks.The trade creditpolicy atthe SSP
factoryallowedittocontinue workforsome yearsbasedon boththe marketingpolicyandthe factory’s
progressive leadership. These twomarketingpoliciesallowedthe factoriestocontinue forlongerthan
expected.Headof effortstoprivatizethe Ureafactorywhichwas Chinese built,liaisingwiththe Chinese
governmentanditslocal missionuntil the AlbanianMinistryof Finance tookover.
VII.TECHNOLOGY AND TECHNOLOGY TRANSFER
ALBANIA
Supportto PublicTechnologyInstitutions: EstablishmentandTraining.Runningparallel tothe
developmentof free marketsininputsandoutputs inAlbania,myprojects alsostrengthened
institutional depthbyincreasing the technical capabilityof relatedresearchinstitutes.Iwasfortunate to
have beenpartof the teamor managedsupportof researchinstitutions.Followingthe logical sequence
of marketdevelopmentfrominputstooutputs;the projectiteratedfrominputrelatedpublic
institutionslike the AlbanianNationalSoil Institute andthe National SeedInstituteto analogousoutput
and foodrelatedinstitutionslikethe National FoodResearchInstitute andNational VeterinaryInstitute.
I believethattohave beena technical specialistrehabilitatingtheseinstitutions asthe concomitant
marketswere developedprovidesaninsightintowhatisrequiredfrompublicresearchinstitutionsto
helpindustriesdevelopcompetitively.Thiscontinuousunbrokenexperience inAlbaniadeepenedmy
alreadystrongexperience inNigerianbybeinginthe processof logical sequential developmentof
technologyresearchanddevelopmentacrosstime andsectors.
Some detailsfollow:
1.Albanian National Soil Institute.The installationof twolaboratoriestoassesssoilsandfertilizersin
the AlbanianNational SoilInstitute allowedthatinstitutetoconductstudiesthathadwaitedfor
decades.The soil surveysenabledbythe installationof the soil laboratoryansweredtechnical questions
of the highestimportance.The mostimportantdiscoverywasthatasthoughtby manysoil scientists
manyAlbaniansoilsare potassiumdeficient. Thisrequiredanew emphasisonimportinghighanalysis
potassicfertilizerslike Muriate of Potash-MOP(60% K).Suchimportationbalancedthe N andP coming
13. fromUrea andDiammoniumPhosphate.These soiltestinglaboratoriesalsocontributedtoimproved
agricultural productionbyprovidingguidelinesforfertilizerblendingusingUrea,DAP, andMOP.
An additional benefitwasAlbaniansoil datawasforthe firsttime was introducedintothe Geographic
Database of Europe.Anotherscientificbenefitwastoenable the institute tointroduce amore
international systemof soil classification;ratherthanhavingtoreference the Russiansystem;the
institute developedanewnational soil mapbasedonUSDA soil taxonomy.
Additionally,the Soil Institute wasenabledtosupportnew national FertilizerLawsandRegulations.
Probablythe mostimportantapplicationof thiscapabilitywastotestimportedfertilizerproductto
determine whetherithadthe nutrientsadvertizedordisplayed.The projectalsoconceivedanational
agencyto fertilizertesting.
2.National Seed Institute. The projectinstalledatthisinstitute aseedtestinglaboratoryand
germplasmstorage unit.Thiswasa natural follow-uptothe introductionof improvedseedforwheat
and maize.The newseedlaboratoryfacilitatedthe productionof certifiedseedincountry.Italsotested
brandedimportstodetermine theirqualityandcharacteristics.The laboratorywasimmediatelyputto
use as there were 5,600 seedlotstestedinthe firstyear.The gene bankreportedover3,700 accessions
of seedsamples,mainlywheatforconservation. Albaniagainedmembershipinthe International Seed
TestingAssociation.
In subsequentyearsthe germplasmcropcollectiongrew to230 herbaceous speciesand30 shrub and
tree species.260 species,subspecies,andvarietieswere identified.80 are those cultivatedandanother
80 are spontaneous.Thisdatacome fromMED-O-MED whichconservesbiodiversityandnatural cultural
heritage inthe Westand East basinsof the Mediterranean
3. Food Research and Veterinary Research Institutes.Asthe projectgrew and changedso that it
focusedonoutputindustriesconnectedwithFoodandVeterinaryProducts,itbegantohelptwo
National foodrelatedinstitutions;the FoodResearchInstitute(FRI) andthe VeterinaryResearch
Institute (VRI).These institutionswere helpedbygainingthemandtheirworkrecognitionviaamedia
campaignand helpingthemfocusonkeyfoodindustryproblems. The mediaworkwasbasedonradio
and TV talkshowswhere Albanianscouldinquire aboutaspectsof foodsafety.Twoexamplesof the
technical worksupportedbythe projectthatenabledthese institutestofunctionastheyshouldwere:a)
a olive oil producingandprocessingcampaigninSouthernAlbanialedbyGreekexpertsandthe FRI.This
campaignresultedinAlbanianproducingextra virginoliveoil forthe firsttime.The VRIalongwiththe
poultryindustrytrade associationconductedaworkshoponthe role of poultryproducers‘self control
labs.’Directsupportto these institutionswastrainingorientedtofoodqualityandsafety. Theywere
supportedbytraininginFoodManufacturingPractices/HazardAnalysisCritical Control(GMP/HACCP).
FRI andVRI were broughtintothe efforttoreformthe Law on Foodinorder to be harmonizedwith
respective Europeanlaws. Workalsocommenced onthe AlbanianCodex Alimentarius-national
regulationsonfoodsafety,standardsandpractical rules.
14. The VRI wasassistedintransitioningfromacentrallyplannedsystemforlivestockproductiontoanopen
marketwhichincreasedthe complexityof testingforanimal diseasessuchastuberculosis,brucellosis,
and anthrax.
4. Private Agricultural Extension Systems. Basedon the US inputssalessystem, the projectsought
to establish aPrivate SectorExtension System(PSES) incollaborationwiththe EuropeanSymposiumon
ExtensionandEducation.The Albanianinputtrade association(now celebratingits22nd
year) AFADA
was seenasan alternative/complementaryapproachtocostlytraditional governmentextension
systems.Itwasobviousthatjustas Europeanextensionagencieswere beingcutbackor shutdownit
didnot make sense tofunda governmentsysteminAlbaniawhose budgetismuchless.Inthis
approach,active educatedagricultural inputdealers(there were manyeducatedinputdealerscoming
fromformercentrallyplannedagencies)inextensionmethodologies.Theywere trainedfortwoyearsin
these methodologiesandthenletloose toprovide agricultural advice aspartof theirproductline.
NIGERIA
1.PROJECT EXTENSION PROGRAMMING
Developed agricultural extensionpolicypaperforFACUbasedon T&V Systemwhichwassubmittedto
the National Nigerian Technical Councilinparticulartothe Ministerof Finance.These conceptsbecame
part of the programmingof the statewide IBRDintegratedrural developmentprojectsimplemented
underthe IBRD ATAPloan.
2.NATIONAL LEVEL SOILS ANALYSIS AND MAPPING
Negotiatedwithagricultural universitiesonappliedresearchneededforanational soilsmapbasedon
that of the FertilizerAssociationof India.Thisresearchwasinitiatedbasedon1:1:1 ratioof NPKlikely
resultinginoverdosingof PandK. Part of technical teamsdealingwithpossibilityof micronutrients
Beganthe developmentof thisnational soil mapof Nigeriaaspart of the 1987 NAFCON marketingplan
whichwasultimatelycompletedbylocal FAOteamandwas usedin2006 to determine whetherthe
structure of fertilizeruse inNigeriawasenvironmentallyandeconomicallyappropriate. ThisUSAID
study NutrientRationalization in Nigerian Compound Fertilizers(NPK)With a SpecialFocuson
Phosphorousand Potassium, co-authoredwithtwoof Nigeria’sbestsoil scientistsclearlyshowedthe
overuse of P andK comingfrom the applicationof the 15:15:15 Europeanproduct.Thisproduct had
beena preferredproductof the FertilizerDivisionof the NigerianMinistryof Agriculturesince the
1970s.
VIII.HORTICULTURE
15. The AAATA projectapproachedvalue chainssystematicallyandusedthe institutional resourcesof the
relevanttrade association,the National FarmersUnion,andthe council of Albanianagricultural experts
(KEA).A goodexample of howthe projectapproachedaparticularvalue chainisin horticulture.
Havingfacilitatedthe organizationof the AlbanianHorticultural Association,the projectbegantohear
fromconstituententrepreneursthatgreenhouseslookedtobe a strategicopportunity.This was
confirmedbyKEA. Basedon these insightsthe projectundertooktwocomparativeadvantage studies
earlyinthe projecton vegetable productionandgreenhouses. Usingthe PolicyAnalysisMatrices(PAM)
approach itwas foundthatboth fieldvegetable productionandgreenhouseswere competitive.
The fieldvegetable activitieswereinitiatedbythe projectcoordinatingwiththe verystronginput
associationAFADA,local committeesof the National FarmersUnion,andwithtechnical expertsfrom
KEA,to introduce varioustypesof vegetables,withanemphasisontomatoes,cucumbers,potatoes,and
othercrops. Active inputdealerswithprojectagronomistsidentifiedthe mostpotential areasandbegan
to promote the crops to local farmersprovidingafull conceptual package of practices,printedandon
local radio.There wasgood successinpotatoesandas a resulta potatoesproducersassociationand
creditunionwasdevelopedwhereproductionwashighest.
The most innovative wasingreenhouses.The projectwasfullyaware of the technologiesavailable
havingtakena trade missiontoIsrael to see theirgreenhousesandmeetwithgreenhouse
manufacturers.The basicconceptwasto work fromthe highesttechnology,the fullycomputerizedand
automatedgreenhousedownward,developingseveral levelsof technologybasedonthose systems
takenas conceptfromthe systemof systemswhichwasthe hightechgreenhouse.Atthe lowestlevel,
farmersjustimprovedtheirproductionbyusingbetterplastic;higherupthe technologysome
introducedimprovedseedvarieties,betterplastic,dripirrigation,andfertigation.Atthe highestlevel
three Israeli hightechgreenhouseswere introducedbasedontrade credit.Ultimatelythere wouldbe
tenof these computerizedgreenhouses aswell asa national technologycenterona centrallylocated
farm that hadall levelsof technologyandwasavailable toanyfarmerswantingtoexplore opportunities
ingreenhouse.The ideawastopull outappropriate technologiesforindividual farmers basedon
agronomicaspectsof farm location,financial capability,andfarmerabilities. Atthe mediumandlow
techproductionareas,producerassociationswere catalyzedinareaswhere otherprojectsorproject
donorscouldhelp. Inone highproducingarea,the IBRD and GTZ helpedwithexportpossibilities.
The establishmentof hightechgreenhouseslargelyfinancedbytrade creditfromIsraeli greenhouse
manufacturerswasinitiallyveryhardwork.
Thiswas majorprojecteffortandwith the introductionof Israeli hightechgreenhouse itcreatedanew
industry,probablythe mostadvancedinthe Balkans,producingtomatoesandcucumbersof export
quality.Asanexperimentcamerafeedandotherinformationwasuploadedtothe netsothat
greenhouse productioncouldbe followedata distance byIsraeli experts. Ultimately,more than$2
millionwereinvestedinthe greenhouse business.Atthe time of projectclosure,well off entrepreneurs
beganto enterthe businessasmatterof status.
16. IX.NICHE VALUECHAINS
It isthe hope of all agribusinessprojectstoidentifyaniche productwhichcan provide goodincome to
producerclients.AAATA experimentedwithmanypossibilitiessuchas kosherolive oil,andHalal meat
productionforMiddle Easternmarkets.
The most successful niche valuechainthatthe AAATA projecthadwasin Herbsand ‘Spices’.Myown
earlyexperience withthistypevalue chainwasuniversityresearchworkinSouthIndianspicessuchas
blackpepper,cardamom,clove,cinnamon,ginger,tamarind,andessential oilssuchaslemongrassand
vetiver.
Successinmany situationsisjustdoingthe obvious.Albaniaunderthe communistperiodexported
‘wild’Albaniansage.Muchof it wentthrougha New York herbtrader.Thiscompanywas contactedand
contractedto jumpstarta newAlbanianherbandspice industry.The Albanianherbproblemwas
althoughitsultimate marketisthe US; mostof its productionwasgoingthroughintermediarieswhogot
the margin.
Afteran initial survey,astrategywas developedbasedonestablishinganAlbaniantrade associationof
committedandsophisticatedgatherersandproducers,developingahigherlevel of processing
technology,conductinganenvironmental assessmentincooperationwiththe National Botanical
Gardensto preventendangeringspecies,experimentinginfieldcultivationof herbsratherthan
gatheringthem,anddeterminingwhichof the herbsavailable hadreal markets.
The Herbs and SpicesTrade Associationestablishedwascomposedonlyof seriousbusinessmen.Itcost
$4,000 in annual duestojoin.These fundswenttotranslatingcritical publicationssuchasthe Clean
Spice Guidebookproducedbythe AmericanSpiceandTrade Association.
Successcame despite setbacks.A droughtinthe firstyearresultedindevelopingfieldproductionbased
on irrigation.40 membersjoinedthe associationwhichreflectedonthe seriousnessof the members.
Most importantlywasthe facilitationof adirectconnectiontoUS buyers,notonlythe contractorbut
several others. Processingwaseitherrenovatedornew technologyintroduced. Increasedprocessing
and salesresultedinhigheremploymentandbetterincomesforworkersgatheringherbs.Inthe first
year,more than 190 MT were soldata value of $393,000 andgrew thereafter.Fieldcultivationwas
establishedinsage,oregano,rosemary,thyme,andsavory.Veryimportantly,agatheringproduction
systemwasdevelopedthatwouldnotendangerwildspecies.
X.LIVESTOCK PRODUCTION AND FISHERIES
While mybackgroundis not inanimal science,Ihave developedmarketsforboththe inputsandoutputs
of animal productindustries.Onthe inputside,Ihave auctionedormarketedbulkcommoditiesusedin
animal feedaswell asanimal feedconcentrate.The latteractivateswere orientedtolocal animal feed
productionforpoultryandotherindustries.Additionally,myprojectshave beendirectlyinvolvedin
17. makingmarketsforanimal foodproducts,poultry,fish,aswell asdairy. Iunderstandthe basisof milk
and meatproductionandhowinputsfitintothem. I have had exposure tosome of the most
complicatedaspectsof proteinproduction.
KIRGHIZSTAN
RecentlyIaddressedthe issue of improvinganimalgeneticsinKirghizstanwhereI assessed the
readinessandcapabilityof Kirghizstanforanational programof artificial insemination. Idevelopedan
approach to catalyzingalocal marketfor Bovine Geneticsforthe KirghizstanDairyandBeef Herdsbased
on bothpublicandprivate breedingcenters basedonbullssuppliedbyUSAID. Comparedeconomicsof
DomesticallyProducedversusImportedSemen basedonlocal semenproductionfacilities
ImportantlyIwasable to determine ‘the geneticmultiplier’ forDairyandbeef Value Chainsforthe
initial yearandfive yearsout. EstablishedguidelinesforaPublicPrivate National GeneticStrategy.
Plannedsubsidyscheme forthe initialyearof the domesticmarkettointroduce/accelerate artificial
insemination.Didacritical pathanalysisfocusingprimarilyonavailabilityof LiquidNitrogenandAI
Equipment.
ALBANIA
ANIMAL FEED. In Albania,mymostimportantworkwasto developananimal feedproductionindustry
capable of providingfeedforpoultry,beef,andporkproduction.Thiswasdone throughtwo different
projects.AsCountryDirectorof the USDA Food for Progressprogram, Iimportedseveral thousandtons
of US yellowcorn(20,000 MT) and soybeans(10,000) to be usedto provide componentsforanimal feed
and establishalongtermconnectionbetweenAlbanianindustryandthe USmarketsfor these
commodities.The maize andsoybeanswere auctionedatportand boughtbyanimal feedproducers.$4
MM were raisedfromthese auctionsandwere usedtoprovide TA targetedtosmall farmersgrowing
animalsforlocal slaughter. andreflectingeconomicsof usingqualityanimalfeedintermsof increased
production. Anotherportionwenttoa guaranteedcreditscheme supportingmediumtolarge scale
dairyoperations.
In the processof thisprogram, variousgroups againstGMO products attackedthisimportation.Unlike
formerrecipients,myprojectdealtwiththe GMO issue headonviamediaandseveral regional meetings
of trade associationandfarmerunionmembers.The mediacampaignwashighlysophisticatedusingTV,
radio,and printto presentbothsidesof the GMO issue andprovide material foracontesteddebate in
the Albanianparliament.The GMO side woninAlbaniawhereasithadlostinBosnia.
MEAT AND POULTRY PRODUCTS. Onthe meatprocessingside,the AAATAprojectworkedwiththe
AlbanianMeatProducersAssociationandthe FRIandVRI.Meat processingforseveral yearsafterthe
openingof the Albanianmarkethadbeenimported.The projectbegantosupportmeatprocessorsboth
intechnologyandprocessing.Theygrewquicklyandbecame one of the mostsuccessful associations.By
the endof the secondyearovera $1MM had beeninvestedinfacilitiesandsaleshadquadrupled.
18. Involvementbythe FRIhelpedwiththe qualityissueandAMPA developedalogowhichbecame for
meatproductsa signof safetyand quality.Poultrylike meatwasinitiallyimportedtypicallyHungarian
frozenproduct.Poultrygrewfirstineggsbutsubsequentlyinmeant.Itsassociationthe AlbanianPoultry
FarmersAssociationwasthe quickestgrowingorganization. Byyearthree more than$2.5 MM had
beenputintonewproductionfacilities.Reportedsaleswereclose to$8 MM. These numbersare
probablyonthe lowside giventhatoftenpoultryfacilitieswere Italianjointventures.
SEA FISHING AND FISHERIES Thisgroup was highlycapable havingfishedinthe Adriaticfordecades.
Withprivatizationof governmentvessels,thisgroupbecame well off.The largestoftenhadlarge side
businessesof restaurants.Whenthisassociationwasconceived italsoincludedfreshwaterfish
particularlytroutinSouthernAlbania.Notlongafterthe associationwasestablishthe IBRDin
conjunctionwiththe Japanese governmentbecame interestedinittoestablishcooperativesperthe
Japanese model.Give resourcesavailable tothe IBRDand Japanese,itwasthoughtbesttoassistit in
takingoverbothtechnical andorganizational support.
Romania Commodity Importation Program USAID/IFDC: Animal FeedConcentrate.Basedonthe
Albanianmodel incatalyzingentrepreneursbasedonauctions,USAIDcommittedtoauctioningseveral
thousandMT (17,000) of poultryandswine feedanimal feedconcentrate.Asprime technical consultant,
I draftedthe original projectproposal.Additionally,Iconsultedtothe projectovera three yearperiod.
Developed auction proposal to incentivize privatization of government and cooperative animal
production facilities. Identified likely auction participants and approach to leveraging imports
of high protein animal feed supplement to move production out of government for progressive
enterprises. I did port and transport assessments and made recommendations on project
structure and relations with GOR Ministry of Agriculture and research institutions. Developed
an approach to trade associations given characteristics of Romanian swine and poultry
industry. The Romanian swine industry was large and had swine facilities of more than a 50,000
swine each. This compared to an average US model of 1,000 swine per farm in 1992.
XI.ASSOCIATION AND COOPERATIVEDEVELOPMENT;CREDITUNIONS
Albania
Conceivedanapproachto agricultural developmentbasedonfacilitating Albanianagricultural trade
associations. AssociationdevelopmentinAlbaniafollowedmarketdevelopmentasititeratedthrough
inputstooutputsand theirprocessing.Basedonearlysuccesseswithinputdealerswhose association
celebratedits20th
yearanniversaryin2013, the conceptwas extendedtoseveralvalue chainsinthe
secondIFDCAlbanianproject. More than20 years laterthis approachhas broughtabout organizational
sustainabilityforindustriesinbothinputandoutputindustries.
19. The firstIFDC project, SRFSA,helpcreate the Albanian FertilizerandAgricultural InputsAssociation
(AFADA).Its successinmakingmarketsinfertilizer,CPC,andSeedaswell asinitiatingthe first
governmentlobbyingeffortsonbehalf of agriculture encouragedasimilarstrategyforoutputsandfood
processing.Thisledtothe 2nd
IFDC projectAAATA.
Initially,the 2nd
projectworkedwithsevenagricultural associations (poultry,horticulture,meat
processing, flourmilling, agricultural machinery,edible oils(olive oil),saltwaterfishing).Laterthis
numberincreasedtoten.Inadditionthe projectcontinuedtoworkwith AFADA,two associations based
creditunions,the national farmersunion,andanassociationbased thinktank thatconductedscientific
and economicstudies. All of these associationsare stillviablethroughtwoassociationapexesmore than
a decade afterprojectclosure. Association sustainabilitycame through the developmentof twonational
associationapexeswhich broughtsuccessby joiningresourcesandstaff withineachapex’sconstituent
members tocarry out twoimportantbut differentfunctions,1) association management, TA,and
supportto donorprojectsand 2) lobbyinggovernmentonbehalf of private agriculture.
The 2nd
IFDC projectsupportedassociationswere usedtocatalyze andsupportthe marketsforoutputs.
These associationsbecame the basisof value chainanalysisanddevelopment. Importantoutcomeswas
the productionof extravirginolive oil forthe firsttime,domesticsubstitutionbylocallyprocessed
meats(sausagesandsalamis),expansionof the broilerindustryintoturkey,locallyproducedprocessed
fruitsandvegetablesbottlesalads,jams,andjellies.These industriesbecame the firstAlbanianproducts
to penetrate the Balkanmarket:Kosovo,Macedonia,andMontenegro.
At a pointin late projectactivities,there were severaltrade associationsbothnational andregional as
well asa national farmersunionandseveral village producerassociations;and itmade sense to
facilitate anational apex associationof associations;butthe questionatthe time waswhethertohave
the associationmanagementcenterthathadbeendevelopedforcore associations(sothattheyshared
administrativestaff andafurnishedTiranaoffice) extendedtocovernonprojectrelatedassociations.
The latterincludednonprojecttrade associationstogetherwithotheragriculturallyorrurallyoriented
organizationssuchasthe water usersassociationandvillage producerassociationssothatall of private
agriculture wouldbe representedwhenthe Apexlobbiedgovernment.
UltimatelytwoApexeswere established:one the AssociationandBusinessManagementCenter
(ABMC) that providedTA to associationsandtheirmembership;including,interalia,Association
Development,MarketingandBusinessSkills,FundsFacilitation(Finance andBanking),Procurement,and
Legal Counseling.Itwasalsoresponsiblemuchlike asecretariatformemberassociations’,banking,
meetingandelectionpreparation,staff oversight,aswell asthe managementof TA.Ina 2013 analyses,
ABMC was foundtomanage the electionsof constituentassociationsaswell asthe venue andstaff for
all theirmeetings.Asanexample,itmanagesthe RegionalMeetingsof AFADA.Asplanned,the ABMCis
the managerial andtechnical secretariatforagricultural trade associations.Itownsafullyfurnished
office inthe centerof Tirana withBoardRoom, computerand communicationscapabilities.ABMC’s URL
ishttp://abmc.org.al/blog/alsoexpectedtomanage projectactivitiesforvariousdonororganizations
that wantedtoutilize the trade associationstructure.Ultimately,the ABMCwassubcontractedtowork
withIFDC,Chemonics,MercyCorps,GTZ, and SIDA.
20. The secondapex,the Keshilli AgrobiznesitShqiptar(KASH) wasestablished toprovide avehicle for
National Level Policy Advocacyonbehalf of private agriculture.Italsosupported agricultural trade. It
has 23 constituentnational associationswith12regional councils.InAdvocacyforthe entire agricultural
sector,it recentlypresenteditspolicyrequeststothe new Albaniangovernment(2013) as the latter
formulateditsFiscal Package.KASHbelongstoseveral nationallevel policycommissionsincluding:The
BusinessAdvocacyCouncil,The National LaborCommittee,andthe National Authorityof Food. KASHis
holdingthe 12th
National Agricultural FairinSeptember2014. . Inmanagingthe national agricultural fair
it makesprofitssufficient tokeepitsoffice andoperationsfunded..KASH’s URL is:
http://www.kash.org.al/new/. SimilarlytoABMC,KASHownsitsoffice indowntownTirana.
It has establishedandsustainedtrade relationswithTurkey,Kosovo,MacedoniaandotherBalkan
CountriesandhasworkedcloselywithIsrael,whichprovidedAlbaniahightechgreenhousesin2002-
2004. Major trade successesof KASHhave supportedthe horticulture industry.Amongrecent
achievementshave are registrationof Albanianvegetablesonthe TurkishStockExchange anda MOU
withthe IzmirCommodityExchange.Recentlythe AlbanianIsraeli Chamberof Commerce was
established.Manyof itsmembersare horticulture andotheragricultural companies(app.25%)
reflectingthe deepcooperationbetweenthe twocountriesinagriculture notablyinHighTech
Greenhouses.
The national farmersunion (BKFSH) isalsorepresentedinKASHbalancingsmallholderagriculture with
inputmarketingandoutputprocessing.
The associationapproachto agricultural developmentworkedinAlbaniatobringaboutlongterm
sustainabilityforthose associationsandotherorganizationssupportedbyIFDC’stwoUSAIDprojects.
Sustainabilityisthe ‘holygrail’of projectworkparticularlywhensustainable organizationsprovide
importantsupporttovalue chainsoverthe years. The Albanianmodel needstobe reviewedto see how
it workedwhenothereffortstomake trade associationsastrategydidnot.
Nigeria
My ownexperience inworkingwithcooperativesinImostate toimplementanIBRDintegratedrural
developmentprojectwasmyfirstexperience withthe ‘numbersgame’involuntaryorganizations.Itwas
consistentwithearlierresearchIcarriedouton Indianmarketingcooperativesinwhichthe primary
productof such an approachwere onlynumbersof members.
The Imo cooperativesultimatelyhadnorole inthe fertilizerreformsbroughtaboutinImostate which
setthe stage fornational reform. Oftencooperativeand,sadly,trade associationthinkingandanalysis
is‘fantastical.‘Thisisbecause gettingtrade associations toworkishard workand requirescomingclose
to the entrepreneursandmemberswhichare animportantresource totheirsuccess.Theyrequire field
workat the maximum.Unfortunately,because of developmenteffortslookingforcheapsuccessthere
has developedacynical attitude thatthese approachescanwork.
XII.FINANCEFOR AGRICULTURAL ENTREPRENEURS
21. Nigerian
ALBANIA
The 12 yearsof IFDC successinAlbaniawasbasedoninnovative ideasandexperimentationbutasa
program,it ran on finance toentrepreneurs. Itsearlysuccesswasmade possiblebyextraordinary
financial advice byaBangladeshi bankeraswell asAlbanianexperts.AsIbecame COPof the SRFSA
projectand laterthe AAATA project,Ibuiltonearlysuccessesmade bymycolleague.
INSTITUTIONAL CREDIT
The auctionsof USAIDfertilizerthatbroughta free marketto supplyanddistributionof fertilizerwas
made possible bythe supportof state-controlledbanks.The successin1992 auctionsdemonstratesthat
effortandsavvycan overcome natural resistance toprovisionof finance.The sparkthatbroughtabout
auctionsuccesswere state-controlledbanksprovidingloanstoinexperiencedandpoorentrepreneurs
whoin the ultimate processcreatedpersonalcapital thatmade itpossible togrow theirbusinessessuch
that intwo yearstheywere capable of importingtheirownfertilizerfromthe Ukraine through
importantshippingtechnical assistance providedbythe project.
A systemforinstitutional fiancéwasestablishedinthe firstcouple of grantsthatwouldcarry forthfor
the nexttenyearsthoughwithmodification. The principlesthatmade the project’sfinancial unit
successful inthe followingyearswere basic5C’s of credit.Early repaymentsuccesswascritical in
establishingagoodreputationforthe unit.Additionally,the establishmentof acadre of financial staff
insuredthatthe qualitiesof analysisandfollow-upbecameaculture andthoughthe staff keptchanging
overthe yearsthe traditionswentdeepintoall whowere partof thisunit.However,institutional credit
of the three sourcesof finance,institutional,mercantile,andsupplierwasprimarilyimportantonlyin
the earlyyears.Later,mercantile andsuppliercreditdominatedbutthese became possible because
projectclientswere trustworthyandcapable.
MERCANTILE CREDIT
The firstchange independence onbankscame frommercantile creditprovidedthroughthe marketing
policiesinstitutedbythe marketingexpertatthe twoAlbanianfertilizerfactories. Inthe secondyearof
the projectmercantile creditexceededfiancé fromthe banks. Bythe 4th
year,bank creditbecame
secondarytomercantile andsuppliercredit. The supportbythe factoryfurtherstrengthenedthe capital
of entrepreneursaswell asone off opportunitiesmade possiblebydonormistakes,one of the most
importantbeingthe provisionof CPCbythe IBRD andthe EU who ratherthan workingwiththe new
entrepreneurssuppliedthemtothe state supplysystem.Whenthissystemfailed,CPCwasauctioned
and soldat tremendousbargains.Notonlyhadthe IBRDand EU chose the wrongapproach butdouble
countedsupplydouble whatwasneeded.Thisoversupplydepressedpricesandthe AFADA
entrepreneursboughtCPCatpricesthat allowedcertainof themtobe effectivelymillionairesina
couple of years.
22. SUPPLIER CREDIT
Suppliercreditdominatedinputsalesuntilthe endof the project.Thiswasremarkable because these
suppliers,mostlysmallerinternational fertilizertraders,knew andtrustedAFADA dealersevenduring
and afterthe 1997 pyramidcrisiswhenAlbaniansocietyessentiallycollapsedandgangsruledlarge
swathesof the countryand civil warthreatened.
AFADA importerswere trustedandsuppliedbyahandful of tradersuntil the inputspartof the IFDC
projectfinished.These traderswere initiallysupported byIFDCwhichprovidedthementre tothe
dealersandas the marketdevelopeddealersthatcouldbe effective importerswere reducedtoa
handful inwhichtrustwas suchthat dealscouldbe made on the basisof a ‘handshake.’Earlytrade
missionshelpedintroduce AFADA dealerstoinputsuppliers,notonlyforfertilizerbutespeciallyfor
seeds,where ItalianandGreekseedsupplierssupportedearlyseedmarketprivatizationefforts.An
example of AFADA dealertrustworthinessisthatin1996, repaymentwasat 98.5% whichis
extraordinaryinearlydevelopmentcontexts.Thisreflectedprojectstaff beingwillingtochase debtors
everywhere if needed,eveninroadlessAlbanianmountains.
By 1999, suppliercreditwas$5 millionperyear.Atthispoint,the four largestfertilizerdealerswere
financingtheirimportsfromtheirowncapital andfrom supplier’s credit.
Finance toAFADA dealersbythe endof the inputprojectstotaled$17 MM. Approximately75% of
fertilizerimportswere self financedwhichisremarkable thatthe largestinputbidderin1992 had
$3,000 of capital fromsellingvegetablesandtradingcurrency.
FINANCE AND INVESTMENT FOR OUTPUT MARKET DEVELOPMENT
Creditsuppliedinthe outputpartof the projectexceeded$12.5 MM comingfrom suppliercreditand
bankloans.Entrepreneursinthe variousvalue chainswere financiallybetteroff thanearlyinput
entrepreneursandthere were differentcircumstancesincludingforeigncompaniesseekingjoint
ventures.The largestpoultryoperationwasajointventure withanItalianfirm.Similararrangements
existedacrossthe poultryindustry.Anotherindustryinwhichthere wereseveral jointventureswasthe
meatprocessingindustry.Primaryrecipientsof these loanswerepoultry($4MM), meatprocessing
($2.9 MM) andhorticulture andolive oil atabout$1.8 MM each.
To give an ideaof the level of self sufficiency,itwascalculatedthatbythe endof the AAATA project,self
investmentsbyagribusinessclientswasapproximately$20.5MM. Againpoultrywashighestwith
$13MM. Flourmillingwasthirdwith$4.3 MM; while horticulture wassecondwith$4.4MM. Meat
processingandolive oil followedwith$3.4 MM and $2.9 MM respectively.
A majorfactor insupportingAAATA value chainswere JICA grants.JICA supportedmembersof the
Agricultural MechanizationAssociationandOliveOil producers.Inthe latterindustry,excellentoil mills
purchase fromPieralisi the bestknownItalianmanufacturerwere made possible byJICA grants.The
collaborationbetweenIFDCandJICA wasparticularlyrewarding.
23. Anotherimportantsource forhightechnologywasprovidedbyIsraeli manufacturersof hightech
greenhouses.TheirTA insuredthattheirgreenhouses,the besttechnologyinthe Balkanswassuccessful
and thisindustrygrewdramaticallyallowingforexportanddomesticmarketsfortomatoesand
cucumbersinthe winter.Notonlydidcompaniesprovideassistancebutalsothe Israeli development
agencythe MASHAV provide free TA across the industryspectrumwithinthe project.
Ultimately,importantlytoUSAID,generatedtotal costshare contributionsexceeded$34MM; $15 in
phase one of the projectand$19 inphase two.
USDA COMMODITY SUPPORT FROM THE FOOD FOR PROGRESS PROGRAM
An importantcontributiontomeatandpoultryfoodproductionandprocessingwasthe provisionof
10,000 MT of soybeansand20,000 MT of yellow cornforanimal feed.These came inviathree ships
whichwere monetizedbyauctionat$4 MM. One $ millionwenttoTA foranimal feedand$3 million
wentto a CreditEnhancementProgramatthe AlbanianAmericanforlarge dairyfacilities.
GHANA 1990: WAREHOUSING COLLATERAL SCHEME
As part of an IFDC teamto supportthe Ghanaianinputsector;fertilizerandseedapproachto fiancé
fertilizerdealersintransitional periodaftergovernmentfinancialcollapse.Innconsultationwiththe
Central Bankof Ghana conceptualizedapproachtofinancinginputdealersbasedonlyonavailable
domesticresources.Hadthe projectbeenapproved,plannedUSAIDcommoditysupporttothe project
to fiancé earlyentrepreneurs. Atthispointintime,interest rateswere 27% andunderlyinginflation
34%. Investigatedgrouploanapproachwhichwasbeingusedatthe time by USAIDcontractors but
importantlyinnovatedcommercial approachbasedprovidingfiledwarehousingcollateralforsupplier
creditor for loansplannedtobe providedunderaRural Finance Program.
