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Business oriented farmers’ organization enterprise; A potential key actor for the participatory Research & Agricultural Transformation


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General constraints of the Tree crops sector in Cameroon,Potential Areas of intervention for the cooperatives in Participatory research and agricultural transformation,Key actors for the agricultural transformation

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Business oriented farmers’ organization enterprise; A potential key actor for the participatory Research & Agricultural Transformation

  1. 1. Business oriented farmers’ organization enterprise;A potential key actor for the participatory Research & Agricultural Transformation Jonas MVA MVA Country Manager STCP Cameroon Ibadan, June 24,2008
  2. 2. Presentation plan- Context- Clarification of concepts used- Potential Areas of intervention for the cooperatives inParticipatory research and agricultural transformation- Key actors for the agricultural transformation
  3. 3. Contextsource: 2005 IITACA baseline survey, Centre and South West provinces of Cameroon
  4. 4. STCP Cameroon Project Location
  5. 5. General constraints of the Tree crops sector in Cameroon rural exodus/ difficult access limited access limited Ageing of to agricultural to technical weak farmer access farmers inputs know-how organizations to financing limited access high interest lack ofold cocoa farms to farm rate professionalism equipment of MFIinefficiency of no valorization marketing of cocoa channels by-products institutional framework not favorable deterioration low low farm-gate of the quality productivity pricesdifficult access decrease of to information the farmers’ income research for alternative crops
  6. 6. Challenge: to move Cameroon from subsistence agriculture towards market oriented/ commercial system by:1- Enhancing productivity of cocoa farms;2- Increasing marketing efficiency at the farmer-level;3- Diversifying income of farmers;4- Improving policy environment to enable ruraltransformation in cocoa communities
  7. 7. STCP Cameroon approach in PR and agricultural transformationSTCP= Develop/ STCP= facilitate STCP = Develop/test and validate access to Introduce newwith coops tools/ information/ market techniques/approach to built Coop= improve Technologies business quality of the Coop=Dissemi enterprises products nate in rural areas
  8. 8. Guiding Principles Testing of innovative development options and approaches (production, institutional, market) Assessing the process, impact, and conditions for success of the innovations Sustaining and institutionalizing innovations Integrating lessons into national development efforts (cost effective scaling up) Using tree crops as a pathway for broader investment in rural development
  9. 9. Clarification of concepts used:- Agricultural Transformation- COOPERATIVE = Business orientedfarmers‟ organization enterprise- Participatory Research
  10. 10. Agricultural TransformationAgricultural transformation is the process by which individual farms shift from highly diversified, subsistence-oriented production towards more specialized production, oriented towards the market.The process involves a greater reliance on input and output delivery (marketing) systems and increased integration of agriculture with other sectors of the domestic, regional and international economies.
  11. 11. COOPERATIVE = Business oriented farmers organizationEconomic & Business like1- Business and market economy based2- Producers coop. orientation3- Economic principles4- Members need to understand and accept risks, liabilityand business principles5- Proportionality in voting6- Efficiency of cooperatives and therefore profitable formembers The social thing of coops is that they generate a better income for the farmer’s household
  12. 12. Participatory research= Farmer field Research-The farm research activities are identified,oriented and guided by the farmers organizationsand other potential partners with input of theresearch;- Potential innovations are jointly tested byfarmers„organizations & research;- Improved innovations are adopted anddisseminated by farmers„organizations (Farmer tofarmer approach); and capitalized, documentedand made public goods by research
  13. 13. Potential Areas of intervention for the cooperatives in Participatory research and agricultural transformation1- Effective organization of farmers2- Technology Dissemination3- Marketing4- Diversification5- Credit6- Policy
  14. 14. 1- Organization of Farmers: Cooperative can play an important role in the improvement of the production and supply chain efficiencies to the benefit of farmersImproving skills and knowledge of :• Farmer/farm organizational entrepreneurial skills• Organizational development (governance, accountability…)• Efficiency of operations;• Discipline of members;• Business principles• Management• Financing & capitalisation• Legislation
  15. 15. ProductionPRODUCTION , regenera- tion diversifi- cation Education, cooperati Marketing, entrepreneurs quality hip ve control, MIS Members Social Supply chain MODEL under testing
  16. 16. Few field achievements STCP Coop/Public & Private -12 Business oriented farmersDevelop approach/Tools to establish and/ Cooperatives; andor strength Farmers Cooperatives - 1 Union of cooperatives in the Centre province -12 Cooperative organs (Board ,Develop tools/methods Supervisory Committee) /Union trained;for the enhancement - 12 cooperatives employees trainedof cooperative in entreprise mgt, credit, management good governance and marketing.Develop tools/approachto strengthen existing 3 Public institutions (MINADER, MINRESI andPublic and private MINTRADE) and 18 Private entities(9 NGOs,entities such as 6 consultants,3 exporters) strengthened tolocal NGOs in the area of agric business deliver effective and efficient services development to cocoa/ oil palm farmers in the supply chain
  17. 17. Next challenge1- Develop necessary tools/methods & approach to createappropriate conditions for business oriented organizations;2- Develop mechanisms for community associations andfarmer organizations to access production supportservices;3- Develop mechanisms for community associations andfarmer organizations to provide production support services4- Develop approach to strengthen local private sector toprovide quality production support services5- conduct impact studies6- produce public goods: “systematization guide for thecooperative implementation (in collaboration withSOCODEVI)”
  18. 18. 2- Technology Dissemination Cooperative play an important role to deliver key knowledge and technologies to farmers effectivelyEnhancing productivity of cocoa farms• Farmer production training• Use of improved planting material• Integrated pest and disease management• Integrated soil fertility management• Safe labour practices …….etc.
  19. 19. Few field achievements STCP Cooperative An extension rural system set up Develop/scale up -124 FFS operational; appropriate -3 100 cocoa producers directly trained agricultural through FFS practices for cocoa - 6 200 cocoa producers indirectly (F-t-F) through FFS -cocoa yields on average 15 to 40% higher, while requiring 10 to 20% less pesticides -a farmer-near improved germplasm delivery Develop sustainable System (cocoa, oil plam, plantain, fruit trees) mechanisms to -More than 300 nursery managers (cocoa, facilitate farmers oil palm, banana plantain, and fruit trees) -50 000 improved cocoa pods ; 130 000 access to improved pre germinated oil palm nuts delivered vegetal material to farmers through the systemDevelop a participatory Bio control of pest Trials of bio control products set up with farmers to maintain their exploitationnd diseases with farmers and protect the environment in their farms
  20. 20. Next challenge1- Develop/test the participatory bio control of pest anddiseases experiment with farmers in their farms;2- Validate the development of the agricultural extensionsystem with farmer/cooperatives3- Develop and scale up knowledge and technologydissemination approaches (farmer field schools, video viewingclubs, complementary extension materials, radio messaging,Farmer-to-Farmer Diffusion Approach, Farmer Learning Groups)4- Test mechanisms for farmers to access fertilizers5- Conduct impact studies :6- Produce public goods: « Oil palm training manual for smallproducers”
  21. 21. 3- Marketing: Cooperative can play important role in the development of marketing strategies and trade & information systems able to deliver benefits to farmers and quality products to usersIncreasing marketing efficiency at the farmer-level• Access to information• Organizing farmers• Collective marketing• Achieving quality responsive to markets ….etc.
  22. 22. Marketing strategies identified FOBCAF traders Port AMSTERDAM DOUALA London -NEW YORK TRADING OF COCOA exp Farmgate Rep expGoal of coopérative Buyers- create richeness for members coxeursOBJECTIVES OF THE COOPERATIVE- to sell members products at the best price COOPERATIVES - to supply members at the lowest price FO FO FO FOROLE OF THE COOPERATIVEReduce the number of intermediaries Short term : from the member to the port COMMERCIALISATION OF COCOA LONG TERM : from the member to the user Add value to through processing
  23. 23. Few Field achievements STCP Cooperative - Linkage estalished between coops andImprove access toMarkets by linking OLAM, ADM;cooperatives - Delivery to Douala port strategy tested;with market-based - farmers received 5-15% higher farm-gatebuyers prices.Develop newmarket information - Cooperatives linked to SIFsystems for the set up by ONCCmarketing of productsDevelop quality -About 10 000 tons of good fermentedcontrol centers withinthe cooperatives to cocoa marketed from 2005 to 2008assess the quality of cocoa seasonproducts put in the -Price premiums of 9 to 10 percentmarket -Increase in household cocoa income on average between 23 and 55% higher.
  24. 24. Next challenge for STCP1- Test/validate collective marketing strategies tothe port of Douala with the cooperatives, and private sector(OLAM/ADM/CARGILL);2- Develop/test export marketing strategy with the Union ofCooperatives and Private sector (ADM/CARGILL);3- Develop/test/validate access to information for the union;4- Test/validate quality control mechanisms with the coops5- Develop approach to integrate marketing of non-cocoaproducts from cocoa farms6- Identify and evaluate market-driven product tracking systemsfor differentiated cocoa7- Explore by-products commercialization opportunities
  25. 25. 4- Diversification: Cooperatives can play an important role in diversification strategies to benefit to farmers and increase his revenuesDiversifying income of farmers• Neighbor trees of cocoa (timber, fruit);• Other crop enterprises;• Agri-business opportunities …….etc.
  26. 26. Few field achievements STCP Cooperative Farmers trained in setting andDevelop new farm monitoring demonstration plotsmanagement models on cocoa/oil palm agroforest models -Promotion of mix cropping with maize, banana plantain and fruit trees,Promote oil palm/ -Promotion of mushroom productioncocoa from oil palm wastes;by products andAssociated products -Production of 262 500 plantain suckers; -Seed funds established in coops -Setting of 9 oil palm processing units.
  27. 27. Next challenge1- Identify promising diversification options (introduction of treespecies, e.g. fruits, timber, medicinal) through participatoryresearch;2- Develop participatory learning and monitoring approach3- Integrate farmer-near planting material multiplication withcocoa planting material delivery systems4- Study new Agri-business opportunities;5- Develop Farmers business school approach/tools6- Identify promising diversification options (e.g. rubber, oilpalm, cassava, maize)7- Develop farm-level decision tools on diversification options8- Produce public goods
  28. 28. 5- Credit:Cooperative can contribute to the development strategies in order to create a sustainable financial environment to benefit to farmers and their enterprises- Identify/analyze competitive financing mechanisms- Study the feasibility of setting up a saving- loan/credit scheme within cooperatives
  29. 29. Few Field achievement STCP CooperativeDevelop Microfinance Institutions An amount of 201 350 000 FCFAcapacities for FIFFA to test the credit scheme -Testing of a rural credit scheme with an interest rate of 6% for ag. Activities; -83 millions cfa credit loaned to 10 cooperatives -15 985 000 FCFA of cooperative saving blockedExperiment new credit at FIFFA;scheme -48 new accounts opened besides the Cooperative members‟ones; -A total of 6 862 769 FCFA saved by non cooperative members (civil servants, traders,etc.);Develop tools/ -Involvement of FIFFA in the project;strategies tostrengthen -Training of FIFFA agents in ruralfarmers organizationscapacities in entreprise principles; loan management
  30. 30. Next challenge1- Identify appropriate strategies to create a sustainablefinancial environment to benefit to farmers and theirenterprises2- Facilitate linkages to and development of programspromoting enterprise development and micro-finance
  31. 31. 6- Policy:Cooperative can participate in the development of policy changes necessary to promote production and supply chain efficiencyPolicy enabling rural transformation in cocoa communities and agro-ecologies Using a multi-market model; Organizing Public debate and stakeholder consultations on national policy priorities; Formulating Policy recommendations with appropriate authorities
  32. 32. Field achievements STCP/COOPS a national task force set up including MINADER, MINEPAT, MINTRADE, ONCC and CICC to contribute to raising the awarenessPolicy Advocacy of the importance of tree crops to rural development strategies, Effective national & international collaboration & buy in, exchange of know-howInternational Private- & experiences across partnersPublic Partnerships (public institutions such as: MINADER, IRAD, MINPMESAA,MINRESI; private such as: OLAM, ADM, farmers coops, Donors such as: GTZ/DED, Plan International, FODECC collaboration & exchange between country projects guaranteeing transfer andRegionality broadening of innovations, tested techniques, methods and strategies are ensured
  33. 33. Next challenge1- Organize Public debate and stakeholder consultations onnational policy priorities;2- Formulate Policy recommendations with appropriateauthorities3- Develop and implement social, economic and environmentalsustainability indicators together with cocoa sectorstakeholders to monitor and evaluate rural transformationprocesses4- Conduct regular national round tables to discuss and reviewpolicy and investment issues of national interest
  34. 34. KEY ACTORS of the Agricultural transformation Cooperative/Farmer OrganizationsEnsure that priority needs of the farmers are addressed,advocacy, self-regulation, marketing & production services,linkage between research and producers, platform fortechnology testing and transfer/dissemination Private SectorMarket discipline, specific knowledge of industry, experienceto design market focused actions, research support, serviceprovision, input supply, investments in value chain, marketing Public SectorCountry/regional understanding, knowledge of development,networks of expertise/research, support services, labourenvironment, infra-structure, policy/institutional framework,financing capacity ResearchAssist the other actors in their respective areas of needs
  35. 35. IMPORTANCE OF COOPS IN THE AGRICULTURAL TRANSFORMATION AND PR1. Private enterprises owned by members2. linking production with the supply chain, and providing a conduit for the transfer of knowledge and technologies3. Linking social messages with technical ones (child labour and HIV/AIDS)4. Participatory approaches building the skills of farmers, e.g. Field Schools, Business schools, Learning Groups and Field Research5. Creating employment in rural areas (hiring Managers, accountants, warehouse clerks, drivers, etc)
  36. 36. STCP areas of Research and support to empower the farmers & their organizations improve (main stream) cocoa production,Production Income diversification and marketing in general, linking social, environmental & technical messagesSupply Chain Approach production, input supply, information,considering marketing, farmer organization development participatory learning methods (e.g. FFS, FBSIntegrated & FLG), business-oriented farms and farmerParticipatory Approaches organizations, collective marketing & shortening the supply chain developing & realizing a national/regional cocoa vision to contribute to raising thePolicy Advocacy awareness of the importance of cocoa to rural development strategies, local private sector development, employment and foreign exchange earnings
  37. 37. THANK YOU