EGK 2011: Agriculture 01 ECBP - AFRICA JUICE

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EGK 2011: Agriculture 01 ECBP - AFRICA JUICE

  1. 1. Passion FruitDPP-Project with AfricaJUICE Tibila S.C.
  2. 2. ETH-DE Konnect Forum 2Main development objectivesTo increase income of 700 smallholder passion fruit out growers in Upper Awash and improve their position in value chain by establishing market oriented out growers.To create more than 1000 jobs in the Africa Juice company and its own farmTo create access to irrigation system for self- sustained cooperatives with members of 100 farmers each
  3. 3. ETH-DE Konnect Forum 3StrategyThe objective will be achieved by implementing an out grower incubator and eventually scaling- up passion fruit production based on the outcome of a market research study, creating linkage to universities and TVET institutes, capacitating MSEs on passion fruit processing, setting up standards and organizing a consumer awareness campaign.  =>Focus here: DPP with AfricaJUICE
  4. 4. ETH-DE Konnect Forum 4Methodologies Stakeholder workshop to identify opportunities and constraints, fine tune activities and develop common understanding on potential ways forward. => Draft Value Chain Document, PPP-Approach Private Partner: AfricaJUICE, Doehler (40%) Public : GIZ (30%), others: ICCO/Rabobank (30%) Farmers form cooperatives, cooperatives form Union. Union will receive 5% ownership share in AfricaJUICETibila Share Company Farmers are supported by FFARM (for farming practice) and FCE (for organisational development)
  5. 5. ETH-DE Konnect Forum 5Methodologies … PPP Set-up of Out Grower Project Unit that manages the project under guidance of a stakeholder-related Technical Committee and Advisory Board Regional government involved on Advisory Board and Technical Committee level AfricaJUICE provides capacity building, access to water & irrigation systems, seeds, pre-financing FairTrade Certificate will give additional benefits Budget administered by AfricaJUICE BV, reported to Advisory Board
  6. 6. ETH-DE Konnect Forum 6Results 0.5 ha trial site for out growers demonstration is established and used for testing various approaches 15 farmers are as producers cooperative engaged in growing of passion fruit on 13.5 ha and ready for harvest All necessary capacity building activities for first group of out growers were done Farmers harvested intercropped vegetables for two seasons thanks to irrigation Next (neighboring) 52 ha are identified and discussions with farmers started
  7. 7. ETH-DE Konnect Forum 7Results … ctd The company has harvested its 120ha own farm passion fruit and started first export of passion fruit concentrate to Europe The company is preparing land to expand its passion fruit plantation to 700ha Apart from passion fruit, the company has bought Mango from domestic sources (with SNV support) and has shipped more than 35 containers of juice
  8. 8. ETH-DE Konnect Forum 8Constraints and challenges 4Project Managers needed for good start Project Management Unit was too much involved in giving micro level training instead on focussing on general issues Delay in signing the contract agreement (commercial offer) for out growers Farmers cooperative got legal entity very late Uncertainties about irrigation and crop rotation The processing factory started operation only in November 2010 and is still working under capacity
  9. 9. ETH-DE Konnect Forum 9Lessons learned Lead company secures market and gives stability Start early with demonstration areas to test and show technical approaches and solutions Close guidance and monitoring for Project Management needed More time needed for preparation and negociations, especially for legal documents like Outgrower Contract Compromising of different interests/ideas of many supporting partners Strong linkage to regional and local government helps facilitating for project and private partner
  10. 10. Workshop with Oromia Chamber 10Thank You

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