The document summarizes experiences with promoting contract farming as an inclusive business model in Malawi and Tunisia. In Malawi, GIZ has supported contract farming through its KULIMA project by working with the agribusiness Exagris, which operates two successful contract farming schemes for soybeans and groundnuts. Lessons learned include the importance of selecting farmers based on procurement needs. In Tunisia, the IPFA project has piloted 12 contract farming projects led by farmer organizations with support from GIZ in assessing value chains, developing business models, and obtaining funding. Key to success is developing sustainable, mutually beneficial business relationships between farmers and buyers.
Presentation by Jemimah Njuki at the FAO-ILRI Workshop on Integrating Gender in Livestock Projects and Programs, ILRI, Addis Ababa, 22-25 November 2011.
www.fao.org/climatechange/epic
This presentation was prepared to provide a general overview of Climate-Smart Agriculture (CSA) and the EPIC programme. After providing a definition of CSA, the presentation focuses on Sustainable Land Management and the role of climate finance to support CSA. It concludes with a description of the FAO-EC project on CSA.
Dr. P K Joshi, Director-South Asia, International Food Policy Research Institute(IFPRI) presented on “Financing Agri-value Chain Development In India – Constraints and Opportunities” at the 27th National Conference on Agricultural Marketing organized by University of Agricultural Sciences, Department of Agricultural Economics, Dharwad
Youth in agriculture: Entrepreneurial perspectiveAlok Sahoo
Youth in Agriculture : ARYA,, Entrepreneurial perspective in agriculture which can attract youth. Modernity with improved technologies which can attract youth..etc..
Innovation Systems is a concept to help reveal and deal with the partnership and institutional issues that shape innovation processes and shape the contribution of research to that process. It recognises multiple knowledge bases, including research but also others. It is a capability to innovate, not just today but in ever-changing environments — i.e., it is a dynamic, adaptive capability. It is embedded in and defined by the institutional and policy contexts that shape the ways actors and organisations behave
Presentation by Jemimah Njuki at the FAO-ILRI Workshop on Integrating Gender in Livestock Projects and Programs, ILRI, Addis Ababa, 22-25 November 2011.
www.fao.org/climatechange/epic
This presentation was prepared to provide a general overview of Climate-Smart Agriculture (CSA) and the EPIC programme. After providing a definition of CSA, the presentation focuses on Sustainable Land Management and the role of climate finance to support CSA. It concludes with a description of the FAO-EC project on CSA.
Dr. P K Joshi, Director-South Asia, International Food Policy Research Institute(IFPRI) presented on “Financing Agri-value Chain Development In India – Constraints and Opportunities” at the 27th National Conference on Agricultural Marketing organized by University of Agricultural Sciences, Department of Agricultural Economics, Dharwad
Youth in agriculture: Entrepreneurial perspectiveAlok Sahoo
Youth in Agriculture : ARYA,, Entrepreneurial perspective in agriculture which can attract youth. Modernity with improved technologies which can attract youth..etc..
Innovation Systems is a concept to help reveal and deal with the partnership and institutional issues that shape innovation processes and shape the contribution of research to that process. It recognises multiple knowledge bases, including research but also others. It is a capability to innovate, not just today but in ever-changing environments — i.e., it is a dynamic, adaptive capability. It is embedded in and defined by the institutional and policy contexts that shape the ways actors and organisations behave
Introduction to agricultural value chains and supply chain managementILRI
Presented by Karl M. Rich at the Training program for “Methods for livestock value chain analysis: Qualitative and quantitative methods”, ILRI, Nairobi, 1 July 2013
This training material is prepared to understand the basics of Producer Group, its similarities and differences with Self Help Group, examples, types of PG, etc.
The Presentation comprises all about the FPO. It covers structure, incorporation of FPO, formalities, legal compliance, working pattern, B-plan & others.
Any feedback would always be appreciated.
Valmonte-Santos, Rowena A. 2023. The CGIAR and Agriculture Sector. PowerPoint presentation given to students of AG 4390/AG 5371: Global Agriculture Leadership Academy. Department of Agriculture, Texas State University, San Marcos, Texas, March 22, 2023.
What is livelihood?
What is Rural Livelihood?
Importance of Rural livelihood?
how to uplift the livelihood of Rural people?
Various measures to be taken to make the lives of rural people better
Mobility map
Developing the rice value chain in East and West Africa Major challenges but ...Francois Stepman
30 November 2018. Brussels. DevCo Infopoint. Rice is becoming one of the most important food crops on the African continent. Steep population growth coupled with rapid urbanization and changing consumer behaviour are the main drivers behind the increasing demand for the cereal.
During the webinar, the speakers promoted a set of training materials that is freely available for those interested in learning more about the implementation of NDCs in the agriculture sector in Africa.
More info about the webinar: https://ccafs.cgiar.org/implementing-ndcs-agriculture-sector-across-africa-what-directions-capacity-building#.XxaxH_gzbfZ
Introduction to agricultural value chains and supply chain managementILRI
Presented by Karl M. Rich at the Training program for “Methods for livestock value chain analysis: Qualitative and quantitative methods”, ILRI, Nairobi, 1 July 2013
This training material is prepared to understand the basics of Producer Group, its similarities and differences with Self Help Group, examples, types of PG, etc.
The Presentation comprises all about the FPO. It covers structure, incorporation of FPO, formalities, legal compliance, working pattern, B-plan & others.
Any feedback would always be appreciated.
Valmonte-Santos, Rowena A. 2023. The CGIAR and Agriculture Sector. PowerPoint presentation given to students of AG 4390/AG 5371: Global Agriculture Leadership Academy. Department of Agriculture, Texas State University, San Marcos, Texas, March 22, 2023.
What is livelihood?
What is Rural Livelihood?
Importance of Rural livelihood?
how to uplift the livelihood of Rural people?
Various measures to be taken to make the lives of rural people better
Mobility map
Developing the rice value chain in East and West Africa Major challenges but ...Francois Stepman
30 November 2018. Brussels. DevCo Infopoint. Rice is becoming one of the most important food crops on the African continent. Steep population growth coupled with rapid urbanization and changing consumer behaviour are the main drivers behind the increasing demand for the cereal.
During the webinar, the speakers promoted a set of training materials that is freely available for those interested in learning more about the implementation of NDCs in the agriculture sector in Africa.
More info about the webinar: https://ccafs.cgiar.org/implementing-ndcs-agriculture-sector-across-africa-what-directions-capacity-building#.XxaxH_gzbfZ
LAS 3 ‘C’ DE LAS ALIANZAS ESTRATÉGICAS. Complementariedad, corresponsabilidad...Fundación CODESPA
Cuando se trata de hacer accesible un producto a comunidades de bajos recursos, se han de combinar muchas áreas de conocimiento para superar con éxito las distintas fases y condiciones; desde la adaptación de la idea original de un producto, la necesidad de crear un modelo de aprovisionamiento y de generar una demanda, hasta la necesidad de conocer el contexto local y sus costumbres, políticas locales que le puedan afectar, etc.
Surge de ahí la importancia de los partenariados y alianzas para el desarrollo a lo largo de todos los procesos involucrados en el diseño y desarrollo de mercados de tecnologías y servicios adaptados a la Base de la Pirámide.
¿Qué actores participan en el desarrollo de mercados de tecnologías y servicios para la Base de la Pirámide? ¿Cómo se generan alianzas entre estos actores? A nivel internacional, parece ya superado el debate de si el sector privado es o no es un actor necesario para la consecución de objetivos de lucha contra la pobreza, y las discusiones comienzan ya a centrarse en como maximizar las alianzas estratégicas como herramienta de innovación social. En esta presentación, analizaremos estos elementos de la mano de la Agencia de Cooperación Alemana (GIZ), que cuenta con una extensa experiencia en este ámbito.
GCRF AgriFood Africa Programme Inaugural Event: Workshop Outputs reportKTN
The Global Challenges Research Fund (GCRF) is a £1.5 billion fund to support cutting-edge research which addresses the problems faced by developing countries. GCRF forms part of the UK’s Official Development Assistance (ODA) commitment.
Innovate UK has recently secured GCRF funding to extend activities initiated through the Department for International Development (DFID) funded Agri-Tech Catalyst.
This new initiative aims to realise sustainable management of the food production systems in Africa in a way that alleviates poverty, enhances economic prosperity and delivers improved wellbeing, with key outcomes including:
- sustainable intensification of African agriculture
- improvements in human health and diversity of diets and nutrition
- positive impacts on rural income and food security
- facilitation of trade in agricultural products
Find out more here: https://ktn-uk.co.uk/news/highlights-from-the-inaugural-gcrf-agrifood-africa-programme-event
14th Annual Meeting of the Inter-Agency Donor Group (IADG)
on pro-poor livestock research and development
“Development of Livestock Value Chains through strengthened
Public-Private Cooperation”
sponsored by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
May 22-24, 2013, Berlin
A presentation by Stephen Muchiri, from Eastern Africa Farmers Federation (EAFF) and CEO of e-Granary, about a commercial digital platform linking smallholder farmers in East Africa to targeted services.
The e-Granary platform, an ambitious venture initiated by the EAFF is in its relatively early days serving producers in Kenya, Uganda and Rwanda. It aims to strengthen their position with other actors such as buyers, input traders and financial institutions, and it has generated many lessons and challenges to overcome.
The presentation was given at a webinar on using technology to increase market and finance access for smallholders hosted by the International Institute for Environment and Development (IIED) on 24 March 2020.
More details: https://www.iied.org/webinar-using-technology-increase-market-finance-access-for-smallholders
Multi-stakeholder Approach to Advance Fair Trade ObjectivesEuforic Services
Presentation given by Christopher Wunderlich (Sustainable Commodity Initiative IISD/UNCTAD) at the 5th Brussels Development Briefing - Brussels 16 April 2008
Farmer-based Organizations and How to Promote ThemPascal Corbé
Slides used in the fifth sequel of a six parts webinar series on agricultural value chains conducted by the GIZ Sector Project Agricultural Trade and Value Chains. One of the foci covered are the advantages of horizontal cooperation for an FBO.
GCARD2: Briefing paper Public-private-civil mechanisms for new investments GCARD Conferences
This GCARD Session will help to improve knowledge about public-private-civil partnerships in agricultural research. Discussion will focus on what models and mechanisms exist, learn from experiences and define some critical elements of a successful partnership. The session outcomes will articulate how GCARD stakeholders can move forward in improving public-private-civil cooperation in agricultural research for development.
Visit the conference site for more information: http://www.egfar.org/gcard-2012
Building the next generation of farmers
Supporting capacity-development of African Farmer’s Organisations through improved Policies, Technologies and Capabilities
Workshop , 6-7 November 2018, Brussels
Similar to Contract Farming as an Inclusive Business Model for African Smallholder Farmers (20)
How to Elevate Rural Youth Representation for Inclusive Agricultural Develop...Pascal Corbé
The GIZ Agriculture Team in Kenya and two rural youth representatives share their experiences on participatory policy and project initiatives.
The presentation includes videos of the webinar, edited to a 39mins and 10mins versions and videos of pre-recorded inputs that were circulated beforehand to have more time for discussion during the actual webinar and avoid connectivity issues.
The idea is to watch the presentations in your own time beforehand without the usual technical hitches and later join the actual webinar for only the discussion!
More details at https://www.snrd-africa.net/how-to-elevate-rural-youth-representation-for-inclusive-agriculture-and-planning/
Land Governance in GIZ Projects in AfricaPascal Corbé
Land governance issues should be higher recognition in GIZ projects in Africa. Therefore the PPARD working group plans to have a learning event in November.
Presentation by Thomas Breuer for the meeting of the working group on Policy Processes in Agriculture and Rural Development of the Sector Network Rural Development (SNRD) Africa.
Promoting Young Agripreneurs in TunisiaPascal Corbé
Presentation for the SNRD Africa webinar How to Promote Youth Agripreneurs in Rural Africa
By Matthias Schnier, GIZ-Advisor in Tunisia at the « Projet de promotion d’une Agriculture Durable et du Développement Rural en Tunisie » (PAD II)
Intégration de l’Adaptation au Changement Climatique dans la Planification Lo...Pascal Corbé
Webinaire avec enregistrement - Les participant(e)s discutent sur la meilleure façon d’intégrer l’adaptation au changement climatique dans les activités de planification territoriale au niveau local.
Avec Léonie Niyonkuru (GIZ Burundi), Abdramane N’golo Diarra (GIZ Mali) et Anja Endres (GIZ Madagascar)
Social Protection – A main Pillar in Drought Resilience? Experiences from su...Pascal Corbé
Joint GIZ-DIE event starting with a keynote by Martina Ulrichs.
Background:
In the past five decades, drought has become a major problem in Africa. It has caused depletion of assets, environmental degradation, impoverishment, unemployment and forced migrations, thus threatening to undermine the development gains made. Especially in the drylands drought represents one of the most important factors contributing to malnutrition and famine that affects the poorest and most vulnerable communities. Climate shocks force poor households to liquidate productive assets such as livestock or land in exchange for food, default on loans, withdraw children from school, and/or engage in exploitive environmental management practices to survive. Furthermore, the lingering risk of drought weakens the ex-post adaptation options as it prevents farmers from adopting profitable technologies and practices that are perceived as risky, hence creating a nexus that increases the cycle of vulnerability and depletes the capability to overcome hunger and poverty. This inability to accept and manage risk and accumulate and retain wealth locks vulnerable populations in poverty and food and nutrition insecurity.
During the last decade, social protection instruments have gained popularity among policy responses to drought. An increasing number of governments in Sub-Saharan Africa have integrated cash transfer and public works schemes into their strategies for food and nutrition security and disaster risk management. These programmes shall prevent disinvestment and depletion of assets and enhance post-drought recovery, adaptation and resilience of livelihoods for the poorest parts of the population in affected areas. Most prominent examples are Ethiopia with its Productive Safety Net Programme (PSNP), the largest safety net in Africa, outside South Africa, or the Kenya´s Hunger Safety Net Programme (HSNP). But can social protection programmes factually deliver the promises made?
Panellists:
Martina Ulrichs (Independent consultant)
Ralf Radermacher (GIZ)
Guush Berhane (IFPRI)
Bettina Tewinkel (KfW)
Moderators:
Markus Loewe (DIE)
The event is part of a series:
Research meets Development:
Drought resilience in Sub-Saharan Africa
Event series in the context of the “One World – No Hunger” (SEWOH) initiative of the
German Ministry for Economic Cooperation and Development (BMZ) in the summer term 2017
More on the series at: https://www.die-gdi.de/veranstaltungen/drought-resilience-in-sub-saharan-africa/
Gina Kennedy presents the results of GIZ's survey covering 10 countries at the event „A Global Approach to Assess Food and Nutrition Security" on 16 September in Bonn.
Transcript presentation:http://corbecoms.com/2016-09-16_KennedyPres.pdf
Transcript interview: http://corbecoms.com/2016-09-16_Transcript_interview_GinaKennedy.pdf
The survey was conducted by GIZ’s Global Programme Food and Nutrition Security, Enhanced Resilience, financed by BMZ.
The video, produced by Corbecoms, includes the Q&A session.
Social Protection and Its Impact on Food and Nutrition SecurityPascal Corbé
Food and Nutrition Security and Social Protection
Lessons Learned, Trends and Conclusions for German Development Cooperation
Gained on Missions to Ethiopia, Cambodia & Malawi
By Elke Kasmann, Martina Kress, Ines Reinhard, Annette Roth of GIZ
Held at Event: Agriculture Meets Social Protection: How can food and nutrition security benefit?
7 July 2016
Social Protection and Agriculture for Food Security: Breaking the Cycle of Po...Pascal Corbé
Benjamin Davis, Strategic Programme Leader, Rural Poverty Reduction at FAO, presents at GIZ workshop "Agriculture Meets Social Protection: How can food and nutrition security benefit?", Eschborn, 7 July 2016
Rural Transformation & Implications for Agricultural & Rural Devt by Steve Wi...Pascal Corbé
Keynote to GIZ symposium in October 2015 by ODI's research fellow Steve Wiggins. He elaborates on the nature and history of rural transformation and transitions, social differences, policy implications and the fundamental impact that the assumptions of social theories can have on long term rural development decisions.
Markets and Outlook: Global AgriculturePascal Corbé
Presentation by Jonathan Brooks at the GIZ event on Global Agriculture and Production Trends in December 2015. The head of OECD’s Agri-Food Trade and Markets Division, and contributor to recent OECD flagship reports, including the OECD-FAO Agricultural Outlook 2015-2024 focuses on important global agricultural market and price trends for major commodities and respective implications for agricultural and rural development in sub-Sahara Africa.
West African Food Markets and Transformations in AgriculturePascal Corbé
Presentation by Thomas Allen, Economist with the SWAC Secretariat, on the ongoing work of the SWAC/OECD on West Africa agrofood value chains in a region undergoing spectacular changes transforming its economy.
A video recording of his presentation held at the GIZ event on Global Agricultural Production and Consumption Trends: Implications for Development Cooperation can be found at: http://snip.ly/NHOG
Many ways to support street children.pptxSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
Canadian Immigration Tracker March 2024 - Key SlidesAndrew Griffith
Highlights
Permanent Residents decrease along with percentage of TR2PR decline to 52 percent of all Permanent Residents.
March asylum claim data not issued as of May 27 (unusually late). Irregular arrivals remain very small.
Study permit applications experiencing sharp decrease as a result of announced caps over 50 percent compared to February.
Citizenship numbers remain stable.
Slide 3 has the overall numbers and change.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Understanding the Challenges of Street ChildrenSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
ZGB - The Role of Generative AI in Government transformation.pdfSaeed Al Dhaheri
This keynote was presented during the the 7th edition of the UAE Hackathon 2024. It highlights the role of AI and Generative AI in addressing government transformation to achieve zero government bureaucracy
What is the point of small housing associations.pptxPaul Smith
Given the small scale of housing associations and their relative high cost per home what is the point of them and how do we justify their continued existance
Presentation by Jared Jageler, David Adler, Noelia Duchovny, and Evan Herrnstadt, analysts in CBO’s Microeconomic Studies and Health Analysis Divisions, at the Association of Environmental and Resource Economists Summer Conference.
Contract Farming as an Inclusive Business Model for African Smallholder Farmers
1. Page 1
GIZ Bonn, 10th of July 2018
Sector Project ‘Agricultural Trade and Value Chains’
Heike Höffler, GIZ, Germany – heike.hoeffler@giz.de
Katharina Schlemper, GIZ, Germany – katharina.schlemper@giz.de
Sector Project ‘Agricultural Policies and Food Security’
Ousmane Djibo, GIZ, Germany – ousmane.djibo@giz.de
Petra Windisch-Stumpf, GIZ, Germany – petra.windisch@giz.de
Expert Talk
‘Contract farming as inclusive business model
for African smallholder farmers:
Results from recent stocktaking’
2. Page 2
Programme
Part I Presentation of learnings from stocktaking on contract farming (report 2018)
13:00 – 13:10 Word of Welcome Gerd Fleischer
Heike Hoeffler
13:10 – 14:15 ‘Promoting Contract Farming (CF) as inclusive business model:
Way forward for scaling up’
Contract Farming in selected partner countries - Experiences and
need for support
• ‘Good practices and experiences in Contract Farming in
Tunisia’, Initiative for Agricultural Value Chains (IFPA), GIZ Tunisia
• ‘Promoting Inclusive Contract Farming in Malawi: experiences
from technical cooperation – consolidating and scaling up
support’, More Income and Employment in Rural Areas of Malawi
(KULIMA MIERA), GIZ Malawi
Margret Will
Katharina Schlemper
Dr. Martin Baumgart
Neil Fourati
Paul Cronjaeger
Part II What next? Scaling-up contract farming
14.15 – 15:00 Open discussion to identify:
Scaling-up: Opportunities and challenges
Next steps
Wrap-up
Katharina Schlemper
Carolin Voigt
3. Page 3
Contract farming as inclusive business model for
African smallholder farmers:
Way forward for scaling up
Bonn, 10th of July 2018
Margret Will, Katharina Schlemper and Dr. Martin Baumgart
4. Page 4
Introduction to the GIZ methodology for promoting
Contract Farming as inclusive business model
5. Page 5
Success factors:
economic &
social incentives
‘win-win’ for
farmers & buyer
TRUST
Frequent risks of failure:
Contract default:
side-buying/side-selling
Weak CF business
decision-making
Underrating of
investment needs
Weak CF management
high transaction costs
Lack of proximity/
embedded services
Low farm productivity/
trade-off w/subsistence
Unfavourable
framework conditions
Top-down support, etc.
Required capacities &
change of attitudes:
CF as inclusive business
model at the interface
between smallholders
and off-taker
Modernisation/
professionalisation of
smallholder agriculture
Upgrading of services
for farmers and SMEs
(inputs, advice, finance)
Improvement of
framework conditions
(particularly infrastruc-
ture and laws, policies)
You survive
– I survive*
*citation: off-taker sugar industry, field visit, Thailand, 03/2014
Contract farming (CF) reality
and the need for change
6. Page 6
Business model of the buyer
(trader or processor)
CF is a business model
at the farm supply-firm procurement interface
linking the buyer’s strategy with the suppliers’ farming systems
Farming systems of producers
or business model
of producer organisations
CF = INTERFACE:
producer supplies
----
firm procurement
GIZ approach for promoting CF as inclusive business model
CF business model = joint business with
INTERDEPENDENCY of farmers and buyers,
and MUTUALISATION of resources and risks
producer supplies
buyer procurement
embedded services of
the buyer to producers
M. Will (2017)
7. Page 7
Promoting CF as an inclusive business model
can contribute to nine out of the seventeen SDGs
If well-designed and well-managed,
CF can contribute to achieving the
following Sustainable Development Goals
(SDG):
SDG 1: no poverty
SDG 2: zero hunger
SDG 5: gender equality
SDG 8: decent work and economic growth
SDG 9: industry, innovation & infrastructure
SDG 12: respons. consumption & production
SDG 13: climate action
SDG 15: life on land
SDG 17: partnerships for the goals
9. Page 99/15
Who has done what so far using the GIZ CF product
Draft concept for scaling-up developed mid-2017, now to be finalised using the results
of:
Survey of the
engagement and interest in promoting CF in the near future (presented mid-2017):
Questionnaire answered by 37 bilateral, regional, global GIZ projects/ programmes
(23 Africa, 12 Asia, 2 South East Europe)
Stocktaking of the
experiences in using the GIZ approach (presented today):
In-depth surveys in Ghana, Kenya, Benin and Tunisia
At GIZ headquarters:
Sector Project Agricultural Policy and Food Security,
Sector Project Agricultural Trade and Value Chains,
in close collaboration with SNRD Agribusiness and Inclusive Value Chain Development (ABIVCD)
In partner countries (mainly in francophone and anglophone Africa and North Africa):
GIZ departments involved: Rural Devmt/ Agriculture and Economic Devmt/ Employment
Diverse project types: bilateral programmes, regional projects, GIAE, develoPPP, ATVET, etc.
Some 40 trainings of practitioners, trainers and consultants/ coaches realised
Consultancies/ coaching of CF business models ongoing in several countries
10. Page 10
Results in brief (1)
Challenges in promoting CF as inclusive business model
Opportunities for promoting CF as inclusive business model
If well planned and well managed, CF can be a suitable business concept amongst other
inclusive business models for furthering rural economic development.
Dealing with CF complexity:
CF is less about the contract but about complex CF business models.
Meeting indicators:
CF risks to fail when over-loading smallholders and MSMEs with high expectations.
Grasping the GIZ methodology:
Staff/ consultants often have difficulties to understand the business side of CF.
Developing required capacities:
Capacities need to be developed at all levels (staff, consultants, farmers, FBOs, buyers).
11. Page 11
Survey results mid-2017
Demand for trainings Basic trainings: about 1,500 persons
Training of Trainers/ Consultants: about 250 persons
Support required:
topics
specific CF topics (e.g. CF business model, management, financing)
documentation of success and failure stories
sharing of good practices and scalable practices
compilation of methods, new tools, materials, country-specific cases
etc.
Support required:
modes of delivery
question-answer services and backstopping
linking with experts and/ or funding opportunities
management of expert pools
regular information (e.g. newsletters, webinars, virtual exchange)
organisation of joint trainings, refresher courses, study tours
etc.
Results in brief (2)
12. Page 1212/15
Results in brief (3)
Action points for programmes/ projects in partner countries
Develop capacities of GIZ/ partner staff for planning/ supervising CF projects
Establish a pool of national and/ or regional trainers and consultants/ coaches
Combine CF with other GIZ products (FBS, FBO, SME Loop, etc.)
Support national/ regional expert networks for peer learning
Collaborate with other organisations/ donor programmes interested in GIZ CF product
Action points for the Sector Projects
Support the establishment of a pool of international experts
Facilitate the revision of existing/ development of new materials
Support programmes/ projects in developing concepts for inclusive CF
Backstopping of projects/ programmes in implementing CF projects
Development of an active Community of Practice on CF (CoP CF)
Recommendations for GIZ
13. Page 13
Sensitisation of projects and
partner organisations
Dissemination of the
stocktaking report and fact sheets
Relaunch of the
Community of Practice on CF (CoP CF)
Pool of international/ regional master
coaches/ consultants
Training of trainers and consultants (ToTC)
for international experts
(ToTC I and ToTC II in Germany)
Trainings of regional master trainers/ coaches
(one ToTC cycle in francophone Africa
and one in Anglophone Africa)
Source: Norell et Brand, 2013
13/15
Brief outlook – next steps
15. Page 15
Good practices in promoting
Contract Farming
Experiences from Tunisia
Neil Fourati, July 2018
Initiative for the Promotion of Agricultural Value Chains (IPFA)
16. Page 16
12 pilot projects identified by local committees.
The projects are mainly led by farmer organisations with the
legal forms of:
SMSA = Mutual Society for Agricultural Services
or
GDA = Group for Agricultural Development
Advice and support on investment promotion and
sustainable business model development.
Support the implementation of concrete business models
through pilot projects.
Scaling up of successful approaches.
IPFA objective:
Promote the development of sustainable & inclusive business models between
farmer organisations and processing SMEs through adapted advisory services.
IPFA technical
assistance focusing
on three axes
17. Page 17
IPFA’s approach for promoting the development of
sustainable & inclusive business models
Actual
Business
model
Upgraded
Business
Model
ready for
funding
Funding of
Business
Model
Sustainable
Business
Model
18. Page 18
Challenges vs Contract Farming (CF) requirements
Approaches required for
promoting inclusive CF
Specific challenges
in view of IPFA’s objectives
Most of the pilot projects are led by
farmer organisations without business
skills and established markets
Several SMSA/ GDA have only been
formed recently and do not have trust-
based and proven relations with their
members or with purchasing companies
Different types of business models
required for specific needs of local value
chains
No local know how about CF among
farmer organisations, SME and service
providers
Like value chain development, CF
development has to start from the
market side, not the production side.
The selection of producers for CF
therefore always has to be based on
procurement needs and supply chain
management cost-efficiency of buyers.
CF needs locally available good
advisory and financial services.
CF needs a good business/ investment
climate.
And a climate of trust is the most
important factor for the success of CF.
19. Page 19
1. Assessment phase
Activities:
Assess CF partners capacity devmt & service needs
Quick analysis of local value chain
Economic, environmental and social assessment
Development of initial CF business model and
CF management system
GIZ-tools used:
Rapid CF scheme assessment
Inventory of preconditions for CF // Value
chain mapping (ValueLinks) // CF risk profile
Business Model Canvas
SME diagnostics method
2. Business Model development phase
Activities:
Evaluation of economic, environmental and social
impacts and decision “to Go or Not to go on”
Exchange with stakeholders on how to improve their
situation and to upgrade the actual Business Model
Develop a risk management system, cost-benefit
analysis, elaboration of business/ investment plan
GIZ-tools used:
Risk management
Introduction to negotiation & contracting
Developing and negotiating pricing formulas
Strategic development plan and
business/ investment plan
3. Pilot project implementation phase
Strategic consulting for the set up and operation of
the pilot CF Business Models
Support for obtaining funding (credit, grant)
GIZ-tools used:
Principles for CF facilitation
CF management, capacity development, etc.
IPFA’s approach for coaching the pilot projects
20. Page 20
Ministry of
Agriculture
Farmers
in different areas
Technical
support
credit
Advance
payment
Export of
dried tomato
in bulk
Factory
in Italy
Technical and
financial support
Sales/off-take
commitment according
to quality requirements
GIZ IPFA
subsidy
SME
ElWafa
21. Page 21
service delivery
financial support
CoordinationGDA
Oil mill
Oil conditioning
unit
Financial
support
OrganicoliveOrganicoil
inbulk
22. Page 22
Own and subcontracted aggregation centres in 5 production zones
Farmers
One of the
world’s
leading
exporters of
dates
CF zonal supervisors and coordinators (VACPA staff)
GDAs
23. Page 23
Subcontracting
aggregators
Purchasecommitment
XQuantityofsorteddates
Commitment of purchase and technical support
CF contract ( VACPA/ Farmers)
Exclusive sales commitment for VACPA
via aggregation centre X via GDA
Technical and financial support, etc.
Organismes financiers
Sales commitment to sale dates according to quality
standards like Organic, FairTrade, Global GAP, …
Complytoquality
requirements
Technicalsupport
GDAs
Aggregation
centres
24. Page 24
Good practices:
Business-oriented approach and customized GIZ-tools to develop CF Business Models
adapted to the specific needs of different types of operators.
Integration of financial service providers and non-financial providers (as needed) from the
beginning of process.
Criteria for the selection of beneficiaries well developed and applied.
Given the role of farmers and agribusiness SME’s in CF, coaching of CF business model
development requires a tandem approach involving one agricultural expert and one SME
expert, both with knowledge about CF as an inclusive business model.
Lessons learnt:
A wide range of Business Models are possible. The most successful are :
Promoting existing market linkages between farmers/ GDA or SMSA and SMEs.
Promoting emerging SMEs aiming to extend activities involving farmers/ GDA or SMSA.
Since each case is specific, CF Business Models are not replicable and every case has to
be well analysed to develop appropriate solutions assuring a win-win situation for farmers
and SMEs.
25. Page 25
Need to sensitise farmer organisations about the objectives and potential
benefits of CF and the process of CF business model development before
starting coaching.
Improve capacity building of farmers in areas such as agri-business, risk
management and contract negotiation and organisational development of their
groups in areas such as management of farmer organisations as a business.
Selection of farmers and farmer groups within a CF development process
should be oriented by the procurement needs and management capacities of
the SME and should not be done by CF advisors or public partners.
Setting up an inclusive CF Business Model is a medium-term project since it
usually requires sufficient time and resources to become economically viable
and financially self-sustaining.
26. Page 26Contract Farming Promotion in Malawi05/09/2018
Implemented by
Promoting Inclusive Contract Farming in Malawi
experiences from technical cooperation –
consolidating and scaling up support
Expert Talk: Contract farming as inclusive business model for African smallholder
farmers: results from recent stocktaking
KULIMA More Income and Employment in Rural Areas of Malawi
Paul Cronjaeger, Advisor
10th July 2018
GIZ, Bonn
27. Page 27
Overview
Contract Farming Promotion in Malawi05.09.2018
Background to Malawi
Contract Farming in Malawi
GIZ support to promote Contract Farming as an
Inclusive Business Model (IBM)
Lessons learnt and good practices:
The example of two contract farming business
models operated by Exagris
Way forward:
The Inclusive Business (IB) Advisory Facility
28. Page 28
Malawi
Contract Farming Promotion in Malawi05.09.2018
~18m population, landlocked, presidential
democracy, one of the poorest countries in
the world (170th out of 188 in the HDI)
Most important export goods and forex
earners: tobacco (60%), tea (6%),
sugarcane (6%)
~80% of the population are smallholder
farmers relying mostly on subsistence
farming
Typical smallholder crops are maize,
cassava, beans, groundnuts, soya,
irish/sweet potato, tobacco
29. Page 29
Contract Farming (CF) in Malawi
Contract Farming Promotion in Malawi05.09.2018
Long established schemes exist:
Export oriented crops: Tobacco,
sugarcane, tea, (cotton)
Small and medium-scale enterprises
(SME): largely informal CF
„Closed“/ structured markets with
fewer big (international) players
Medium farmers targeted rather than
small farmers
Input packages include inputs for
food crops
High prevalence of child labour
30. Page 30
KULIMA More Income and Employment in Rural
Areas (MIERA)
Contract Farming Promotion in Malawi05.09.2018
MF
Domestic
Market
SF
SF
SF
Export
Markets
Service
Providers
(Commodity
Exchanges)
Farmer
Organisation
(club, association,
cooperative)
1) Inclusive
Business Models
3) Strengthening
farmer organisations
and MSME
Agro-industrial
Company
(value addition,
marketing)
MSME
Warehouses
Anchor Farm/
Nucleus Estate
2) Strengthening
service provision
Value chain integration of the target groups departing from market opportunities and
private sector interests promotion of Inclusive Business Models
31. Page 31
VC Cooperation GIAE MIERA Instrument Mix
Contract Farming Promotion in Malawi05.09.2018
Inputs Production
Aggregation/
Trading
Processing Retail
GAP
Innovations
FBS
FO
Cycle
Stakeholder
Dialogue
ToT
DA
IE
STE
LTEHCD
MIERA VC: Cassava, Soya, Groundnuts, Sunflower, Chilli/Paprika, Macadamia, Rice
GIAE VC: Cassava, Soya, Groundnuts
MSME
Loop
Support to
IBM
32. Page 32
Example: two CF schemes of Exagris Africa
(groundnuts, chilli and paprika)
Contract Farming Promotion in Malawi05.09.2018
Inputs Production
Aggregation/
Trading
Processing Retail
Integrated
Expert
FBS
FO Cycle
Aflatoxin Management
Inoculant
STE:
Outgrower
Strategy 1
IDPP
GIZ CF Training
and Assessment
LTE:
Outgrower
Strategy 2
CF Manual tools:
Business Model
Canvas, CF
costing tool
GAP
Corporate
Social
Responsi-
bility (CSR)
activities
33. Page 33Contract Farming Promotion in Malawi05.09.2018
The example of two CF business models operated by Exagris
Exagris CSR CF scheme (outgrower) Exagris CF scheme
Objectives Quality assurance products (Aflatoxin)
CSR to integrate close-by communities
as source of labour, for security reasons
Improving quality assurance products
Increasing volumes
Reducing transaction costs
CF business model Nucleus estate (80:20) and intermediary Intermediary
No. of farmers 25,000 (organised in farmer groups) No. fluctuating due to weak bonding
Exagris CF staff 2 CF managemt, 13 Community Dvmt Off. 2 CF management
Techn.assist. (TA) Support by 5 TA projects (incl. develoPPP) Exagris own funds/ financing thru banks
Challenges Side selling by farmers and side-buying by the off-taker are the greatest risks
High capacity development needs on producer and buyer levels
Short project timeframes vs. time needed to develop capacities of farmers & buyer
Focus on TA/ human capacity development neglects financing needs of CF schemes
Bottom of the pyramid farmers can only be reached if sufficient TA/ FA available
Recommendations Learn from the CSR CF scheme to re-organise the Exagris CF scheme:
Analyse risks and develop a CF business model integrating CF risk management
Develop solutions for pre-financing that do not put excessive burden on off-taker
Develop a system for selecting farmers & graduation for more embedded services
Develop a CF management system ensuring proximity of the off-taker to farmers
34. Page 34
Further challenges of CF promotion in Malawi
Contract Farming Promotion in Malawi05.09.2018
Structuring the partnerships/ format of cooperation:
Time-consuming process to discuss/ formalise partner contributions:
IDPP the right format to work with smaller private sector (PS) partners?
Ensuring partner contributions, avoiding crowding out/ market distortions
Which PS partners and which approaches for:
achieving commitment?
scaling up (to avoid crowding out and market distortions)?
Does contract farming make sense in open / food VC like groundnuts?
In general, only when an integrated approach is applied (from seed
multiplication, estate productions to processing and retailing) and an
appropriate CF business model is chosen.
But, it also depends on the situation of every single case (e.g. interdepen-
dencies of farmers and off-takers, competition on the ground, competitive-
ness with e.g. imports) there is no blue-print!
35. Page 35
Long-Term Consultancy
Way forward in Malawi
Contract Farming Promotion in Malawi05.09.2018
Stock-taking exercise locally and regionally:
What has worked (good practices in CF and CF promotion)?
What are preconditions for CF and CF support to reach scale and impact?
2nd stakeholder workshop on Inclusive Contract Farming (September 2018)
Concept development and piloting (2018-2019): MIERA IB Advisory Facility
Knowledge sharing and management platform and service provider
Offer of quick, yet tailored advisory support
Short-term to long-term support possible
CF financing support?
Link to/ cooperation with GIZ CF Approach and other work streams that
work on similar topics:
Link to the Inclusive Business Actions Network/ Sector Projects (Nawi)
Link to the Contract Farming Community of Practice (CoP CF)
Link to (agri-)finance projects (GV AGfin)? KFW? Impact Investment
CF up-scaling strategy training of local IB Advisory Facility staff?
Contribution to the establishment of a pool of regional experts
36. Page 36
Thank you! Zikomo Kwambiri! Vielen Dank!
Contract Farming Promotion in Malawi05.09.2018
Editor's Notes
In the North and center west of Tunisia which is an agricultural region but without enough added value in food processing
step to reach the goal
technical tools used by IPFA
A young entrepreneur in Jandouba start’s a project to export dried tomatoes with an investment of 47 k€ and a FC with two local farmers on 1,5 ha.
Contractred farmers with the SMES increased from 2 (2013), 6 (2016) to 16 ( 2017) up to 26 (2018)
Centralized model , Wafa SARL give farmers technical and financial support along Tomates season
In 2018, The companies is starting a new investment of 200 k€ to produce 300 Tones of dried tomatoes (X 3) and signed FC with 26 farmers to exploit 50 Ha
A young entrepreneur in Jandouba start’s a project to export dried tomatoes with an investment of 47 k€ and a FC with two local farmers on 1,5 ha.
Contractred farmers with the SMES increased from 2 (2013), 6 (2016) to 16 ( 2017) up to 26 (2018)
Centralized model , Wafa SARL give farmers technical and financial support along Tomates season
In 2018, The companies is starting a new investment of 200 k€ to produce 300 Tones of dried tomatoes (X 3) and signed FC with 26 farmers to exploit 50 Ha
The advisory Mission was done in 9 menths
Add slide on MIERA?
INFO on EXAGRIS: Established in 2008, Exagris Africa Ltd. is one of the largest cropping and livestock businesses in Malawi, committed to the development of a multi-generational business that makes a meaningful difference to people and the environment.
Exagris farms around 7,000 hectares on 14 estates, and specializes in seed production, export crops and agro-processing. 12 estates are fully operational cultivating on a cumulative 3,300 hectares out of the total 6,000 hectares. The farms are located in Mangochi, Salima, Lilongwe, Mchinji, Mzimba and Rumphi. A dynamic outgrower programme focuses on paprika, chillies and groundnuts. This involves around 15,000 smallholders from all three regions across Malawi.
Furthermore, Exagris has invested in a peanut processing and export business called AfriNut and has a shareholding in Valid Nutrition, which further strengthens its presence in the groundnut value chain.
Exagris´ mission statement is explicit on its intentions towards working with smallholder communities: ‘To be leaders in sustainable and innovative agriculture in Malawi and provide opportunities for farming communities’. This in turn is reflected further in its ‘triple bottom line’ based company strategy: Exagris seeks to find ways of engaging successfully with farming communities, and a wide range of stakeholders, to promote economic and social growth.
Exagris, through its Development Services Unit (DSU) and outgrower programme is currently working with a total of 15,000 smallholder farmers and is geared to increase to 25,000 by 2020. The three crops promoted under its outgrower programme are groundnuts, birds’ eye chilies and paprika. Through this programme the smallholder farmers are encouraged to engage in market based agriculture. However, through the Development Services Unit the smallholder farmers are supported to engage in overall participatory community development including cultivation of food security crops that the company does not buy. In this regard the smallholder farmers are taken through the entire value chain of those crops from production through processing and marketing. As a way of training the smallholder farmers in Good Agricultural Practices (GAP), the smallholder farmers are trained through demonstrations plots and also beyond the demonstrations. On each of the farms a total of 5 hectares are allocated to the smallholder farmers for their training. The produce realized from these 5 hectares is shared by the smallholder farmers to be used for seed in their own farms in the subsequent season. More demonstrations are also established in the Lead Farmers fields in the community. Short training sessions and field days are organized at different stages of the season to impart specific skills to the smallholder farmers. Exagris is mainly using the lead-farmer approach in its extension services. Buying is mainly done from individuals which currently incurs high transaction costs for small amounts of produce. Working with better organised, well-managed groups could increase efficiency and reduce these costs. Through stronger relationships with contracted farmers and more targeted extension services, quality and efficiency of buying of groundnuts and paprika / chilies could still be improved and in turn improve the income situation of the farmers.