2. ETH-DE Konnect Forum 2
Main 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. ETH-DE Konnect Forum 3
Strategy
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. ETH-DE Konnect Forum 4
Methodologies
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. ETH-DE Konnect Forum 5
Methodologies … 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. ETH-DE Konnect Forum 6
Results
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. ETH-DE Konnect Forum 7
Results … 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. ETH-DE Konnect Forum 8
Constraints 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. ETH-DE Konnect Forum 9
Lessons 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
